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 811-6548
---------------------
Nuveen 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, 2006
------------------
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, 2006
Nuveen Investments
Municipal 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
Photo of: Woman and man at the beach.
Photo of: A child.
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
Photo of: Woman
Photo of: Woman
Photo of: Man and child
NOW YOU CAN RECEIVE YOUR
NUVEEN FUND REPORTS FASTER.
NO MORE WAITING.
SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL.
It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive
an e-mail as soon as your Nuveen Investments Fund information is ready -- no
more waiting for delivery by regular mail. Just click on the link within the
e-mail to see the report, and save it on your computer if you wish.
------------------------------
DELIVERY DIRECT TO
YOUR E-MAIL INBOX
------------------------------
IT'S FAST, EASY & FREE:
WWW.INVESTORDELIVERY.COM
if you get your Nuveen Fund dividends
and statements from your financial
advisor or brokerage account.
OR
WWW.NUVEEN.COM/ACCOUNTACCESS
if you get your Nuveen Fund dividends
and statements directly from Nuveen.
(Be sure to have the address sheet that accompanied this report handy. You'll
need it to complete the enrollment process.)
Logo: NUVEEN Investments
Photo: 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 attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Managers' Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
For some time, I've used these letters to remind you that municipal bonds can be
an important building block in a well balanced investment portfolio. In addition
to providing attractive tax-free monthly income, a municipal bond investment
like your Fund may help you achieve and benefit from greater portfolio
diversification. Portfolio diversification is a recognized way to try to reduce
some of the risk that comes with investing. For more information about this
important investment strategy, I encourage you to contact your personal
financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you receive
your shareholder reports and other Fund information. As an alternative to mailed
copies, you can sign up to receive future Fund reports and other Fund
information by e-mail and the Internet. The inside front cover of this report
contains information on how you can sign up.
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. 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.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 16, 2006
Nuveen Investments Select Tax-Free Income Portfolios
(NXP, NXQ, NXR, NXC, NXN)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding, Scott Romans, and Cathryn Steeves discuss key
investment strategies and the six-month performance of the Nuveen Select
Portfolios. With 31 years of investment experience, Tom has managed the three
national Portfolios since 1999. Scott, who joined Nuveen in 2000, has managed
NXC since 2003, while Cathryn, who has been with Nuveen since 1996, assumed
portfolio management responsibility for NXN in July 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE
SIX-MONTH REPORTING PERIOD ENDED SEPTEMBER 30, 2006?
During this reporting period, we saw interest rates at the short end of the
yield curve continue to rise, while rates across the rest of the curve generally
declined. At its May and June 2006 meetings, the Federal Reserve's Open Market
Committee announced two additional quarter-point increases in the fed funds
rate, raising this short-term target from 4.75% to 5.25%, its highest level
since March 2001. At the subsequent August and September sessions, the committee
left monetary policy unchanged, marking the first pause in rate increases in
more than two years. In contrast, during this same six-month period, the yield
on the benchmark 10-year U.S. Treasury note fell 22 basis points to end
September 2006 at 4.63%. In the municipal market, the yield on the Bond Buyer 25
Revenue Bond Index, a widely followed measure of longer-term municipal market
rates, stood at 4.77% at the end of September 2006, a decline of 37 basis points
from the end of March 2006. As short-term rates approached and exceeded the
levels of long-term rates, the yield curve continued to flatten and then invert,
and bonds with longer durations1 generally outperformed those with shorter
durations.
As the yield curve became increasingly flat, our focus remained on a disciplined
approach to duration management and yield curve positioning. Depending on the
varying needs of the Portfolios, our purchase activity during this period
emphasized mainly attractively structured, premium coupon2 bonds maturing in 20
to 30 years in the national Portfolios, 20 to 25 years in NXC, and 15 to 25
years in NXN. Overall, we believed that the bonds we purchased during this
period offered strong performance potential, good value, and attractive reward
opportunities without excessive risk.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 Premium coupon bonds are credits that, at the time of purchase, are trading
above their par values because their coupons are higher than current coupon
levels. Historically, these bonds have held their value better than current
coupon bonds when interest rates rise.
4
In looking for potential additions to the Portfolios, we kept an opportunistic
eye toward all types of issuance that we believed could add value. During this
six-month period, new municipal bond supply nationwide totaled $199.9 billion,
down 6% from that of April-September 2005. This was part of a larger trend
toward declining issuance in 2006, as record levels of new paper in calendar
year 2005 were followed by a 16% drop in supply during the first nine months of
2006 compared with the first nine months of 2005. The major factor in 2006's
decline was a sharp reduction in pre-refunding volume, which was off more than
54% from last year's levels. In California, municipal issuance for the six
months ended September 30, 2006, totaled $25.7 billion, a decrease of 15% from
the same period in 2005, while New York saw $18.1 in new supply, down 20% from
April-September 2005. Despite the decline in issuance, California and New York
continued to rank as the largest state issuers in the nation for this period.
Overall, the reduction in supply did not have a major impact on the
implementation of strategies we had planned for these Portfolios.
In light of tighter municipal supply, the national Portfolios generally looked
to states with stronger issuance, including California, New York, Texas,
Florida, and Illinois, when searching for potential purchases. We also found
selected opportunities in states such as Nebraska and Kansas to purchase
healthcare bonds. Overall, these Portfolios remained well diversified
geographically. During the early part of this reporting period, we were still
finding value in lower-rated issues despite narrowing credit spreads. Toward the
end of the period, however, spreads had become so tight that we decided that
higher quality bonds, including insured credits, represented better long-term
value for these Portfolios. In general, new purchases were funded with proceeds
from called housing and pre-refunded bonds rather than proceeds realized through
active selling of the Portfolios' older, higher-yielding holdings. If sold,
these holdings would have to be replaced with bonds currently available in the
market, which generally offered lower yields.
5
During this period, we continued to work on building both NXC and NXN's exposure
to bonds rated BBB or lower and nonrated bonds. However, tighter supply and
narrowing credit spreads (the difference between the yield of lower-quality
bonds and the lower yields of higher-quality bonds) generally meant that we
found fewer attractively structured lower-rated credit opportunities. In NXC, we
also diversified our exposure to the lower end of the credit spectrum by selling
BBB+ bonds issued for Daughters of Charity Health System and buying A+ rated
bonds issued by the California Statewide Community Development Authority for the
Kaiser Permanente System, which we believed offered better value relative to
their fundamental credit quality.
As in the national Portfolios, we also took advantage of opportunities to
purchase higher-quality securities. Additions to NXN during this period included
insured bonds issued by New York City Industrial Development Agency to finance
new stadiums for the New York Yankees and Mets as well as insured hospital
credits.
To help us maintain NXC's and NXN's durations within our preferred strategic
range, we selectively sold holdings with shorter durations. These sales also
helped us to fund new purchases in these two Portfolios, which had minimal call
proceeds to reinvest during this period. In NXC, we also found some
opportunities to sell a few of our holdings that were purchased when yields were
lower and replace them with similar, newer credits that yielded more. This
process allowed us to maintain the Portfolio's current characteristics while
strengthening its income stream at the individual position level.
6
HOW DID THE PORTFOLIOS PERFORM?
Individual results for the Nuveen Select Portfolios, as well as for relevant
indexes and peer groups, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 9/30/06
NATIONAL PORTFOLIOS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NXP 3.35% 4.78% 5.34% 5.61%
--------------------------------------------------------------------------------
NXQ 3.43% 5.28% 5.16% 5.47%
--------------------------------------------------------------------------------
NXR 3.48% 5.18% 5.16% 5.60%
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index3 3.44% 4.45% 5.17% 5.90%
--------------------------------------------------------------------------------
Lipper General and
Insured Unleveraged
Municipal Debt Funds
Average4 3.80% 5.12% 5.12% 5.45%
--------------------------------------------------------------------------------
CALIFORNIA PORTFOLIO
--------------------------------------------------------------------------------
NXC 3.74% 5.26% 5.26% 5.53%
--------------------------------------------------------------------------------
Lehman Brothers CA
Tax-Exempt
Bond Index3 3.48% 4.61% 5.24% 6.04%
--------------------------------------------------------------------------------
Lipper CA
Municipal Debt Funds
Average4 4.31% 6.19% 6.63% 6.54%
--------------------------------------------------------------------------------
NEW YORK PORTFOLIO
--------------------------------------------------------------------------------
NXN 3.47% 4.64% 4.99% 5.30%
--------------------------------------------------------------------------------
Lehman Brothers NY
Tax-Exempt
Bond Index3 3.31% 4.38% 5.11% 5.97%
--------------------------------------------------------------------------------
Lipper NY
Municipal Debt Funds
Average4 4.16% 5.89% 6.74% 6.32%
--------------------------------------------------------------------------------
* 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 Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Portfolio in this report.
3 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.
4 Each of the Lipper Municipal Debt Funds averages shown in this report are
calculated using the returns of all closed-end funds in their respective
categories for each period as follows: Lipper General and Insured
Unleveraged category, 6 months, 8; 1 year, 8; 5 years, 8; and 10 years, 8;
Lipper California category, 6 months, 26; 1 year, 26; 5 years, 16; and 10
years, 13; and Lipper New York category, 6 months, 20; 1 year, 20; 5 years,
10; and 10 years, 7. Portfolio and Lipper returns assume reinvestment of
dividends. The Lipper CAand NY Municipal Debt Funds peer groups are
comprised predominantely of leveraged funds.
7
For the six months ended September 30, 2006, the cumulative returns on net asset
value (NAV) for NXP, NXQ, and NXR performed in line with the return on the
Lehman Brothers Municipal Bond Index, while NXC and NXN exceeded the returns on
the Lehman Brothers Tax-Exempt Bond Indexes for California and New York,
respectively. The three national Portfolios underperformed the Lipper General
and Insured Unleveraged peer group for this period, and NXC and NXN lagged 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
were due in part to the fact that, unlike NXC and NXN, the majority of the funds
that make up these groups are leveraged. This strategy provides opportunities
for enhanced returns accompanied by additional risk exposure.
During this reporting period, the returns on the Select Portfolios were
influenced by market factors, especially the decline in interest rates at the
long end of the yield curve, as well as fund-specific factors, including yield
curve and duration positioning, allocations to lower-rated credits, sector
allocation, and security-specific characteristics such as advance refundings.5
As longer rates declined and the yield curve flattened over the course of this
period, yield curve and duration positioning played an important role in the
performance of these Portfolios. Overall, bonds in the Lehman Brothers Municipal
Bond Index with maturities of less than eight years, especially those maturing
in one to two years, were the most adversely impacted by changes in the interest
rate environment over this period. As a result, these bonds generally
underperformed bonds with longer durations, with issues having the longest
maturities (22 years and longer) achieving the best returns for the period. On
the whole, the national Portfolios--NXP, NXQ, and NXR--had relatively heavier
exposures to the shorter end of the yield curve, particularly in short
pre-refunded bonds, which hindered them from participating fully in the rally at
the longer end of the curve as longer-term rates declined. While NXN was also
underexposed to the longest part of the curve that performed well, this
Portfolio held relatively fewer short bonds and a good allocation of
intermediate bonds. This overall positioning benefited NXN's performance.
5 Advance refundings, also known as pre-refundings or refinancings, 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.
8
With bonds rated BBB or lower and nonrated bonds generally outperforming higher
credit quality bonds during this period, the Portfolios also benefited from
their allocations of lower-quality credits. The performance of this sector was
largely the result of investor demand for the higher yields typically associated
with lower-quality bonds, which drove up their value and caused credit spreads
to tighten. As of September 30, 2006, bonds rated BBB or lower and nonrated
bonds accounted for 9% of NXR's portfolio, 10% of NXP's and NXC's portfolios,
and 11% of NXQ. NXN's relatively lighter exposure to lower-rated credits (6%)
meant that this Portfolio's performance did not benefit to the same extent as
the other Portfolios.
Among the lower-rated holdings making contributions to the Portfolios' returns
for this period were healthcare (including hospitals), industrial development
bonds, and tobacco credits. At period end, the national Portfolios each held
approximately 5% of their portfolios in bonds backed by the 1998 master tobacco
settlement agreement, while NXC and NXN had each allocated approximately 2% to
these credits.
In addition, NXP, NXQ, NXR, and NXC all had heavy weightings of zero coupon
bonds, which were among the top performing credits during this period due to
their very long durations. NXC also benefited from its holdings of noncallable
bonds. We also continued to see positive contributions from advance refunding
activity in NXC and NXN, which benefited these Portfolios through price
appreciation and enhanced credit quality. Approximately 8% of NXC's portfolio
was advance-refunded during this period, including a $2.6 million position in
bonds issued for the University of the Pacific, while NXN had 5% of its
portfolio pre-refunded.
While advance refundings generally enhanced performance for this six-month
period, the Portfolios' holdings of older, previously pre-refunded bonds tended
to underperform the general municipal market, due primarily to their shorter
effective maturities. This was especially true in NXP, which had the largest
allocation of pre-refunded bonds among the three national Portfolios. The
general underperformance of shorter maturity bonds also
9
meant that the Portfolios' holdings of short call bonds and bonds that are
currently callable did not perform well during this period.
HOW WERE THE PORTFOLIOS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS
OF SEPTEMBER 30, 2006?
Maintaining strong credit quality remained an important requirement for the
Portfolios. As of September 30, 2006, these five Portfolios continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 72% in NXC, 74% in NXR, 75% in NXP, and 78% in NXQ to 92% in
NXN.
As of September 30, 2006, potential call exposure for these Portfolios for the
period October 2006 through the end of 2008 ranged from 5% in NXR, NXC, and NXN
to 9% in NXQ and 10% in NXP. The number of actual bond calls will depend largely
on future market interest rates.
10
Dividend and Share Price
INFORMATION
During the six-month reporting period ended September 30, 2006, the dividends of
all five of the Select Portfolios remained stable.
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, 2006, NXP had a positive UNII balance for
financial statement purposes and a positive UNII balance, based on our best
estimates, for tax purposes. NXQ, NXR, NXC and NXN each had negative UNII
balances for financial purposes and positive UNII balances, based on our best
estimates, for tax purposes.
As of September 30, 2006, the share prices of the Select Portfolios were trading
at discounts to their NAVs as shown in the accompanying chart:
9/30/06 6-MONTH AVERAGE
DISCOUNT DISCOUNT
--------------------------------------------------------------------------------
NXP -3.25% -4.47%
--------------------------------------------------------------------------------
NXQ -7.05% -7.54%
--------------------------------------------------------------------------------
NXR -5.95% -6.79%
--------------------------------------------------------------------------------
NXC -5.41% -6.62%
--------------------------------------------------------------------------------
NXN -5.36% -6.41%
--------------------------------------------------------------------------------
11
Nuveen Select Tax-Free Income Portfolio
NXP
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total municipal bonds)
AAA/U.S. Guaranteed 61%
AA 14%
A 15%
BBB 10%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.057
Nov 0.057
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.
10/01/05 14.55
14.52
14.51
14.469
14.39
14.47
14.49
14.38
14.37
14.25
14.32
14.14
14.22
14.11
14.32
14.13
14.23
14.03
14.02
14
14.16
14.23
14.34
14.25
14.42
14.34
14.32
14.03
13.9
13.8
13.91
13.72
13.81
13.79
13.86
13.9
14.04
14.02
13.86
13.79
13.77
13.9527
14.11
14.1
14.21
14.24
14.36
14.38
14.52
14.5
14.2
14.41
14.27
14.35
14.3
14.38
14.4
14.3
14.64
14.26
14.34
14.22
14.19
14.19
14.1
14.27
14.29
14.4
14.55
14.42
14.21
14.19
14.22
14.29
14.6
14.63
14.61
14.35
14.56
14.41
14.34
14.33
14.45
14.4699
14.4
14.37
14.26
14.47
14.38
14.45
14.34
14.39
14.22
14.19
14.22
14.19
14.24
14.3
14.4
14.22
14.35
14.37
14.41
14.41
14.52
14.42
14.25
14.27
14.27
14.39
14.39
14.41
14.4
14.44
14.47
14.45
14.39
14.34
14.37
14.38
14.45
14.36
14.39
14.33
14.29
14.21
14.26
14.34
14.2
14.18
14.021
14.03
13.92
14
13.8
13.68
13.6601
13.66
13.75
13.68
13.82
13.79
13.89
13.87
13.87
13.87
13.63
13.7
13.76
13.8
13.76
13.67
13.76
13.66
13.54
13.62
13.55
13.5
13.56
13.59
13.55
13.61
13.71
13.74
13.73
13.66
13.67
13.78
13.89
13.93
13.89
13.9
13.87
13.92
13.89
13.92
13.9
13.84
13.79
13.81
13.82
13.83
13.84
13.7
13.69
13.65
13.55
13.57
13.46
13.62
13.66
13.71
13.7
13.66
13.66
13.65
13.7199
13.64
13.71
13.71
13.6
13.65
13.72
13.85
13.99
14.05
14.04
14.08
14.06
14.02
14.16
14.05
14.05
14.13
14.12
14.09
14.05
14.16
14.09
14
14.09
14.21
14.12
14.1
14.12
14.34
14.21
14.29
14.31
14.45
14.37
14.4
14.39
14.45
14.36
14.22
14.2
14.21
14.23
14.27
14.16
14.14
14.23
14.15
14.23
14.19
14.2
14.2
14.2
14.37
14.37
14.3
14.28
9/30/06 14.28
FUND SNAPSHOT
-------------------------------------
Share Price 14.28
-------------------------------------
Net Asset Value 14.76
-------------------------------------
Premium/(Discount) to NAV -3.25%
-------------------------------------
Market Yield 4.79%
-------------------------------------
Taxable-Equivalent Yield1 6.65%
-------------------------------------
Net Assets ($000) $241,808
-------------------------------------
Average Effective
Maturity on Securities (Years) 14.32
-------------------------------------
Modified Duration 4.81
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/19/92)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
6-Month
(Cumulative) 2.96% 3.35%
-------------------------------------
1-Year 2.98% 4.78%
-------------------------------------
5-Year 5.93% 5.34%
-------------------------------------
10-Year 5.73% 5.61%
-------------------------------------
STATES
(as a % of total municipal bonds)
-------------------------------------
Illinois 14.3%
-------------------------------------
Colorado 12.9%
-------------------------------------
Washington 9.4%
-------------------------------------
Texas 9.3%
-------------------------------------
Indiana 8.4%
-------------------------------------
South Carolina 7.8%
-------------------------------------
Nevada 6.9%
-------------------------------------
California 4.8%
-------------------------------------
Florida 4.4%
-------------------------------------
New Jersey 2.3%
-------------------------------------
Oklahoma 2.2%
-------------------------------------
Michigan 1.7%
-------------------------------------
New Mexico 1.7%
-------------------------------------
Wisconsin 1.7%
-------------------------------------
Mississippi 1.6%
-------------------------------------
Other 10.6%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
Health Care 22.3%
-------------------------------------
U.S. Guaranteed 19.4%
-------------------------------------
Transportation 14.7%
-------------------------------------
Tax Obligation/General 11.9%
-------------------------------------
Tax Obligation/Limited 10.8%
-------------------------------------
Utilities 8.4%
-------------------------------------
Consumer Staples 5.4%
-------------------------------------
Other 7.1%
-------------------------------------
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 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 paid shareholders a capital gains distribution in December 2005 of
$0.0006 per share.
12
Nuveen Select Tax-Free Income Portfolio 2
NXQ
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total municipal bonds)
AAA/U.S. Guaranteed 61%
AA 17%
A 11%
BBB 11%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.055
Nov 0.055
Dec 0.053
Jan 0.053
Feb 0.053
Mar 0.053
Apr 0.053
May 0.053
Jun 0.053
Jul 0.053
Aug 0.053
Sep 0.053
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/01/05 13.58
13.53
13.5301
13.45
13.6
13.53
13.49
13.34
13.29
13.29
13.33
13.31
13.33
13.29
13.42
13.49
13.44
13.2
13.34
13.26
13.47
13.38
13.34
13.32
13.34
13.33
13.42
13.42
13.42
13.4
13.37
13.3
13.37
13.37
13.36
13.43
13.35
13.42
13.35
13.4
13.34
13.37
13.34
13.32
13.32
13.26
13.32
13.34
13.34
13.31
13.14
13.14
13.22
13.27
13.26
13.26
13.21
13.2
13.31
13.29
13.33
13.27
13.33
13.33
13.33
13.38
13.38
13.38
13.39
13.37
13.27
13.25
13.31
13.32
13.32
13.27
13.28
13.28
13.37
13.34
13.31
13.32
13.37
13.41
13.31
13.32
13.34
13.41
13.38
13.41
13.35
13.41
13.39
13.31
13.32
13.32
13.4
13.47
13.44
13.4
13.43
13.37
13.4
13.42
13.38
13.34
13.24
13.22
13.23
13.293
13.3
13.32
13.32
13.27
13.38
13.34
13.37
13.44
13.5
13.46
13.5
13.489
13.49
13.5
13.5
13.37
13.4
13.42
13.35
13.35
13.28
13.29
13.23
13.21
13.14
13.14
13.21
13.17
13.18
13.23
13.23
13.19
13.32
13.37
13.43
13.43
13.4
13.31
13.32
13.31
13.31
13.24
13.26
13.25
13.19
13.21
13.27
13.17
13.17
13.26
13.37
13.16
13.3
13.34
13.32
13.37
13.32
13.4
13.39
13.35
13.33
13.44
13.3
13.3
13.4
13.32
13.25
13.3
13.2
13.24
13.28
13.14
13.25
13.1201
13.19
13.12
13.23
13.15
13.23
13.29
13.16
13.14
13.15
13.18
13.13
13.2
13.14
13.13
13.09
13.13
13.08
13.18
13.14
13.2
13.22
13.22
13.19
13.2
13.24
13.31
13.44
13.37
13.37
13.37
13.32
13.37
13.35
13.38
13.29
13.3
13.37
13.35
13.37
13.45
13.49
13.43
13.39
13.45
13.49
13.56
13.53
13.55
13.45
13.54
13.53
13.4
13.4
13.44
13.57
13.46
13.6299
13.54
13.6
13.47
13.65
13.62
13.55
13.58
13.6
13.69
13.59
13.65
13.58
9/30/06 13.58
FUND SNAPSHOT
-------------------------------------
Share Price 13.58
-------------------------------------
Net Asset Value 14.61
-------------------------------------
Premium/(Discount) to NAV -7.05%
-------------------------------------
Market Yield 4.68%
-------------------------------------
Taxable-Equivalent Yield1 6.50%
-------------------------------------
Net Assets ($000) $257,318
-------------------------------------
Average Effective
Maturity on Securities (Years) 17.19
-------------------------------------
Modified Duration 5.05
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/21/92)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
6-Month
(Cumulative) 4.00% 3.43%
-------------------------------------
1-Year 5.15% 5.28%
-------------------------------------
5-Year 5.20% 5.16%
-------------------------------------
10-Year 5.40% 5.47%
-------------------------------------
STATES
(as a % of total municipal bonds)
-------------------------------------
Illinois 13.2%
-------------------------------------
Texas 13.1%
-------------------------------------
Colorado 9.5%
-------------------------------------
Nevada 7.6%
-------------------------------------
California 7.5%
-------------------------------------
New York 4.8%
-------------------------------------
South Carolina 4.5%
-------------------------------------
Washington 3.6%
-------------------------------------
Massachusetts 3.2%
-------------------------------------
Indiana 3.1%
-------------------------------------
Pennsylvania 2.6%
-------------------------------------
Vermont 2.6%
-------------------------------------
New Mexico 2.5%
-------------------------------------
Florida 2.3%
-------------------------------------
Iowa 2.3%
-------------------------------------
Louisiana 2.1%
-------------------------------------
Rhode Island 2.1%
-------------------------------------
Michigan 2.0%
-------------------------------------
Other 11.4%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
Health Care 21.2%
-------------------------------------
Transportation 15.7%
-------------------------------------
Tax Obligation/Limited 12.6%
-------------------------------------
U.S. Guaranteed 11.4%
-------------------------------------
Tax Obligation/General 8.8%
-------------------------------------
Utilities 7.6%
-------------------------------------
Consumer Staples 5.5%
-------------------------------------
Water and Sewer 4.4%
-------------------------------------
Other 12.8%
-------------------------------------
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 paid shareholders a capital gains distribution in December 2005 of
$0.0148 per share.
13
Nuveen Select Tax-Free Income Portfolio 3
NXR
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total municipal bonds)
AAA/U.S. Guaranteed 51%
AA 23%
A 17%
BBB 9%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0535
Nov 0.0535
Dec 0.0535
Jan 0.0535
Feb 0.0535
Mar 0.0535
Apr 0.0535
May 0.0535
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.
10/01/05 13.32
13.34
13.39
13.26
13.32
13.23
13.34
13.17
13.14
13.16
13.06
13.16
13.17
13.07
13.2
13.15
13.2
13.07
13.02
13.08
13.22
13.24
13.26
13.16
13.31
13.19
13.27
13.27
13.25
13.12
13.04
13.14
13.06
13.09
13.15
13.24
13.18
13.23
13.15
13.28
13.3
13.32
13.1508
13.23
13.24
13.3
13.24
13.27
13.39
13.3
13.2
13.12
13.21
13.27
13.2
13.25
13.2
13.17
13.3
13.28
13.27
13.25
13.31
13.31
13.27
13.27
13.22
13.27
13.28
13.32
13.2
13.23
13.28
13.27
13.31
13.31
13.31
13.3
13.32
13.29
13.3
13.21
13.31
13.34
13.23
13.23
13.37
13.3
13.22
13.26
13.29
13.33
13.34
13.34
13.32
13.36
13.42
13.5
13.42
13.4
13.38
13.31
13.5
13.45
13.4
13.22
13.21
13.17
13.29
13.23
13.25
13.25
13.25
13.18
13.2
13.13
13.26
13.21
13.22
13.18
13.23
13.3
13.28
13.39
13.32
13.45
13.46
13.44
13.41
13.37
13.31
13.41
13.24
13.12
13.23
13.2
13.12
13.16
13.14
13.18
13.29
13.18
13.22
13.1878
13.24
13.24
13.15
13.22
13.25
13.2
13.21
13.19
13.2
13.2
13.15
13.17
13.15
13.09
13.04
13.15
13.18
13.14
13.1
13.13
13.15
13.22
13.12
13.24
13.2201
13.27
13.32
13.28
13.25
13.26
13.2501
13.35
13.22
13.08
13.2399
13.27
13.11
13.1
13.11
13.08
13.15
13
13.02
13.11
13.11
13.19
13.18
13.1
13.11
13.15
13.08
13.11
13.04
13.03
13.01
13.14
13.14
13.07
13.13
13.1
13.19
13.19
13.22
13.28
13.24
13.38
13.41
13.43
13.48
13.57
13.43
13.4
13.34
13.36
13.33
13.41
13.39
13.41
13.44
13.5
13.51
13.58
13.5
13.51
13.5
13.63
13.72
13.7
13.7399
13.69
13.73
13.63
13.53
13.55
13.55
13.57
13.53
13.57
13.54
13.53
13.59
13.51
13.5
13.59
13.57
13.61
13.57
13.66
13.6
9/30/06 13.6
FUND SNAPSHOT
-------------------------------------
Share Price 13.60
-------------------------------------
Net Asset Value 14.46
-------------------------------------
Premium/(Discount) to NAV -5.95%
-------------------------------------
Market Yield 4.72%
-------------------------------------
Taxable-Equivalent Yield1 6.56%
-------------------------------------
Net Assets ($000) $187,517
-------------------------------------
Average Effective
Maturity on Securities (Years) 16.14
-------------------------------------
Modified Duration 5.10
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/24/92)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
6-Month
(Cumulative) 3.56% 3.48%
-------------------------------------
1-Year 7.69% 5.18%
-------------------------------------
5-Year 5.69% 5.16%
-------------------------------------
10-Year 5.90% 5.60%
-------------------------------------
STATES
(as a % of total municipal bonds)
-------------------------------------
Illinois 18.2%
-------------------------------------
Texas 10.8%
-------------------------------------
Colorado 7.0%
-------------------------------------
California 6.7%
-------------------------------------
Indiana 6.5%
-------------------------------------
Florida 5.6%
-------------------------------------
Iowa 5.4%
-------------------------------------
South Carolina 5.0%
-------------------------------------
Nevada 4.9%
-------------------------------------
North Carolina 4.3%
-------------------------------------
Michigan 3.7%
-------------------------------------
New York 3.5%
-------------------------------------
Nebraska 2.5%
-------------------------------------
Pennsylvania 2.5%
-------------------------------------
New Mexico 2.2%
-------------------------------------
Other 11.2%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
Health Care 22.5%
-------------------------------------
Utilities 17.6%
-------------------------------------
U.S. Guaranteed 13.3%
-------------------------------------
Tax Obligation/Limited 11.9%
-------------------------------------
Transportation 9.2%
-------------------------------------
Tax Obligation/General 8.6%
-------------------------------------
Education and Civic
Organizations 6.1%
-------------------------------------
Consumer Staples 5.0%
-------------------------------------
Other 5.8%
-------------------------------------
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 paid shareholders a capital gains distribution in December 2005 of
$0.0029 per share.
14
Nuveen California Select Tax-Free Income Portfolio
NXC
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 69%
AA 3%
A 18%
BBB 8%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0535
Nov 0.0535
Dec 0.0535
Jan 0.0535
Feb 0.0535
Mar 0.0535
Apr 0.0535
May 0.0535
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.
10/01/05 13.32
13.34
13.39
13.26
13.32
13.23
13.34
13.17
13.14
13.16
13.06
13.16
13.17
13.07
13.2
13.15
13.2
13.07
13.02
13.08
13.22
13.24
13.26
13.16
13.31
13.19
13.27
13.27
13.25
13.12
13.04
13.14
13.06
13.09
13.15
13.24
13.18
13.23
13.15
13.28
13.3
13.32
13.1508
13.23
13.24
13.3
13.24
13.27
13.39
13.3
13.2
13.12
13.21
13.27
13.2
13.25
13.2
13.17
13.3
13.28
13.27
13.25
13.31
13.31
13.27
13.27
13.22
13.27
13.28
13.32
13.2
13.23
13.28
13.27
13.31
13.31
13.31
13.3
13.32
13.29
13.3
13.21
13.31
13.34
13.23
13.23
13.37
13.3
13.22
13.26
13.29
13.33
13.34
13.34
13.32
13.36
13.42
13.5
13.42
13.4
13.38
13.31
13.5
13.45
13.4
13.22
13.21
13.17
13.29
13.23
13.25
13.25
13.25
13.18
13.2
13.13
13.26
13.21
13.22
13.18
13.23
13.3
13.28
13.39
13.32
13.45
13.46
13.44
13.41
13.37
13.31
13.41
13.24
13.12
13.23
13.2
13.12
13.16
13.14
13.18
13.29
13.18
13.22
13.1878
13.24
13.24
13.15
13.22
13.25
13.2
13.21
13.19
13.2
13.2
13.15
13.17
13.15
13.09
13.04
13.15
13.18
13.14
13.1
13.13
13.15
13.22
13.12
13.24
13.2201
13.27
13.32
13.28
13.25
13.26
13.2501
13.35
13.22
13.08
13.2399
13.27
13.11
13.1
13.11
13.08
13.15
13
13.02
13.11
13.11
13.19
13.18
13.1
13.11
13.15
13.08
13.11
13.04
13.03
13.01
13.14
13.14
13.07
13.13
13.1
13.19
13.19
13.22
13.28
13.24
13.38
13.41
13.43
13.48
13.57
13.43
13.4
13.34
13.36
13.33
13.41
13.39
13.41
13.44
13.5
13.51
13.58
13.5
13.51
13.5
13.63
13.72
13.7
13.7399
13.69
13.73
13.63
13.53
13.55
13.55
13.57
13.53
13.57
13.54
13.53
13.59
13.51
13.5
13.59
13.57
13.61
13.57
13.66
13.6
9/30/06 13.6
FUND SNAPSHOT
-------------------------------------
Share Price 13.99
-------------------------------------
Net Asset Value 14.79
-------------------------------------
Premium/(Discount) to NAV -5.41%
-------------------------------------
Market Yield 4.55%
-------------------------------------
Taxable-Equivalent Yield1 6.95%
-------------------------------------
Net Assets ($000) $92,566
-------------------------------------
Average Effective
Maturity on Securities (Years) 14.97
-------------------------------------
Modified Duration 5.71
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
6-Month
(Cumulative) 5.59% 3.74%
-------------------------------------
1-Year 3.44% 5.26%
-------------------------------------
5-Year 5.23% 5.26%
-------------------------------------
10-Year 5.57% 5.53%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
Tax Obligation/General 23.9%
-------------------------------------
Tax Obligation/Limited 17.9%
-------------------------------------
U.S. Guaranteed 15.3%
-------------------------------------
Health Care 11.4%
-------------------------------------
Education and Civic
Organizations 9.4%
-------------------------------------
Transportation 8.3%
-------------------------------------
Water and Sewer 5.1%
-------------------------------------
Other 8.7%
-------------------------------------
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 paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0607 per share.
15
Nuveen New York Select Tax-Free Income Portfolio
NXN
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 78%
AA 14%
A 2%
BBB 5%
BB or Lower 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.051
Nov 0.051
Dec 0.051
Jan 0.051
Feb 0.051
Mar 0.051
Apr 0.051
May 0.051
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.
10/01/05 13.8
13.61
13.56
13.57
13.42
13.35
13.47
13.38
13.29
13.12
13.13
12.98
12.97
12.96
12.93
13.02
13.06
13
13.16
13.1
13
13.04
13.01
13.01
13.0299
12.98
13
13.07
13.05
13.05
12.5
12.74
12.75
12.87
12.86
12.87
12.82
12.78
12.8
12.89
12.85
12.82
12.89
12.91
12.96
12.98
12.95
13.18
12.96
12.88
12.82
12.76
12.75
12.95
12.86
12.9
12.82
12.86
12.92
12.87
12.98
13.12
13.08
13.08
13.15
13.29
13.35
13.3
13.22
13.35
13.35
13.29
13.2
13.24
13.25
13.24
13.28
13.35
13.3
13.25
13.2
13.12
13.15
13.17
13.18
13.14
13.06
13.1
13.12
13.18
13.16
13.22
13.18
13.18
13.21
13.18
13.29
13.3
13.25
13.24
13.29
13.29
13.35
13.27
13.36
13.33
13.11
13.15
13.18
13.23
13.26
13.17
13.13
13.16
13.25
13.2
13.33
13.19
13.26
13.2
13.2
13.27
13.22
13.45
13.44
13.35
13.2
13.28
13.25
13.3
13.24
13.27
13.11
13.06
13.03
13.14
13.2
13.3
13.25
13.32
13.24
13.23
13.27
13.28
13.31
13.31
13.3
13.29
13.15
13.08
13.22
13.19
13.1
13.12
13
12.95
12.9
12.93
12.95
13.02
13.05
12.98
13.01
13.05
13.02
13.03
13.05
13.14
13.15
13.15
13.28
13.25
13.25
13.26
13.3
13.24
13.1
13.06
13.06
13.09
13.05
13.08
12.9
12.86
13.02
13.03
12.98
13.03
13.03
13.1
13.1
12.99
13.02
13.06
13.05
13.08
13.08
13.1
13.13
13.18
13.18
13.15
13.12
13.17
13.09
13.15
13.19
13.3
13.28
13.31
13.35
13.48
13.64
13.59
13.35
13.31
13.57
13.6
13.48
13.59
13.61
13.61
13.55
13.55
13.49
13.67
13.61
13.69
13.73
13.56
13.52
13.46
13.51
13.51
13.57
13.51
13.37
13.34
13.26
13.4
13.29
13.3
13.29
13.28
13.36
13.35
13.27
13.75
13.8
13.83
13.69
13.61
13.6
9/30/06 13.6
FUND SNAPSHOT
-------------------------------------
Share Price 13.60
-------------------------------------
Net Asset Value 14.37
-------------------------------------
Premium/(Discount) to NAV -5.36%
-------------------------------------
Market Yield 4.50%
-------------------------------------
Taxable-Equivalent Yield1 6.72%
-------------------------------------
Net Assets ($000) $56,177
-------------------------------------
Average Effective
Maturity on Securities (Years) 15.62
-------------------------------------
Modified Duration 5.07
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
6-Month
(Cumulative) 4.23% 3.47%
-------------------------------------
1-Year 5.62% 4.64%
-------------------------------------
5-Year 5.21% 4.99%
-------------------------------------
10-Year 5.63% 5.30%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
Tax Obligation/Limited 13.6%
-------------------------------------
Health Care 13.2%
-------------------------------------
Water and Sewer 12.4%
-------------------------------------
U.S. Guaranteed 11.9%
-------------------------------------
Long-Term Care 11.5%
-------------------------------------
Education and Civic
Organizations 8.6%
-------------------------------------
Housing/Single Family 8.3%
-------------------------------------
Tax Obligation/General 6.4%
-------------------------------------
Utilities 5.4%
-------------------------------------
Other 8.7%
-------------------------------------
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 paid shareholders a capital gains distribution in December 2005 of
$0.0655 per share.
16
Shareholder
MEETING REPORT
The shareholder meeting was held on August 1, 2006, at The Northern Trust
Company, 50 South LaSalle Street, Chicago, Illinois 60675.
NXP NXQ NXR NXC NXN
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
------------------------------------------------------------------------------------------------------------------------------------
CLASS I
Lawrence H. Brown
For 15,117,406 15,357,382 11,859,329 5,727,421 3,664,392
Withhold 57,012 592,491 63,039 43,072 31,565
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
Timothy R. Schwertfeger
For 15,119,862 15,364,036 11,861,740 5,727,421 3,665,576
Withhold 54,556 585,837 60,628 43,072 30,381
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
Judith M. Stockdale
For 15,121,186 15,361,836 11,861,679 5,727,421 3,665,592
Withhold 53,232 588,037 60,689 43,072 30,365
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
CLASS II
William C. Hunter
For 15,120,886 15,363,636 11,849,208 5,727,421 3,663,592
Withhold 53,532 586,237 73,160 43,072 32,365
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
David J. Kundert
For 15,120,392 15,361,190 11,860,342 5,727,421 3,664,576
Withhold 54,026 588,683 62,026 43,072 31,381
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
Eugene S. Sunshine
For 15,120,012 15,362,190 11,850,738 5,727,421 3,664,392
Withhold 54,406 587,683 71,630 43,072 31,565
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
CLASS III
Robert P. Bremner
For 15,106,660 15,342,685 11,849,366 5,727,421 3,663,576
Withhold 67,758 607,188 73,002 43,072 32,381
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
Jack B. Evans
For 15,118,513 15,361,790 11,858,784 5,727,421 3,664,592
Withhold 55,905 588,083 63,584 43,072 31,365
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
William J. Schneider
For 15,118,513 15,363,036 11,859,967 5,727,421 3,665,592
Withhold 55,905 586,837 62,401 43,072 30,365
------------------------------------------------------------------------------------------------------------------------------------
Total 15,174,418 15,949,873 11,922,368 5,770,493 3,695,957
====================================================================================================================================
17
Nuveen Select Tax-Free Income Portfolio (NXP)
Portfolio of
INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 98.4%
ALASKA - 1.1%
$ 2,475 Alaska Municipal Bond Bank Authority, General Obligation Bonds, 12/13 at 100.00 AAA $ 2,685,375
Series 2003E, 5.250%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.7%
2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,613,500
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 3,747,441
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
200 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 207,346
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 3,399,870
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 1,170,816
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 381,045
Series 1999A, 5.250%, 5/01/29 - AMBAC Insured
750 Tobacco Securitization Authority of Northern California, Tobacco 6/15 at 100.00 BBB 780,082
Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
10,770 Total California 11,300,100
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 12.7%
1,300 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA 1,396,460
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22
1,700 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (3) 1,846,421
Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
1,000 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 AAA 1,078,780
Small Water Resources Revenue Bonds, Series 2000A,
5.800%, 11/01/20 - FGIC Insured
10,750 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 12,158,676
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 647,936
Bonds, Series 1996A, 5.500%, 11/15/25 (Pre-refunded 11/15/06) -
MBIA Insured
230 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 232,852
Bonds, Series 1996D, 5.500%, 11/15/25 (Pre-refunded 11/15/06) -
MBIA Insured
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,362,300
Refunding Bonds, Series 2001A, 5.625%, 11/15/17 -
FGIC Insured (Alternative Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,243,180
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/23 (Pre-refunded 12/01/13) - XLCA Insured
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,358,450
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded
9/01/10) - MBIA Insured
3,160 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 3,447,497
Revenue Bonds, Senior Series 2001A, 5.500%, 6/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,780 Total Colorado 30,772,552
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.5%
1,000 District of Columbia, Hospital Revenue Refunding Bonds, 2/07 at 102.00 AAA 1,021,610
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured (ETM)
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA (continued)
$ 265 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA $ 281,059
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,265 Total District of Columbia 1,302,669
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.4%
10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 10,526,000
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.6%
1,330 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,375,233
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.1%
1,965 Board of Trustees of Southern Illinois University, Housing No Opt. Call AAA 1,097,433
and Auxiliary Facilities System Revenue Bonds, Series 1999A,
0.000%, 4/01/20 - MBIA Insured
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 3,969,820
2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 AAA 2,701,816
195 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 211,979
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 - FSA Insured
805 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 884,365
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured
1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101.00 A 1,026,120
Midwestern University, Series 1998B, 5.500%, 5/15/18 -
ACA Insured
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa3 (3) 671,772
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
(Pre-refunded 5/01/12)
4,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 4,371,600
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,400,810
Memorial Hospital, Series 2001, 5.600%, 10/01/16
2,700 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 2,956,095
Forest Hospital, Series 2002A, 6.000%, 7/01/17
2,275 Illinois Health Facilities Authority, Revenue Refunding 1/13 at 100.00 A2 2,536,989
Bonds, Elmhurst Memorial Healthcare, Series 2002,
6.250%, 1/01/17
1,075 Illinois Health Facilities Authority, Revenue Refunding No Opt. Call N/R (3) 1,107,121
Bonds, Evangelical Hospitals Corporation, Series 1992B,
6.500%, 4/15/09 (ETM)
3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,008,469
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/17 - FGIC Insured
810 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 279,385
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 6/15/30 - MBIA Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 5,288,450
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 1,395,849
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 1,036,320
1,000 5.000%, 12/15/20 - RAAI Insured 12/11 at 100.00 AA 1,034,900
------------------------------------------------------------------------------------------------------------------------------------
34,590 Total Illinois 33,979,293
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.3%
5,000 Duneland School Building Corporation, Indiana, First Mortgage 2/09 at 101.00 AAA 5,198,750
Refunding Bonds, Series 1999, 5.125%, 2/01/18 - MBIA Insured
1,000 Franklin Community Multi-School Building Corporation, Marion 7/14 at 100.00 AAA 1,060,500
County, Indiana, First Mortgage Revenue Bonds, Series 2004,
5.000%, 7/15/22 - FGIC Insured
19
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 2,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA $ 2,333,460
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 10,637,388
Waterworks Project, Series 2002A, 5.125%, 7/01/21
(Pre-refunded 7/01/12) - MBIA Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 797,827
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,605 Total Indiana 20,027,925
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 803,640
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 1,136,036
Alliant Health System Inc., Series 1998, 5.125%, 10/01/18 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.4%
1,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,060,000
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.8%
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 550,560
Revenue Bonds, Partners HealthCare System Inc., Series 2001C,
6.000%, 7/01/17
1,055 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 1,077,936
System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 -
MBIA Insured
410 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 421,115
System Revenue Bonds, Subordinate Series 1999A,
5.000%, 1/01/39 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,965 Total Massachusetts 2,049,611
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.7%
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 1,012,470
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,072,898
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
3,900 Total Michigan 4,085,368
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.1%
325 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 327,649
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 3,750,912
Bonds, Weyerhauser Company Project, Series 1992,
6.875%, 4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7%
5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 1,729,550
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.8%
2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 2,651,125
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 1,260,169
3,500 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,777,790
6,025 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 6,269,555
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 1,515 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA $ 1,640,397
Series 2002, 5.500%, 6/01/21 - FGIC Insured
2,555 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 2,804,394
Series 2002, 5.500%, 6/01/21 (Pre-refunded 6/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,455 Total Nevada 16,403,430
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2%
470 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 471,011
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.3%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,613,675
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
1,780 5.750%, 6/01/32 6/12 at 100.00 BBB 1,875,426
1,000 6.000%, 6/01/37 6/12 at 100.00 BBB 1,069,380
------------------------------------------------------------------------------------------------------------------------------------
5,280 Total New Jersey 5,558,481
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.7%
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 4,078,120
Revenue Bonds, Series 2004, 4.625%, 7/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.3%
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 1,051,000
Mortgage Revenue Bonds, Kaleida Health, Series 2004,
5.050%, 2/15/25
1,600 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa2 1,731,776
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 1998A:
145 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 150,264
305 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 316,072
------------------------------------------------------------------------------------------------------------------------------------
3,050 Total New York 3,249,112
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.3%
500 Appalachian State University, North Carolina, Utilities System 5/08 at 102.00 AAA 517,590
Revenue Refunding Bonds, Series 1998, 5.000%, 5/15/24 -
MBIA Insured
2,195 North Carolina Eastern Municipal Power Agency, Power 1/21 at 100.00 BBB 2,207,599
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/21
500 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 534,350
Revenue Bonds, Series 2001A, 5.250%, 11/01/17 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,195 Total North Carolina 3,259,539
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.5%
300 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 325,257
Series 2001, 5.500%, 12/01/17 (Pre-refunded 12/01/10) -
AMBAC Insured
805 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 829,440
Securities Program Residential Mortgage Remarketed Revenue
Bonds, Series 1997A-1, 6.050%, 9/01/17 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,105 Total Ohio 1,154,697
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.2%
1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 1,046,940
Revenue Bonds, Series 2005, 5.375%, 9/01/36
4,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 4,163,680
St. John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Oklahoma 5,210,620
------------------------------------------------------------------------------------------------------------------------------------
21
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.8%
$ 500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ $ 524,840
Bonds, Widener University, Series 2003, 5.250%, 7/15/24
700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 773,822
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
520 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AAA 552,885
5.000%, 9/15/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,720 Total Pennsylvania 1,851,547
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.7%
1,000 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 1,070,870
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/20
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (3) 11,311,000
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded 12/01/12)
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,658,670
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- 2,664,175
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 1,827,259
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
16,720 Total South Carolina 18,531,974
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.2%
5,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 5,462,850
Texas, Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
1,000 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 1,032,800
Revenue Bonds, Series 2001, 5.000%, 12/01/31 -
AMBAC Insured
6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,581,300
General Obligation Refunding Bonds, Series 2002,
5.250%, 2/15/20
360 Dallas-Fort Worth International Airport Public Facility 1/09 at 100.00 AAA 373,262
Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001,
5.500%, 1/15/20 - FSA Insured
2,300 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,387,101
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
1,380 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 61.17 AAA 269,956
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/38 -
MBIA Insured
3,500 Irving Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 3,615,500
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 5/15/07) - MBIA Insured 5/07 at 100.00 AAA 96,473
465 6.000%, 5/15/16 (Pre-refunded 5/15/12) - MBIA Insured 5/12 at 100.00 AAA 521,121
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,798,633
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
22,000 Total Texas 22,138,996
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3%
775 Utah State Building Ownership Authority, Lease Revenue 11/11 at 100.00 AA+ 823,903
Bonds, State Facilities Master Lease Program, Series 2001B,
5.250%, 5/15/24
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.3%
250 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 272,377
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, No Opt. Call Aaa 6,210,093
Generation System Revenue Bonds, Series 1989,
6.750%, 1/01/12 (ETM)
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 3,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA $ 3,071,790
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 10,247,640
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
2,430 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,670,546
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
21,130 Total Washington 22,472,446
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
1,635 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 1,741,815
Bonds, Series 1992, 6.500%, 5/15/10 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
230 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 246,668
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,077,400
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.500%, 8/15/17
2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,628,475
Series 2003-3, 5.000%, 11/01/26
3,730 Total Wisconsin 3,952,543
------------------------------------------------------------------------------------------------------------------------------------
$ 236,720 Total Long-Term Municipal Bonds (cost $222,455,744) 237,810,147
=============-----------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.0%
AIRLINES - 0.0%
1,901 UAL Corporation (4) (5) 50,510
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $77,946) 50,510
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $222,533,690) - 98.4% 237,860,657
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 3,947,178
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 241,807,835
====================================================================================================================
(1) 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.
(2) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Non-income producing.
(5) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds. On February 1,
2006, UAL emerged from federal bankruptcy with the
acceptance of its reorganization plan by the bankruptcy
court. Under the settlement agreement established to
meet UAL's unsecured bond obligations, the bondholders,
including the Fund, received three distributions of UAL
common stock over the subsequent months, and the
bankruptcy court dismissed all unsecured claims of
bondholders, including those of the Fund. On May 5,
2006, the Fund liquidated such UAL common stock
holdings. On September 29, 2006, the Fund received an
additional distribution of UAL common stock as a result
of its earlier ownership of UAL bonds, which it still
held at September 30, 2006.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
23
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Portfolio of
INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 98.1%
ARKANSAS - 1.7%
$ 1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA $ 1,054,460
and Construction Bonds, Series 2002A, 5.000%, 10/01/19 -
FSA Insured
1,205 Sebastian County Health Facilities Board, Arkansas, Hospital 11/11 at 101.00 Baa2 1,236,161
Revenue Improvement Bonds, Sparks Regional Medical Center,
Series 2001A, 5.250%, 11/01/21
2,000 University of Arkansas, Fayetteville, Various Facilities Revenue 12/12 at 100.00 Aaa 2,083,320
Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,205 Total Arkansas 4,373,941
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.4%
1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 806,750
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 3,747,441
Revenue Bonds, Series 2002A, 6.000%,5/01/14
500 California State Public Works Board, Lease Revenue Refunding 12/08 at 101.00 A 518,465
Bonds, Community Colleges Projects, Series 1998A,
5.250%, 12/01/16
2,000 California State Public Works Board, Lease Revenue Refunding No Opt. Call Aa2 2,209,340
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/14
190 California, General Obligation Bonds, Series 1997, 10/07 at 101.00 AAA 194,256
5.000%, 10/01/18 - AMBAC Insured
California, General Obligation Bonds, Series 1997:
2,105 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 2,157,414
205 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 210,104
2,500 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A+ 2,625,425
500 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 518,365
Refunding, Merrithew Memorial Hospital Replacement,
Series 1997, 5.375%, 11/01/17 - MBIA Insured
500 Contra Costa Water District, California, Water Revenue 10/07 at 100.00 AA 506,480
Refunding Bonds, Series 1997H, 5.000%, 10/01/17
3,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,626,528
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
1,750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,820,192
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
17,775 Total California 18,940,760
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.4%
1,300 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA 1,396,460
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22
1,700 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 1,846,421
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
3,185 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 3,602,362
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,362,300
Refunding Bonds, Series 2001A, 5.625%, 11/15/17 -
FGIC Insured (Alternative Minimum Tax)
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,555 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA $ 1,674,782
Refunding Bonds, Series 2001, 5.500%, 11/15/16 - FGIC Insured
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,243,180
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/23 (Pre-refunded 12/01/13) - XLCA Insured
2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 AAA 2,037,680
Revenue Bonds, Convention Center Hotel, Series 2006,
4.750%, 12/01/35 - XLCA Insured
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 2,264,000
Bonds, Series 2000B, 0.000%, 9/01/24 - MBIA Insured
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,358,450
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded
9/01/10) - MBIA Insured
250 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 266,930
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 1,153,559
Series 2001A, 5.600%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
29,090 Total Colorado 24,206,124
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
500 District of Columbia, Hospital Revenue Refunding Bonds, 2/07 at 102.00 AAA 510,805
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured (ETM)
500 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 516,755
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,000 Total District of Columbia 1,027,560
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.3%
1,000 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 1,057,740
Hospital Revenue Bonds, Tampa General Hospital, Series 2006,
5.250%, 10/01/41
1,500 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 1,594,605
Refunding and Improvement Bonds, Series 2002,
5.000%, 10/01/21 - FGIC Insured
2,500 JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 4/15 at 100.00 AAA 2,614,325
5.000%, 10/01/41 - FSA Insured
625 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 Aaa 659,369
Revenue Refunding Bonds, Series 2001, 5.125%, 7/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,625 Total Florida 5,926,039
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4%
1,100 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,137,411
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.1%
1,230 Chicago Metropolitan Housing Development Corporation, 1/07 at 100.00 AA 1,231,968
Illinois, FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17
590 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, 7/13 at 100.00 AAA 613,429
Series 2003A, 5.000%, 1/01/33 - AMBAC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,747,268
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
250 Illinois Development Finance Authority, Economic Development 8/08 at 100.00 Baa2 (3) 256,663
Revenue Bonds, Latin School of Chicago, Series 1998,
5.200%, 8/01/11 (Pre-refunded 8/01/08)
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa3 (3) 671,772
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
(Pre-refunded 5/01/12)
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,266,916
Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured
2,255 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- 2,490,219
Lake Forest Hospital, Series 2002A, 6.250%, 7/01/22
1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 1,122,235
University Health System, Series 2001A, 6.125%, 7/01/31
25
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,000 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 AAA $ 1,014,600
Series 2005E, 4.750%, 7/01/30 - FGIC Insured
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 6,028,833
5.000%, 6/15/22
45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/06 at 100.00 A1 45,102
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 7,403,830
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 5,227,427
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 638,427
1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 648,630
1,100 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,181,103
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,033,010
Series 2003, 5.000%, 12/15/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
32,915 Total Illinois 33,621,432
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.1%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,060,500
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 - FGIC Insured
1,060 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 1,084,327
Revenue Bonds, Series 2002C-2, 5.250%, 7/01/23
(Alternative Minimum Tax)
4,380 Indiana Municipal Power Agency, Power Supply System 1/12 at 100.00 AAA 4,646,392
Revenue Bonds, Series 2002A, 5.125%, 1/01/21 -
AMBAC Insured
355 St. Joseph County Hospital Authority, Indiana, Revenue 2/08 at 101.00 AAA 356,967
Bonds, Memorial Health System, Series 1998A,
4.625%, 8/15/28 - MBIA Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 797,827
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,545 Total Indiana 7,946,013
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.3%
1,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 992,200
Revenue Bonds, Series 2005B, 0.000%, 6/01/34
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
1,000 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 1,070,880
3,500 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,819,305
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total Iowa 5,882,385
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4%
1,000 Salina, Kansas, Hospital Revenue Bonds, Salina Regional 4/13 at 100.00 A1 996,730
Medical Center, Series 2006, 4.500%, 10/01/26
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
2,125 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 2,276,343
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 -
MBIA Insured
3,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 3,130,710
University, Series 2002A, 5.125%, 7/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,125 Total Louisiana 5,407,053
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.1%
3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,228,330
Revenue Bonds, Berkshire Health System, Series 2001E,
6.250%, 10/01/31
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 2,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA $ 2,554,350
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
2,090 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 2,291,183
Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,590 Total Massachusetts 8,073,863
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0%
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,072,898
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 2,041,660
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
4,900 Total Michigan 5,114,558
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.5%
1,500 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 1,612,365
Southern Nevada Water Authority Loan, Series 2001,
5.300%, 6/01/19 (Pre-refunded 6/01/11) - FGIC Insured
500 Clark County, Nevada, Limited Tax General Obligation 1/07 at 101.00 AAA 505,680
Las Vegas Convention and Visitors Authority Bonds,
Series 1996, 5.500%, 7/01/17 - MBIA 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 2,333,984
13,250 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,787,817
1,100 Nevada, General Obligation Refunding Bonds, Municipal 5/08 at 100.00 AAA 1,118,678
Bond Bank Projects 65 and R-6, Series 1998,
5.000%, 5/15/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,945 Total Nevada 19,358,524
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.9%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,613,675
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
1,000 6.375%, 6/01/32 6/13 at 100.00 BBB 1,097,600
1,010 6.250%, 6/01/43 6/13 at 100.00 BBB 1,104,435
------------------------------------------------------------------------------------------------------------------------------------
4,510 Total New Jersey 4,815,710
------------------------------------------------------------------------------------------------------------------------------------
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 565,839
660 4.625%, 7/01/25 - FSA Insured 7/14 at 100.00 AAA 672,890
2,000 4.750%, 7/01/27 - FSA Insured 7/14 at 100.00 AAA 2,054,040
3,000 4.750%, 1/01/28 - FSA Insured 7/14 at 100.00 AAA 3,075,120
------------------------------------------------------------------------------------------------------------------------------------
6,215 Total New Mexico 6,367,889
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.7%
2,700 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Baa2 2,922,372
Bonds, Mount Sinai NYU Health Obligated Group,
Series 2000A, 6.500%, 7/01/17
2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,102,220
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/36 - FSA Insured
565 New York Dormitory Authority, New York, FHA Insured No Opt. Call AAA 578,927
Mortgage Hospital Revenue Bonds, Kaleida Health,
Municipal Securities Trust 7020, 6.094%, 2/15/35 (IF)
3,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 3,219,600
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
3,150 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 3,340,260
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
11,415 Total New York 12,163,379
------------------------------------------------------------------------------------------------------------------------------------
27
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6%
$ 1,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA $ 1,544,505
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4%
1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 1,046,940
Revenue Bonds, Series 2005, 5.375%, 9/01/36
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6%
1,020 Carlisle Area School District, Cumberland County, Pennsylvania, 9/09 at 100.00 Aaa 1,055,374
General Obligation Bonds, Series 2004A, 5.000%, 9/01/20 -
FGIC Insured
545 Dauphin County General Authority, Pennsylvania, Health 2/09 at 101.00 AAA 566,042
System Revenue Bonds, Pinnacle Health System Project,
Series 1999, 5.125%, 8/15/17 - MBIA Insured
455 Dauphin County General Authority, Pennsylvania, Health 2/09 at 101.00 AAA 475,157
System Revenue Bonds, Pinnacle Health System Project,
Series 1999, 5.125%, 8/15/17 (Pre-refunded 2/15/09) -
MBIA Insured
1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,073,270
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.500%, 7/01/17 - FGIC Insured
(Alternative Minimum Tax)
3,250 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,552,608
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,270 Total Pennsylvania 6,722,451
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.2%
3,000 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA 3,178,560
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 5,327,800
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.4%
700 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 749,609
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/20
620 Florence, South Carolina, Water and Sewerage Revenue 3/10 at 101.00 AAA 665,849
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- (3) 4,524,400
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded 12/01/12)
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,764,450
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18
2,435 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 2,631,139
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,255 Total South Carolina 11,335,447
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4%
1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,049,510
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.0%
4,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 4,370,280
Texas, Environmental Facilities Revenue Bonds, Dow
Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,551,660
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
1,270 Cleveland Housing Corporation, Texas, FHA-Insured 1/07 at 100.00 AAA 1,272,273
Section 8 Assisted Mortgage Revenue Refunding Bonds,
Series 1992C, 7.375%, 7/01/24 - MBIA Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,000 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA $ 1,032,800
Bonds, Series 2001, 5.000%, 12/01/31 - AMBAC Insured
2,500 Harris County Health Facilities Development Corporation, No Opt. Call AAA 2,786,425
Texas, Hospital Revenue Bonds, Texas Children's Hospital,
Series 1995, 5.500%, 10/01/16 - MBIA Insured (ETM)
3,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 3,113,610
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
5,050 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 AAA 824,059
Revenue Bonds, Series 2001H, 0.000%, 11/15/41 -
MBIA Insured
2,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 2,160,680
Bonds, Series 2002A, 5.625%, 7/01/20 - FSA Insured
(Alternative Minimum Tax)
3,125 Katy Independent School District, Harris, Fort Bend 2/12 at 100.00 AAA 3,225,094
and Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.000%, 2/15/32
1,400 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 1,458,954
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005, 5.375%, 8/15/35
220 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 223,650
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
780 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 795,623
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
(Pre-refunded 2/15/08)
1,000 Lewisville Independent School District, Denton County, Texas, 8/11 at 100.00 AAA 1,047,480
General Obligation Bonds, Series 2004, 5.000%, 8/15/23
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,125,725
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
1,000 San Antonio, Texas, Water System Revenue Bonds, 5/15 at 100.00 AAA 1,014,450
Series 2005, 4.750%, 5/15/37 - MBIA Insured
1,250 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 1,254,875
Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18
500 Texas Water Development Board, Senior Lien State Revolving 7/10 at 100.00 AAA 533,935
Fund Revenue Bonds, Series 2000A, 5.625%, 7/15/13
1,560 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,603,352
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,905 Total Texas 33,394,925
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6%
1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,526,338
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 3,094,290
Series 1999C, 5.800%, 8/15/16 - FSA Insured
3,600 Vermont Industrial Development Authority, Revenue Refunding 3/07 at 100.00 A 3,607,992
Bonds, Stanley Works Inc., Series 1992, 6.750%, 9/01/10
------------------------------------------------------------------------------------------------------------------------------------
6,600 Total Vermont 6,702,282
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/07 at 100.00 AAA 255,403
5.750%, 11/01/13 - MBIA Insured
1,000 Virginia Transportation Board, Transportation Revenue Refunding 5/07 at 101.00 AA+ 1,018,210
Bonds, U.S. Route 58 Corridor Development Program,
Series 1997C, 5.125%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
1,250 Total Virginia 1,273,613
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.5%
2,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 2,047,860
Bonds, Catholic Health Initiatives, Series 1997A,
5.125%, 12/01/17 - MBIA Insured
29
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 6,715 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA $ 7,057,734
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,715 Total Washington 9,105,594
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.9%
1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,075,051
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.500%, 8/15/18
3,755 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 3,874,897
Home Ownership Revenue Bonds, Series 2002G,
4.850%, 9/01/17
------------------------------------------------------------------------------------------------------------------------------------
4,755 Total Wisconsin 4,949,948
------------------------------------------------------------------------------------------------------------------------------------
$ 253,140 Total Long-Term Municipal Bonds (cost $239,496,002) 252,517,284
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL BONDS - 0.7%
985 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ 985,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2005, 3.800%, 7/01/35 - FSA Insured (4)
700 Lancaster County Hospital Authority 1, Nebraska, Hospital VMIG-1 700,000
Revenue Bonds, Byran Memorial Hospital, Variable Rate
Demand Obligations, Series 2002, 3.850%, 6/01/18 -
AMBAC Insured (4)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,685 Total Short-Term Municipal Bonds (cost $1,685,000) 1,685,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (cost $241,181,002) 254,202,284
--------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.0%
AIRLINES - 0.0%
1,825 UAL Corporation (5) (6) 48,490
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $74,834) 48,490
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $241,255,836) - 98.8% 254,250,774
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 3,066,735
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 257,317,509
====================================================================================================================
(1) 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.
(2) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade. The ratings
shown for inverse floating rate investments represent
those of the underlying bonds and not the inverse
floating rate investments themselves. Inverse floating
rate investments likely present greater credit risk to
the holders of such investments than to those holders
of the underlying bonds.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Investment 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.
(5) Non-income producing.
(6) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds. On February 1,
2006, UAL emerged from federal bankruptcy with the
acceptance of its reorganization plan by the bankruptcy
court. Under the settlement agreement established to
meet UAL's unsecured bond obligations, the bondholders,
including the Fund, received three distributions of UAL
common stock over the subsequent months, and the
bankruptcy court dismissed all unsecured claims of
bondholders, including those of the Fund. On May 5,
2006, the Fund liquidated such UAL common stock
holdings. On September 29, 2006, the Fund received an
additional distribution of UAL common stock as a result
of its earlier ownership of UAL bonds, which it still
held at September 30, 2006.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
30
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Portfolio of
INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 98.0%
ALABAMA - 0.3%
$ 500 Marshall County Healthcare Authority, Alabama, Revenue 1/12 at 101.00 A- $ 548,770
Bonds, Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.6%
2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,288,998
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 3,775,618
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
2,595 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 2,686,318
Bonds, Kaiser Permanante System, Series 2006,
5.000%, 4/01/37
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,399,870
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 269,675
General Obligation Bonds, Series 2000, 5.700%, 8/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,300 Total California 12,420,479
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.9%
1,540 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 AAA 1,650,818
Bonds, Series 2006, 5.250%, 10/01/40 - XLCA Insured
400 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 417,252
Participation, Series 2004, 5.000%, 6/15/34 - MBIA Insured
1,735 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA 1,863,737
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22
2,265 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 2,460,084
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
2,700 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 3,053,808
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 3,243,180
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/24 (Pre-refunded 12/01/13) - XLCA Insured
325 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA 331,393
Bonds, Series 1997A, 5.000%, 9/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,965 Total Colorado 13,020,272
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
250 Connecticut Health and Educational Facilities Authority, 1/07 at 100.00 AAA 250,632
Revenue Bonds, Bridgeport Hospital Issue, Series 1992A,
6.625%, 7/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
15 District of Columbia, General Obligation Bonds, Series 1993E, 12/06 at 100.00 AAA 15,029
6.000%, 6/01/13 - MBIA Insured (ETM)
235 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 258,190
Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
250 Total District of Columbia 273,219
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.5%
$ 1,000 Hillsborough County Industrial Development Authority, 10/16 at 100.00 A3 $ 1,057,740
Florida, Hospital Revenue Bonds, Tampa General Hospital,
Series 2006, 5.250%, 10/01/41
5,020 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 5,279,383
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/18
4,000 JEA, Florida, Subordinate Lien Electric System Revenue Bonds, 10/07 at 100.00 Aa3 4,013,640
Series 2002D, 4.625%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
10,020 Total Florida 10,350,763
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.5%
1,175 Atlanta, Georgia, Airport Facilities Revenue Bonds, No Opt. Call AAA 982,229
Series 1990, 0.000%, 1/01/10 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.0%
275 Chicago Metropolitan Housing Development Corporation, 1/07 at 100.00 AA 282,502
Illinois, FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22
1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 A- 2,054,948
Midwestern University, Series 2001B, 5.750%, 5/15/16
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of 9/15 at 100.00 AA 2,266,916
Southwest Illinois, Series 2005, 5.000%, 9/01/31 -
RAAI Insured
4,455 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 4,853,322
University of Chicago Project, Series 1985A, 5.500%, 8/01/20
1,500 Illinois Health Facilities Authority, Revenue Bonds, Evangelical No Opt. Call N/R (3) 1,839,675
Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 (ETM)
2,225 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,481,231
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
2,500 Illinois HOusing Development Authority, Homeowner Mortgage 2/16 at 100.00 AA 2,561,575
Revenue Bonds, Series 2006C-2, 5.050%, 8/01/27
(Alternative Minimum Tax)
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 6,028,833
5.000%, 6/15/22
2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 5.600%, 6/15/17 6/07 at 101.00 AAA 2,045,540
1,000 Kankakee & Will Counties Community Unit School District 5, No Opt. Call Aaa 480,290
Illinois, General Obligation Bonds, Series 2006, 0.000%, 5/01/23 -
FSA Insured
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,346,140
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 1,395,849
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,031,130
Series 2003, 5.000%, 12/15/22 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
32,070 Total Illinois 33,667,951
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.4%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,060,500
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- 3,626,105
Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,916,825
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 2,171,680
Waterworks Project, Series 2002A, 5.250%, 7/01/33
(Pre-refunded 7/01/12) - MBIA Insured
2,295 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AAA 2,299,016
Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,295 Total Indiana 12,074,126
------------------------------------------------------------------------------------------------------------------------------------
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 5.3%
$ 2,745 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BBB- $ 2,775,442
Care Initiatives Project, Series 2006A, 5.000%, 7/01/20
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
3,850 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,122,888
2,850 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,110,006
------------------------------------------------------------------------------------------------------------------------------------
9,445 Total Iowa 10,008,336
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8%
1,425 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence 7/16 at 100.00 A3 1,503,247
Memorial Hospital, Series 2006, 5.125%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.7%
1,200 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 1,280,004
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 1,029,550
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 550,560
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Massachusetts 1,580,110
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7%
1,500 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 AAA 1,511,625
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
400 East Lansing School District, Ingham County, Michigan, 5/10 at 100.00 AA (3) 428,072
General Obligation Bonds, Series 2000, 5.625%, 5/01/30
(Pre-refunded 5/01/10)
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,072,898
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
235 Michigan State Hospital Finance Authority, Revenue Refunding 2/07 at 100.00 BB- 235,153
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
1,600 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 1,633,328
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
6,635 Total Michigan 6,881,076
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
725 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 741,632
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 3,641,680
Series 2002B, 5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.8%
4,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 4,162,360
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
1,680 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 1,820,834
Series 2002, 5.500%, 6/01/22 - FGIC Insured
2,830 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 3,106,236
Series 2002, 5.500%, 6/01/22 (Pre-refunded 6/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,510 Total Nevada 9,089,430
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.4%
585 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 586,258
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
33
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.4%
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
$ 1,000 6.750%, 6/01/39 6/13 at 100.00 BBB $ 1,126,220
1,355 6.250%, 6/01/43 6/13 at 100.00 BBB 1,481,692
------------------------------------------------------------------------------------------------------------------------------------
2,355 Total New Jersey 2,607,912
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.2%
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 4,078,120
Revenue Bonds, Series 2004, 4.625%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.5%
1,520 Dormitory Authority of the State of New York, Second General No Opt. Call A1 1,641,418
Resolution Consolidated Revenue Bonds, City University
System, Series 1990C, 7.500%, 7/01/10
2,335 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- (3) 2,527,801
General Revenue Bonds, Series 2001A, 5.375%, 9/01/21
(Pre-refunded 9/01/11)
35 New York City, New York, General Obligation Bonds, 2/07 at 100.00 AA- 35,092
Series 1991B, 7.000%, 2/01/18
335 New York Dormitory Authority, New York, FHA Insured No Opt. Call AAA 343,258
Mortgage Hospital Revenue Bonds, Kaleida Health, Municipal
Securities Trust 7020, 6.094%, 2/15/35 (IF)
1,850 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 1,959,668
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
6,075 Total New York 6,507,237
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.2%
5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,389,900
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 2,504,788
Revenue Bonds, Series 2001A, 5.250%, 7/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,345 Total North Carolina 7,894,688
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 3,122,760
St. John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.4%
2,435 Dauphin County Industrial Development Authority, No Opt. Call A- 2,953,387
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+ 524,840
Revenue Bonds, Widener University, Series 2003,
5.250%, 7/15/24
1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,073,270
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.500%, 7/01/17 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,935 Total Pennsylvania 4,551,497
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.9%
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,658,670
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 1,623,975
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- 2,664,175
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002A, 5.625%, 11/15/30
3,010 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 3,246,797
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
8,510 Total South Carolina 9,193,617
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.1%
$ 1,010 South Dakota Health and Educational Facilities Authority, 7/12 at 101.00 AAA $ 1,060,187
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+ 1,049,510
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
2,010 Total South Dakota 2,109,697
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.2%
2,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 2,193,140
Board, Tennessee, Hospital Revenue Bonds, Baptist Health
System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.6%
1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,551,660
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,594,675
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 3,253,980
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 3,225,094
Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.000%, 2/15/32
400 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 406,636
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
1,425 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 1,453,543
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
(Pre-refunded 2/15/08)
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,125,725
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 1,798,633
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 523,740
5.000%, 8/15/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,950 Total Texas 19,933,686
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4%
2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,628,474
Series 2003-3, 5.000%, 11/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 173,030 Total Long-Term Municipal Bonds (cost $174,458,502) 183,721,042
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL BONDS - 0.5%
1,000 Lancaster County Hospital Authority 1, Nebraska, Hospital VMIG-1 1,000,000
Revenue Bonds, Byran Memorial Hospital, Variable Rate
Demand Obligations, Series 2002, 3.850%, 6/01/18 -
AMBAC Insured (4)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Municipal Bonds (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (cost $175,458,502) 184,721,042
--------------------------------------------------------------------------------------------------------------------
35
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
SHARES DESCRIPTION VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.0%
AIRLINES - 0.0%
532 UAL Corporation (5) (6) $ 14,135
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $21,817) 14,135
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $175,480,319) - 98.5% 184,735,177
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 2,781,450
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 187,516,627
====================================================================================================================
(1) 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.
(2) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade. The ratings
shown for inverse floating rate investments represent
those of the underlying bonds and not the inverse
floating rate investments themselves. Inverse floating
rate investments likely present greater credit risk to
the holders of such investments than to those holders
of the underlying bonds.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Investment 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.
(5) Non-income producing.
(6) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds. On February 1,
2006, UAL emerged from federal bankruptcy with the
acceptance of its reorganization plan by the bankruptcy
court. Under the settlement agreement established to
meet UAL's unsecured bond obligations, the bondholders,
including the Fund, received three distributions of UAL
common stock over the subsequent months, and the
bankruptcy court dismissed all unsecured claims of
bondholders, including those of the Fund. On May 5,
2006, the Fund liquidated such UAL common stock
holdings. On September 29, 2006, the Fund received an
additional distribution of UAL common stock as a result
of its earlier ownership of UAL bonds, which it still
held at September 30, 2006.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
36
Nuveen California Select Tax-Free Income Portfolio (NXC)
Portfolio of
INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 99.1%
CONSUMER STAPLES - 2.0%
$ 235 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 229,073
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
1,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB 1,641,092
Settlement Asset-Backed Revenue Bonds, Fresno County
Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
1,855 Total Consumer Staples 1,870,165
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.3%
1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,042,840
Stanford University, Series 1999P, 5.000%, 12/01/23
45 California Educational Facilities Authority, Revenue Bonds, 10/35 at 100.00 A3 46,466
University of Redlands, Series 2005A, 5.000%, 10/01/35
1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,070,290
University of San Diego, Series 2002A, 5.500%, 10/01/32
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
35 5.000%, 11/01/21 11/15 at 100.00 A2 37,273
45 5.000%, 11/01/25 11/15 at 100.00 A2 47,434
3,000 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 3,209,280
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 2,103,100
University of California, UCLA Replacement Hospital Project,
Series 2002A, 5.000%, 10/01/22 - FSA Insured
1,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 1,059,250
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,125 Total Education and Civic Organizations 8,615,933
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.3%
335 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 345,157
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+ 2,123,520
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
1,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 1,621,620
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
1,500 California Statewide Community Development Authority, 11/09 at 102.00 A 1,573,980
Insured Mortgage Hospital Revenue Bonds, Mission
Community Hospital, Series 2001, 5.375%, 11/01/26
1,515 California Statewide Community Development Authority, 3/16 at 100.00 A+ 1,559,920
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
545 California Statewide Community Development Authority, 8/16 at 100.00 A+ 580,518
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
1,880 California Statewide Community Development Authority, 6/07 at 101.00 AAA 1,919,931
Revenue Bonds, Los Angeles Orthopaedic Hospital Foundation,
Series 2000, 5.500%, 6/01/17 - AMBAC Insured
775 Central California Joint Powers Health Finance Authority, 2/07 at 100.00 Baa2 775,155
Certificates of Participation, Community Hospitals of Central
California, Series 1993, 5.000%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
10,050 Total Health Care 10,499,801
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.9%
750 California Statewide Community Development Authority, 8/12 at 100.00 A 793,013
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
37
Nuveen California Select Tax-Free Income Portfolio (NXC) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2%
$ 145 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA $ 156,996
Bonds, Series 2006H PAC, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.0%
1,250 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 1,333,800
Disposal Revenue Bonds, Republic Services Inc., Series 2002C,
5.250%, 6/01/23 (Mandatory put 12/01/17) (Alternative
Minimum Tax)
500 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 518,720
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,750 Total Industrials 1,852,520
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
1,500 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,574,190
California, Insured Senior Living Revenue Bonds, Odd Fellows
Home of California, Series 2003A, 5.200%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.7%
500 California, General Obligation Bonds, Series 2003, 11/13 at 100.00 AA 544,020
5.250%, 11/01/19 - RAAI Insured
California, General Obligation Bonds, Series 2004:
750 5.000%, 2/01/23 2/14 at 100.00 A+ 788,243
800 5.125%, 4/01/25 4/14 at 100.00 A+ 851,720
1,000 5.125%, 2/01/27 2/14 at 100.00 A+ 1,059,460
2,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 2,148,740
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 3,139,634
1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 1,149,120
2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,528,123
2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,465,344
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 659,740
1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 667,915
100 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 106,268
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,220 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aaa 3,420,220
California, General Obligation Bonds, Series 2005,
5.000%, 7/01/27 - MBIA Insured
1,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 1,652,790
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,729,057
General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,650 Total Tax Obligation/General 21,910,394
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.7%
1,000 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 1,085,390
Allocation Bonds, Bell Project Area, Series 2003,
5.625%, 10/01/33 - RAAI Insured
3,500 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 4,175,500
Department of Corrections, Calipatria State Prison,
Series 1991A, 6.500%, 9/01/17 - MBIA Insured
1,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 1,102,020
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/23
660 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 720,139
5.000%, 7/01/15
120 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 127,860
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,000 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 1,049,900
Revenue Bonds, North Fontana Redevelopment Project,
Series 2005A, 5.000%, 10/01/32 - AMBAC Insured
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 90 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA $ 96,450
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
60 5.000%, 9/01/26 9/16 at 100.00 N/R 60,161
135 5.125%, 9/01/36 9/16 at 100.00 N/R 136,777
215 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 224,507
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,300 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,355,549
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 109,643
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
130 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 136,159
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
605 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 683,039
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
3,000 San Mateo County Transit District, California, Sales Tax 6/15 at 100.00 AAA 3,230,370
Revenue Bonds, Series 2005A, 5.000%, 6/01/21 - MBIA Insured
1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,045,420
of Participation, Series 2002, 5.000%, 4/01/25 - MBIA Insured
1,000 Travis Unified School District, Solano County, California, 9/16 at 100.00 Aaa 1,060,590
Certificates of Participation, Series 2006, 5.000%, 9/01/26 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,920 Total Tax Obligation/Limited 16,399,474
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.2%
1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,152,173
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
5,000 Los Angeles Harbors Department, California, Revenue Refunding 8/11 at 100.00 AAA 5,343,698
Bonds, Series 2001B, 5.500%, 8/01/17 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,082,360
5.250%, 11/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,150 Total Transportation 7,578,231
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.2% (3)
400 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA (3) 431,968
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26 (Pre-refunded 8/01/12)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,000 5.750%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,246,500
2,000 5.125%, 5/01/19 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,183,500
750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1 (3) 790,478
Pepperdine University, Series 2002A, 5.500%, 8/01/32
(Pre-refunded 8/01/09)
2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 (3) 2,808,442
University of the Pacific, Series 2002, 5.250%, 11/01/21
(Pre-refunded 11/01/11)
1,400 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,555,750
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33 (Pre-refunded 6/01/13)
1,800 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 1,863,504
Series 1998A, 5.000%, 6/01/23 (Pre-refunded 6/01/08) -
FGIC Insured
2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA 2,171,780
General Obligation Bonds, Series 2002A, 5.000%, 8/01/22
(Pre-refunded 8/01/12) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,950 Total U.S. Guaranteed 14,051,922
------------------------------------------------------------------------------------------------------------------------------------
39
Nuveen California Select Tax-Free Income Portfolio (NXC) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.9%
$ 200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA $ 214,848
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
215 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 227,939
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
1,225 Turlock Irrigation District, California, Revenue Refunding No Opt. Call Aaa 1,332,898
Bonds, Series 1992A, 6.250%, 1/01/12 - MBIA Insured
1,640 Total Utilities 1,775,685
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.0%
2,160 California Statewide Community Development Authority, 10/11 at 101.00 AAA 2,306,210
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2001B, 5.125%, 10/01/22 - FSA Insured
150 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 158,183
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
250 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 266,260
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
825 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 864,608
Revenue Certificates of Participation, Solar Photovoltaic
Project, Series 2003, 5.375%, 4/01/24
1,000 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 1,048,390
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
4,385 Total Water and Sewer 4,643,651
------------------------------------------------------------------------------------------------------------------------------------
$ 90,870 Total Long-Term Municipal Bonds (cost $86,360,136) 91,721,975
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 844,442
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 92,566,417
====================================================================================================================
(1) 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.
(2) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
See accompanying notes to financial statements.
40
Nuveen New York Select Tax-Free Income Portfolio (NXN)
Portfolio of
INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 98.9%
CONSUMER DISCRETIONARY - 0.3%
$ 100 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 101,834
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9%
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
500 4.750%, 6/01/22 6/16 at 100.00 BBB 511,145
540 5.000%, 6/01/26 6/16 at 100.00 BBB 551,178
------------------------------------------------------------------------------------------------------------------------------------
1,040 Total Consumer Staples 1,062,323
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.5%
1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,807,168
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 -
AMBAC Insured
30 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 31,050
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
785 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 820,231
Bonds, Iona College, Series 2002, 5.000%, 7/01/22 -
XLCA Insured
405 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 438,773
Resolution Consolidated Revenue Bonds, City University
System, Series 1990C, 7.500%, 7/01/10 - FGIC Insured
100 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 104,082
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
100 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 103,588
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- 520,700
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
250 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 265,333
Revenue Bonds, Queens Baseball Stadium, Series 2006,
5.000%, 1/01/36 - AMBAC Insured
450 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 476,887
Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/36 - FGIC Insured
200 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 206,102
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
4,520 Total Education and Civic Organizations 4,773,914
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.0%
450 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 474,273
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Lenox Hill Hospital Obligated Group, Series 2001:
110 5.375%, 7/01/20 7/11 at 101.00 Ba2 114,344
100 5.500%, 7/01/30 7/11 at 101.00 Ba2 103,603
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 527,410
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35
670 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 718,086
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - MBIA Insured
415 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 453,342
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
41
Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 250 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 A3 $ 266,375
North Shore Long Island Jewish Group, Series 2003,
5.375%, 5/01/23
1,680 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,798,642
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 Bonds, 7/11 at 101.00 AAA 1,279,391
Winthrop South Nassau University Health System Obligated
Group, Series 2001B, 5.250%, 7/01/17 - AMBAC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 525,985
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 805,778
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 263,435
Civic Facility Revenue Bonds, Staten Island University Hospital,
Series 2002C, 6.450%, 7/01/32
------------------------------------------------------------------------------------------------------------------------------------
6,870 Total Health Care 7,330,664
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.9%
1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA 1,066,840
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 263,328
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 162,414
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
130 New York State Housing Finance Agency, FHA-Insured 2/07 at 100.00 AAA 130,212
Multifamily Housing Mortgage Revenue Bonds, Series 1992C,
6.450%, 8/15/14 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,540 Total Housing/Multifamily 1,622,794
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.2%
2,000 New York State Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,045,720
Revenue Bonds, Series 101, 5.000%, 10/01/18 (Alternative
Minimum Tax)
2,500 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa 2,563,024
Thirty-First Series A, 5.300%, 10/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,500 Total Housing/Single Family 4,608,744
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.4%
2,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 2,122,859
Nursing Home Mortgage Revenue Bonds, Norwegian Christian
Home and Health Center, Series 2001, 5.200%, 8/01/36 -
MBIA Insured
50 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 A 51,407
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured
2,000 East Rochester Housing Authority, New York, FHA-Insured 8/12 at 101.00 AAA 2,089,659
Mortgage Revenue Refunding Bonds, Jewish Home of
Rochester, Series 2002, 4.625%, 2/15/17
1,000 East Rochester Housing Authority, New York, Revenue Bonds, 12/12 at 103.00 AAA 1,082,550
GNMA/FHA-Secured Revenue Bonds, St. Mary's Residence
Project, Series 2002A, 5.375%, 12/20/22
1,000 New York City Industrial Development Agency, New York, 11/12 at 101.00 AA+ 1,034,960
GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor
House Inc., Series 2002A, 4.950%, 11/20/32
------------------------------------------------------------------------------------------------------------------------------------
6,050 Total Long-Term Care 6,381,435
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.3%
Clarkstown, Rickland County, New York, Various Purposes
Serial Bonds, Series 1992:
505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 541,542
525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 571,709
525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 583,202
300 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 325,956
Fiscal Series 2004C, 5.250%, 8/15/16
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 500 New York City, New York, General Obligation Bonds, 11/14 at 100.00 AAA $ 536,750
Fiscal Series 2004E, 5.000%, 11/01/19 - FSA Insured
200 New York City, New York, General Obligation Bonds, 3/15 at 100.00 AAA 214,960
Fiscal Series 2005J, 5.000%, 3/01/19 - FGIC Insured
225 New York City, New York, General Obligation Bonds, 8/15 at 100.00 AAA 244,800
Fiscal Series 2006C, 5.000%, 8/01/16 - FSA Insured
500 West Islip Union Free School District, Suffolk County, 10/15 at 100.00 Aaa 545,795
New York, General Obligation Bonds, Series 2005,
5.000%, 10/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,280 Total Tax Obligation/General 3,564,714
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.4%
600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 637,836
Series 2003A, 5.000%, 11/01/23
300 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 326,352
Mental Health Services Facilities Improvements,
Series 2005D-1, 5.000%, 2/15/15 - FGIC Insured
500 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 564,440
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 547,190
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 96,132
Tax Secured Revenue Bonds, Series 2001A-2,
5.125%, 11/15/21 - AMBAC 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 266,250
200 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 212,718
1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,296,859
670 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 705,430
Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
250 New York State Thruway Authority, Highway and Bridge 4/14 at 100.00 AAA 266,323
Trust Fund Bonds, Second Generation, Series 2004,
5.000%, 4/01/21 - MBIA Insured
570 New York State Thruway Authority, Highway and Bridge No Opt. Call AAA 663,417
Trust Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
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 1,078,280
250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 268,962
500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 542,445
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
60 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 63,624
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
6,970 Total Tax Obligation/Limited 7,536,258
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.8%
400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 426,784
Series 2001A, 5.625%, 7/15/25
500 Metropolitan Transportation Authority, New York, No Opt. Call AAA 548,235
Transportation Revenue Bonds, Series 2003A,
5.000%, 11/15/15 - FGIC Insured
50 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 52,781
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
100 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 105,992
600 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 634,602
43
Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
$ 250 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA $ 271,193
105 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 111,582
------------------------------------------------------------------------------------------------------------------------------------
2,005 Total Transportation 2,151,169
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.7% (3)
1,000 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 101.00 AAA 1,023,260
Bonds, Rochester Institute of Technology, Series 1997,
5.250%, 7/01/22 (Pre-refunded 7/01/07) - MBIA Insured
1,240 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 1,491,869
Facilities Lease Revenue Bonds, Suffolk County Issue,
Series 1986, 7.375%, 7/01/16 (ETM)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 1998A:
320 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 331,616
680 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 704,684
750 New York State Thruway Authority, Highway and Bridge 4/13 at 100.00 AAA 822,345
Trust Fund Bonds, Second Generation, Series 2003A,
5.250%, 4/01/23 (Pre-refunded 4/01/13) - MBIA Insured
500 New York State Urban Development Corporation, State 3/13 at 100.00 AAA 553,990
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded
3/15/13) - FGIC Insured
485 Suffolk County Water Authority, New York, Water Revenue No Opt. Call AAA 532,118
Bonds, Series 1986V, 6.750%, 6/01/12 (ETM)
1,040 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,127,454
Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12)
------------------------------------------------------------------------------------------------------------------------------------
6,015 Total U.S. Guaranteed 6,587,336
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.3%
1,000 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 1,073,160
General Revenue Bonds, Series 2003C, 5.000%, 9/01/16 -
CIFG Insured
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
570 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 611,770
430 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 459,735
500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 506,525
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 261,833
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Mandatory put 11/15/12) (Alternative
Minimum Tax)
60 Westchester County Industrial Development Agency, 7/07 at 101.00 BBB 61,138
Westchester County, New York, Resource Recovery Revenue
Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,810 Total Utilities 2,974,161
------------------------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.2%
$ 2,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ $ 2,631,449
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 2,160,839
2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,088,420
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Water and Sewer 6,880,708
------------------------------------------------------------------------------------------------------------------------------------
$ 52,200 Total Long-Term Municipal Bonds (cost $53,123,631) 55,576,054
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 600,894
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 56,176,948
====================================================================================================================
(1) 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.
(2) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
45
Statement of
ASSETS AND LIABILITIES September 30, 2006 (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 value
(cost $222,533,690, $241,255,836, $175,480,319,
$86,360,136 and $53,123,631, respectively) $237,860,657 $254,250,774 $184,735,177 $91,721,975 $55,576,054
Cash -- -- 203,165 -- --
Receivables:
Interest 3,730,408 3,723,937 2,643,411 1,206,462 784,544
Investments sold 480,167 -- 20,327 -- --
Other assets 65,975 69,791 51,092 26,641 17,539
------------------------------------------------------------------------------------------------------------------------------------
Total assets 242,137,207 258,044,502 187,653,172 92,955,078 56,378,137
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 61,333 543,780 -- 311,495 154,679
Payable for investments purchased 103,335 -- -- -- --
Accrued expenses:
Management fees 45,573 58,877 43,326 21,698 13,170
Other 119,131 124,336 93,219 55,468 33,340
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 329,372 726,993 136,545 388,661 201,189
------------------------------------------------------------------------------------------------------------------------------------
Net assets $241,807,835 $257,317,509 $187,516,627 $92,566,417 $56,176,948
====================================================================================================================================
Shares outstanding 16,378,096 17,607,068 12,964,124 6,257,070 3,908,223
====================================================================================================================================
Net asset value per share outstanding $ 14.76 $ 14.61 $ 14.46 $ 14.79 $ 14.37
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,082
Paid-in surplus 227,634,455 245,689,700 178,371,732 87,121,715 53,622,239
Undistributed (Over-distribution of)
net investment income 176,049 (173,366) (194,323) (99,873) (78,705)
Accumulated net realized gain (loss)
from investments (1,493,417) (1,369,834) (45,281) 120,165 141,909
Net unrealized appreciation (depreciation)
of investments 15,326,967 12,994,938 9,254,858 5,361,839 2,452,423
------------------------------------------------------------------------------------------------------------------------------------
Net assets $241,807,835 $257,317,509 $187,516,627 $92,566,417 $56,176,948
====================================================================================================================================
Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
46
Statement of
OPERATIONS Six Months Ended September 30, 2006 (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 $6,102,207 $6,210,544 $4,487,872 $2,183,320 $1,309,455
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 277,732 357,955 263,293 131,403 79,917
Shareholders' servicing agent fees and expenses 15,812 14,744 12,945 4,788 3,667
Custodian's fees and expenses 27,061 30,361 27,748 24,583 12,353
Trustees' fees and expenses 2,392 2,555 1,995 1,025 665
Professional fees 8,017 8,811 6,702 4,584 4,236
Shareholders' reports - printing and mailing expenses 21,511 22,138 16,984 7,001 5,756
Stock exchange listing fees 4,925 4,925 4,925 4,925 4,925
Investor relations expense 18,699 19,612 14,257 6,540 4,196
Other expenses 4,700 4,046 3,592 2,147 1,970
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 380,849 465,147 352,441 186,996 117,685
Custodian fee credit (9,032) (23,535) (21,738) (6,019) (3,833)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 371,817 441,612 330,703 180,977 113,852
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,730,390 5,768,932 4,157,169 2,002,343 1,195,603
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 100,753 62,557 422,680 79,412 3,328
Change in net unrealized appreciation
(depreciation) of investments 2,172,362 2,879,623 1,865,392 1,322,480 700,877
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 2,273,115 2,942,180 2,288,072 1,401,892 704,205
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $8,003,505 $8,711,112 $6,445,241 $3,404,235 $1,899,808
====================================================================================================================================
See accompanying notes to financial statements.
47
Statement of
CHANGES IN NET ASSETS (Unaudited)
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR)
-------------------------------- --------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
9/30/06 3/31/06 9/30/06 3/31/06 9/30/06 3/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,730,390 $ 11,425,438 $ 5,768,932 $ 11,568,224 $ 4,157,169 $ 8,431,298
Net realized gain (loss)
from investments 100,753 (1,593,512) 62,557 (1,292,123) 422,680 (459,059)
Change in net unrealized
appreciation (depreciation)
of investments 2,172,362 1,325,784 2,879,623 2,512,224 1,865,392 1,267,741
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
from operations 8,003,505 11,157,710 8,711,112 12,788,325 6,445,241 9,239,980
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (5,601,310) (11,202,617) (5,599,048) (11,479,810) (4,161,484) (8,348,899)
From accumulated net
realized gains -- (9,827) -- (260,585) -- (37,596)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (5,601,310) (11,212,444) (5,599,048) (11,740,395) (4,161,484) (8,386,495)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets 2,402,195 (54,734) 3,112,064 1,047,930 2,283,757 853,485
Net assets at the beginning
of period 239,405,640 239,460,374 254,205,445 253,157,515 185,232,870 184,379,385
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $241,807,835 $239,405,640 $257,317,509 $254,205,445 $187,516,627 $185,232,870
====================================================================================================================================
Undistributed (Over-distribution
of) net investment
income at the
end of period $ 176,049 $ 46,969 $ (173,366) $ (343,250) $ (194,323) $ (190,008)
====================================================================================================================================
See accompanying notes to financial statements.
48
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN)
---------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
9/30/06 3/31/06 9/30/06 3/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,002,343 $ 4,082,963 $ 1,195,603 $ 2,410,475
Net realized gain (loss) from investments 79,412 371,058 3,328 222,568
Change in net unrealized appreciation
(depreciation) of investments 1,322,480 208,194 700,877 (309,880)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 3,404,235 4,662,215 1,899,808 2,323,163
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (1,989,748) (4,079,612) (1,195,918) (2,411,373)
From accumulated net realized gains -- (379,804) -- (255,989)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (1,989,748) (4,459,416) (1,195,918) (2,667,362)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 1,414,487 202,799 703,890 (344,199)
Net assets at the beginning of period 91,151,930 90,949,131 55,473,058 55,817,257
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $92,566,417 $91,151,930 $56,176,948 $55,473,058
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the
end of period $ (99,873) $ (112,468) $ (78,705) $ (78,390)
====================================================================================================================================
See accompanying notes to financial statements.
49
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 establishes fair value based on yields or
prices of municipal bonds of comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities dealers, evaluations of
anticipated cash flows or collateral and general market conditions. If it is
determined that the market price or fair market value for an investment is
unavailable or inappropriate, the Board of Trustees of the Funds, or its
designee, may establish a fair value for the investment. Exchange-listed
securities are generally valued at the last sales price on the securities
exchange on which such securities are primarily traded. Securities traded on a
securities exchange for which there are no transactions on a given day or
securities not listed on a securities exchange are valued at the mean of the
closing bid and asked prices. Securities traded on Nasdaq are valued at the
Nasdaq Official Closing Price. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term investments 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/delayed delivery purchase commitments. At September 30, 2006, there were
no such outstanding purchase commitments in any of the Funds.
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. Dividend
income, if any, is recorded on the ex-dividend date.
50
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 applicable state
income taxes, if any, 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 authorized to invest in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics including inverse floating rate
securities. During the six months ended September 30, 2006, Select Tax-Free 2
(NXQ) and Select Tax-Free 3 (NXR) invested in inverse floating rate securities
for the purpose of enhancing portfolio yield. Inverse floating rate securities
are identified in the Portfolio of Investments and are valued daily. The
interest rate of an inverse floating rate security has an inverse relationship
to the interest rate of a short-term floating rate security. Consequently, as
the interest rate of the floating rate security rises, the interest rate on the
inverse floating rate security declines. Conversely, as the interest rate of the
floating rate security declines, the interest rate on the inverse floating rate
security rises. The price of an inverse floating rate security will be more
volatile than that of an otherwise comparable fixed rate security since the
interest rate is dependent on the interest rate on the fixed rate bonds that
underly the inverse floater or the general level of long-term interest rates as
well as the short-term interest paid on the floating rate security, and because
the inverse floating rate security typically bears the risk of loss of a greater
face value of such underlying bond. Select Tax-Free (NXP), California Select
Tax-Free (NXC) and New York Select Tax-Free (NXN) did not invest in any such
instruments during the six months ended September 30, 2006.
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.
51
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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.
2. FUND SHARES
None of the Funds engaged in transactions of their own shares during the six
months ended September 30, 2006, nor during the fiscal year ended March 31,
2006.
3. INVESTMENT TRANSACTIONS
Purchases and sales of investments (including maturities but excluding
short-term investments) during the six months ended September 30, 2006, 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 $3,505,334 $8,192,262 $19,162,832 $9,782,701 $1,690,648
Sales and maturities 2,704,683 5,386,161 16,413,265 9,222,770 1,132,404
=========================================================================================================
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. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their Federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
At September 30, 2006, 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 $222,140,134 $241,151,580 $175,441,248 $86,358,837 $53,118,461
=========================================================================================================
52
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2006, 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 $15,755,941 $13,231,618 $9,375,175 $5,363,138 $2,460,942
Depreciation (35,418) (132,424) (81,246) -- (3,349)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $15,720,523 $13,099,194 $9,293,929 $5,363,138 $2,457,593
=========================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at March 31, 2006, the Funds' last tax 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* $614,913 $493,578 $444,373 $217,959 $116,162
Undistributed net ordinary income** -- -- -- -- --
Undistributed net long-term capital gains -- -- -- 40,753 138,581
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on March 1, 2006, paid on April 3, 2006.
** 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 Funds' last tax year ended
March 31, 2006, 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 $11,202,618 $11,515,026 $8,361,862 $4,092,125 $2,421,145
Distributions from net ordinary income** 126 -- -- 49,498 --
Distributions from net long-term capital gains 9,113 259,588 36,746 330,306 255,989
======================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2005 through March 31, 2006 ("post-October losses") in
accordance with Federal income tax regulations. Post-October losses were treated
as having arisen on the first day of the current fiscal year:
SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3
(NXP) (NXQ) (NXR)
----------------------------------------------------------------------------------------------------------------------
$1,594,170 $1,432,391 $467,961
======================================================================================================================
53
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 Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., ("Nuveen"), 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, 2006, the complex-level fee rate was .1857%.
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.
54
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 its 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.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
Financial Accounting Standards Board Statement on Financial Accounting Standards
No. 157 In September 2006, the Financial Accounting Standards Board (FASB)
issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of September 30, 2006, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
55
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
7. SUBSEQUENT EVENTS
Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on November 1, 2006, to shareholders of record on October
15, 2006, 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 $.0530 $.0535 $.0530 $.0510
=========================================================================================================
56
Financial
HIGHLIGHTS (Unaudited)
57
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:
2007(a) $14.62 $.35 $ .13 $ .48 $(.34) $ -- $(.34) $14.76 $14.28
2006 14.62 .70 (.02) .68 (.68) -- (.68) 14.62 14.21
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
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) 14.44 .33 .16 .49 (.32) -- (.32) 14.61 13.58
2006 14.38 .66 .06 .72 (.65) (.01) (.66) 14.44 13.37
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
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) 14.29 .32 .17 .49 (.32) -- (.32) 14.46 13.60
2006 14.22 .65 .06 .71 (.64) -- (.64) 14.29 13.45
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
CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) 14.57 .32 .22 .54 (.32) -- (.32) 14.79 13.99
2006 14.54 .65 .09 .74 (.65) (.06) (.71) 14.57 13.56
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
NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) 14.19 .31 .18 .49 (.31) -- (.31) 14.37 13.60
2006 14.28 .62 (.02) .60 (.62) (.07) (.69) 14.19 13.35
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
====================================================================================================================================
TOTAL RETURNS
-----------------------
BASED ON
BASED ON NET
MARKET ASSET
VALUE* VALUE*
===============================================================
SELECT TAX-FREE (NXP)
---------------------------------------------------------------
Year Ended 3/31:
2007(a) 2.96% 3.35%
2006 10.41 4.74
2005 .17 4.00
2004 7.34 6.13
2003 9.51 7.84
2002 1.54 3.41
SELECT TAX-FREE 2 (NXQ)
---------------------------------------------------------------
Year Ended 3/31:
2007(a) 4.00 3.43
2006 7.39 5.12
2005 .11 3.82
2004 8.35 6.31
2003 6.01 6.33
2002 2.57 3.41
SELECT TAX-FREE 3 (NXR)
---------------------------------------------------------------
Year Ended 3/31:
2007(a) 3.56 3.48
2006 10.12 5.10
2005 (.17) 4.01
2004 9.96 6.13
2003 3.51 6.09
2002 3.84 3.70
CALIFORNIA SELECT TAX-FREE (NXC)
---------------------------------------------------------------
Year Ended 3/31:
2007(a) 5.59 3.74
2006 6.52 5.17
2005 .50 3.99
2004 9.14 6.16
2003 1.34 6.86
2002 7.95 3.03
NEW YORK SELECT TAX-FREE (NXN)
---------------------------------------------------------------
Year Ended 3/31:
2007(a) 4.23 3.47
2006 2.84 4.19
2005 .05 3.10
2004 11.81 5.84
2003 4.73 8.17
2002 3.17 2.75
===============================================================
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------
BEFORE CREDIT AFTER CREDIT**
------------------------------ ----------------------------------
RATIO OF NET RATIO OF NET
ENDING RATIO OF INVESTMENT RATIO OF INVESTMENT
NET EXPENSES TO INCOME TO EXPENSES TO INCOME TO PORTFOLIO
ASSETS AVERAGE AVERAGE AVERAGE AVERAGE TURNOVER
(000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE
====================================================================================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) $241,808 .32%*** 4.78%*** .31%*** 4.78%*** 1%
2006 239,406 .32 4.72 .31 4.73 4
2005 239,460 .33 4.76 .32 4.77 11
2004 243,165 .34 4.90 .33 4.91 16
2003 242,669 .37 5.20 .36 5.21 35
2002 240,275 .38 5.89 .37 5.89 26
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) 257,318 .37*** 4.52*** .35*** 4.53*** 2
2006 254,205 .36 4.51 .35 4.52 11
2005 253,158 .37 4.68 .36 4.69 13
2004 256,373 .39 4.86 .38 4.86 10
2003 254,355 .42 5.20 .41 5.21 46
2002 255,887 .43 5.79 .42 5.80 21
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) 187,517 .38*** 4.46*** .36*** 4.48*** 9
2006 185,233 .37 4.51 .35 4.52 6
2005 184,379 .38 4.66 .37 4.67 16
2004 186,358 .38 4.84 .38 4.85 6
2003 185,137 .42 5.09 .41 5.10 51
2002 184,837 .44 5.59 .42 5.60 9
CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) 92,566 .41*** 4.37*** .40*** 4.39*** 10
2006 91,152 .38 4.42 .37 4.43 8
2005 90,949 .39 4.55 .39 4.56 13
2004 91,864 .40 4.64 .39 4.65 30
2003 90,975 .43 4.84 .42 4.85 42
2002 90,346 .44 5.27 .43 5.28 12
NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(a) 56,177 .42*** 4.29*** .41*** 4.31*** 2
2006 55,473 .41 4.28 .40 4.29 13
2005 55,817 .41 4.48 .41 4.48 13
2004 56,958 .43 4.65 .42 4.65 16
2003 56,683 .46 4.85 .45 4.86 35
2002 55,362 .49 5.04 .48 5.05 28
====================================================================================================================================
* Total 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.
*** Annualized.
(a) For the six months ended September 30, 2006.
58-59 spread
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
The Board of Trustees is responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the
Board of Trustees of the Funds, including the independent Trustees, unanimously
approved the continuance of the Investment Management Agreement between each
Fund and NAM (the "Fund Adviser").
THE APPROVAL PROCESS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Adviser and the performance of
each Fund. To assist the Board in its evaluation of the advisory contract with
the Fund Adviser at the May Meeting, the independent Trustees received extensive
materials in advance of their meeting which outlined, among other things:
o the nature, extent and quality of services provided by the Fund
Adviser;
o the organization and business operations of the Fund Adviser,
including the responsibilities of various departments and key
personnel;
o the Fund's past performance, the Fund's performance compared to funds
of similar investment objectives compiled by an independent third
party and to customized benchmarks;
o the profitability of the Fund Adviser and certain industry
profitability analyses for unaffiliated advisers;
o the expenses of the Fund Adviser in providing the various services;
o the advisory fees (gross and net management fees) and total expense
ratios of the Fund, including comparisons of such fees and expenses
with those of comparable, unaffiliated funds based on information and
data provided by Lipper (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") to the
respective Fund (as applicable);
o the advisory fees the Fund Adviser assesses to other types of
investment products or clients;
o the soft dollar practices of the Fund Adviser, if any; and
o from independent legal counsel, a legal memorandum describing, among
other things, the duties of the Trustees under the Investment Company
Act of 1940 (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 May Meeting, the Fund Adviser 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 the advisory contract with the Fund Adviser. 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
the Fund Adviser; (b) the investment performance of the Fund and the Fund
Adviser; (c) the costs of the services to be provided and profitability of the
Fund Adviser and its affiliates; (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 reviewing the Fund Adviser, the Trustees considered the nature, extent and
quality of the Fund Adviser's services. The Trustees reviewed materials
outlining, among other things, the Fund Adviser's organization and business; the
types of services that the Fund Adviser or its affiliates provide and are
expected to provide to the Funds; the performance record of the applicable Fund
(as described in further detail below); and any initiatives and enhancements
Nuveen has taken for its municipal fund product line. In connection with their
continued service as Trustees, the Trustees also have a good understanding of
the Fund Adviser's organization, operations and personnel. In this regard, the
Trustees are familiar with and have evaluated the professional experience,
qualifications and credentials of the Fund Adviser's personnel. The Trustees
further reviewed materials describing, among other things, the teams and
personnel
60
involved in the investment, research, risk-management and operational processes
involved in managing municipal funds and their respective functions. Given the
Trustees' experience with the Funds and Fund Adviser, the Trustees recognized
the demonstrated history of care and depth of experience of the respective
personnel in managing these Funds. In this regard, the Trustees considered the
continued quality of the Fund Adviser's investment process in making portfolio
management decisions as well as additional refinements and improvements adopted
to the portfolio management processes noted below. With respect to the services
provided to municipal funds, including the Funds, the Trustees noted that the
Fund Adviser continues to make refinements to its portfolio management process
including, among other things, the increased use of derivatives to enhance
management of risk, additional analytical software for research staff and
improved municipal pricing processes.
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. The Fund
Adviser 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 connection with the review of the Investment Management
Agreement, the Trustees considered the extent and quality of these other
services which include, among other things, providing: product management (e.g.,
product positioning, performance benchmarking, risk management); fund
administration (e.g., daily net asset value pricing and reconciliation, tax
reporting, fulfilling regulatory filing requirements); oversight of third party
service providers; administration of board relations (e.g., organizing board
meetings and preparing related materials); compliance (e.g., monitoring
compliance with investment policies and guidelines and regulatory requirements);
and legal support (e.g., helping prepare and file registration statements,
amendments thereto, proxy statements and responding to regulatory requests
and/or inquiries). As the Funds operate in a highly regulated industry and given
the importance of compliance, the Trustees considered, in particular, the
additions of experienced personnel to the compliance teams and the enhancements
to technology and related systems to support the compliance activities for the
Funds (including a new reporting system for quarterly portfolio holdings).
In addition to the foregoing, the Trustees also noted the additional services
that the Fund Adviser or its affiliates provide to closed-end funds, including,
in particular, secondary market support activities. The Trustees recognized
Nuveen's continued commitment to supporting the secondary market for the common
shares of its closed-end funds through a variety of initiatives designed to
raise investor and analyst awareness and understanding of closed-end funds.
These efforts include providing advertising and other media relations programs,
continued contact with analysts, maintaining and enhancing its website for
closed-end funds, and targeted advisor communication programs. With respect to
funds that utilize leverage through the issuance of preferred shares, the
Trustees noted Nuveen's continued support for the preferred shares by
maintaining, among other things, an in-house preferred trading desk; designating
a product manager whose responsibilities include creating and disseminating
product information and managing relations in connection with the preferred
share auction; and maintaining systems necessary to test compliance with rating
agency requirements.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the respective
Funds under the Investment Management Agreement were of a high level and were
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISER
The Board considered the investment performance for each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"Performance Peer Group") and portfolio level performance against customized
benchmarks, as described below. In evaluating the performance information, in
certain instances, the Trustees noted that the closest Performance Peer Group
for a Fund still may not adequately reflect such Fund's investment objectives,
strategies and portfolio duration, thereby limiting the usefulness of the
comparisons of such Fund's performance with that of the Performance Peer Group.
With respect to state specific municipal funds, the Trustees recognized that
certain state municipal funds do not have a corresponding state specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. The closed-end state
municipal funds that do not have corresponding state-specific Performance Peer
Groups are from Arizona, Connecticut, Georgia, Maryland, Massachusetts,
Missouri, North Carolina, Ohio, Texas, and Virginia. Further, due to a lack of
state-specific unleveraged categories, certain unleveraged state municipal funds
are included in their leveraged state category (such as, the Nuveen California
Select Tax-Free Income Fund, Nuveen California Municipal Value Fund, Nuveen New
York Select Tax-Free Income Fund and Nuveen New York Municipal Value Fund).
In reviewing performance, the Trustees reviewed performance information
including, among other things, total return information compared with the Fund's
Performance Peer Group for the one-, three- and five-year periods (as
applicable) ending December 31, 2005. The Trustees also reviewed the Fund's
portfolio level performance (which does not reflect fund level fees and
expenses) compared to customized portfolio-level benchmarks for the one- and
three-year periods ending December 31, 2005 (as applicable). This analysis is
designed to assess the efficacy of investment decisions against appropriate
measures of risk and total return, within specific market segments. This
information supplements the Fund performance information provided to the Board
at each of their quarterly meetings. 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 of a Fund, the Board
reviewed, among other things, the Fund's advisory fees (net and gross
management fees) and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as comparisons to
the gross management fees (before waivers), net management fees (after
waivers) and total expense ratios (before and after waivers) of comparable
funds in the Peer Universe and the Peer Group. The Trustees reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance analysis.
In certain cases, due to the small number of peers in the Peer Universe,
the Peer Universe and Peer Group may be the same. Further, the Trustees
recognized that in certain cases the closest Peer Universe and/or Peer
Group did not
61
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
adequately reflect the Fund's investment objectives and strategies limiting
the usefulness of comparisons. In reviewing comparisons, the Trustees also
considered the size of the Peer Universe and/or Peer Group, the composition
of the Peer Group (including differences in the use of leverage and
insurance) as well as differing levels of fee waivers and/or expense
reimbursements. In this regard, the Trustees considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain funds launched since 1999). Based on their review
of the fee and expense information provided, the Trustees determined that
each Fund's net total expense ratio was within an acceptable range compared
to peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further reviewed data comparing the advisory fees of the Fund
Adviser with fees the Fund Adviser charges to other clients, including
municipal managed accounts. In general, the fees charged for separate
accounts are somewhat lower than the fees assessed to the Funds. The
Trustees recognized that the differences in fees are attributable to a
variety of factors, including the differences in services provided, product
distribution, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Trustees noted, in particular, that
the range of services provided to the Funds is more extensive than that
provided to managed separate accounts. As described in further detail
above, such additional services include, but are not limited to, providing:
product management, fund administration, oversight of third party service
providers, administration of board relations, and legal support. Funds
further operate in a highly regulated industry requiring extensive
compliance functions compared to the other investment products. In addition
to the costs of the additional services, administrative costs may also be
greater for funds as the average account size for separate accounts is
notably larger than the retail accounts of funds. Given the differences in
the product structures, particularly the extensive services provided to
closed-end municipal funds, the Trustees believe such facts justify the
different levels of fees.
3. PROFITABILITY OF FUND ADVISER
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees
reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profits margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen. The Trustees further reviewed the 2005
Annual Report for Nuveen Investments. In considering profitability, the
Trustees recognized the inherent limitations in determining profitability
as well as the difficulties in comparing the profitability of other
unaffiliated advisers. Profitability may be affected by numerous factors,
including the methodology for allocating expenses, the adviser's business
mix, the types of funds managed, the adviser's capital structure and cost
of capital. Further, individual fund or product line profitability of other
sponsors is generally not publicly available. Accordingly, the
profitability information that is publicly available from various
investment advisory or management firms may not be representative of the
industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In this regard, the methods of allocation used
appeared reasonable. The Trustees also, to the extent available, compared
Nuveen's profitability margins (including pre- and post-marketing profit
margins) with the profitability of various unaffiliated management firms. The
Trustees noted that Nuveen's profitability is enhanced due to its efficient
internal business model. The Trustees also recognized that while a number of
factors affect profitability, Nuveen's profitability may change as fee waivers
and/or expense reimbursement commitments of Nuveen to various funds in the
Nuveen complex expire. To keep apprised of profitability and developments that
may affect profitability, the Trustees have requested profitability analysis be
provided periodically during the year. Based on their review, the Trustees were
satisfied that the Fund Adviser's level of profitability was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to the Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser 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.
62
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Trustees have reviewed and considered the breakpoints in the advisory fee
schedules that reduce advisory fees as the applicable Fund's assets grow. In
addition to advisory fee breakpoints as assets in a respective Fund rise, after
lengthy discussions with management, the Board also approved a complex-wide fee
arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. 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 noted
that 2005 was the first full year to reflect the fee reductions from the complex
wide fee arrangement. 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 was 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 the Fund Adviser or its affiliates may receive as a result of its
relationship with each Fund. In this regard, the Trustees considered revenues
received by affiliates of the Fund Adviser for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Trustees noted that 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; however, the Fund Adviser may from time
to time receive and have access to research generally provided to institutional
clients.
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 the Fund Adviser's fees are reasonable in light of the
services provided to each Fund, and that the renewal of the Investment
Management Agreements should be approved
63
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 CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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.
64
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the "Plan") as further described below effective with the
close of business on January 2, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares
on the open market while shares are trading below net asset value, but the
Fund's shares subsequently trade at or above their net asset value before the
Plan Agent is able to complete its purchases, the Plan Agent may cease
open-market purchases and may invest the uninvested portion of the distribution
in newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
65
Notes
66
Other Useful
INFORMATION
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, 2006, 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.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
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 Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
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.
67
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 $149 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
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-0906D
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 to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board 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 Select Tax-Free Income Portfolio
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: December 6, 2006
-------------------------------------------------------------------
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 6, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 6, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.