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
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Nuveen Select Tax-Free Income Portfolio
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: March 31, 2010
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Date of reporting period: March 31, 2010
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
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NUVEEN
Investments
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
It's not what you earn, it's what you keep.(R)
Annual Report
March 31, 2010
----------------- ----------------- ----------------- -----------------
Nuveen Select Nuveen Select Nuveen Select Nuveen California
Tax-Free Income Tax-Free Income Tax-Free Income Select Tax-Free
Portfolio Portfolio 2 Portfolio 3 Income Portfolio
NXP NXQ NXR NXC
-----------------
Nuveen New York
Select Tax-Free
Income Portfolio
NXN
10
March
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NUVEEN
Investments
CHAIRMAN'S
LETTER TO SHAREHOLDERS
[IMAGE] Dear Shareholder,
The economic environment in which your Fund operates
reflects continuing but uneven economic recovery. The
U.S. and other major industrial countries are
experiencing steady but comparatively low levels of
economic growth, while emerging market countries are
seeing a resumption of relatively strong economic
expansion. The largest source of economic uncertainty is
the potential impact of steps being considered by many
governments to counteract the extraordinary governmental
spending and credit expansion carried out to deal with
the financial and economic crisis of 2008. Consequently,
the implications for future tax rates, government
spending, interest rates and the pace of economic
recovery in the U.S. and other leading economies are
extremely difficult to predict at the present time. The
long term health of the global economy depends on
restoring some measure of fiscal discipline around the
world, but since all of the corrective steps require
economic pain, it is not surprising that governments are
reluctant to undertake them.
In the near term, governments remain committed to
furthering economic recovery and realizing a meaningful
reduction in their national unemployment rates. Such an
environment should produce continued economic growth
and, consequently, attractive investment opportunities.
Over the longer term, the larger uncertainty mentioned
earlier carries the risk of unexpected potholes in the
road to sustained recovery. For this reason, Nuveen's
investment management teams are working hard to balance
return and risk by building well-diversified portfolios,
among other strategies. I encourage you to read the
following commentary on the management of your Fund. As
always, I also encourage you to contact your financial
consultant if you have any questions about your Nuveen
Fund investment.
On behalf of the other members of your Fund's Board, we
look forward to continuing to earn your trust in the
months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
May 21, 2010
Nuveen Investments 1
PORTFOLIO MANAGERS' COMMENTS
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)
Portfolio managers Tom Spalding, Scott Romans and Cathryn Steeves examine
economic and municipal market conditions at the national and state levels, key
investment strategies, and the twelve-month performance of the Nuveen Select
Portfolios. With 34 years of investment experience, Tom has managed the three
national Portfolios since 1999. Scott, who joined Nuveen Investments 2000,
assumed portfolio management responsibility for NXC in 2003, while Cathryn, who
has been with Nuveen since 1996, has managed NXN since 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED MARCH 31, 2010?
During this reporting period, the U.S. economy remained under considerable
pressure, as both the Federal Reserve (Fed) and the federal government continued
their efforts to improve overall conditions. The Federal Reserve maintained the
benchmark fed funds rate at a target range of zero to 0.25% after cutting it to
this record low level in December 2008. As part of its efforts, the federal
government passed the American Recovery and Reinvestment Act of 2009, a $787
billion economic stimulus package intended to provide job creation, tax relief,
fiscal assistance to state and local governments and expansion of unemployment
benefits and other federal social welfare programs. At its meeting in March
2010, the Fed pledged to keep the fed funds rate "exceptionally low" for an
"extended period." In recent months, these and other measures to ease the
economic recession have produced some incipient signs of improvement. In the
first quarter of 2010, the U.S. economy, as measured by the U.S. gross domestic
product (GDP), grew at a rate of 3.2% annualized. Housing also provided a bright
spot, with sales of new and existing homes rising 24% and 13%, respectively,
between March 2009 and March 2010. At the same time, inflation remained
relatively tame, as the Consumer Price Index (CPI) rose 2.3% for the
twelve-months ending March 31, 2010. As of March 2010, the national unemployment
rate had remained at 9.7% for three consecutive months, up from 8.6% in March
2009 but down from the 26-year high of 10.1% in October 2009. Municipal market
conditions began to show general signs of improvement throughout most of the
period. This trend was bolstered by the reduced issuance of tax-exempt municipal
debt in the marketplace, due in part to the introduction of the Build America
Bond program in April 2009. Build America Bonds are a new class of taxable
municipal debt created as part
--------------------------------------------------------------------------------
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS
EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND
OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE
ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
of the economic stimulus package. These bonds currently offer municipal issuers
a federal subsidy equal to 35% of the bonds' interest payments and therefore
provide issuers with an attractive alternative to traditional tax exempt debt.
Between April 2009 and the end of this reporting period, taxable Build America
Bonds issuance totaled $90.8 billion, accounting for 21% of new bonds issued in
the municipal market during that time. Over the twelve months ended March 31,
2010, municipal bond issuance nationwide "both tax-exempt and taxable" totaled
$425.3 billion, a decrease of 2% compared with the twelve-month period ended
March 31, 2009. Demand for tax-exempt bonds remained strong during this period
and combined with lower tax-exempt issuance, provided support for municipal bond
prices.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA AND NEW YORK DURING THIS
PERIOD?
Over the twelve-month period, California continued to struggle to emerge from a
deep recession, which was driven in part by the severe correction in the state's
housing market. As of March 2010, California's unemployment rate had risen to
12.6%, the third highest in the nation. On the positive side, California's
economy remained relatively diverse and exports continue to grow based on
improving global demand, especially for the state's technology products. Recent
months also saw housing prices increase. According to the Standard & Poor's
(S&P)/Case-Shiller Home Price Index of 20 major metropolitan areas, home prices
in San Francisco, San Diego and Los Angeles rose 11.9%, 7.6% and 5.3%,
respectively, during the twelve months ended February 2010, compared with an
average gain of 0.6% nationally.
During the summer of 2009, the state closed a gap in the fiscal 2009-2010 budget
using an assortment of one-time measures, which led to the reappearance of the
same kinds of deficit problems in the fiscal 2010-2011 budget. For the proposed
$119 billion 2010-2011 budget, California faces a total shortfall of almost $20
billion. Plans called for closing that gap by cutting spending on health and
human services, welfare, transportation and environmental programs as well as by
generating additional revenue through the rollback of recent corporate tax
breaks and expansion of oil drilling off the Santa Barbara coast. In addition,
the state proposed asking the federal government for increased funds to help
cover costs for Medicaid, imprisoning illegal immigrants and implementing
federal education mandates.
Nuveen Investments 3
As of March 2010, Moody's, S&P and Fitch rated California general obligation
(GOs) bonds at Baa1, A- and BBB, respectively. These ratings reflect recent
downgrades by all three agencies.. For the twelve months ended March 31, 2010,
municipal issuance in California totaled $72.9 billion, an increase of 17% from
the previous twelve months. California remained the largest state issuer in the
nation, representing approximately 17% of total issuance nationwide for the
twelve months ended March 2010.
In New York, the state economy also remained in recession. While New York
benefits from its exposure to a diverse collection of industries, the state--and
especially New York City--has significant exposure to the financial sector and
was disproportionately hurt by the turmoil in the financial markets. In March
2010, unemployment in New York was 8.6%, up from 7.8% in March 2009, but down
slightly from the high of 8.9% during the last three months of 2009. The jobless
rate in the New York City metropolitan area was 9.9% as of March 2010, up from
8.6% in March 2009. The correction in home prices also added to New York's
economic slowdown and housing markets continued to be weak. Because homes in
downstate areas saw faster appreciation during the boom years than most upstate
markets, housing prices downstate continued to decline even as the national
S&P/Case-Shiller Home Price Index posted gains. Between February 2009 and
February 2010, housing prices in New York City dropped 4.1%, compared with an
average increase of 0.6% nationwide.
New York continued to face substantial financial challenges, as it debated a
proposed fiscal 2010-2011 state budget of $134 billion. Current projections
estimated the budget deficit at more than $9 billion for fiscal 2010-2011. The
debate centered largely on borrowing (i.e., issuing bonds to help cover the
state's expenses) and property tax relief. Other proposals for closing the
shortfall included tax hikes as well as cutting corporate tax credits and
putting state workers on a four-day workweek. The state has already cut its
payrolls by 4%, representing more than 10,000 employees, through attrition and
layoffs.
As of March 2010, New York state general obligation bonds were rated Aa3 by
Moody's, AA by S&P and AA- by Fitch. All three rating agencies maintained stable
outlooks for the state. For the twelve months ended March 31, 2010, municipal
issuance in New York totaled $41.7 billion, a decrease of 7% from the previous
twelve months. New York continued to rank second in the nation, following
California, in terms of municipal issuance by state.
4 Nuveen Investments
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THIS
REPORTING PERIOD?
As previously mentioned, the availability of tax-exempt issuance declined during
this period, due in part to the introduction of taxable Build America Bonds.
This was especially true for the longer maturities that we typically seek to
purchase for these Portfolios. The Build America Bond program also had a
significant impact on the supply of tax-exempt issuance in California and New
York, which ranked as the two largest users of Build America Bonds during this
period. In California, Build America Bond issuance for the twelve months ended
March 31, 2010, totaled $21.6 billion, representing approximately 30% of
municipal issuance in the state. During this same period, $9.9 billion of Build
America Bonds were issued in New York, comprising about 24% of New York's
municipal supply. Since interest payments from Build America Bonds represent
taxable income, we do not view these bonds as appropriate investment
opportunities for the Select Portfolios.
Despite the constrained issuance of tax-exempt supply, we continued to find
attractive value opportunities, taking a bottom-up approach to discovering
undervalued sectors and individual credits with the potential to perform well
over the long term. In the national Portfolios, our focus was generally on
lower-rated investment grade bonds with longer maturities and higher yields,
especially in Florida, Texas, the Mid-Atlantic region and other states with more
stable municipal finances. During this period, we added general obligation and
other tax-supported bonds, airport credits and tobacco bonds from a variety of
states.
In NXC, we became a major purchaser of California general obligation and public
works bonds (backed by appropriation debt of the state) for the first time in
five years. Although we had previously de-emphasized credits issued by the state
of California due to their exposure to the state's economic problems, we
believed that these bonds offered good value, especially during the latter part
of 2009, as their credit spreads widened. We also began to see better market
sentiment about the state's credit based on revenue estimates that came in
slightly above projections.
In NXN, we found value in health care, higher education and tax-secured bonds,
generally in the 20-year to 25-year maturity range. Tax-exempt supply was
usually more plentiful in the health care and higher education sectors because,
as 501(c)(3) (nonprofit) organizations, hospitals and private universities
generally do not qualify for the Build America Bond program and so must continue
to issue bonds in the tax-exempt municipal market.
Cash for new purchases during this period was generated largely by the proceeds
from called or matured bonds. In addition, NXC sold holdings of Golden State
tobacco bonds maturing in 2045 when we had the opportunity to replace these
bonds with California appropriation bonds with a shorter maturity date (2035) at
an attractive price, thus reducing the Portfolio's interest rate risk. NXC also
sold some very short-dated pre-refunded bonds. As of March 31, 2010, all five of
these Portfolios continued to use inverse floating rate securities.(1) We employ
inverse floaters as a form of leverage for a variety of reasons, including
duration management and income and total return enhancement.
----------
(1) An inverse floating rate security, also known as an inverse floater, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
Nuveen Investments 5
HOW DID THE PORTFOLIOS PERFORM?
Individual results for the Nuveen Select Portfolios, as well as relevant index
and peer group information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON NET ASSET VALUE
FOR PERIODS ENDED 3/31/10
1-Year 5-Year 10-Year
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL PORTFOLIOS
NXP 10.45% 4.30% 5.01%
NXQ 12.62% 3.54% 4.45%
NXR 10.05% 4.43% 4.94%
Standard & Poor's (S&P) National Municipal Bond Index(2) 11.26% 4.42% 5.54%
Lipper General and Insured Unleveraged Municipal Debt Funds Average(3) 11.11% 3.69% 4.70%
CALIFORNIA PORTFOLIO
NXC 10.71% 3.98% 4.71%
Standard & Poor's (S&P) California Municipal Bond Index(2) 11.01% 4.08% 5.35%
Lipper California Municipal Debt Funds Average(3) 22.12% 3.13% 5.80%
NEW YORK PORTFOLIO
NXN 9.89% 4.31% 4.83%
Standard & Poor's (S&P) New York Municipal Bond Index(2) 10.73% 4.70% 5.65%
Lipper New York Municipal Debt Funds Average(3) 21.80% 3.52% 6.19%
For the twelve months ended March 31, 2010, the total returns on net asset value
(NAV) for NXQ exceeded the return for the Standard & Poor's (S&P) National
Municipal Bond Index and the average return for the Lipper General and Insured
Unleveraged Municipal Debt Funds Average, while NXP and NXR trailed these
measures. NXC underperformed the Standard & Poor's (S&P) California Municipal
Bond Index and the Lipper California Municipal Debt Funds Average, while NXN
lagged the Standard & Poor's (S&P) New York Municipal Bond Index as well as the
Lipper New York Municipal Debt Funds Average.
Key management factors that influenced the Portfolios' returns during this
period included yield curve and duration positioning, credit exposure and sector
allocation. During this period, the municipal yield curve remained steep,
although it flattened somewhat, especially at the longer end of the curve. In
this environment, bonds with longer maturities generally outperformed bonds with
shorter maturities, with bonds at the shortest end of the curve posting the
weakest returns. Overall, yield curve and duration positioning tended to be a
positive contributor to the performances of these Portfolios, with the exception
of NXC, where the impact from duration was neutral.
--------------------------------------------------------------------------------
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.
(2) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. The
Standard & Poor's (S&P) Municipal Bond Indexes for California and New York
are also unleveraged and market value-weighted and comprise a broad range
of investment-grade municipal bonds issued in California and New York,
respectively. The S&P indexes do not reflect any initial or ongoing
expenses and are not available for direct investment.
(3) 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 Municipal Debt Funds Average, 1-year, 8 funds; 5-year, 7
funds; and 10-year, 7 funds; Lipper California Municipal Debt Funds
Average, 1-year, 22 funds; 5-year, 22 funds; and 10-year, 14 funds; and
Lipper New York Municipal Debt Funds Average, 1-year, 17 funds; 5-year, 17
funds; and 10-year, 8 funds. Lipper returns account for the effects of
management fees and assume reinvestment of dividends, but do not reflect
any applicable sales charges. The Lipper averages are not available for
direct investment.
6 Nuveen Investments
Credit exposure also played an important role in performance during these twelve
months, as the demand for municipal bonds increased among both institutional and
individual investors. This increase was driven by a variety of factors,
including concerns about potential tax increases, the need to rebalance
portfolio allocations, and a growing appetite for additional risk. At the same
time, the issuance of tax-exempt municipal paper declined. As investors bid up
municipal bond prices, lower-rated and non-rated bonds generally outperformed
those rated AAA. NXC was both overweight in BBB rated bonds and underweight in
AAA bonds, making credit exposure the largest contributor to its performance
during this period. In NXN, our exposure to lower-rated and non-rated credits
also had a positive impact.
Holdings that generally contributed positively to the Portfolios' performances
during this period included industrial development revenue (IDR) and health care
bonds, both of which exceeded the overall municipal market return by substantial
margins. These Portfolios were generally overweight in health care credits and
NXC also had an overexposure to IDRs. Revenue bonds as a whole performed well,
with housing, transportation, special tax and public utilities among the sectors
that also outperformed the general municipal market for this period. Zero coupon
bonds also were among the strongest performers, as were tobacco bonds backed by
the 1998 master tobacco settlement agreement.
Pre-refunded bonds, which are typically backed by U.S. Treasury securities,
performed relatively poorly during this period, after ranking among the top
performing segments of the municipal bond market over the past two years. The
underperformance of these bonds can be attributed primarily to their shorter
effective maturities and higher credit quality. As of March 31, 2010, NXP had
the largest exposure to pre-refunded bonds, while NXN had the smallest
allocation. Many general obligation (GO) bonds also failed to keep pace with the
overall municipal market, while resource recovery, water and sewer, leasing and
education trailed the other revenue sectors for the twelve months. All of these
Portfolios were under-weighted in tax-supported bonds (primarily state and local
GOs in NXC), which lessened the impact of the underperformance of these bonds.
Nuveen Investments 7
DIVIDEND AND SHARE PRICE INFORMATION
During the twelve-month reporting period ended March 31, 2010, NXP had one
monthly dividend increase, while the dividends of NXQ, NXR, NXC and NXN remained
stable throughout the period.
Due to normal portfolio activity, shareholders of the following Portfolios
received capital gains or net ordinary income distributions at the end of
December 2009 as follows:
SHORT-TERM
CAPITAL GAINS
LONG-TERM AND/OR
CAPITAL GAINS ORDINARY INCOME
FUND (PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NXP -- $0.0160
NXR $0.0010 --
--------------------------------------------------------------------------------
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 March 31, 2010, NXP, NXQ, NXR and NXC had positive UNII
balances for both tax purposes and financial reporting purposes, while NXN had a
positive UNII balance for tax purposes and a negative UNII balance for financial
reporting purposes.
SHARE REPURCHASES AND SHARE PRICE INFORMATION
Since the inception of the Portfolios' repurchase program, the Portfolios have
not repurchased any of their outstanding shares.
8 Nuveen Investments
As of March 31, 2010, the share prices of the Portfolios were trading at (+)
premiums or (-) discounts to their NAVs as shown in the accompanying table.
` 3/31/10 TWELVE-MONTH AVERAGE
FUND (+)PREMIUM/(-)DISCOUNT (+)PREMIUM/(-)DISCOUNT
--------------------------------------------------------------------------------
NXP +3.88% +2.60%
NXQ +2.07% +2.72%
NXR +1.14% +2.44%
NXC -6.37% -5.96%
NXN -1.85% -1.36%
--------------------------------------------------------------------------------
Nuveen Investments 9
NXP
PERFORMANCE
OVERVIEW
----------
Nuveen Select Tax-Free Income Portfolio
as of March 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Share Price 14.74
Net Asset Value 14.19
Premium/(Discount) to NAV 3.88%
Market Yield 4.84%
Taxable-Equivalent Yield(1) 6.72%
Net Assets ($000) $233,869
Average Effective Maturity on Securities (Years) 12.08
Modified Duration 4.97
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/19/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 13.45% 10.45%
5-Year 6.86% 4.30%
10-Year 6.49% 5.01%
--------------------------------------------------------------------------------
STATES
(as a % of total municipal bonds)
--------------------------------------------------------------------------------
Illinois 14.0%
Colorado 11.4%
Texas 8.6%
South Carolina 7.9%
Florida 7.6%
Washington 7.0%
Indiana 6.8%
California 6.0%
Nevada 5.5%
New Jersey 2.8%
Massachusetts 2.2%
New Mexico 2.2%
Oklahoma 2.1%
Alaska 1.9%
Other 14.0%
--------------------------------------------------------------------------------
Portfolio Composition
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 30.1%
Health Care 23.8%
Transportation 11.2%
Utilities 9.0%
Tax Obligation/Limited 9.0%
Consumer Staples 5.6%
Euro Dollar Time Deposit 0.2%
Other 11.1%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL LONG-TERM INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed ........................................................ 36%
AA ......................................................................... 27%
A .......................................................................... 21%
BBB ........................................................................ 12%
BB or Lower ................................................................ 3%
N/R ........................................................................ 1%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2)
[BAR GRAPH]
Apr-09 ................................................................ 0.057
May-09 ................................................................ 0.057
Jun-09 ................................................................ 0.057
Jul-09 ................................................................ 0.057
Aug-09 ................................................................ 0.057
Sep-09 ................................................................ 0.0595
Oct-09 ................................................................ 0.0595
Nov-09 ................................................................ 0.0595
Dec-09 ................................................................ 0.016
Dec-09 ................................................................ 0.0595
Jan-10 ................................................................ 0.0595
Feb-10 ................................................................ 0.0595
Mar-10 ................................................................ 0.0595
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
4/01/09 ............................................................... 13.6
4/03/09 ............................................................... 13.8392
4/09/09 ............................................................... 14
4/17/09 ............................................................... 13.7799
4/24/09 ............................................................... 13.91
5/01/09 ............................................................... 14.046
5/08/09 ............................................................... 14.1
5/15/09 ............................................................... 13.9
5/22/09 ............................................................... 13.8824
5/29/09 ............................................................... 14.0573
6/05/09 ............................................................... 14.16
6/12/09 ............................................................... 14.17
6/19/09 ............................................................... 14.05
6/26/09 ............................................................... 14.15
7/02/09 ............................................................... 14.1
7/10/09 ............................................................... 14.0067
7/17/09 ............................................................... 14.06
7/24/09 ............................................................... 14.25
7/31/09 ............................................................... 14.33
8/07/09 ............................................................... 14.36
8/14/09 ............................................................... 14.0464
8/21/09 ............................................................... 14.16
8/28/09 ............................................................... 14.09
9/04/09 ............................................................... 14.3
9/11/09 ............................................................... 14.27
9/18/09 ............................................................... 14.34
9/25/09 ............................................................... 14.45
10/02/09 .............................................................. 14.46
10/09/09 .............................................................. 14.4
10/16/09 .............................................................. 14.27
10/23/09 .............................................................. 14.429
10/30/09 .............................................................. 14.46
11/06/09 .............................................................. 14.61
11/13/09 .............................................................. 14.49
11/20/09 .............................................................. 14.46
11/27/09 .............................................................. 14.59
12/04/09 .............................................................. 14.51
12/11/09 .............................................................. 14.8
12/18/09 .............................................................. 14.36
12/24/09 .............................................................. 14.92
12/31/09 .............................................................. 14.795
1/08/10 ............................................................... 14.88
1/15/10 ............................................................... 14.85
1/22/10 ............................................................... 14.7599
1/29/10 ............................................................... 14.88
2/05/10 ............................................................... 14.9001
2/12/10 ............................................................... 14.81
2/19/10 ............................................................... 14.75
2/26/10 ............................................................... 14.6999
3/05/10 ............................................................... 14.81
3/12/10 ............................................................... 14.89
3/19/10 ............................................................... 14.7
3/26/10 ............................................................... 14.7
3/31/10 ............................................................... 14.74
----------
(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 net ordinary income distribution in December
2009 of $0.0160 per share. NXQ
10 Nuveen Investments
NXQ
PERFORMANCE
OVERVIEW
----------
Nuveen Select Tax-Free Income Portfolio 2
as of March 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Share Price 13.81
Net Asset Value 13.53
Premium/(Discount) to NAV 2.07%
Market Yield 4.82%
Taxable-Equivalent Yield(1) 6.69%
Net Assets ($000) $239,100
Average Effective Maturity on Securities (Years) 13.99
Modified Duration 5.56
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/21/92)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year 10.45% 12.62%
5-Year 6.12% 3.54%
10-Year 5.96% 4.45%
--------------------------------------------------------------------------------
STATES
(as a % of municipal bonds)
--------------------------------------------------------------------------------
Illinois 14.6%
Texas 12.4%
Colorado 10.9%
California 7.2%
South Carolina 5.4%
New York 4.0%
Indiana 3.9%
Massachusetts 3.5%
Iowa 3.4%
Nevada 3.2%
New Mexico 3.1%
Washington 3.0%
Florida 2.4%
Louisiana 2.3%
Rhode Island 2.3%
New Jersey 1.9%
Pennsylvania 1.9%
Other 14.6%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 22.7%
Health Care 20.8%
Transportation 13.6%
Tax Obligation/Limited 9.8%
Utilities 9.2%
Consumer Staples 5.7%
Tax Obligation/General 5.6%
Euro Dollar Time Deposit 0.5%
Other 12.1%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL LONG-TERM INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed .................................................. 37%
AA ................................................................... 21%
A .................................................................... 24%
BBB .................................................................. 14%
BB or Lower .......................................................... 4%
N/R .................................................................. --%*
* Rounds to less than 1%.
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR GRAPH]
Apr-09 ............................................................... 0.0555
May-09 ............................................................... 0.0555
Jun-09 ............................................................... 0.0555
Jul-09 ............................................................... 0.0555
Aug-09 ............................................................... 0.0555
Sep-09 ............................................................... 0.0555
Oct-09 ............................................................... 0.0555
Nov-09 ............................................................... 0.0555
Dec-09 ............................................................... 0.0555
Jan-10 ............................................................... 0.0555
Feb-10 ............................................................... 0.0555
Mar-10 ............................................................... 0.0555
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
4/01/09 .............................................................. 13.38
4/03/09 .............................................................. 13.128
4/09/09 .............................................................. 13.03
4/17/09 .............................................................. 13.2201
4/24/09 .............................................................. 13.2
5/01/09 .............................................................. 13.33
5/08/09 .............................................................. 13.43
5/15/09 .............................................................. 13.41
5/22/09 .............................................................. 13.4
5/29/09 .............................................................. 13.45
6/05/09 .............................................................. 13.4
6/12/09 .............................................................. 13.16
6/19/09 .............................................................. 13.25
6/26/09 .............................................................. 13.15
7/02/09 .............................................................. 13.2999
7/10/09 .............................................................. 13.24
7/17/09 .............................................................. 13.38
7/24/09 .............................................................. 13.27
7/31/09 .............................................................. 13.36
8/07/09 .............................................................. 13.34
8/14/09 .............................................................. 13.29
8/21/09 .............................................................. 13.42
8/28/09 .............................................................. 13.6399
9/04/09 .............................................................. 13.7
9/11/09 .............................................................. 13.691
9/18/09 .............................................................. 13.57
9/25/09 .............................................................. 13.79
10/02/09 ............................................................. 14.33
10/09/09 ............................................................. 13.65
10/16/09 ............................................................. 13.47
10/23/09 ............................................................. 13.88
10/30/09 ............................................................. 13.6
11/06/09 ............................................................. 13.99
11/13/09 ............................................................. 13.88
11/20/09 ............................................................. 13.65
11/27/09 ............................................................. 13.71
12/04/09 ............................................................. 13.91
12/11/09 ............................................................. 14.01
12/18/09 ............................................................. 14.01
12/24/09 ............................................................. 13.82
12/31/09 ............................................................. 13.89
1/08/10 .............................................................. 14.07
1/15/10 .............................................................. 14.12
1/22/10 .............................................................. 13.9
1/29/10 .............................................................. 13.89
2/05/10 .............................................................. 13.8499
2/12/10 .............................................................. 13.79
2/19/10 .............................................................. 13.83
2/26/10 .............................................................. 13.73
3/05/10 .............................................................. 13.94
3/12/10 .............................................................. 13.74
3/19/10 .............................................................. 13.88
3/26/10 .............................................................. 13.7958
3/31/10 .............................................................. 13.81
----------
(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.
Nuveen Investments 11
NXR
PERFORMANCE
OVERVIEW
----------
Nuveen Select Tax-Free Income Portfolio 3
as of March 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Share Price 14.22
Net Asset Value 14.06
Premium/(Discount) to NAV 1.14%
Market Yield 4.51%
Taxable-Equivalent Yield(1) 6.26%
Net Assets ($000) $182,779
Average Effective Maturity on Securities (Years) 12.35
Modified Duration 4.74
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/24/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 9.70% 10.05%
5-Year 7.03% 4.43%
10-Year 6.47% 4.94%
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 18.9%
Texas 10.1%
California 9.8%
Colorado 6.7%
Indiana 6.3%
Iowa 5.4%
Florida 4.8%
North Carolina 4.4%
Nevada 4.0%
South Carolina 3.2%
New York 3.2%
New Mexico 2.8%
Michigan 2.6%
Pennsylvania 2.4%
Nebraska 2.0%
Other 13.4%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 22.7%
Health Care 19.9%
Utilities 16.7%
Tax Obligation/Limited 12.9%
Transportation 7.5%
Tax Obligation/General 5.3%
Other 15.0%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed .................................................. 39%
AA ................................................................... 24%
A .................................................................... 22%
BBB .................................................................. 12%
BB or Lower .......................................................... 3%
N/R .................................................................. --%*
* Rounds to less than 1%.
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2)
[BAR GRAPH]
Apr-09 ............................................................... 0.0535
May-09 ............................................................... 0.0535
Jun-09 ............................................................... 0.0535
Jul-09 ............................................................... 0.0535
Aug-09 ............................................................... 0.0535
Sep-09 ............................................................... 0.0535
Oct-09 ............................................................... 0.0535
Nov-09 ............................................................... 0.0535
Dec-09 ............................................................... 0.001
Dec-09 ............................................................... 0.0535
Jan-10 ............................................................... 0.0535
Feb-10 ............................................................... 0.0535
Mar-10 ............................................................... 0.0535
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
4/01/09 .............................................................. 13.84
4/03/09 .............................................................. 14.05
4/09/09 .............................................................. 13.864
4/17/09 .............................................................. 13.78
4/24/09 .............................................................. 13.9
5/01/09 .............................................................. 13.74
5/08/09 .............................................................. 13.88
5/15/09 .............................................................. 13.9
5/22/09 .............................................................. 13.83
5/29/09 .............................................................. 13.702
6/05/09 .............................................................. 13.95
6/12/09 .............................................................. 14
6/19/09 .............................................................. 13.9475
6/26/09 .............................................................. 13.99
7/02/09 .............................................................. 13.9308
7/10/09 .............................................................. 13.88
7/17/09 .............................................................. 14.3
7/24/09 .............................................................. 14.03
7/31/09 .............................................................. 14.1382
8/07/09 .............................................................. 14.0901
8/14/09 .............................................................. 14.15
8/21/09 .............................................................. 14.14
8/28/09 .............................................................. 14.04
9/04/09 .............................................................. 14.09
9/11/09 .............................................................. 14.07
9/18/09 .............................................................. 14.74
9/25/09 .............................................................. 14.27
10/02/09 ............................................................. 14.59
10/09/09 ............................................................. 14.46
10/16/09 ............................................................. 14.17
10/23/09 ............................................................. 15.025
10/30/09 ............................................................. 14.79
11/06/09 ............................................................. 14.67
11/13/09 ............................................................. 14.35
11/20/09 ............................................................. 14.22
11/27/09 ............................................................. 14.81
12/04/09 ............................................................. 14.611
12/11/09 ............................................................. 15.21
12/18/09 ............................................................. 14.7
12/24/09 ............................................................. 14.4505
12/31/09 ............................................................. 14.64
1/08/10 .............................................................. 14.65
1/15/10 .............................................................. 14.47
1/22/10 .............................................................. 14.32
1/29/10 .............................................................. 14.33
2/05/10 .............................................................. 14.3
2/12/10 .............................................................. 14.22
2/19/10 .............................................................. 14.146
2/26/10 .............................................................. 14.21
3/05/10 .............................................................. 14.27
3/12/10 .............................................................. 14.19
3/19/10 .............................................................. 14.29
3/26/10 .............................................................. 14.27
3/31/10 .............................................................. 14.22
----------
(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 2009
of $0.0010 per share.
12 Nuveen Investments
NXC
PERFORMANCE
OVERVIEW
----------
Nuveen California Select Tax-Free Income Portfolio
as of March 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Share Price 13.08
Net Asset Value 13.97
Premium/(Discount) to NAV -6.37%
Market Yield 5.09%
Taxable-Equivalent Yield(1) 7.82%
Net Assets ($000) $87,548
Average Effective Maturity on Securities (Years) 13.71
Modified Duration 6.01
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/24/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 14.71% 10.71%
5-Year 4.53% 3.98%
10-Year 4.85% 4.71%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 23.5%
Tax Obligation/Limited 18.5%
U.S. Guaranteed 12.9%
Health Care 12.1%
Education and Civic Organizations 9.4%
Transportation 5.8%
Utilities 5.6%
Other 12.2%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed ................................................. 20%
AA .................................................................. 22%
A ................................................................... 38%
BBB ................................................................. 16%
BB or Lower ......................................................... 1%
N/R ................................................................. 3%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR GRAPH]
Apr-09 ............................................................... 0.0555
May-09 ............................................................... 0.0555
Jun-09 ............................................................... 0.0555
Jul-09 ............................................................... 0.0555
Aug-09 ............................................................... 0.0555
Sep-09 ............................................................... 0.0555
Oct-09 ............................................................... 0.0555
Nov-09 ............................................................... 0.0555
Dec-09 ............................................................... 0.0555
Jan-10 ............................................................... 0.0555
Feb-10 ............................................................... 0.0555
Mar-10 ............................................................... 0.0555
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
4/01/09 .............................................................. 12.04
4/03/09 .............................................................. 12.0401
4/09/09 .............................................................. 12.15
4/17/09 .............................................................. 12.22
4/24/09 .............................................................. 12.89
5/01/09 .............................................................. 12.85
5/08/09 .............................................................. 12.92
5/15/09 .............................................................. 12.8701
5/22/09 .............................................................. 13.06
5/29/09 .............................................................. 12.99
6/05/09 .............................................................. 13.05
6/12/09 .............................................................. 12.18
6/19/09 .............................................................. 12.667
6/26/09 .............................................................. 12.05
7/02/09 .............................................................. 12.09
7/10/09 .............................................................. 12.22
7/17/09 .............................................................. 12.75
7/24/09 .............................................................. 12.67
7/31/09 .............................................................. 13.138
8/07/09 .............................................................. 13.09
8/14/09 .............................................................. 12.7
8/21/09 .............................................................. 13.04
8/28/09 .............................................................. 13.1
9/04/09 .............................................................. 13.25
9/11/09 .............................................................. 13.4999
9/18/09 .............................................................. 13.76
9/25/09 .............................................................. 13.64
10/02/09 ............................................................. 13.84
10/09/09 ............................................................. 13.75
10/16/09 ............................................................. 13.43
10/23/09 ............................................................. 13.4
10/30/09 ............................................................. 13.31
11/06/09 ............................................................. 13.3681
11/13/09 ............................................................. 13.54
11/20/09 ............................................................. 13.4
11/27/09 ............................................................. 13.435
12/04/09 ............................................................. 13.2
12/11/09 ............................................................. 13.19
12/18/09 ............................................................. 13.05
12/24/09 ............................................................. 13.09
12/31/09 ............................................................. 12.77
1/08/10 .............................................................. 12.95
1/15/10 .............................................................. 12.8399
1/22/10 .............................................................. 12.89
1/29/10 .............................................................. 12.94
2/05/10 .............................................................. 13.02
2/12/10 .............................................................. 12.92
2/19/10 .............................................................. 12.86
2/26/10 .............................................................. 12.96
3/05/10 .............................................................. 12.94
3/12/10 .............................................................. 12.95
3/19/10 .............................................................. 13.08
3/26/10 .............................................................. 13.07
3/31/10 .............................................................. 13.08
----------
(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 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 13
NXN
PERFORMANCE
OVERVIEW
----------
Nuveen New York Select Tax-Free Income Portfolio
as of March 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Share Price 13.80
Net Asset Value 14.06
Premium/(Discount) to NAV -1.85%
Market Yield 4.43%
Taxable-Equivalent Yield(1) 6.60%
Net Assets ($000) $55,007
Average Effective Maturity on Securities (Years) 14.56
Modified Duration 4.13
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 10.31% 9.89%
5-Year 5.05% 4.31%
10-Year 6.14% 4.83%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.1%
Health Care 14.2%
Water and Sewer 12.3%
Long-Term Care 11.4%
Education and Civic 8.4%
Organizations Tax Obligation/General 8.3%
Housing/Single Family 8.2%
Housing/Multifamily 5.9%
U.S. Guaranteed 5.4%
Other 7.8%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed ................................................. 43%
AA .................................................................. 23%
A ................................................................... 14%
BBB ................................................................. 10%
BB or Lower ......................................................... 2%
N/R ................................................................. 8%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR GRAPH]
Apr-09 ............................................................... 0.051
May-09 ............................................................... 0.051
Jun-09 ............................................................... 0.051
Jul-09 ............................................................... 0.051
Aug-09 ............................................................... 0.051
Sep-09 ............................................................... 0.051
Oct-09 ............................................................... 0.051
Nov-09 ............................................................... 0.051
Dec-09 ............................................................... 0.051
Jan-10 ............................................................... 0.051
Feb-10 ............................................................... 0.051
Mar-10 ............................................................... 0.051
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
4/01/09 .............................................................. 13.15
4/03/09 .............................................................. 13.02
4/09/09 .............................................................. 12.9701
4/17/09 .............................................................. 13.18
4/24/09 .............................................................. 13.35
5/01/09 .............................................................. 13.47
5/08/09 .............................................................. 13.719
5/15/09 .............................................................. 13.47
5/22/09 .............................................................. 13.55
5/29/09 .............................................................. 13.54
6/05/09 .............................................................. 13.54
6/12/09 .............................................................. 13.3
6/19/09 .............................................................. 13.1201
6/26/09 .............................................................. 13.19
7/02/09 .............................................................. 13.2
7/10/09 .............................................................. 13.35
7/17/09 .............................................................. 13.55
7/24/09 .............................................................. 13.4
7/31/09 .............................................................. 13.6
8/07/09 .............................................................. 13.8
8/14/09 .............................................................. 13.7301
8/21/09 .............................................................. 13.7516
8/28/09 .............................................................. 14.16
9/04/09 .............................................................. 14
9/11/09 .............................................................. 14.2744
9/18/09 .............................................................. 14.12
9/25/09 .............................................................. 14.17
10/02/09 ............................................................. 14.17
10/09/09 ............................................................. 14.0865
10/16/09 ............................................................. 13.72
10/23/09 ............................................................. 14.09
10/30/09 ............................................................. 13.9
11/06/09 ............................................................. 13.92
11/13/09 ............................................................. 13.68
11/20/09 ............................................................. 13.6486
11/27/09 ............................................................. 13.67
12/04/09 ............................................................. 13.75
12/11/09 ............................................................. 13.84
12/18/09 ............................................................. 13.69
12/24/09 ............................................................. 13.57
12/31/09 ............................................................. 13.5
1/08/10 .............................................................. 13.62
1/15/10 .............................................................. 13.5999
1/22/10 .............................................................. 13.5
1/29/10 .............................................................. 13.65
2/05/10 .............................................................. 13.64
2/12/10 .............................................................. 13.7
2/19/10 .............................................................. 13.5
2/26/10 .............................................................. 13.786
3/05/10 .............................................................. 13.8995
3/12/10 .............................................................. 13.8899
3/19/10 .............................................................. 13.79
3/26/10 .............................................................. 13.8
3/31/10 .............................................................. 13.8
----------
(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 combined federal and state income tax
rate of 32.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14 Nuveen Investments
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
We have audited the accompanying statements of assets and
liabilities, including the portfolios of investments, of Nuveen
Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income
Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen
California Select Tax-Free Income Portfolio, and Nuveen New York
Select Tax-Free Income Portfolio (the "Funds") as of March 31, 2010,
and the related statements of operations for the year then ended,
the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. We were not
engaged to perform an audit of the Funds' internal control over
financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the
Funds' internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements and financial highlights, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. Our procedures included confirmation of securities
owned as of March 31, 2010, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies
from brokers were not received. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial positions of Nuveen Select Tax-Free Income Portfolio,
Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free
Income Portfolio 3, Nuveen California Select Tax-Free Income
Portfolio, and Nuveen New York Select Tax-Free Income Portfolio at
March 31, 2010, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in
the period then ended, and the financial highlights for each of the
five years in the period then ended in conformity with US generally
accepted accounting principles.
/s/ ERNST & YOUNG LLP
Chicago, Illinois
May 24, 2010
Nuveen Investments 15
NXP
---------
Nuveen Select Tax-Free Income Portfolio
Portfolio of Investments
March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.9%
$ 2,475 Alaska Municipal Bond Bank Authority, General Obligation Bonds, 12/13 at 100.00 A+ (4) $ 2,820,857
Series 2003E, 5.250%, 12/01/23 (Pre-refunded 12/01/13) - MBIA
Insured
2,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 1,646,025
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
---------------------------------------------------------------------------------------------------------------------------------
4,975 Total Alaska 4,466,882
---------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.4%
5,915 Arkansas Development Finance Authority, Tobacco Settlement No Opt. Call Aa3 871,871
Revenue Bonds, Arkansas Cancer Research Center Project, Series
2006, 0.000%, 7/01/46 - AMBAC Insured
---------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.9%
2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 A- 1,577,320
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25
- AMBAC Insured
3,325 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 AA- 3,671,232
Bonds, Series 2002A, 6.000%, 5/01/14
1,000 California Statewide Community Development Authority, Revenue 8/19 at 100.00 AA 1,104,810
Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
2,645 Cypress Elementary School District, San Bernardino County, No Opt. Call AAA 632,499
California, General Obligation Bonds, Series 2009A, 0.000%,
5/01/34 - AGM Insured
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,492,840
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%,
6/01/39 (Pre-refunded 6/01/13)
1,130 Los Angeles Department of Water and Power, California, Waterworks 7/11 at 100.00 AA 1,136,452
Revenue Refunding Bonds, Series 2001A, 5.125%, 7/01/41 - FGIC
Insured
365 Los Angeles, California, Parking System Revenue Bonds, Series 5/10 at 100.00 A+ 365,631
1999A, 5.250%, 5/01/29 - AMBAC Insured
1,000 Moreno Valley Unified School District, Riverside County, No Opt. Call A 441,430
California, General Obligation Bonds, Series 2007, 0.000%,
8/01/23 - NPFG Insured
590 Palomar Pomerado Health, California, Certificates of 11/19 at 100.00 Baa2 611,936
Participation, Series 2009, 6.750%, 11/01/39
750 Tobacco Securitization Authority of Northern California, Tobacco 6/15 at 100.00 BBB 515,093
Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45
1,150 Woodside Elementary School District, San Mateo County, No Opt. Call AAA 318,251
California, General Obligation Bonds, Series 2007, 0.000%,
10/01/30 - AMBAC Insured
---------------------------------------------------------------------------------------------------------------------------------
16,955 Total California 13,867,494
---------------------------------------------------------------------------------------------------------------------------------
COLORADO - 11.2%
1,700 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 1,839,060
Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
690 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 748,905
Health Initiatives, Series 2002A, 5.500%, 3/01/22
(Pre-refunded 3/01/12)
390 Colorado Water Resources and Power Development Authority, Small 11/10 at 100.00 A 392,165
Water Resources Revenue Bonds, Series 2000A, 5.800%, 11/01/20
- FGIC Insured
6,815 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 7,495,341
Series 1991 D, 7.750%, 11/15/13 (Alternative Minimum Tax)
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 5,302,150
Refunding Bonds, Series 2001 A, 5.625%, 11/15/17 - FGIC
Insured (Alternative Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 N/R (4) 3,349,050
Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%,
12/01/23 (Pre-refunded 12/01/13) - SYNCORA GTY Insured
500 Denver, Colorado, Airport System Revenue Refunding Bonds, Series 11/13 at 100.00 A+ 500,135
2003B, 5.000%, 11/15/33 - SYNCORA GTY Insured
16 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 Aaa $ 1,568,150
Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - NPFG
Insured
12,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/26 at 54.77 A 1,685,000
Series 2006A, 0.000%, 9/01/38 - NPFG Insured
3,160 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 N/R (4) 3,406,069
Bonds, Senior Series 2001 A, 5.500%, 6/15/20 (Pre-refunded
6/15/11) - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
38,755 Total Colorado 26,286,025
----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.0%
60 District of Columbia, Revenue Bonds, Catholic University of 4/10 at 101.00 A 60,632
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.5%
2,000 Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 6/16 at 100.00 A- 1,848,620
2006, 5.375%, 6/01/46
5,000 Jacksonville Health Facilities Authority, Florida, Revenue Bonds, 11/12 at 101.00 Aa1 5,072,050
Ascension Health, Series 2002A, 5.250%, 11/15/32
10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 10,518,300
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17
----------------------------------------------------------------------------------------------------------------------------------
17,000 Total Florida 17,438,970
----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.8%
1,965 Board of Trustees of Southern Illinois University, Housing and No Opt. Call A 1,191,949
Auxiliary Facilities System Revenue Bonds, Series 1999A,
0.000%, 4/01/20 - NPFG Insured
2,600 Chicago Heights, Illinois, General Obligation Corporate Purpose 6/10 at 100.00 A 2,621,164
Bonds, Series 1993, 5.650%, 12/01/17 - FGIC Insured
195 DuPage County Community School District 200, Wheaton, Illinois, 11/13 at 100.00 Aa3 215,007
General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 - AGM
Insured
805 DuPage County Community School District 200, Wheaton, Illinois, 11/13 at 100.00 Aa3 (4) 911,759
General Obligation Bonds, Series 2003B, 5.250%, 11/01/20
(Pre-refunded 11/01/13) - AGM Insured
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Aaa 668,034
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
(Pre-refunded 5/01/12)
1,050 Illinois Finance Authority, Revenue Bonds, Loyola University of 7/17 at 100.00 Aa1 1,095,822
Chicago, Tender Option Bond Trust 1137, 9.186%, 7/01/46 (IF)
4,000 Illinois Finance Authority, Revenue Bonds, Northwestern Memorial 8/14 at 100.00 N/R (4) 4,631,920
Hospital, Series 2004A, 5.500%, 8/15/43 (Pre-refunded 8/15/14)
1,000 Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital 8/19 at 100.00 BBB 1,038,700
and Medical Centers, Series 2009, 6.875%, 8/15/38
2,100 Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross 8/18 at 100.00 BBB 1,904,070
Hospital and Medical Centers, Series 2008A, 5.500%, 8/15/30
1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,346,492
Memorial Hospital, Series 2001, 5.600%, 10/01/16
2,950 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 AA+ 3,088,503
Hospital, Series 2002A, 6.000%, 7/01/17
2,275 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 Baa1 2,339,360
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
100 Illinois Health Facilities Authority, Revenue Refunding Bonds, 5/10 at 100.00 N/R 90,531
Rockford Health System, Series 1997, 5.000%, 8/15/21 - AMBAC
Insured
3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A 2,316,219
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 248,216
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 6/15/30 - NPFG Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 5,173,250
Refunding Bonds, McCormick Place Expansion Project, Series
2002B, 5.000%, 6/15/21 - NPFG Insured
Nuveen Investments 17
NXP
---------
Nuveen Select Tax-Free Income Portfolio (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AA+ $ 1,347,359
5.250%, 12/01/34 - FGIC Insured Yorkville, Illinois, General
Obligation Debt Certificates, Series 2003:
1,000 5.000%, 12/15/19 (Pre-refunded 12/15/11) - RAAI Insured 12/11 at 100.00 N/R (4) 1,073,480
1,000 5.000%, 12/15/20 (Pre-refunded 12/15/11) - RAAI Insured 12/11 at 100.00 N/R (4) 1,073,480
----------------------------------------------------------------------------------------------------------------------------------
33,195 Total Illinois 32,375,315
----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.7%
1,000 Franklin Community Multi-School Building Corporation, Marion 7/14 at 100.00 A (4) 1,138,320
County, Indiana, First Mortgage Revenue Bonds, Series 2004,
5.000%, 7/15/22 (Pre-refunded 7/15/14) - FGIC Insured
1,770 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,013,410
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - AGM Insured
1,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 973,930
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
9,855 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 10,755,944
Waterworks Project, Series 2002A, 5.125%, 7/01/21
(Pre-refunded 7/01/12) - NPFG Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AA+ 779,993
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 -
NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
14,375 Total Indiana 15,661,597
----------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.8%
1,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 724,140
Revenue Bonds, Series 2005C, 5.375%, 6/01/38
4,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue 6/17 at 100.00 BBB 3,405,480
Bonds, Series 2005B, 5.600%, 6/01/34
----------------------------------------------------------------------------------------------------------------------------------
5,000 Total Iowa 4,129,620
----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5%
500 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial 7/16 at 100.00 A3 460,720
Hospital, Series 2006, 4.875%, 7/01/36
750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and 6/14 at 100.00 A 761,130
Electric Company, Series 2004, 5.300%, 6/01/31 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
1,250 Total Kansas 1,221,850
----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5%
1,100 Jefferson County, Kentucky, Health System Revenue Bonds, Alliant 5/10 at 100.50 A (4) 1,109,570
Health System Inc., Series 1998, 5.125%, 10/01/18 - MBIA
Insured (ETM)
----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.5%
1,100 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,022,714
Settlement Asset-Backed Bonds, Series 2001 B, 5.875%, 5/15/39
----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.2%
500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 474,700
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.000%, 7/01/28
20 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 21,158
Revenue Bonds, Partners HealthCare System Inc., Series 2001 C,
6.000%, 7/01/17
480 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AAA 516,960
Revenue Bonds, Partners HealthCare System Inc., Series 2001 C,
6.000%, 7/01/17 (Pre-refunded 7/01/11)
1,985 Massachusetts Housing Finance Agency, Housing Bonds, Series 12/18 at 100.00 AA- 2,014,636
2009F, 5.700%, 6/01/40
1,055 Massachusetts Turnpike Authority, Metropolitan Highway System 7/10 at 100.00 A 1,033,573
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG
Insured
1,045 Massachusetts Turnpike Authority, Metropolitan Highway System 7/10 at 100.00 AA 1,037,037
Revenue Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 -
AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
5,085 Total Massachusetts 5,098,064
----------------------------------------------------------------------------------------------------------------------------------
18 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
$ 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/10 at 100.00 BB- $ 899,640
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 2,883,673
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
---------------------------------------------------------------------------------------------------------------------------------
3,900 Total Michigan 3,783,313
---------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7%
5,000 Kansas City Municipal Assistance Corporation, Missouri, Leasehold No Opt. Call AA- 1,605,200
Revenue Bonds, Series 2004B-1, 0.000%, 4/15/30 - AMBAC Insured
---------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.4%
2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway Improvement 7/13 at 100.00 AA- 2,558,100
Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured
1,000 Clark County, Nevada, Passenger Facility Charge Revenue Bonds, 1/20 at 100.00 Aa3 995,290
Las Vegas-McCarran International Airport, Series 2010A,
5.250%, 7/01/42
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 Caa2 394,096
4,070 0.000%, 1/01/22 - AMBAC Insured No Opt. Call Caa2 640,292
6,025 5.375%, 1/01/40 - AMBAC Insured (5) 7/10 at 100.00 Caa2 2,056,574
1,500 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 1,703,940
Bonds, Series 2009A, 8.000%, 6/15/30
1,515 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 A 1,529,332
5.500%, 6/01/21 - FGIC Insured
2,555 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 Baa1 (4) 2,804,547
5.500%, 6/01/21 (Pre-refunded 6/01/12) - FGIC Insured
---------------------------------------------------------------------------------------------------------------------------------
21,525 Total Nevada 12,682,171
---------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2%
365 New Hampshire Housing Finance Authority, Single Family Mortgage 5/11 at 100.00 Aa2 368,661
Acquisition Bonds, Series 2001 A, 5.600%, 7/01/21 (Alternative
Minimum Tax)
---------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.7%
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 2,261,350
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
1,325 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,425,289
1,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,107,230
2,500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 1,617,350
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41
---------------------------------------------------------------------------------------------------------------------------------
7,325 Total New Jersey 6,411,219
---------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.2%
1,000 New Mexico Mortgage Finance Authority, Multifamily Housing 9/17 at 100.00 AAA 1,003,000
Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42
(Alternative Minimum Tax)
4,000 University of New Mexico, FHA-Insured Mortgage Hospital Revenue 7/14 at 100.00 AAA 4,051,320
Bonds, Series 2004, 4.625%, 7/01/25 - AGM Insured
---------------------------------------------------------------------------------------------------------------------------------
5,000 Total New Mexico 5,054,320
---------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.1 %
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 1,014,220
Mortgage Revenue Bonds, Kaleida Health, Series 2004, 5.050%,
2/15/25
1,215 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A2 1,235,254
Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%,
7/01/17
385 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A2 (4) 394,040
Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%,
7/01/17 (Pre-refunded 7/01/10)
---------------------------------------------------------------------------------------------------------------------------------
2,600 Total New York 2,643,514
---------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 19
NXP
---------
Nuveen Select Tax-Free Income Portfolio (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7%
$ 1,000 North Carolina Eastern Municipal Power Agency, Power System 1/19 at 100.00 A- $ 1,169,060
Revenue Bonds, Series 2008C, 6.750%, 1/01/24
2,195 North Carolina Eastern Municipal Power Agency, Power System 5/10 at 100.00 A- 2,197,195
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/21
500 Raleigh Durham Airport Authority, North Carolina, Airport Revenue 5/11 at 101.00 Aa3 514,805
Bonds, Series 2001A, 5.250%, 11/01/17 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
3,695 Total North Carolina 3,881,060
----------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.6%
1,500 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB 1,114,515
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2, 6.000%, 6/01/42
300 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, Series 12/10 at 101.00 A2 (4) 313,407
2001, 5.500%, 12/01/17 (Pre-refunded 12/01/10) - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
1,800 Total Ohio 1,427,922
----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.0%
1,000 Norman Regional Hospital Authority, Oklahoma, Hospital Revenue 9/16 at 100.00 BB+ 813,680
Bonds, Series 2005, 5.375%, 9/01/36
4,000 Oklahoma Development Finance Authority, Revenue Bonds, St. John 2/14 at 100.00 A 3,964,240
Health System, Series 2004, 5.000%, 2/15/24
----------------------------------------------------------------------------------------------------------------------------------
5,000 Total Oklahoma 4,777,920
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.5%
500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 505,370
Bonds, Widener University, Series 2003, 5.250%, 7/15/24
700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 12/14 at 100.00 Aa3 730,737
2004A, 5.500%, 12/01/31 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
1,200 Total Pennsylvania 1,236,107
----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5%
1,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/19 at 100.00 A+ 1,076,870
Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.8%
1,250 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 AA- 1,317,638
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 (4) 11,356,401
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+ (4) 1,734,675
Hospital Revenue Refunding and Improvement Bonds, Series 2003,
6.000%, 11/01/18 (Pre-refunded 11/01/13)
520 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 579,218
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
1,980 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 1,971,486
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
1,130 Tobacco Settlement Revenue Management Authority, South Carolina, 5/12 at 100.00 BBB (4) 1,170,974
Tobacco Settlement Asset-Backed Bonds, Series 2001 B, 6.000%,
5/15/22 (Pre-refunded 5/15/12)
----------------------------------------------------------------------------------------------------------------------------------
16,380 Total South Carolina 18,130,392
----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.5%
5,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 BBB- 5,050,250
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 Revenue 12/11 at 100.00 AAA 1,071,380
Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) -
AMBAC Insured
20 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 360 Dallas-Fort Worth International Airport Public Facility 5/10 at 100.00 AAA $ 360,468
Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001,
5.500%, 1/15/20 - AGM Insured
2,300 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AA 2,326,427
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - NPFG Insured
1,550 Harris County-Houston Sports Authority, Texas, Junior Lien No Opt. Call A 379,595
Revenue Bonds, Series 2001 H, 0.000%, 11/15/30 - NPFG Insured
3,470 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 61.17 A 465,882
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/38 - NPFG
Insured
2,805 Harris County-Houston Sports Authority, Texas, Third Lien Revenue 11/24 at 52.47 A 459,094
Bonds, Series 2004-A3., 0.000%, 11/15/35 - NPFG Insured
45 Irving Independent School District, Dallas County, Texas, General 2/12 at 100.00 AAA 45,708
Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31
3,455 Irving Independent School District, Dallas County, Texas, General 2/12 at 100.00 AAA 3,722,728
Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31
(Pre-refunded 2/15/12)
1,780 Leander Independent School District, Williamson and Travis 8/16 at 35.23 AAA 419,777
Counties, Texas, General Obligation Bonds, Series 2007,
0.000%, 8/15/37
2,000 North Texas Thruway Authority, First Tier System Revenue 1/25 at 100.00 A2 1,520,680
Refunding Bonds, Capital Appreciation Series 2008I, 0.000%,
1/01/43
2,000 Richardson Hospital Authority, Texas, Revenue Bonds, Richardson 12/13 at 100.00 Baa2 1,873,040
Regional Medical Center, Series 2004, 6.000%, 12/01/34
465 San Antonio, Texas, Water System Revenue Refunding Bonds, Series 5/12 at 100.00 Aa3 (4) 500,772
1992, 6.000%, 5/15/16 (Pre-refunded 5/15/12) - MBIA Insured
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 AA+ 1,666,403
Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum
Tax)
----------------------------------------------------------------------------------------------------------------------------------
27,980 Total Texas 19,862,204
----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4%
775 Utah State Building Ownership Authority, Lease Revenue Bonds, 11/11 at 100.00 AA+ 820,462
State Facilities Master Lease Program, Series 2001 B, 5.250%,
5/15/24
----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6%
1,500 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,410,945
Residential Care Facilities Mortgage Revenue Bonds, Goodwin
House, Inc., Series 2007A, 5.125%, 10/01/42
----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.9%
250 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 Aaa 271,980
Columbia Generating Station - Nuclear Project 2, Series 2002C,
5.500%, 7/01/17 - NPFG Insured
2,470 Snohomish County Public Utility District 1, Washington, No Opt. Call Aaa 2,641,369
Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12
(ETM)
9,750 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 AA 10,169,250
Sisters of Providence Health System, Series 2001A, 5.125%,
10/01/17 - NPFG Insured
2,105 Washington State Tobacco Settlement Authority, Tobacco Settlement 6/13 at 100.00 BBB 2,137,143
Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
2,115 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 942,148
Bonds, Series 2003F, 0.000%, 12/01/27 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
16,690 Total Washington 16,161,890
----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.5%
760 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 765,806
Bonds, Series 1992, 6.500%, 5/15/10 (ETM)
500 West Virginia Hospital Finance Authority, Revenue Bonds, United 6/16 at 100.00 A+ 477,815
Hospital Center Inc. Project, Series 2006A, 4.500%, 6/01/26 -
AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
1,260 Total West Virginia 1,243,621
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 21
NXP
---------
Nuveen Select Tax-Free Income Portfolio (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.9%
-----------------------------------------------------------------------------------------------------------------------------------
$ 785 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA $ 843,121
Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%,
6/01/27 (Pre-refunded 6/01/12)
-----------------------------------------------------------------------------------------------------------------------------------
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 BBB+ 1,007,570
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%,
8/15/17
-----------------------------------------------------------------------------------------------------------------------------------
2,500 Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 11/13 at 100.00 AA 2,590,625
5.000%, 11/01/26
-----------------------------------------------------------------------------------------------------------------------------------
4,285 Total Wisconsin 4,441,316
-----------------------------------------------------------------------------------------------------------------------------------
$ 272,045 Total Long-Term Investments (cost $226,267,445) - 98.7% 230,629,711
-----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2%
$ 569 State Street Bank Euro Dollar Time Deposit, 0.010%, 4/01/10 $ 569,365
-----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $569,365) 569,365
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $226,836,810) - 98.9% 231,199,076
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1 % 2,669,430
------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 233,868,506
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based
on net assets.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month and year)
and prices of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic principal
paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's")
rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure the
timely payment of principal and interest. Such investments are
normally considered to be equivalent to AAA rated securities.
(5) Subsequent to the reporting period, the Adviser has concluded
this issue is not likely to meet its future interest payment
obligations and has directed the Fund's custodian to cease accruing
additional income on the Fund's records. N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
22 Nuveen Investments
NXQ
---------
Nuveen Select Tax-Free Income Portfolio 2
Portfolio of Investments
March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.2%
$ 150 Alabama Water Pollution Control Authority, Revolving Fund Loan 5/10 at 100.00 AA $ 150,017
Bonds, Series 1999, 5.750%, 8/15/23 - AMBAC Insured
250 Lauderdale County and Florence Health Authority, Alabama, Revenue 7/10 at 102.00 A 239,793
Bonds, Coffee Health Group, Series 2000A, 6.000%, 7/01/29 -
NPFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
400 Total Alabama 389,810
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.7%
2,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 1,748,460
Bonds, Series 2007, 5.000%, 12/01/37
-----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.3%
1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding and 10/11 at 100.00 AAA 1,065,060
Construction Bonds, Series 2002A, 5.000%, 10/01/19
(Pre-refunded 10/01/11) - AGM Insured
2,000 University of Arkansas, Fayetteville, Various Facilities Revenue 12/12 at 100.00 Aa3 2,031,780
Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
3,000 Total Arkansas 3,096,840
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.2%
1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 A- 788,660
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25
- AMBAC Insured
3,325 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 AA- 3,671,232
Bonds, Series 2002A, 6.000%, 5/01/14
500 California State Public Works Board, Lease Revenue Refunding 6/10 at 100.50 BBB+ 502,915
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 2,168,580
Bonds, Various University of California Projects, Series
1993A, 5.500%, 6/01/14
60 California, General Obligation Bonds, Series 1997, 5.000%, 5/10 at 100.00 A- 60,059
10/01/18 - AMBAC Insured
2,500 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A- 2,381,475
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 640,650
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
3,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,725,696
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%,
6/01/39 (Pre-refunded 6/01/13)
450 M-S-R Energy Authority, Gas Revenue Bonds, California, Citigroup No Opt. Call A 482,256
Prepay Contracts, Series 2009C, 6.500%, 11/01/39
1,195 Palmdale Elementary School District, Los Angeles County, No Opt. Call AAA 399,978
California, General Obligation Bonds, Series 2003, 0.000%,
8/01/28 - AGM Insured
590 Palomar Pomerado Health, California, Certificates of 11/19 at 100.00 Baa2 611,936
Participation, Series 2009, 6.750%,11/01/39
1,890 San Joaquin Delta Community College District, California, General 8/18 at 47.14 AAA 486,864
Obligation Bonds, Election 2004 Series 2008B, 0.000%, 8/01/31
- AGM Insured
1,750 Tobacco Securitization Authority of Northern California, Tobacco 6/15 at 100.00 BBB 1,201,883
Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45
-----------------------------------------------------------------------------------------------------------------------------------
19,460 Total California 17,122,184
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 10.8%
500 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 7/19 at 100.00 AA 527,770
Catholic Health Initiatives, Series 2009A, 5.500%, 7/01/34
1,700 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 Aa2 (4) 1,839,060
Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
1,300 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 1,410,981
Health Initiatives, Series 2002A, 5.500%, 3/01/22
(Pre-refunded 3/01/12)
Nuveen Investments 23
NXQ
---------
Nuveen Select Tax-Free Income Portfolio 2 (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 2,020 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ $ 2,221,657
Series 1991 D, 7.750%, 11/15/13 (Alternative Minimum Tax)
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 5,302,149
Refunding Bonds, Series 2001 A, 5.625%, 11/15/17 - FGIC
Insured (Alternative Minimum Tax)
1,555 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 1,645,874
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 N/R (4) 3,349,050
Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%,
12/01/23 (Pre-refunded 12/01/13) - SYNCORA GTY Insured
2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- 1,603,600
Revenue Bonds, Convention Center Hotel, Series 2006, 4.750%,
12/01/35 - SYNCORA GTY Insured
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds,
Series 2000B:
5,100 0.000%, 9/01/24 - NPFG Insured No Opt. Call A 2,024,343
7,500 0.000%, 9/01/29 - NPFG Insured No Opt. Call A 2,047,275
4,000 0.000%, 9/01/33 - NPFG Insured No Opt. Call A 824,360
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 Aaa 1,568,150
Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - NPFG
Insured
250 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 268,718
Bonds, Senior Series 2001A, 5.250%, 6/15/41 (Pre-refunded
6/15/11) - AGM Insured
1,100 University of Colorado Hospital Authority, Revenue Bonds, Series 11/11 at 100.00 A3 (4) 1,182,412
2001A, 5.600%, 11/15/31 (Pre-refunded 11/15/11)
-----------------------------------------------------------------------------------------------------------------------------------
40,025 Total Colorado 25,815,399
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.4%
1,000 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 938,650
Hospital Revenue Bonds, Tampa General Hospital, Series 2006,
5.250%, 10/01/41
1,500 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding 10/12 at 100.00 A+ 1,533,915
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 2,533,075
5.000%, 10/01/41 - AGM Insured
625 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 A3 630,963
Revenue Refunding Bonds, Series 2001, 5.125%, 7/01/29 - FGIC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,625 Total Florida 5,636,603
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.5%
630 Chicago Metropolitan Housing Development Corporation, Illinois, 7/10 at 100.00 AA 631,443
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, Series 2003A, 7/13 at 100.00 AA+ 595,233
5.000%, 1/01/33 - AMBAC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 1,660,388
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Aaa 668,034
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
(Pre-refunded 5/01/12)
1,050 Illinois Finance Authority, Revenue Bonds, Loyola University of 7/17 at 100.00 Aa1 1,095,822
Chicago, Tender Option Bond Trust 1137, 9.186%, 7/01/46 (IF)
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 Aa3 1,871,737
Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured
1,600 Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross 8/18 at 100.00 BBB 1,450,720
Hospital and Medical Centers, Series 2008A, 5.500%, 8/15/30
2,255 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 AA+ 2,329,099
Hospital, Series 2002A, 6.250%, 7/01/22
1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa3 (4) 1,124,514
University Health System, Series 2001A, 6.125%, 7/01/31
(Pre-refunded 7/01/11)
335 Illinois Health Facilities Authority, Revenue Refunding Bonds, 5/10 at 100.00 N/R 303,279
Rockford Health System, Series 1997, 5.000%, 8/15/21 - AMBAC
Insured
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,000 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 A+ $ 978,290
Series 2005E, 4.750%, 7/01/30 - FGIC Insured
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 5.000%, 6/13 at 100.00 AAA 5,948,576
6/15/22
45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/10 at 100.00 A3 45,167
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 7,242,549
Refunding Bonds, McCormick Place Expansion Project, Series
2002B, 5.000%, 6/15/21 - NPFG Insured
5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 A 4,967,912
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 A 736,234
1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call A 731,099
1,100 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AA+ 1,140,073
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, Series 12/11 at 100.00 N/R (4) 1,073,480
2003, 5.000%, 12/15/21 (Pre-refunded 12/15/11) - RAAI Insured
---------------------------------------------------------------------------------------------------------------------------------
35,050 Total Illinois 34,593,649
---------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.8%
1,000 Franklin Community Multi-School Building Corporation, Marion 7/14 at 100.00 A (4) 1,138,320
County, Indiana, First Mortgage Revenue Bonds, Series 2004,
5.000%, 7/15/22 (Pre-refunded 7/15/14) - FGIC Insured
750 Indiana Health and Educational Facilities Financing Authority, No Opt. Call Aa1 752,055
Revenue Bonds, Ascension Health, Series 2006B-5, 5.000%,
11/15/36
1,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 973,930
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
785 Indiana Housing Finance Authority, Single Family Mortgage Revenue 7/11 at 100.00 Aaa 783,226
Bonds, Series 2002C-2, 5.250%, 7/01/23 (Alternative Minimum
Tax)
4,380 Indiana Municipal Power Agency, Power Supply System Revenue 1/12 at 100.00 A+ 4,447,364
Bonds, Series 2002A, 5.125%, 1/01/21 - AMBAC Insured
330 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 8/10 at 100.00 AA- 329,782
Memorial Health System, Series 1998A, 4.625%, 8/15/28 - NPFG
Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AA+ 779,993
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 -
NPFG Insured
---------------------------------------------------------------------------------------------------------------------------------
8,995 Total Indiana 9,204,670
---------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.3%
1,560 Iowa Finance Authority, Single Family Mortgage Revenue Bonds, 7/16 at 100.00 AAA 1,500,346
Series 2007B, 4.800%, 1/01/37 (Alternative Minimum Tax)
1,200 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 868,968
Revenue Bonds, Series 2005C, 5.375%, 6/01/38
1,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue 6/17 at 100.00 BBB 851,370
Bonds, Series 2005B, 5.600%, 6/01/34
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001 B:
960 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 1,010,794
3,500 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,722,320
---------------------------------------------------------------------------------------------------------------------------------
8,220 Total Iowa 7,953,798
---------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7%
795 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial 7/16 at 100.00 A3 732,545
Hospital, Series 2006, 4.875%, 7/01/36
1,000 Salina, Kansas, Hospital Revenue Bonds, Salina Regional Medical 4/13 at 100.00 A1 948,040
Center, Series 2006, 4.500%, 10/01/26
---------------------------------------------------------------------------------------------------------------------------------
1,795 Total Kansas 1,680,585
---------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25
NXQ
---------
Nuveen Select Tax-Free Income Portfolio 2 (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.3%
$ 2,180 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 A $ 2,216,297
General Hospital, Series 2004, 5.250%, 7/01/24 - NPFG Insured
3,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 N/R (4) 3,274,260
University, Series 2002A, 5.125%, 7/01/27 (Pre-refunded
7/01/12) - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
5,180 Total Louisiana 5,490,557
----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.5%
3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,031,830
Revenue Bonds, Berkshire Health System, Series 2001 E, 6.250%,
10/01/31
500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 474,700
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.000%, 7/01/28
2,565 Massachusetts Turnpike Authority, Metropolitan Highway System 7/10 at 100.00 A 2,512,905
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG
Insured
1,270 Massachusetts Water Resources Authority, General Revenue Bonds, No Opt. Call Aa2 (4) 1,436,205
Series 1993C, 5.250%, 12/01/15 - MBIA Insured (ETM)
820 Massachusetts Water Resources Authority, General Revenue Bonds, No Opt. Call Aa2 924,197
Series 1993C, 5.250%, 12/01/15 - MBIA Insured
----------------------------------------------------------------------------------------------------------------------------------
8,155 Total Massachusetts 8,379,837
----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.5%
545 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 BB 479,774
5.250%, 4/01/19 - SYNCORA GTY Insured
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA 2,883,673
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
250 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 9/18 at 100.00 A1 294,883
Bonds, William Beaumont Hospital, Refunding Series 2009V,
8.250%, 9/01/39
----------------------------------------------------------------------------------------------------------------------------------
3,695 Total Michigan 3,658,330
----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.6%
1,500 Minnesota Housing Finance Agency, Residential Housing Finance 7/16 at 100.00 AA+ 1,429,845
Bonds, Series 2007-I, 4.850%, 7/01/38 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.3%
500 Mississippi Development Bank, Revenue Bonds, Mississippi 3/16 at 100.00 Baa2 492,955
Municipal Energy Agency, Mississippi Power, Series 2006A,
5.000%, 3/01/21 - SYNCORA GTY Insured
----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.1%
1,500 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AA+ (4) 1,583,370
Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19
(Pre-refunded 6/01/11) - FGIC Insured
1,000 Clark County, Nevada, Passenger Facility Charge Revenue Bonds, 1/20 at 100.00 Aa3 995,290
Las Vegas-McCarran International Airport, Series 2010A,
5.250%, 7/01/42
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 Caa2 722,885
12,250 5.375%, 1/01/40 - AMBAC Insured (5) 7/10 at 100.00 Caa2 4,181,415
----------------------------------------------------------------------------------------------------------------------------------
19,345 Total Nevada 7,482,960
----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.9%
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 2,261,350
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 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,143,040
1,010 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,163,742
----------------------------------------------------------------------------------------------------------------------------------
4,510 Total New Jersey 4,568,132
----------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 3.1%
$ 1,000 New Mexico Mortgage Finance Authority, Multifamily Housing 9/17 at 100.00 AAA $ 1,003,000
Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42
(Alternative Minimum Tax)
University of New Mexico, FHA-Insured Mortgage Hospital Revenue
Bonds, Series 2004:
555 4.625%, 1/01/25 - AGM Insured 7/14 at 100.00 AAA 562,121
660 4.625%, 7/01/25 - AGM Insured 7/14 at 100.00 AAA 668,468
2,000 4.750%, 7/01/27 - AGM Insured 7/14 at 100.00 AAA 2,027,900
3,000 4.750%, 1/01/28 - AGM Insured 7/14 at 100.00 AAA 3,034,320
------------------------------------------------------------------------------------------------------------------------------------
7,215 Total New Mexico 7,295,809
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.0%
2,045 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A2 2,079,090
Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%,
7/01/17
655 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A2 (4) 670,379
Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%,
7/01/17 (Pre-refunded 7/01/10)
2,000 New York City Municipal Water Finance Authority, New York, Water 12/14 at 100.00 AAA 2,050,380
and Sewerage System Revenue Bonds, Series 2004B, 5.000%,
6/15/36 - AGM Insured (UB)
1,700 New York Dorm Authority, FHA Insured Mortgage Hospital Revenue 8/16 at 100.00 BB+ 1,591,489
Bonds, Kaleida Health, Series 2006, 4.700%, 2/15/35
3,000 New York State Tobacco Settlement Financing Corporation, Tobacco 6/11 at 100.00 AA- 3,136,200
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003B-1C, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
9,400 Total New York 9,527,538
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.5%
1,155 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA- 1,158,442
Healthcare System Revenue Bonds, Carolinas Healthcare System,
Series 2001A, 5.000%, 1/15/31
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.9%
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
1,865 5.375%, 6/01/24 6/17 at 100.00 BBB 1,771,694
50 5.125%, 6/01/24 6/17 at 100.00 BBB 46,310
680 5.875%, 6/01/30 6/17 at 100.00 BBB 571,594
775 5.750%, 6/01/34 6/17 at 100.00 BBB 599,145
2,180 5.875%, 6/01/47 6/17 at 100.00 BBB 1,553,359
------------------------------------------------------------------------------------------------------------------------------------
5,550 Total Ohio 4,542,102
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5%
1,000 Norman Regional Hospital Authority, Oklahoma, Hospital Revenue 9/16 at 100.00 BB+ 813,680
Bonds, Series 2005, 5.375%, 9/01/36
3,000 Oklahoma Development Finance Authority, Revenue Bonds, Saint John 2/17 at 100.00 A 2,762,820
Health System, Series 2007, 5.000%, 2/15/42
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Oklahoma 3,576,500
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.9%
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 A+ 1,035,490
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 3,518,840
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) -
AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
4,250 Total Pennsylvania 4,554,330
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.6%
1,035 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA+ 1,066,816
Revenue Bonds, Series 2003, 5.000%, 12/01/20
Nuveen Investments 27
NXQ
---------
Nuveen Select Tax-Free Income Portfolio 2 (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO (continued)
$ 1,965 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AAA $ 2,207,049
Revenue Bonds, Series 2003, 5.000%, 12/01/20 (Pre-refunded
12/01/13)
10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AA- 596,100
Bonds, Series 2007A, 0.000%, 8/01/54 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
13,000 Total Puerto Rico 3,869,965
----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.2%
5,835 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 5,374,734
Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.4%
700 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 AA- 737,877
Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/20
620 Florence, South Carolina, Water and Sewerage Revenue Bonds, 3/11 at 100.00 A+ 628,469
Series 2000, 5.750%, 3/01/20 - AMBAC Insured
4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA (4) 4,542,560
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+ (4) 2,891,125
Hospital Revenue Refunding and Improvement Bonds, Series 2003,
6.000%, 11/01/18 (Pre-refunded 11/01/13)
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Revenue Bonds, Series 2004A:
500 5.250%, 8/15/20 - NPFG Insured 8/14 at 100.00 A 520,220
2,435 5.250%, 2/15/21 - NPFG Insured 8/14 at 100.00 A 2,530,915
525 Piedmont Municipal Power Agency, South Carolina, Electric Revenue 5/10 at 100.00 A 524,990
Refunding Bonds, Series 1998A, 4.750%, 1/01/25 - NPFG Insured
475 The College of Charleston, Charleston South Carolina, Academic 4/14 at 100.00 A2 482,282
and Administrative Revenue Bonds, Series 2004B, 5.125%,
4/01/30 - SYNCORA GTY Insured
----------------------------------------------------------------------------------------------------------------------------------
11,755 Total South Carolina 12,858,438
----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4%
1,000 South Dakota Health and Educational Facilities Authority, Revenue 11/14 at 100.00 AA- 1,001,570
Bonds, Sioux Valley Hospitals, Series 2004A, 5.250%, 11/01/34
----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.3%
4,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 BBB- 4,040,200
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 Williamson 1/15 at 100.00 A 1,303,365
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%,
1/01/45 - FGIC Insured
1,000 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 1,071,380
Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) -
AMBAC Insured
2,500 Harris County Health Facilities Development Corporation, Texas, No Opt. Call A (4) 2,888,475
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, Texas, 11/13 at 100.00 AA 3,034,470
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - NPFG Insured
6,610 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 A 686,845
Revenue Bonds, Series 2001 H, 0.000%, 11/15/41 - NPFG Insured
575 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call A- 251,568
Convention and Entertainment Project, Series 2001 B, 0.000%,
9/01/24 - AMBAC Insured
2,000 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/12 at 100.00 AAA 2,048,560
Series 2002A, 5.625%, 7/01/20 - AGM Insured (Alternative
Minimum Tax)
3,125 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 3,367,156
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/32 (Pre-refunded 2/15/12)
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,400 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- $ 1,269,730
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series
2005, 5.375%, 8/15/35
90 Lewisville Independent School District, Denton County, Texas, 8/11 at 100.00 AAA 94,190
General Obligation Bonds, Series 2004, 5.000%, 8/15/23
910 Lewisville Independent School District, Denton County, Texas, 8/11 at 100.00 AAA 964,773
General Obligation Bonds, Series 2004, 5.000%, 8/15/23
(Pre-refunded 8/15/11)
335 Live Oak, Texas, General Obligation Bonds, Series 2004, 5.250%, 8/14 at 100.00 Baa1 349,281
8/01/20 - NPFG Insured
4,850 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 BBB 5,003,988
Revenue Refunding Bonds, Series 2002A, 5.500%, 10/01/17 - RAAI
Insured
1,000 San Antonio, Texas, Water System Revenue Bonds, Series 2005, 5/15 at 100.00 AA 1,001,300
4.750%, 5/15/37 - NPFG Insured
500 Texas Water Development Board, Senior Lien State Revolving Fund 7/10 at 100.00 AAA 507,310
Revenue Bonds, Series 2000A, 5.625%, 7/15/13
1,560 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 AA+ 1,485,479
Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum
Tax)
---------------------------------------------------------------------------------------------------------------------------------
34,955 Total Texas 29,368,070
---------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6%
1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, Water 7/14 at 100.00 Aa3 1,533,455
Revenue Bonds, Series 2004, 5.000%, 7/01/21 - AMBAC Insured
---------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.4%
915 Vermont Housing Finance Agency, Multifamily Housing Bonds, Series 8/10 at 100.00 AAA 916,501
1999C, 5.800%, 8/15/16 - AGM Insured
---------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.1%
1,340 Metropolitan District of Columbia Airports Authority, Virginia, 10/10 at 100.00 AA- 1,340,817
Airport System Revenue Bonds, Series 1998B, 5.000%, 10/01/28 -
NPFG Insured (Alternative Minimum Tax)
1,500 Metropolitan Washington DC Airports Authority, Virginia, Dulles 10/26 at 100.00 AAA 1,074,015
Toll Road Revenue Bonds, Series 2009C., 0.000%, 10/01/41 - AGC
Insured
250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 5.750%, 5/10 at 100.00 A1 251,018
11/01/13 - NPFG Insured
---------------------------------------------------------------------------------------------------------------------------------
3,090 Total Virginia 2,665,850
---------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.9%
6,715 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 AA 7,003,744
Sisters of Providence Health System, Series 2001A, 5.125%,
10/01/17 - NPFG Insured
---------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.9%
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 BBB+ 1,001,450
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%,
8/15/18
1,170 Wisconsin Housing and Economic Development Authority, Home 3/12 at 100.00 AA 1,194,336
Ownership Revenue Bonds, Series 2002G, 4.850%, 9/01/17
---------------------------------------------------------------------------------------------------------------------------------
2,170 Total Wisconsin 2,195,786
---------------------------------------------------------------------------------------------------------------------------------
$ 279,895 Total Long-Term Investments (cost $242,306,370) - 98.8% 236,187,448
---------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29
NXQ
---------
Nuveen Select Tax-Free Income Portfolio 2 (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.5%
---------------------------------------------------------------------------------------------------------------------------------
$1,152 State Street Bank Euro Dollar Time Deposit, 0.010%, 4/01/10 $ 1,151,689
---------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,151,689) 1,151,689
--------------------------------------------------------------------------------------------------------------
Total Investments (cost $243,458,059) - 99.3% 237,339,137
--------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (0.4)% (1,000,000)
--------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1 % 2,761,179
--------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 239,100,316
==============================================================================================================
(1) All percentages shown in the Portfolio of Investments are based
on net assets.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month and year)
and prices of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic principal
paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's")
rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure the
timely payment of principal and interest. Such investments are
normally considered to be equivalent to AAA rated securities.
(5) Subsequent to the reporting period, the Adviser has concluded
this issue is not likely to meet its future interest payment
obligations and has directed the Fund's custodian to cease accruing
additional income on the Fund's records.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
30 Nuveen Investments
NXR
---------
Nuveen Select Tax-Free Income Portfolio 3
Portfolio of Investments
March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.3%
$ 500 Marshall County Healthcare Authority, Alabama, Revenue Bonds, 1/12 at 101.00 A- $ 512,085
Series 2002A, 6.250%, 1/01/22
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 9.7%
2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,275,000
General Obligation Bonds, Series 2002, 5.375%, 7/01/21 - AGM
Insured
1,000 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 736,710
Settlement Asset-Backed Bonds, Los Angeles County
Securitization Corporation, Series 2006A, 0.000%, 6/01/36
1,000 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 854,760
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 5.000%, 6/01/26
3,350 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 AA- 3,698,836
Bonds, Series 2002A, 6.000%, 5/01/14
2,595 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 2,462,499
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
1,000 California Statewide Community Development Authority, Revenue 8/19 at 100.00 AA 1,104,810
Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
295 California Statewide Financing Authority, Tobacco Settlement No Opt. Call Baa3 285,997
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
775 4.500%, 6/01/27 6/17 at 100.00 BBB 716,418
1,300 5.000%, 6/01/33 6/17 at 100.00 BBB 1,015,014
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,492,840
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%,
6/01/39 (Pre-refunded 6/01/13)
1,500 Placer Union High School District, Placer County, California, No Opt. Call AAA 376,185
General Obligation Bonds, Series 2004C, 0.000%, 8/01/32 - AGM
Insured
3,940 Rancho Mirage Redevelopment Agency, California, Tax Allocation No Opt. Call A+ 769,640
Bonds, Combined Whitewater and 1984 Project Areas, Series
2003A, 0.000%, 4/01/35 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
21,860 Total California 17,788,709
----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.6%
1,540 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 BBB 1,375,297
Series 2006, 5.250%, 10/01/40 - SYNCORA GTY Insured
400 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AA- 406,640
Participation, Series 2004, 5.000%, 6/15/34 - NPFG Insured
2,265 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 Aa2 (4) 2,450,277
Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
1,735 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 1,883,117
Health Initiatives, Series 2002A, 5.500%, 3/01/22
(Pre-refunded 3/01/12)
1,710 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 1,880,709
Series 1991 D, 7.750%, 11/15/13 (Alternative Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 N/R (4) 3,349,050
Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%,
12/01/24 (Pre-refunded 12/01/13) - SYNCORA GTY Insured
2,485 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/20 at 63.99 A 743,562
Series 2004B, 0.000%, 9/01/28 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
13,135 Total Colorado 12,088,652
----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
250 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.00 A 250,895
Bonds, Bridgeport Hospital Issue, Series 1992A, 6.625%,
7/01/18 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NXR
---------
Nuveen Select Tax-Free Income Portfolio 3 (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
$ 445 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB $ 446,798
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
15 District of Columbia, General Obligation Bonds, Series 1993E, 5/10 at 100.00 AAA 15,066
6.000%, 6/01/13 - MBIA Insured (ETM)
235 District of Columbia, General Obligation Refunding Bonds, Series No Opt. Call A+ 237,308
1994A-1, 6.500%, 6/01/10 - NPFG Insured
---------------------------------------------------------------------------------------------------------------------------------
695 Total District of Columbia 699,172
---------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.8%
1,000 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 938,650
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 5,275,669
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/18
2,490 JEA, Florida, Subordinate Lien Electric System Revenue Bonds, 5/10 at 100.00 Aa3 2,490,872
Series 2002D, 4.625%, 10/01/22
---------------------------------------------------------------------------------------------------------------------------------
8,510 Total Florida 8,705,191
---------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.7%
80 Chicago Metropolitan Housing Development Corporation, Illinois, 7/10 at 100.00 AA 80,143
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, Midwestern 5/11 at 101.00 AAA 2,054,060
University, Series 2001 B, 5.750%, 5/15/16 (Pre-refunded
5/15/11)
1,050 Illinois Finance Authority, Revenue Bonds, Loyola University of 7/17 at 100.00 Aa1 1,095,822
Chicago, Tender Option Bond Trust 1137, 9.186%, 7/01/46 (IF)
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 Aa3 1,871,737
Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured
4,440 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 4,634,738
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 (4) 1,867,710
Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 (ETM)
315 Illinois Health Facilities Authority, Revenue Bonds, Holy Family 5/10 at 100.00 A 315,035
Medical Center, Series 1997, 5.125%, 8/15/17 - NPFG Insured
2,255 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 Baa1 2,318,794
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
360 Illinois Health Facilities Authority, Revenue Refunding Bonds, 5/10 at 100.00 N/R 325,912
Rockford Health System, Series 1997, 5.000%, 8/15/21 - AMBAC
Insured
2,500 Illinois Housing Development Authority, Homeowner Mortgage 2/16 at 100.00 AA 2,516,150
Revenue Bonds, Series 2006C2, 5.050%, 8/01/27 (Alternative
Minimum Tax)
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 5.000%, 6/13 at 100.00 AAA 5,948,577
6/15/22
2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 5.600%, 6/15/17 5/10 at 100.00 AAA 2,007,020
1,000 Kankakee & Will Counties Community Unit School District 5, No Opt. Call Aa3 552,470
Illinois, General Obligation Bonds, Series 2006, 0.000%,
5/01/23 - AGM Insured
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,207,896
Refunding Bonds, McCormick Place Expansion Project, Series
2002B, 5.000%, 6/15/21 - NPFG Insured
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AA+ 1,347,359
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, Series 12/11 at 100.00 N/R (4) 1,073,480
2003, 5.000%, 12/15/22 (Pre-refunded 12/15/11) - RAAI Insured
---------------------------------------------------------------------------------------------------------------------------------
33,615 Total Illinois 34,216,903
---------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.2%
$1,000 Franklin Community Multi-School Building Corporation, Marion 7/14 at 100.00 A (4) $ 1,138,320
County, Indiana, First Mortgage Revenue Bonds, Series 2004,
5.000%, 7/15/22 (Pre-refunded 7/15/14) - FGIC Insured
3,500 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 BBB 3,217,655
Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22
2,210 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,513,919
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - AGM Insured
2,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 2,188,380
Waterworks Project, Series 2002A, 5.250%, 7/01/33
(Pre-refunded 7/01/12) - NPFG Insured
2,295 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AA+ 2,324,078
Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/25 -
NPFG Insured
---------------------------------------------------------------------------------------------------------------------------------
11,005 Total Indiana 11,382,352
---------------------------------------------------------------------------------------------------------------------------------
IOWA - 5.4%
2,745 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ 2,247,881
Initiatives Project, Series 2006A, 5.000%, 7/01/20
750 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue 6/17 at 100.00 BBB 638,528
Bonds, Series 2005B, 5.600%, 6/01/34
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001 B:
3,695 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,890,502
2,850 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,031,032
---------------------------------------------------------------------------------------------------------------------------------
10,040 Total Iowa 9,807,943
---------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.1%
Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial
Hospital, Series 2006:
1,425 5.125%, 7/01/26 7/16 at 100.00 A3 1,422,549
700 4.875%, 7/01/36 7/16 at 100.00 A3 645,008
---------------------------------------------------------------------------------------------------------------------------------
2,125 Total Kansas 2,067,557
---------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.1%
120 Maine Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 Aaa 121,666
Bonds, Series 1999B, 6.000%, 7/01/19 - MBIA Insured
---------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.8%
1,000 Massachusetts Development Finance Agency, Resource Recovery 6/10 at 101.00 BBB 950,600
Revenue Bonds, Ogden Haverhill Associates, Series 1998B,
5.200%, 12/01/13 (Alternative Minimum Tax)
15 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 15,868
Revenue Bonds, Partners HealthCare System Inc., Series 2001 C,
6.000%, 7/01/17
485 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AAA 522,345
Revenue Bonds, Partners HealthCare System Inc., Series 2001 C,
6.000%, 7/01/17 (Pre-refunded 7/01/11)
---------------------------------------------------------------------------------------------------------------------------------
1,500 Total Massachusetts 1,488,813
---------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.6%
1,500 Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second 7/16 at 100.00 A 1,334,460
Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA 2,883,673
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
235 Michigan State Hospital Finance Authority, Revenue Refunding 8/10 at 100.00 BB- 231,853
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
250 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 9/18 at 100.00 A1 294,883
Bonds, William Beaumont Hospital, Refunding Series 2009V,
8.250%, 9/01/39
---------------------------------------------------------------------------------------------------------------------------------
4,885 Total Michigan 4,744,869
---------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33
NXR
---------
Nuveen Select Tax-Free Income Portfolio 3 (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
$ 725 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA $ 740,508
Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%,
9/01/24
---------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9%
3,500 Nebraska Public Power District, General Revenue Bonds, Series 1/13 at 100.00 A1 3,547,250
2002B, 5.000%, 1/01/33 - AMBAC Insured
---------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.9%
1,000 Clark County, Nevada, Passenger Facility Charge Revenue Bonds, 1/20 at 100.00 Aa3 995,290
Las Vegas-McCarran International Airport, Series 2010A,
5.250%, 7/01/42
4,095 Director of Nevada State Department of Business and Industry, 7/10 at 100.00 Caa2 1,397,787
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 5.375%, 1/01/40 - AMBAC Insured (5)
1,680 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 A 1,691,642
5.500%, 6/01/22 - FGIC Insured
2,830 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 Baa1 (4) 3,106,406
5.500%, 6/01/22 (Pre-refunded 6/01/12) - FGIC Insured
---------------------------------------------------------------------------------------------------------------------------------
9,605 Total Nevada 7,191,125
---------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
460 New Hampshire Housing Finance Authority, Single Family Mortgage 5/11 at 100.00 Aa2 464,614
Acquisition Bonds, Series 2001 A, 5.600%, 7/01/21 (Alternative
Minimum Tax)
---------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.5%
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
1,000 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,167,670
1,355 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,561,258
---------------------------------------------------------------------------------------------------------------------------------
2,355 Total New Jersey 2,728,928
---------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.8%
1,000 New Mexico Mortgage Finance Authority, Multifamily Housing 9/17 at 100.00 AAA 1,003,000
Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42
(Alternative Minimum Tax)
4,000 University of New Mexico, FHA-Insured Mortgage Hospital Revenue 7/14 at 100.00 AAA 4,051,320
Bonds, Series 2004, 4.625%, 1/01/25 - AGM Insured
---------------------------------------------------------------------------------------------------------------------------------
5,000 Total New Mexico 5,054,320
---------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.1 %
420 Dormitory Authority of the State of New York, Second General No Opt. Call A1 427,329
Resolution Consolidated Revenue Bonds, City University System,
Series 1990C, 7.500%, 7/01/10
2,335 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,492,519
Revenue Bonds, Series 2001A, 5.375%, 9/01/21 (Pre-refunded
9/01/11)
35 New York City, New York, General Obligation Bonds, Series 1991 B, 5/10 at 100.00 AA 35,179
7.000%, 2/01/18
1,000 New York Dorm Authority, FHA Insured Mortgage Hospital Revenue 8/16 at 100.00 BB+ 936,170
Bonds, Kaleida Health, Series 2006, 4.700%, 2/15/35
1,850 New York State Tobacco Settlement Financing Corporation, Tobacco 6/10 at 100.00 AA- 1,863,228
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003B-1C, 5.500%, 6/01/15
---------------------------------------------------------------------------------------------------------------------------------
5,640 Total New York 5,754,425
---------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.3%
5,000 North Carolina Municipal Power Agency 1, Catawba Electric Revenue 1/13 at 100.00 A 5,421,350
Bonds, Series 2003A, 5.250%, 1/01/18 - NPFG Insured
2,345 Piedmont Triad Airport Authority, North Carolina, Airport Revenue 7/11 at 101.00 AAA 2,486,450
Bonds, Series 2001 A, 5.250%, 7/01/16 - AGM Insured
---------------------------------------------------------------------------------------------------------------------------------
7,345 Total North Carolina 7,907,800
---------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.9%
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$1,355 5.375%, 6/01/24 6/17 at 100.00 BBB $ 1,287,209
1,250 6.000%, 6/01/42 6/17 at 100.00 BBB 928,763
2,000 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement 6/22 at 100.00 BBB 1,328,800
Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-3, 0.000%,
6/01/37
-----------------------------------------------------------------------------------------------------------------------------------
4,605 Total Ohio 3,544,772
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6%
3,000 Oklahoma Development Finance Authority, Revenue Bonds, St. John Health 2/14 at 100.00 A 2,973,180
System, Series 2004, 5.000%, 2/15/24
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.3%
2,435 Dauphin County Industrial Development Authority, Pennsylvania, Water No Opt. Call A- 2,752,865
Development Revenue Refunding Bonds, Dauphin Consolidated Water
Supply Company, Series 1992B, 6.700%, 6/01/17
500 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 BBB+ 505,370
Widener University, Series 2003, 5.250%, 7/15/24
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, Airport 7/11 at 101.00 A+ 1,035,490
Revenue Bonds, Philadelphia Airport System Project, Series 2001A,
5.500%, 7/01/17 - FGIC Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
3,935 Total Pennsylvania 4,293,725
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.8%
1,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, 8/19 at 100.00 A+ 1,076,870
First Subordinate Series 2009A, 6.000%, 8/01/42
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds,
Series 2007A:
1,170 0.000%, 8/01/40 - NPFG Insured No Opt. Call AA- 188,393
2,000 0.000%, 8/01/54 - AMBAC Insured No Opt. Call AA- 119,220
-----------------------------------------------------------------------------------------------------------------------------------
4,170 Total Puerto Rico 1,384,483
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.2%
1,500 Lexington County Health Service District, South Carolina, Hospital 11/13 at 100.00 A+ (4) 1,734,675
Revenue Refunding and Improvement Bonds, Series 2003, 6.000%,
11/01/18 (Pre-refunded 11/01/13)
1,500 Medical University Hospital Authority, South Carolina, FHA-Insured 8/14 at 100.00 A 1,560,660
Mortgage Revenue Bonds, Series 2004A, 5.250%, 8/15/20 - NPFG Insured
520 South Carolina JOBS Economic Development Authority, Economic Development 11/12 at 100.00 A3 (4) 579,218
Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%,
11/15/30 (Pre-refunded 11/15/12)
1,980 South Carolina JOBS Economic Development Authority, Economic Development 11/12 at 100.00 A- 1,971,486
Revenue Bonds, Bon Secours Health System Inc., Series 2002B, 5.625%,
11/15/30
-----------------------------------------------------------------------------------------------------------------------------------
5,500 Total South Carolina 5,846,039
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.1%
1,010 South Dakota Health and Educational Facilities Authority, Revenue Bonds, 7/12 at 101.00 A+ 999,092
Avera Health, Series 2002, 5.125%, 7/01/27 - AMBAC Insured
1,000 South Dakota Health and Educational Facilities Authority, Revenue Bonds, 11/14 at 100.00 AA- 1,001,570
Sioux Valley Hospitals, Series 2004A, 5.250%, 11/01/34
-----------------------------------------------------------------------------------------------------------------------------------
2,010 Total South Dakota 2,000,662
-----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.2%
2,000 Knox County Health, Educational and Housing Facilities Board, Tennessee, 4/12 at 101.00 A1 2,107,300
Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc.,
Series 2002, 6.375%, 4/15/22
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.0%
1,500 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 A 1,303,365
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 -
FGIC Insured
2,500 Harris County Health Facilities Development Corporation, Texas, Thermal 11/13 at 100.00 AA 2,528,725
Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 -
NPFG Insured
Nuveen Investments 35
NXR
---------
Nuveen Select Tax-Free Income Portfolio 3 (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,125 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 73.51 A $ 169,380
Revenue Bonds, Series 2001 H, 0.000%, 11/15/36 - NPFG Insured
4,005 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 61.17 A 537,711
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/38 - NPFG
Insured
3,000 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/12 at 100.00 AAA 3,251,910
Series 2002B, 5.500%, 7/01/18 - AGM Insured
3,125 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 3,367,156
Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%,
2/15/32 (Pre-refunded 2/15/12)
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 BBB 4,900,813
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 AA+ 1,666,403
Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax)
500 Victoria, Texas, General Obligation Bonds, Series 2001, 5.000%, 8/11 at 100.00 AA 521,880
8/15/23 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
22,255 Total Texas 18,247,343
----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 0.3%
510 Port of Seattle, Washington, Revenue Bonds, Series 2001A, 5.000%, 10/11 at 100.00 Aa2 513,437
4/01/31 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4%
2,500 Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 11/13 at 100.00 AA 2,590,625
5.000%, 11/01/26
----------------------------------------------------------------------------------------------------------------------------------
$ 193,355 Total Investments (cost $177,274,280) - 98.9% 180,765,343
----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1 % 2,013,527
------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $182,778,870
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based
on net assets.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 peri- odic principal
paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's")
rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure the
timely payment of principal and interest. Such investments are
normally considered to be equivalent to AAA rated securities.
(5) Subsequent to the reporting period, the Adviser has concluded
this issue is not likely to meet its future interest payment
obligations and has directed the Fund's custodian to cease accruing
additional income on the Fund's records.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
36 Nuveen Investments
NXC
---------
Nuveen California Select Tax-Free Income Portfolio
Portfolio of Investments
March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5%
$ 170 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 159,958
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
1,170 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB 1,170,585
Settlement Asset-Backed Revenue Bonds, Fresno County Tobacco
Funding Corporation, Series 2002, 5.625%, 6/01/23
4,045 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 2,595,353
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
-----------------------------------------------------------------------------------------------------------------------------------
5,385 Total Consumer Staples 3,925,896
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.5%
3,000 California Educational Facilities Authority, Revenue Bonds, Santa 4/18 at 100.00 Aa3 3,193,560
Clara University, Series 2008A, 5.625%, 4/01/37
45 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 42,943
University of Redlands, Series 2005A, 5.000%, 10/01/35
1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,013,020
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 36,256
45 5.000%, 11/01/25 11/15 at 100.00 A2 45,698
3,000 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,057,420
Bonds, J. David Gladstone Institutes, Series 2001, 5.500%,
10/01/19
1,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 BBB 932,080
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 8,320,977
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.2%
110 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 104,383
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
2,550 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa3 2,413,805
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,018,580
Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%,
8/01/31
1,500 California Statewide Community Development Authority, Hospital 6/13 at 100.00 AAA 1,597,755
Revenue Bonds, Monterey Peninsula Hospital, Series 2003B,
5.250%, 6/01/18 - AGM Insured
1,500 California Statewide Community Development Authority, Insured 5/10 at 102.00 A- 1,480,500
Mortgage Hospital Revenue Bonds, Mission Community Hospital,
Series 2001, 5.375%, 11/01/26
545 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 545,251
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
1,880 California Statewide Community Development Authority, Revenue 6/10 at 100.00 BBB+ 1,880,752
Bonds, Los Angeles Orthopaedic Hospital Foundation, Series
2000, 5.500%, 6/01/17 - AMBAC Insured
540 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 597,991
University Medical Center, Series 2008A, 8.250%, 12/01/38
-----------------------------------------------------------------------------------------------------------------------------------
10,625 Total Health Care 10,639,017
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.9%
750 California Statewide Community Development Authority, Student 8/12 at 100.00 Baa1 745,298
Housing Revenue Bonds, EAH - Irvine East Campus Apartments,
LLC Project, Series 2002A, 5.500%, 8/01/22 - ACA Insured
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.1%
95 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa3 101,499
Series 2006H, 5.750%, 8/01/30 - FGIC Insured (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 37
NXC
---------
Nuveen California Select Tax-Free Income Portfolio (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.7%
$ 1,015 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB $ 1,030,144
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 496,150
Disposal Revenue Bonds, Waste Management Inc., Series 2002A,
5.000%, 1/01/22 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
1,515 Total Industrials 1,526,294
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.6%
1,500 ABAG Finance Authority for Non-Profit Corporations, California, 11/12 at 100.00 A- 1,487,595
Insured Senior Living Revenue Bonds, Odd Fellows Home of
California, Series 2003A, 5.200%, 11/15/22
1,000 California Statewide Communities Development Authority, Revenue 12/17 at 100.00 Ba1 828,460
Bonds, Inland Regional Center Project, Series 2007, 5.250%,
12/01/27
----------------------------------------------------------------------------------------------------------------------------------
2,500 Total Long-Term Care 2,316,055
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.7%
750 California, General Obligation Bonds, Series 2004, 5.000%, 2/01/23 2/14 at 100.00 A- 757,785
1,650 California, General Obligation Bonds, Various Purpose Series 11/19 at 100.00 A- 1,647,525
2009, 5.500%, 11/01/39
1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 Aa3 1,051,900
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 - NPFG Insured No Opt. Call A 3,525,816
1,750 0.000%, 2/01/17 - NPFG Insured No Opt. Call A 1,268,155
2,375 0.000%, 8/01/17 - NPFG Insured No Opt. Call A 1,674,375
2,345 0.000%, 2/01/18 - NPFG Insured No Opt. Call A 1,564,959
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 - NPFG Insured No Opt. Call Aa1 753,211
1,080 0.000%, 5/01/18 - NPFG Insured No Opt. Call Aa1 744,228
100 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 103,010
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 Aa3 3,274,740
California, General Obligation Bonds, Series 2005, 5.000%,
7/01/27 - NPFG Insured
1,500 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 1,699,215
General Obligation Bonds, Series 2003E, 5.250%, 7/01/24 - AGM
Insured
2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,674,013
General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 - AGM
Insured
----------------------------------------------------------------------------------------------------------------------------------
24,000 Total Tax Obligation/General 20,738,932
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.7%
1,000 Bell Community Redevelopment Agency, California, Tax Allocation 10/13 at 100.00 BBB- 905,900
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 A 3,863,089
Department of Corrections, Calipatria State Prison, Series
1991A, 6.500%, 9/01/17 - NPFG Insured
1,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 BBB+ 1,003,350
Department of Mental Health, Coalinga State Hospital, Series
2004A, 5.500%, 6/01/23
1,500 California State Public Works Board, Lease Revenue Bonds, Various 11/19 at 100.00 BBB+ 1,564,320
Capital Projects, Series 2009I-1, 6.375%, 11/01/34
120 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 114,420
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
360 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 A- 311,166
Redevelopment Project Area Tax Allocation Bonds, Series 2006,
5.000%, 9/01/38 - AMBAC Insured
1,000 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 A 913,050
Revenue Bonds, North Fontana Redevelopment Project, Series
2005A, 5.000%, 10/01/32 - AMBAC Insured
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
$ 55 5.000%, 9/01/26 9/16 at 100.00 N/R $ 48,777
130 5.125%, 9/01/36 9/16 at 100.00 N/R 107,994
215 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 186,500
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 1,180,088
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
105 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 92,256
Merged Project Area, Series 2005A, 5.000%, 9/01/35 - SYNCORA
GTY Insured
130 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 128,076
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
605 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call A 638,680
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - NPFG Insured
3,000 San Mateo County Transit District, California, Sales Tax Revenue 6/15 at 100.00 AA 3,161,520
Bonds, Series 2005A, 5.000%, 6/01/21 - NPFG Insured
225 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AA- 205,724
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 A 1,004,700
of Participation, Series 2002, 5.000%, 4/01/25 - NPFG Insured
1,000 Travis Unified School District, Solano County, California, 9/16 at 100.00 N/R 937,100
Certificates of Participation, Series 2006, 5.000%, 9/01/26 -
FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
16,245 Total Tax Obligation/Limited 16,366,710
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.8%
1,150 Foothill/Eastern Transportation Corridor Agency, California, Toll 7/10 at 100.00 BBB- 1,003,939
Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
3,500 Los Angeles Harbors Department, California, Revenue Refunding 8/11 at 100.00 AA 3,655,820
Bonds, Series 2001 B, 5.500%, 8/01/17 - AMBAC Insured
(Alternative Minimum Tax)
445 San Francisco Airports Commission, California, Revenue Bonds, San 5/11 at 100.00 A1 429,131
Francisco International Airport, Second Series 1999, Issue
23A, 5.000%, 5/01/30 - FGIC Insured (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
5,095 Total Transportation 5,088,890
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.0% (4)
400 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA (4) 437,632
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:
1,750 5.750%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 1,944,460
2,000 5.125%, 5/01/19 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,196,480
2,400 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 (4) 2,566,704
University of the Pacific, Series 2002, 5.250%, 11/01/21
(Pre-refunded 11 /01 /11)
800 California, General Obligation Bonds, Series 2004, 5.125%, 2/14 at 100.00 AAA 910,376
2/01/27 (Pre-refunded 2/01/14)
2,000 North Orange County Community College District, California, 8/12 at 101.00 AA (4) 2,199,400
General Obligation Bonds, Series 2002A, 5.000%, 8/01/22
(Pre-refunded 8/01/12) - MBIA Insured
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 5.250%, 11/12 at 100.00 A (4) 1,099,510
11/01/20 (Pre-refunded 11/01/12) - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
10,350 Total U.S. Guaranteed 11,354,562
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39
NXC
---------
Nuveen California Select Tax-Free Income Portfolio (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.6%
$ 645 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A $ 638,627
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
200 Los Angeles Department of Water and Power, California, Power 7/13 at 100.00 AA- 213,666
System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - NPFG
Insured
7,600 Merced Irrigation District, California, Certificates of 9/16 at 64.56 A 3,298,932
Participation, Water Hydroelectric Series 2008B, 0.000%,
9/01/23
215 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 N/R 193,911
Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
535 Turlock Irrigation District, California, Revenue Refunding Bonds, No Opt. Call A1 560,006
Series 1992A, 6.250%, 1/01/12 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
9,195 Total Utilities 4,905,142
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.5%
150 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 148,493
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
250 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 255,165
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
825 South Feather Water and Power Agency, California, Water Revenue 4/13 at 100.00 A 826,246
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 A+ 972,800
Participation, Water Systems Project, Series 2003, 5.625%,
7/01/43
----------------------------------------------------------------------------------------------------------------------------------
2,225 Total Water and Sewer 2,202,704
----------------------------------------------------------------------------------------------------------------------------------
$ 96,105 Total Investments (cost $87,413,948) - 100.8% 88,231,976
----------------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (1,540,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 856,351
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 87,548,327
=================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based
on net assets.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 peri- odic principal
paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's")
rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure the
timely payment of principal and interest. Such investments are
normally considered to be equivalent to AAA rated securities.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
40 Nuveen Investments
NXN
---------
Nuveen New York Select Tax-Free Income Portfolio
Portfolio of Investments
March 31, 2010
PRINCIPAL ` OPTIONAL CALL ` `
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.1%
$ 100 New York City Industrial Development Agency, New York, Liberty 9/15 at 100.00 BB+ $ 87,061
Revenue Bonds, IAC/InterActiveCorp, Series 2005, 5.000%,
9/01/35
---------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.6%
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
390 4.750%, 6/01/22 6/16 at 100.00 BBB 375,660
540 5.000%, 6/01/26 6/16 at 100.00 BBB 497,691
---------------------------------------------------------------------------------------------------------------------------------
930 Total Consumer Staples 873,351
---------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.5%
100 Albany Industrial Development Agency, New York, Revenue Bonds, 7/17 at 100.00 BBB 92,707
Albany Law School, Series 2007A, 5.000%, 7/01/31
50 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R 40,191
Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/37
30 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 28,693
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
430 Dormitory Authority of the State of New York, General Revenue 7/17 at 100.00 N/R 388,006
Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/41 - RAAI
Insured
1,000 Dormitory Authority of the State of New York, Housing Revenue No Opt. Call A 965,350
Bonds, Fashion Institute of Technology, Series 2007, 5.250%,
7/01/34 - FGIC Insured
785 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 BBB 795,692
Bonds, Iona College, Series 2002, 5.000%, 7/01/22 - SYNCORA
GTY Insured
50 Dormitory Authority of the State of New York, Lease Revenue 7/15 at 100.00 AA- 50,479
Bonds, State University Dormitory Facilities, Series 2004A,
5.000%, 7/01/29 - NPFG Insured
110 Dormitory Authority of the State of New York, Second General No Opt. Call A1 111,920
Resolution Consolidated Revenue Bonds, City University System,
Series 1990C, 7.500%, 7/01/10 - FGIC Insured
430 Dutchess County Industrial Development Agency, New York, Civic 8/17 at 100.00 Baa1 361,080
Facility Revenue Bonds, Bard College Project, Series 2007-A2,
4.500%, 8/01/36
100 Hempstead Town Industrial Development Agency, New York, Revenue 10/15 at 100.00 A 101,053
Bonds, Adelphi University, Civic Facility Project, Series
2005, 5.000%, 10/01/35
100 New York City Industrial Development Agency, New York, Civic 10/14 at 100.00 A- 95,515
Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
500 New York City Industrial Development Agency, New York, Civic 2/11 at 100.00 A- 503,000
Facility Revenue Bonds, YMCA of Greater New York, Series 2002,
5.250%, 8/01/21
430 New York City Industrial Development Agency, New York, PILOT 1/17 at 100.00 BB+ 354,612
Revenue Bonds, Queens Baseball Stadium Project, Series 2006,
4.750%, 1/01/42 - AMBAC Insured
590 New York City Industrial Development Authority, New York, PILOT 9/16 at 100.00 BBB- 508,621
Revenue Bonds, Yankee Stadium Project, Series 2006, 4.500%,
3/01/39 - FGIC Insured
200 Puerto Rico Industrial, Tourist, Educational, Medical and 8/10 at 100.50 BBB- 197,018
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
65 Seneca County Industrial Development Authority, New York, Revenue 10/17 at 100.00 BBB 57,823
Bonds, New York Chiropractic College, Series 2007, 5.000%,
10/01/27
---------------------------------------------------------------------------------------------------------------------------------
4,970 Total Education and Civic Organizations 4,651,760
---------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.8%
435 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 456,602
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
---------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41
NXN
---------
Nuveen New York Select Tax-Free Income Portfolio (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.3%
$ 450 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A $ 457,110
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
500 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 A- 492,160
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
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 Ba1 105,595
100 5.500%, 7/01/30 7/11 at 101.00 Ba1 92,086
950 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 975,042
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 AA 707,781
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - NPFG Insured
405 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 441,252
New York and Presbyterian Hospital, Series 2004A, 5.250%,
8/15/15 - AGM Insured
1,680 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 N/R 1,716,893
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 Baa1 1,221,242
Winthrop South Nassau University Health System Obligated
Group, Series 2001 B, 5.250%, 7/01/17 - AMBAC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 472,980
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
Madison County Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Oneida Health System, Series 2007A:
100 5.250%, 2/01/27 No Opt. Call BBB- 88,622
90 5.500%, 2/01/32 No Opt. Call BBB- 80,631
750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 A+ 782,138
Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 -
AMBAC Insured
240 New York City Industrial Development Agency, New York, Civic 7/12 at 101.00 Ba2 237,456
Facility Revenue Bonds, Staten Island University Hospital,
Series 2002C, 6.450%, 7/01/32
---------------------------------------------------------------------------------------------------------------------------------
7,740 Total Health Care 7,870,988
---------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.0%
1,700 Amherst Industrial Development Agency, New York, Revenue Bonds, 8/12 at 101.00 N/R 1,723,307
UBF Faculty/Student Housing Corporation, University of
Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 -
AMBAC Insured
1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA 1,033,420
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 255,838
Multifamily Housing Revenue Bonds, Series 2004A, 5.250%,
11/01/30
275 New York State Housing Finance Agency, Affordable Housing 11/17 at 100.00 Aa2 275,668
Revenue, Series 2007A, 5.250%, 11/01/38 (Alternative Minimum
Tax)
---------------------------------------------------------------------------------------------------------------------------------
3,225 Total Housing/Multifamily 3,288,233
---------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.2%
2,000 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/11 at 100.00 Aa1 2,019,260
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 2,506,750
Thirty-First Series A, 5.300%, 10/01/31 (Alternative Minimum
Tax)
---------------------------------------------------------------------------------------------------------------------------------
4,500 Total Housing/Single Family 4,526,010
---------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.5%
$ 1,795 Dormitory Authority of the State of New York, FHA-Insured Nursing 8/11 at 101.00 A $ 1,830,326
Home Mortgage Revenue Bonds, Norwegian Christian Home and
Health Center, Series 2001, 5.200%, 8/01/36 - NPFG Insured
100 Dormitory Authority of the State of New York, Non-State Supported 11/16 at 100.00 A1 98,696
Debt, Ozanam Hall of Queens Nursing Home Revenue Bonds, Series
2006, 5.000%, 11/01/31
50 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 N/R 32,439
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured
2,000 East Rochester Housing Authority, New York, FHA-Insured Mortgage 8/12 at 101.00 AAA 2,077,220
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 1,044,700
GNMA/FHA-Secured Revenue Bonds, St. Mary's Residence Project,
Series 2002A, 5.375%, 12/20/22
980 New York City Industrial Development Agency, New York, GNMA 11/12 at 101.00 AA+ 987,526
Collateralized Mortgage Revenue Bonds, Eger Harbor House Inc.,
Series 2002A, 4.950%, 11/20/32
25 Suffolk County Industrial Development Agency, New York, Civic 7/16 at 100.00 N/R 22,706
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008-B1, 5.500%, 7/01/18
275 Yonkers Industrial Development Agency, New York, Civic Facilities 7/16 at 101.00 N/R 249,766
Revenue Bonds, Special Needs Facilities Pooled Program Bonds,
Series 2008-C1, 5.500%, 7/01/18
---------------------------------------------------------------------------------------------------------------------------------
6,225 Total Long-Term Care 6,343,379
---------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2%
90 Jefferson County Industrial Development Agency, New York, Solid 12/13 at 100.00 BBB 88,476
Waste Disposal Revenue Bonds, International Paper Company
Project, Series 2003A, 5.200%, 12/01/20 (Alternative Minimum
Tax)
---------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.3%
Clarkstown, Rickland County, New York, Various Purposes Serial
Bonds, Series 1992:
505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 510,580
525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 557,303
525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 579,842
300 New York City, New York, General Obligation Bonds, Fiscal Series 8/14 at 100.00 AA 334,830
2004C, 5.250%, 8/15/16
200 New York City, New York, General Obligation Bonds, Fiscal Series 3/15 at 100.00 AA 213,604
2005J, 5.000%, 3/01/19 - FGIC Insured
1,000 New York City, New York, General Obligation Bonds, Fiscal Series 6/16 at 100.00 AA 1,049,660
2006J-1, 5.000%, 6/01/25
1,260 New York City, New York, General Obligation Bonds, Series D, 12/17 at 100.00 AA 1,345,869
5.125%, 12/01/25
---------------------------------------------------------------------------------------------------------------------------------
4,315 Total Tax Obligation/General 4,591,688
---------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.3%
600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 650,580
Series 2003A, 5.000%, 11/01/23
500 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 528,975
Facility Revenue Bonds, Buffalo City School District, Series
2004, 5.750%, 5/01/26 - AGM Insured
500 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 531,805
Contract Refunding Bonds, Series 2002A, 5.500%, 1/01/20 - NPFG
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 - NPFG Insured 10/14 at 100.00 AAA 270,008
200 5.000%, 10/15/26 - NPFG Insured 10/14 at 100.00 AAA 211,352
1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,284,388
600 New York City Transitional Finance Authority, New York, Building 1/17 at 100.00 AA- 623,748
Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 -
FGIC Insured
670 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 700,244
Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23 - FGIC
Insured
550 New York City Transitional Finance Authority, New York, Future 11/17 at 100.00 AAA 587,879
Tax Secured Bonds, Fiscal Series 2007C-1, 5.000%, 11/01/27
Nuveen Investments 43
NXN
---------
Nuveen New York Select Tax-Free Income Portfolio (continued)
Portfolio of Investments March 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 535 New York City Transitional Finance Authority, New York, Future 5/19 at 100.00 AAA $ 605,160
Tax Secured Bonds, Tender Option Bond Trust 3545, 13.352%,
5/01/38 (IF)
775 New York State Environmental Facilities Corporation, State 12/17 at 100.00 AAA 831,761
Personal Income Tax Revenue Bonds, Series 2008A, 5.000%,
12/15/26 (UB)
250 New York State Thruway Authority, Highway and Bridge Trust Fund 4/14 at 100.00 AA 266,858
Bonds, Second Genera1 Series 2004, 5.000%, 4/01/21 - NPFG
Insured
570 New York State Thruway Authority, Highway and Bridge Trust Fund No Opt. Call AA 661,058
Bonds, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured (UB)
425 New York State Thruway Authority, Highway and Bridge Trust Fund 10/17 at 100.00 AA 449,484
Bonds, Series 2007, 5.000%, 4/01/27
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 AA- 1,063,210
250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AA- 265,183
500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 533,090
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1 C, 5.500%, 6/01/21
---------------------------------------------------------------------------------------------------------------------------------
9,400 Total Tax Obligation/Limited 10,064,783
---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.0%
180 Albany Parking Authority, New York, Revenue Bonds, Series 2001 7/11 at 101.00 BBB+ 182,506
A, 5.625%, 7/15/25
500 Metropolitan Transportation Authority, New York, Transportation No Opt. Call A 555,685
Revenue Bonds, Series 2003A, 5.000%, 11/15/15 - FGIC Insured
100 New York State Thruway Authority, General Revenue Bonds, Series 7/15 at 100.00 AAA 102,873
2005G, 5.000%, 1/01/30 - AGM Insured
105 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 Aa2 109,557
Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/31 -
SYNCORA GTY Insured
120 Port Authority of New York and New Jersey, Consolidated Revenue 8/17 at 100.00 AAA 141,230
Bonds, One Hundred Forty Eighth Series 2008, Trust 2920,
17.440%, 8/15/32 - AGM Insured (IF)
---------------------------------------------------------------------------------------------------------------------------------
1,005 Total Transportation 1,091,851
---------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.4% (4)
220 Albany Parking Authority, New York, Revenue Bonds, Series 2001 7/11 at 101.00 BBB+ (4) 236,535
A, 5.625%, 7/15/25 (Pre-refunded 7/15/11)
985 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 1,166,555
Facilities Lease Revenue Bonds, Suffolk County Issue, Series
1986, 7.375%, 7/01/16 (ETM)
250 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 Aaa 281,865
North Shore Long Island Jewish Group, Series 2003, 5.375%,
5/01/23 (Pre-refunded 5/01/13)
265 Suffolk County Water Authority, New York, Water Revenue Bonds, No Opt. Call AAA 283,221
Series 1986V, 6.750%, 6/01/12 (ETM)
925 TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 7/12 at 100.00 AAA 1,004,818
2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12)
---------------------------------------------------------------------------------------------------------------------------------
2,645 Total U.S. Guaranteed 2,972,994
---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3%
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 A 593,604
430 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A 444,482
500 New York State Energy Research and Development Authority, 3/11 at 100.00 A 503,120
Pollution Control Revenue Bonds, New York State Electric and
Gas Corporation, Series 2005A, 4.100%, 3/15/15 - NPFG Insured
44 Nuveen Investments
PRINCIPAL ` OPTIONAL CALL ` `
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 250 Niagara County Industrial Development Agency, New York, Solid 11/11 at 101.00 Baa2 $ 257,430
Waste Disposal Facility Revenue Bonds, American Ref-Fuel
Company of Niagara LP, Series 2001 A, 5.450%, 11/15/26
(Mandatory put 11/15/12) (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
1,750 Total Utilities 1,798,636
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.4%
2,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AAA 2,567,647
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 2,163,880
2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,072,080
----------------------------------------------------------------------------------------------------------------------------------
6,500 Total Water and Sewer 6,803,607
----------------------------------------------------------------------------------------------------------------------------------
$ 53,830 Total Investments (cost $54,161,216) - 100.9% 55,509,419
----------------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (1,005,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 502,659
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 55,007,078
=================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based
on net assets.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month and year)
and prices of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic principal
paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's")
rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure the
timely payment of principal and interest. Such investments are
normally considered to be equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 45
| STATEMENT OF
| ASSETS & LIABILITIES
March 31, 2010
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 $226,836,810, $243,458,059,
$177,274,280, $87,413,948 and
$54,161,216, respectively) $ 231,199,076 $ 237,339,137 $ 180,765,343 $ 88,231,976 $ 55,509,419
Cash -- -- 66,791 60,560 --
Receivables:
Interest 3,683,946 3,726,292 2,700,634 1,169,270 836,288
Investments sold 15,670 15,035 4,369 -- --
Other assets 60,147 146,039 47,806 27,147 19,552
------------------------------------------------------------------------------------------------------------------------
Total assets 234,958,839 241,226,503 183,584,943 89,488,953 56,365,259
------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- -- 116,959
Floating rate obligations -- 1,000,000 -- 1,540,000 1,005,000
Dividends payable 893,519 913,302 645,963 318,841 185,038
Accrued expenses:
Management fees 46,126 57,386 44,144 21,430 13,440
Other 150,688 155,499 115,966 60,355 37,744
------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,090,333 2,126,187 806,073 1,940,626 1,358,181
------------------------------------------------------------------------------------------------------------------------
Net assets $ 233,868,506 $ 239,100,316 $ 182,778,870 $ 87,548,327 $ 55,007,078
========================================================================================================================
Shares outstanding 16,479,081 17,672,141 13,001,797 6,267,291 3,912,868
========================================================================================================================
Net asset value per share $ 14.19 $ 13.53 $ 14.06 $ 13.97 $ 14.06
outstanding
========================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 164,791 $ 176,721 $ 130,018 $ 62,673 $ 39,129
Paid-in surplus 229,040,976 246,552,300 178,891,463 87,263,868 53,686,318
Undistributed (Over-distribution of)
net investment income 1,144,492 680,474 253,475 37,041 (1,802)
Accumulated net realized gain (loss) (844,019) (2,190,257) 12,851 (633,283) (64,770)
Net unrealized appreciation
(depreciation) 4,362,266 (6,118,922) 3,491,063 818,028 1,348,203
------------------------------------------------------------------------------------------------------------------------
Net assets $ 233,868,506 $ 239,100,316 $ 182,778,870 $ 87,548,327 $ 55,007,078
========================================================================================================================
Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited
========================================================================================================================
See accompanying notes to financial statements.
46 Nuveen Investments
| STATEMENT OF
| OPERATIONS
March 31, 2010
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 $ 12,728,598 $ 12,856,963 $ 9,353,210 $ 4,564,695 $ 2,677,499
------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 545,834 671,001 520,582 253,037 158,622
Shareholders' servicing agent fees
and expenses 23,564 21,484 18,150 6,599 5,491
Interest expense on floating rate
obligations -- 8,425 -- 11,508 6,100
Custodian's fees and expenses 47,408 48,682 37,891 22,634 18,891
Trustees' fees and expenses 6,508 6,525 5,111 2,421 1,527
Professional fees 23,780 23,732 20,236 12,940 10,761
Shareholders' reports - printing and
mailing expenses 49,894 52,201 37,926 17,756 13,763
Stock exchange listing fees 9,294 9,272 9,229 9,210 9,201
Investor relations expense 22,241 23,232 16,847 7,078 4,915
Other expenses 12,044 12,573 10,544 7,657 7,231
------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee 740,567 877,127 676,516 350,840 236,502
credit
Custodian fee credit (507) (507) (378) (68) (264)
------------------------------------------------------------------------------------------------------------------------
Net expenses 740,060 876,620 676,138 350,772 236,238
------------------------------------------------------------------------------------------------------------------------
Net investment income 11,988,538 11,980,343 8,677,072 4,213,923 2,441,261
------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from
investments 52,099 (381,407) 11,888 226,399 (5,962)
Change in net unrealized appreciation
(depreciation) of investments 10,863,997 16,031,656 8,445,903 4,328,914 2,655,873
------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) 10,916,096 15,650,249 8,457,791 4,555,313 2,649,911
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $ 22,904,634 $ 27,630,592 $ 17,134,863 $ 8,769,236 $ 5,091,172
========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 47
| STATEMENT OF
| CHANGES IN NET ASSETS
March 31, 2010
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/10 3/31/09 3/31/10 3/31/09 3/31/10 3/31/09
------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,988,538 $ 11,602,037 $ 11,980,343 $ 11,847,246 $ 8,677,072 $ 8,515,545
Net realized gain (loss) from
investments 52,099 414,250 (381,407) (157,525) 11,888 95,185
Change in net unrealized
appreciation (depreciation)
of investments 10,863,997 (13,684,819) 16,031,656 (22,829,917) 8,445,903 (8,093,041)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations 22,904,634 (1,668,532) 27,630,592 (11,140,196) 17,134,863 517,689
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (11,808,528) (11,226,050) (11,759,649) (11,736,647) (8,340,466) (8,327,575)
From accumulated net realized
gains -- -- -- -- (12,996) --
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (11,808,528) (11,226,050) (11,759,649) (11,736,647) (8,353,462) (8,327,575)
------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 657,992 515,396 458,195 403,746 319,912 199,823
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from capital share
transactions 657,992 515,396 458,195 403,746 319,912 199,823
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets 11,754,098 (12,379,186) 16,329,138 (22,473,097) 9,101,313 (7,610,063)
Net assets at the beginning
of year 222,114,408 234,493,594 222,771,178 245,244,275 173,677,557 181,287,620
------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 233,868,506 $ 222,114,408 $ 239,100,316 $ 222,771,178 $182,778,870 $ 173,677,557
========================================================================================================================
Undistributed
(Over-distribution of) net
investment income at the end
of year $ 1,144,492 $ 965,770 $ 680,474 $ 473,587 $ 253,475 $ (81,861)
========================================================================================================================
See accompanying notes to financial statements.
48 Nuveen Investments
CALIFORNIA SELECT NEW YORK SELECT
TAX-FREE (NXC) TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
3/31/10 3/31/09 3/31/10 3/31/09
------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,213,923 $ 4,138,035 $ 2,441,261 $ 2,405,653
Net realized gain (loss) from investments 226,399 (777,009) (5,962) (18,617)
Change in net unrealized appreciation (depreciation) of
investments 4,328,914 (4,560,505) 2,655,873 (1,645,443)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 8,769,236 (1,199,479) 5,091,172 741,593
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (4,174,015) (4,172,698) (2,393,983) (2,392,826)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (4,174,015) (4,172,698) (2,393,983) (2,392,826)
------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- 101,344 41,902 10,984
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share
transactions -- 101,344 41,902 10,984
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 4,595,221 (5,270,833) 2,739,091 (1,640,249)
Net assets at the beginning of year 82,953,106 88,223,939 52,267,987 53,908,236
------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 87,548,327 $ 82,953,106 $ 55,007,078 $ 52,267,987
========================================================================================================================
Undistributed (Over-distribution of) net investment income at
the end of year $ 37,041 $ (2,633) $ (1,802) $ (49,080)
========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 49
| Notes to
| Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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) (collectively, the "Funds"). The
Funds are registered under the Investment Company Act of 1940, as amended, as
closed-end, management investment companies.
Each Fund seeks to provide current income and stable dividends, exempt from
regular federal and designated state income taxes, where applicable, consistent
with the preservation of capital by investing primarily in a portfolio of
municipal obligations.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
INVESTMENT VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service or, in the absence of a pricing service for a
particular investment, the Board of Trustees of the Fund, or its designee, may
establish fair value using a wide variety of market data including yields or
prices of investments of comparable quality, type of issue, coupon, maturity and
rating, market quotes or indications of value from security dealers, evaluations
of anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates value.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The 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 March 31, 2010, 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.
Interest income also includes paydown gains and losses, if any.
INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions that will enable interest from municipal
securities, which is exempt from regular federal and designated state income
taxes, to retain such tax-exempt status when distributed to shareholders of the
Funds. Net realized capital gains and ordinary income distributions paid by the
Funds are subject to federal taxation.
50 Nuveen Investments
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, if any, are recorded on the ex-dividend
date. The amount and timing of distributions are determined in accordance with
federal income tax regulations, which may differ from US generally accepted
accounting principles.
INVERSE FLOATING RATE SECURITIES
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the fiscal year ended March 31, 2010, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At March 31, 2010, the Funds were not invested in externally-deposited Recourse
Trusts.
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)
---------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- $ --
===========================================================================================================================
Nuveen Investments 51
| NOTES TO
| FINANCIAL STATEMENTS (CONTINUED)
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended March 31, 2010, for the following Funds were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT
TAX-FREE 2 TAX-FREE TAX-FREE
(NXQ) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations outstanding $1,000,000 $1,540,000 $1,005,000
Average annual interest rate and fees .84% .75% .61%
========================================================================================================================
DERIVATIVE INSTRUMENTS
Each Fund is authorized to invest in futures, options, swaps and other
derivative instruments. Although the Funds are authorized to invest in such
derivative instruments, and may do so in the future, they did not make any such
investments during the fiscal year ended March 31, 2010.
ZERO COUPON SECURITIES
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolio of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
INDEMNIFICATIONS
Under the Funds' organizational documents, their officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
USE OF ESTIMATES
The preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results may differ
from those estimates.
52 Nuveen Investments
2. FAIR VALUE MEASUREMENTS
In determining the value of each Fund's investments, various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.).
Level 3 - Significant unobservable inputs (including management's assumptions
in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of March 31, 2010:
SELECT TAX-FREE (NXP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 230,629,711 $ -- $ 230,629,711
Short-Term Investments 569,365 -- -- 569,365
-----------------------------------------------------------------------------------------------------------------------
Total $ 569,365 $ 230,629,711 $ -- $ 231,199,076
=======================================================================================================================
SELECT TAX-FREE 2 (NXQ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 236,187,448 $ -- $ 236,187,448
Short-Term Investments 1,151,689 -- -- 1,151,689
-----------------------------------------------------------------------------------------------------------------------
Total $ 1,151,689 $ 236,187,448 $ -- $ 237,339,137
=======================================================================================================================
SELECT TAX-FREE 3 (NXR) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 180,765,343 $ -- $ 180,765,343
=======================================================================================================================
CALIFORNIA SELECT TAX-FREE (NXC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 88,231,976 $ -- $ 88,231,976
=======================================================================================================================
NEW YORK SELECT TAX-FREE (NXN) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 55,509,419 $ -- $ 55,509,419
=======================================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Funds adopted amendments to authoritative
guidance under GAAP on disclosures about derivative instruments and hedging
activities. This guidance is intended to enhance financial statement disclosures
for derivative instruments and hedging activities and enable investors to better
understand: a) how and why a fund uses derivative instruments; b) how derivative
instruments are accounted for; and c) how derivative instruments affect a fund's
financial position, results of operations and cash flows, if any. The Funds
record derivative instruments at fair value, with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Funds' investments in derivatives may represent economic hedges, they are
considered to be non-hedge transactions for financial reporting purposes. The
Funds did not invest in derivative instruments during the fiscal year ended
March 31, 2010.
Nuveen Investments 53
| NOTES TO
| FINANCIAL STATEMENTS (CONTINUED)
4. FUND SHARES
The Funds did not repurchase and retire any of their shares during the fiscal
years ended March 31, 2010 and March 31, 2009.
Transactions in shares were as follows:
SELECT SELECT SELECT
TAX-FREE (NXP) TAX-FREE 2 (NXQ) TAX-FREE 3 (NXR)
---------------------- ---------------------- ----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/10 3/31/09 3/31/10 3/31/09 3/31/10 3/31/09
--------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders due to
reinvestment of distributions 47,024 37,396 34,706 30,367 23,083 14,590
==========================================================================================================================
CALIFORNIA SELECT NEW YORK SELECT
TAX-FREE (NXC) TAX-FREE (NXN)
----------------------- ----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/10 3/31/09 3/31/10 3/31/09
--------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders due to
reinvestment of distributions -- 7,322 3,021 797
==========================================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the fiscal year ended March 31, 2010, 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 $ 8,169,794 $ 8,691,192 $ 5,983,280 $ 3,087,830 $ 1,987,055
Sales and maturities 6,463,960 9,198,508 4,963,328 3,552,661 625,000
==========================================================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. 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 March 31, 2010, 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 $226,442,458 $242,249,976 $177,103,400 $ 85,868,050 $ 53,147,209
=========================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at March 31, 2010, 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 $ 15,341,673 $ 9,385,671 $ 9,061,795 $ 2,856,165 $1,756,708
Depreciation (10,585,055) (15,296,510) (5,399,852) (2,036,068) (397,539)
------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investments $ 4,756,618 $ (5,910,839 $ 3,661,943 $ 820,097 $1,359,169
========================================================================================================================
54 Nuveen Investments
Permanent differences, primarily due to federal taxes paid, taxable market
discount and distribution reclasses, resulted in reclassifications among the
Funds' components of net assets at March 31, 2010, the Funds' tax year end, 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 (Over-distribution of)
net investment income $ (1,288) $ (13,807) $ (1,270) $ (234) $ --
Accumulated net realized gain (loss) 11,473 13,783 1,270 234 --
Paid-in-surplus (10,185) 24 -- -- --
========================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at March 31, 2010, the Funds' 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* $ 1,730,150 $ 1,441,934 $ 772,035 $ 378,559 $ 186,791
Undistributed net ordinary income** 496 11,261 19,012 4,246 --
Undistributed net long-term capital gains -- -- -- -- --
========================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on March 2, 2010, paid on April 1, 2010.
** 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' tax years ended March
31, 2010 and March 31, 2009, 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*** $ 11,501,182 $ 11,757,723 $ 8,339,231 $ 4,174,015 $2,393,829
Distributions from net ordinary income** 263,468 -- 306 -- --
Distributions from net long-term capital gains**** -- -- 12,690 -- --
========================================================================================================================
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 $ 11,223,919 $ 11,734,961 $ 8,326,795 $ 4,172,291 $2,392,786
Distributions from net ordinary income** -- -- -- -- --
Distributions from net long-term capital gains -- -- -- -- --
========================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
March 31, 2010, as Exempt Interest Dividends.
**** The Funds designate as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended March 31, 2010.
At March 31, 2010, the Funds' tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------
Expiration:
March 31, 2015 $844,020 $ 1,317,559 $ -- $ --
March 31, 2016 -- 7,597 29,942 40,192
March 31, 2017 -- 400,800 107,619 15,314
March 31, 2018 -- -- -- 9,265
------------------------------------------------------------------------------------------------------------------------
Total $844,020 $ 1,725,956 $ 137,561 $ 64,771
========================================================================================================================
Nuveen Investments 55
| NOTES TO
| FINANCIAL STATEMENTS (CONTINUED)
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2009 through March 31, 2010, the Funds' tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year:
CALIFORNIA
SELECT SELECT
TAX-FREE 2 TAX-FREE
(NXQ) (NXC)
------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $ 464,302 $ 495,724
========================================================================================================================
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a fund-level fee,
based only on the amount of assets within each individual Fund, and a
complex-level fee, 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"). This pricing structure enables each Fund's
shareholders to benefit from growth in the assets within their respective Fund
as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated
according to the following schedule:
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 for each Fund, payable monthly, is calculated
according to the following schedule:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL* EFFECTIVE RATE AT BREAKPOINT LEVEL
-------------------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
===============================================================================================================================
* The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed assets of all Nuveen
funds, with such daily managed assets defined separately for each fund in
its management agreement, but excluding assets attributable to investments
in other Nuveen funds. For the complex-level and fund-level fees, daily
managed assets include assets managed by the Adviser that are attributable
to financial leverage. For these purposes, financial leverage includes the
funds' use of preferred stock and borrowings and investments in the
residual interest certificates (also called inverse floating rate
securities) in tender option bond (TOB) trusts, including the portion of
assets held by a TOB trust that has been effectively financed by the
trust's issuance of floating rate securities, subject to an agreement by
the Adviser to limit the amount of such assets for determining managed
assets in certain circumstances. As of March 31, 2010, the complex-level
fee rate was .1867%.
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.
56 Nuveen Investments
8. NEW ACCOUNTING STANDARDS
ACCOUNTING FOR TRANSFER OF FINANCIAL ASSETS
During June 2009, FASB issued changes to the authoritative guidance under GAAP
on accounting for transfers of financial assets. The objective of this guidance
is to improve the relevance, representational faithfulness, and comparability of
the information that a reporting entity provides in its financial statements
about a transfer of financial assets; the effects of a transfer on its financial
position, financial performance, and cash flows; and a transferor's continuing
involvement, if any, in transferred financial assets. This guidance is effective
as of the beginning of each reporting entity's first annual reporting period
that begins after November 15, 2009, for interim periods within that first
annual reporting period and for interim and annual reporting periods thereafter.
Earlier application is prohibited. The recognition and measurement provisions of
this guidance must be applied to transfers occurring on or after the effective
date. Additionally, the disclosure provisions of this guidance should be applied
to transfers that occurred both before and after the effective date of this
guidance. At this time, management is evaluating the implications of this
guidance and the impact it will have on the financial statement amounts and
disclosures, if any.
FAIR VALUE MEASUREMENTS
On January 21, 2010, FASB issued changes to the authoritative guidance under
GAAP for fair value measurements. The objective of this guidance is to provide
guidance on how investment assets and liabilities are to be valued and
disclosed. Specifically, the amendment requires reporting entities to disclose
i) the input and valuation techniques used to measure fair value for both
recurring and nonrecurring fair value measurements, for both Level 2 and Level 3
positions, ii) transfers between all levels (including Level 1 and Level 2) on a
gross basis (i.e., transfers out must be disclosed separately from transfers in)
as well as the reason(s) for the transfer and iii) purchases, sales, issuances
and settlements in the Level 3 rollforward must be shown on a gross basis rather
than as one net number. The effective date of the amendment is for interim and
annual periods beginning after December 15, 2009, however, the requirement to
provide the Level 3 activity for purchases, sales, issuances and settlements on
a gross basis will be effective for interim and annual periods beginning after
December 15, 2010. At this time, management is evaluating the implications of
this guidance and the impact it will have to the financial statement amounts and
footnote disclosures, if any.
9. SUBSEQUENT EVENTS
DISTRIBUTIONS TO SHAREHOLDERS
The Funds declared dividend distributions from their tax-exempt net investment
income, which were paid on May 3, 2010, to shareholders of record on April 15,
2010, 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 $ .0595 $ .0555 $ .0535 $ .0555 $ .0510
========================================================================================================================
Nuveen Investments 57
| FINANCIAL
| HIGHLIGHTS
Selected data for a Common 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:
2010 $ 13.52 $ .73 $ .66 $ 1.39 $ (.72) $ -- $ (.72) $ 14.19 $ 14.74
2009 14.30 .71 (.81) (.10) (.68) -- (.68) 13.52 13.67
2008 14.72 .70 (.44) .26 (.68) -- (.68) 14.30 14.24
2007 14.62 .70 .08 .78 (.68) -- (.68) 14.72 14.85
2006 14.62 .70 (.02) .68 (.68) -- (.68) 14.62 14.21
SELECT TAX-FREE 2 (NXQ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 12.63 .68 .89 1.57 (.67) -- (.67) 13.53 13.81
2009 13.93 .67 (1.30) (.63) (.67) -- (.67) 12.63 13.14
2008 14.60 .66 (.69) (.03) (.64) -- (.64) 13.93 13.79
2007 14.44 .66 .14 .80 (.64) -- (.64) 14.60 14.07
2006 14.38 .66 .06 .72 (.65) (.01) (.66) 14.44 13.37
===============================================================================================================================
58 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------
TOTAL RETURNS RATIOS TO AVERAGE NET ASSETS(b)
------------------------ --------------------------------------------
BASED
ON ENDING
BASED ON NET NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET ASSETS INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) (000) INTEREST(c) INTEREST INCOME RATE
------------------------------------------------------------------------------------------------------------------------------------
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 13.45% 10.45% $233,869 .32% .32% 5.20% 3%
2009 .89 (.65) 222,114 .33 .33 5.12 11
2008 .61 1.83 234,494 .32 .32 4.83 4
2007 9.59 5.48 241,074 .31 .31 4.77 2
2006 10.41 4.74 239,406 .32 .32 4.72 4
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 10.45 12.62 239,100 .37 .37 5.12 4
2009 .24 (4.63) 222,771 .39 .38 5.08 6
2008 2.69 (.24) 245,244 .40 .36 4.58 7
2007 10.21 5.62 257,037 .37 .36 4.50 3
2006 7.39 5.12 254,205 .36 .36 4.51 11
====================================================================================================================================
(a) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price
paid per share at the time of reinvestment. The last dividend declared
in the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending market
price. The actual reinvestment for the last dividend declared in the
period may take place over several days, and in some instances may not
be based on the market price, so the actual reinvestment price may be
different from the price used in the calculation.
Total returns are not annualized.
Total Return Based on Net Asset Value is the combination of changes in
net asset value, reinvested dividend income at net asset value and
reinvested capital gains distributions at net asset value, if any. The
last dividend declared in the period, which is typically paid on the
first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not
annualized.
(b) Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, where
applicable.
(c) The expense ratios reflect, among other things, the interest expense
deemed to have been paid by the Fund on the floating rate certificates
issued by the special purpose trusts for the self-deposited inverse
floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 59
| FINANCIAL
| HIGHLIGHTS (CONTINUED)
Selected data for a Common 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 3 (NXR)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 $ 13.38 $ .67 $ .65 $ 1.32 $ (.64) $ --* $ (.64) $ 14.06 $ 14.22
2009 13.98 .66 (.62) .04 (.64) -- (.64) 13.38 13.57
2008 14.42 .64 (.44) .20 (.64) -- (.64) 13.98 13.75
2007 14.29 .64 .13 .77 (.64) -- (.64) 14.42 14.01
2006 14.22 .65 .06 .71 (.64) -- (.64) 14.29 13.45
CALIFORNIA SELECT TAX-FREE (NXC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 13.24 .67 .73 1.40 (.67) -- (.67) 13.97 13.08
2009 14.09 .66 (.84) (.18) (.67) -- (.67) 13.24 12.00
2008 14.73 .66 (.65) .01 (.64) (.01) (.65) 14.09 14.08
2007 14.57 .64 .18 .82 (.64) (.02) (.66) 14.73 14.22
2006 14.54 .65 .09 .74 (.65) (.06) (.71) 14.57 13.56
===============================================================================================================================
60 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------
TOTAL RETURNS RATIOS TO AVERAGE NET ASSETS(b)
------------------------ -------------------------------------------
BASED
ON ENDING
BASED ON NET NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET ASSETS INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) (000) INTEREST(c) INTEREST INCOME RATE
------------------------------------------------------------------------------------------------------------------------------------
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 9.70% 10.05% $182,779 .38% .38% 4.81% 3%
2009 3.51 .34 173,678 .39 .39 4.83 5
2008 2.91 1.42 181,288 .38 .36 4.49 2
2007 9.15 5.51 186,969 .38 .37 4.43 9
2006 10.12 5.10 185,233 .37 .37 4.51 6
CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 14.71 10.71 87,548 .41 .39 4.87 4
2009 (10.34) (1.30) 82,953 .43 .41 4.85 12
2008 3.68 .05 88,224 .44 .38 4.52 8
2007 9.89 5.72 92,177 .40 .39 4.37 16
2006 6.52 5.17 91,152 .38 .38 4.42 8
====================================================================================================================================
* Rounds to less than $.01 per share.
(a) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Net Asset Value is the combination of changes in net
asset value, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. The last dividend
declared in the period, which is typically paid on the first business day
of the following month, is assumed to be reinvested at the ending net asset
value. The actual reinvest price for the last dividend declared in the
period may often be based on the Fund's market price (and not its net asset
value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
(b) Expense ratios do not reflect the reduction of custodian fee credits earned
on the Fund's net cash on deposit with the custodian bank, where
applicable.
(c) The expense ratios reflect, among other things, the interest expense deemed
to have been paid by the Fund on the floating rate certificates issued by
the special purpose trusts for the self-deposited inverse floaters held by
the Fund, as described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 61
| FINANCIAL
| HIGHLIGHTS (CONTINUED)
Selected data for a Common 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
-------------------------------------------------------------------------------------------------------------------------------
NEW YORK SELECT
TAX-FREE (NXN)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 $ 13.37 $ .62 $ .68 $ 1.30 $ (.61) $ -- $ (.61) $ 14.06 $ 13.80
2009 13.79 .62 (.43) .19 (.61) -- (.61) 13.37 13.08
2008 14.28 .62 (.49) .13 (.61) (.01) (.62) 13.79 13.79
2007 14.19 .61 .13 .74 (.61) (.04) (.65) 14.28 14.15
2006 14.28 .62 (.02) .60 (.62) (.09) (.69) 14.19 13.35
===============================================================================================================================
62 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------------------
TOTAL RETURNS RATIOS TO AVERAGE NET ASSETS(b)
------------------------ --------------------------------------------
BASED
ON ENDING
BASED ON NET NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET ASSETS INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) (000) INTEREST(c) INTEREST INCOME RATE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 10.31% 9.89% $ 55,007 .44% .42% 4.50% 1%
2009 (.57) 1.47 52,268 .47 .45 4.57 1
2008 2.06 .94 53,908 .46 .43 4.35 20
2007 11.15 5.30 55,828 .46 .42 4.29 6
2006 2.84 4.19 55,473 .41 .41 4.28 13
===================================================================================================================================
(a) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation.
Total returns are not annualized. Total Return Based on Net Asset Value is
the combination of changes in net asset value, reinvested dividend income
at net asset value and reinvested capital gains distributions at net asset
value, if any. The last dividend declared in the period, which is
typically paid on the first business day of the following month, is
assumed to be reinvested at the ending net asset value. The actual
reinvest price for the last dividend declared in the period may often be
based on the Fund's market price (and not its net asset value), and
therefore may be different from the price used in the calculation. Total
returns are not annualized.
(b) Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, where
applicable.
(c) The expense ratios reflect, among other things, the interest expense
deemed to have been paid by the Fund on the floating rate certificates
issued by the special purpose trusts for the self-deposited inverse
floaters held by the Fund, as described in Footnote 1 - Inverse Floating
Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 63
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently
set at nine. None of the board members who are not "interested" persons of
the Funds (referred to herein as "independent board members") has ever
been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and
officers of the Funds, their principal occupations and other affiliations
during the past five years, the number of portfolios each oversees and
other directorships they hold are set forth below.
----------------------------------------------------------------------------------------------------------------------------------
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management Consultant;
8/22/40 Chairman of Treasurer and Director, Humanities Council of
333 W. Wacker Drive the Board 1996 199 Washington, D.C.
Chicago, IL 60606 and Board Member
o JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive Board Member 1999 199 1996); Director and Chairman, United Fire
Chicago, IL 60606 Group, a publicly held company; President Pro
Tem of the Board of Regents for the State of
Iowa University System; Director, Gazette
Companies; Life Trustee of Coe College and the
Iowa College Foundation; formerly, Director,
Alliant Energy; formerly, Director, Federal
Reserve Bank of Chicago; formerly, President
and Chief Operating Officer, SCI Financial
Group, Inc., a regional financial services
firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business, University
3/6/48 of Iowa (since 2006); Director (since 2004) of
333 W. Wacker Drive Board Member 2004 199 Xerox Corporation; Director (since 2005), Beta
Chicago, IL 60606 Gamma Sigma International Honor Society;
formerly, Dean and Distinguished Professor of
Finance, School of Business at the University
of Connecticut (2003-2006); previously, Senior
Vice President and Director of Research at the
Federal Reserve Bank of Chicago (1995-2003);
Director, SS&C Technologies, Inc. (May
2005-October 2005); formerly, Director
(1997-2007), Credit Research Center at
Georgetown University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 Management Company; retired (since 2004) as
333 W. Wacker Drive Board Member 2005 199 Chairman, JPMorgan Fleming Asset Management,
Chicago, IL 60606 President and CEO, Banc One Investment
Advisors Corporation, and President, One Group
Mutual Funds; prior thereto, Executive Vice
President, Banc One Corporation and Chairman
and CEO, Banc One Investment Management Group;
Member, Board of Regents, Luther College;
member of the Wisconsin Bar Association;
member of Board of Directors, Friends of
Boerner Botanical Gardens; member of Board of
Directors and member of Investment Committee,
Greater Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd., a
9/24/44 real estate investment company; formerly, Senior
333 W. Wacker Drive Board Member 1997 199 Partner and Chief Operating Officer (retired,
Chicago, IL 60606 2004) of Miller-Valentine Group; member,
University of Dayton Business School Advisory
Council; formerly, member, Dayton Philharmonic
Orchestra Association; formerly, member and
chair, Business Advisory Council, Cleveland
Federal Reserve Bank; formerly, Director, Dayton
Development Coalition.
64 Nuveen Investments
----------------------------------------------------------------------------------------------------------------------------------
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board Member 1997 199 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 (since 2006); Director, C2 Options Exchange,
333 W. Wacker Drive Board Member 2007 199 Incorporated (since 2009); Commissioner, New
Chicago, IL 60606 York State Commission on Public Authority
Reform (since 2005); formerly, Chair, New York
Racing Association Oversight Board
(2005-2007).
o TERENCE J. TOTH Director, Legal & General Investment
9/29/59 Management America, Inc. (since 2008);
333 W. Wacker Drive Board Member 2008 199 Managing Partner, Promus Capital (since 2008);
Chicago, IL 60606 formerly, CEO and President, Northern Trust
Global Investments (2004-2007); Executive Vice
President, Quantitative Management &
Securities Lending (2000-2004); prior thereto,
various positions with Northern Trust Company
(since 1994); member: Goodman Theatre Board
(since 2004), Chicago Fellowship Boards (since
2005), University of Illinois Leadership
Council Board (since 2007) and Catalyst
Schools of Chicago Board (since 2008);
formerly, member: Northern Trust Mutual Funds
Board (2005-2007), Northern Trust Global
Investments Board (2004-2007), Northern Trust
Japan Board (2004-2007), Northern Trust
Securities Inc. Board (2003-2007) and Northern
Trust Hong Kong Board (1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007),
6/14/61 Director (since 1999) and Chairman (since
333 W. Wacker Drive Board Member 2008 199 2007) of Nuveen Investments, Inc.; Chief
Chicago, IL 60606 Executive Officer (since 2007) of Nuveen Asset
Management, Nuveen Investments Advisors, Inc.;
President (since 2005) of Nuveen Commodities
Asset Management, LLC.
Nuveen Investments 65
Board Members & Officers (continued)
----------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS
----------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel of
333 W. Wacker Drive Administrative 1988 199 Nuveen Investments, LLC; Managing Director,
Chicago, IL 60606 Officer Associate General Counsel and Assistant
Secretary, of Nuveen Asset Management (since
2002) and of Symphony Asset Management LLC,
(since 2003); Vice President and Assistant
Secretary of NWQ Investment Management
Company, LLC. (since 2002), Nuveen Investments
Advisers Inc. (since 2002), Tradewinds Global
Investors, LLC, and Santa Barbara Asset
Management, LLC (since 2006), Nuveen HydePark
Group LLC and Nuveen Investment Solutions,
Inc. (since 2007); Managing Director (since
2004) and Assistant Secretary (since 1994) of
Nuveen Investments, Inc.; Managing Director
(since 2005) of Nuveen Commodities Asset
Management, LLC; Chartered Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice President,
333 W. Wacker Drive Vice President 2007 125 U.S. Structured Products of Nuveen
Chicago, IL 60606 Investments, LLC, (since 1999),; Executive
Vice President (since 2005) of Nuveen
Commodities Asset Management, LLC.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously,
1/11/62 Vice President (1993-2004) of Nuveen
333 W. Wacker Drive Vice President 2007 125 Investments, LLC.
Chicago, IL 60606
o NIZIDA ARRIAGA Senior Vice President of Nuveen Investments,
6/1/68 LLC (since 2010); formerly, Vice President
333 W. Wacker Drive Vice President 2009 199 (2007-2010); previously, Portfolio Manager,
Chicago, IL 60606 Allstate Investments, LLC (1996-2006);
Chartered Financial Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.; Vice President of Nuveen
333 W. Wacker Drive and Assistant 2000 199 Asset Management (since 2005).
Chicago, IL 60606 Secretary
o MARGO L. COOK Executive Vice President (since Oct 2008) of
4/11/64 Nuveen Investments, Inc.; previously, Head of
333 W. Wacker Drive Vice President 2009 199 Institutional Asset Management (2007-2008) of
Chicago, IL 60606 Bear Stearns Asset Management; Head of
Institutional Asset Mgt (1986-2007) of Bank of
NY Mellon; Chartered Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen
10/24/45 Investments, LLC and Managing Director (since
333 W. Wacker Drive Vice President 1998 199 2005) of Nuveen Asset Management.
Chicago, IL 60606
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen Investments,
333 W. Wacker Drive and Controller 1998 199 LLC; Vice President (since 2005) of Nuveen
Chicago, IL 60606 Asset Management; Certified Public Accountant.
o SCOTT S. GRACE Managing Director, Corporate Finance &
8/20/70 Vice President Development, Treasurer (since September 2009)
333 W. Wacker Drive and Treasurer 2009 199 of Nuveen Investments, LLC; Managing Director
Chicago, IL 60606 and Treasurer of Nuveen Asset Management
(since 2009); formerly, Treasurer (2006-2009),
Senior Vice President (2008-2009), previously,
Vice President (2006-2008) of Janus Capital
Group, Inc.; formerly. Senior Associate in
Morgan Stanley's Global Financial Services
Group (2000-2003); Chartered Accountant
Designation.
66 Nuveen Investments
----------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS
----------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed
5/7/69 Income (since 2008) of Nuveen Asset
333 W. Wacker Drive Vice President 2009 136 Management; previously, Chairman, President
Chicago, IL 60606 and Chief Executive Officer (2002 - 2007) of
Northern Trust Global Advisors, Inc. and Chief
Executive Officer (2007) of Northern Trust
Global Investments Limited; Certified Public
Accountant.
o WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant Vice
333 W. Wacker Drive Officer and 2003 199 President and Assistant General Counsel
Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Senior
Vice President (since 2008), formerly, Vice
President (2006-2008) and Assistant Secretary
(since 2008) of Nuveen Asset Management.
o DAVID J. LAMB Senior Vice President (since 2009), formerly,
3/22/63 Vice President (2000-2009) of Nuveen
333 W. Wacker Drive Vice President 2000 199 Investments, LLC; Vice President (since 2005)
Chicago, IL 60606 of Nuveen Asset Management; Certified Public
Accountant.
o TINA M. LAZAR Senior Vice President (since 2009), formerly,
8/27/61 Vice President of Nuveen Investments, LLC
333 W. Wacker Drive Vice President 2002 199 (1999-2009); Vice President of Nuveen Asset
Chicago, IL 60606 Management (since 2005).
o LARRY W. MARTIN Senior Vice President (since 2010), Assistant
7/27/51 Vice President Secretary and Assistant General Counsel of
333 W. Wacker Drive and Assistant 1988 199 Nuveen Investments, LLC; Vice President (since
Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen
Investments, Inc.; Vice President (since 2005)
and Assistant Secretary (since 1997) of Nuveen
Asset Management; Vice President and Assistant
Secretary of Nuveen Investments Advisers Inc.
(since 2002); NWQ Investment Management Company,
LLC (since 2002), Symphony Asset Management LLC
(since 2003), Tradewinds Global Investors, LLC,
Santa Barbara Asset Management LLC (since 2006)
and of Nuveen HydePark Group, LLC and Nuveen
Investment Solutions, Inc. (since 2007).
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice
3/26/66 Vice President President (2007-2008), Nuveen Investments, LLC;
333 W. Wacker Drive and Secretary 2007 199 Managing Director (since 2008), formerly, Vice
Chicago, IL 60606 President, and Assistant Secretary, Nuveen Asset
Management, and Nuveen Investments Holdings,
Inc.; Vice President (since 2007) and Assistant
Secretary, Nuveen Investment Advisers Inc., NWQ
Investment Management Company, LLC, Tradewinds
Global Investors LLC, NWQ Holdings, LLC,
Symphony Asset Management LLC, Santa Barbara
Asset Management LLC, Nuveen HydePark Group, LLC
and Nuveen Investment Solutions, Inc. (since
2007); prior thereto, Partner, Bell, Boyd &
Lloyd LLP (1997-2007).
o JOHN V. MILLER Chief Investment Officer and Managing Director
4/10/67 (since 2007), formerly, Vice President
333 W. Wacker Drive Vice President 2007 136 (2002-2007) of Nuveen Asset Management and
Chicago, IL 60606 Managing Director (since 2007), formerly Vice
President (2002-2007) Nuveen Investments, LLC;
Chartered Financial Analyst.
Nuveen Investments 67
Board Members & Officers (continued)
----------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS
----------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GREGORY MINO Senior Vice President (since 2010) of Nuveen
1/4/71 Investments, LLC, formerly Vice President
333 W. Wacker Drive Vice President 2009 199 (2008-2010); previously, Director (2004- 2007)
Chicago, IL 60606 and Executive Director (2007-2008) of UBS
Global Asset Management; previously, Vice
President (2000-2003) and Director (2003-2004)
of Merrill Lynch Investment Managers;
Chartered Financial Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since
8/1/71 Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive and Assistant 2008 199 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 Secretary thereto, Associate, Skadden, Arps, Slate
Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since
7/3/62 Vice President 2007); prior thereto, Partner, Deloitte &
333 W. Wacker Drive and Assistant 2007 199 Touche USA LLP (2005-2007), formerly, senior
Chicago, IL 60606 Secretary tax manager (2002-2005); Certified Public
Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC (since
12/21/68 Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive and Assistant 2008 199 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 Secretary thereto, Counsel, Vedder Price P.C.
(1997-2007).
(1) Board Members serve three year terms. The Board of Trustees is divided
into three classes, Class I, Class II, and Class III, with each being
elected to serve until the third succeeding annual shareholders' meeting
subsequent to its election or thereafter in each case when its respective
successors are duly elected or appointed. The first year elected or
appointed represents the year in which the board member was first elected
or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
68 Nuveen Investments
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 ACT"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "INDEPENDENT BOARD
MEMBERS"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "MAY
MEETING"), the Boards of Trustees or Directors (as the case may be)( each a
"BOARD," and each Trustee or Director, a "BOARD MEMBER") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreements (each an "ADVISORY AGREEMENT") between
the Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 21-22, 2009 (the "APRIL MEETING"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board
Members reviewed a broad range of information relating to the Funds and NAM,
including absolute performance, fee and expense information for the Funds as
well as comparative performance, fee and expense information for a comparable
peer group of funds, the performance information of recognized and/or customized
benchmarks (as applicable) of the Funds, the profitability of Nuveen for its
advisory activities (which includes its wholly owned subsidiaries other than
Winslow Capital Management, Inc. ("WINSLOW CAPITAL"), which was recently
acquired in December 2008), and other information regarding the organization,
personnel, and services provided by NAM. The Independent Board Members also met
quarterly as well as at other times as the need arose during the year and took
into account the information provided at such meetings and the knowledge gained
therefrom. Prior to approving the renewal of the Advisory Agreements, the
Independent Board Members reviewed the foregoing information with their
independent legal counsel and with management, reviewed materials from
independent legal counsel describing applicable law and their duties in
reviewing advisory contracts, and met with independent legal counsel in private
sessions without management present. The Independent Board Members considered
the legal advice provided by independent legal counsel and relied upon their
knowledge of NAM, its services and the Funds resulting from their meetings and
other interactions throughout the year and their own business judgment in
determining the factors to be considered in evaluating
Nuveen Investments 69
Annual Investment Management Agreement Approval Process (continued)
the Advisory Agreements. Each Board Member may have accorded different weight to
the various factors in reaching his or her conclusions with respect to the
Fund's Advisory Agreement. The Independent Board Members did not identify any
single factor as all-important or controlling. The Independent Board Members'
considerations were instead based on a comprehensive consideration of all the
information presented. The principal factors considered by the Board and its
conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPS") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refinancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds
70 Nuveen Investments
through a variety of programs designed to raise investor and analyst awareness
and understanding of closed-end funds. These efforts include maintaining an
investor relations program to provide timely information and education to
financial advisers and investors; providing advertising and marketing for the
closed-end funds; maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDs AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "PERFORMANCE PEER GROUP") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Nuveen municipal funds managed by
NAM in the aggregate ranked by peer group and the performance of such funds, in
the aggregate, relative to their benchmark. This information supplemented the
Fund performance information provided to the Board at each of its quarterly
meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile
Nuveen Investments 71
Annual Investment Management Agreement Approval Process (continued)
market conditions during the past year, and their impact on various asset
classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to
the fee and expenses of a comparable universe of unaffiliated funds based
on data provided by an independent fund data provider (the "PEER
UNIVERSE") and in certain cases, to a more focused subset of funds in the
Peer Universe (the "PEER GROUP").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such
as the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members considered, among other things, the differences
in the use and type of leverage compared to the peers. The Independent
Board Members also considered the differences in the states reflected in
the respective Peer Group. In reviewing the fee schedule for a Fund, the
Independent Board Members also considered the fundlevel and complex-wide
breakpoint schedules (described in further detail below) and any fee
waivers and reimbursements provided by Nuveen (applicable, in particular,
for certain closed-end funds launched since 1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that the Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among
other things, because of the different services involved and the
additional regulatory and compliance requirements associated with
registered investment companies, such as the Funds. Accordingly, the
Independent Board Members considered the differences in the product types,
including, but not limited
72 Nuveen Investments
to, the services provided, the structure and operations, product
distribution and costs thereof, portfolio investment policies, investor
profiles, account sizes and regulatory requirements. The Independent Board
Members noted, in particular, that the range of services provided to the
Funds (as discussed above) is much more extensive than that provided to
separately managed accounts. Given the inherent differences in the
products, particularly the extensive services provided to the Funds, the
Independent Board Members believe such facts justify the different levels
of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory activities
for the last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes
in revenues and expenses that impacted profitability in 2008. In addition,
the Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's
revenues for advisory activities, expenses, and profit margin compared to
that of various unaffiliated management firms with similar amounts of
assets under management and relatively comparable asset composition
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business.
Based on their review, the Independent Board Members concluded that
Nuveens level of profitability for its advisory activities was reasonable
in light of the services provided.
Nuveen Investments 73
Annual Investment Management Agreement Approval Process (continued)
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered other amounts paid to NAM by the Funds as
well as any indirect benefits (such as soft dollar arrangements, if any)
NAM and its affiliates receive, or are expected to receive, that are
directly attributable to the management of the Funds, if any. See Section
E below for additional information on indirect benefits NAM may receive as
a result of its relationship with the Funds. Based on their review of the
overall fee arrangements of each Fund, the Independent Board Members
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members also recognized
that the asset levels generally declined in 2008 due to, among other things, the
market downturn. Accordingly, for funds with a reduction in assets under
management, advisory fee levels may have increased as breakpoints in the fee
schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
74 Nuveen Investments
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by the Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 75
Reinvest Automatically Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price
76 Nuveen Investments
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.
Nuveen Investments 77
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fundfs portfolio, computed by weighting each bondfs time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfoliofs residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change.
o Inverse Floaters: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with a
fixed interest rate, into a special purpose trust created by a
broker-dealer. This trust, in turn, (a) issues floating rate certificates
typically paying short-term tax-exempt interest rates to third parties in
amounts equal to some fraction of the deposited bonds par amount or market
value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an inverse floater) to an investor (such as a Fund)
interested in gaining investment exposure to a long-term municipal bond.
The income received by the holder of the inverse floater varies inversely
with the short-term rate paid to the floating rate certificates holders,
and in most circumstances the holder of the inverse floater bears
substantially all of the underlying bonds downside investment risk. The
holder of the inverse floater typically also benefits disproportionately
from any potential appreciation of the underlying bonds value. Hence, an
inverse floater essentially represents an investment in the underlying
bond on a leveraged basis.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
78 Nuveen Investments
o NET ASSET VALUE (NAV): A Fund's NAV per share is calculated by subtracting
the liabilities of the Fund from its total assets and then dividing the
remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 79
Notes
80 Nuveen Investments
Other Useful Information
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
("NYSE") the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
SHARE INFORMATION
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. During the period covered
by this report, the Funds did not repurchase any of their common shares.
Any future repurchases will be reported to shareholders in the next annual or
semi-annual report.
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Nuveen Investments 81
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions through continued
adherence to proven, longterm investing principles. Today, we offer a range of
high quality equity and fixed-income solutions designed to be integral
components of a well-diversified core portfolio.
FOCUSED ON MEETING INVESTOR NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. We market our growing
range of specialized investment solutions under the high-quality brands of
HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital.
In total, Nuveen Investments managed approximately $150 billion of assets on
March 31, 2010.
FIND OUT HOW WE CAN HELP YOU.
To learn more about how the products and services of Nuveen Investments may be
able to help you meet your financial goals, talk to your financial advisor, or
call us at (800) 257-8787. Please read the information provided carefully before
you invest.
Investors should consider the investment objective and policies, risk
considerations, charges and expenses of any investment carefully. Where
applicable, be sure to obtain a prospectus, which contains this and other
relevant information. To obtain a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
EAN-B-0310D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Select Tax-Free Income Portfolio
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND
--------------------------------------------------------------------------------------------------------------------------
March 31, 2010 $ 15,092 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------------------
March 31, 2009 $ 15,019 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services to
the Fund ("Affiliated Fund Service Provider"), for engagements directly related
to the Fund's operations and financial reporting, during the Fund's last two
full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
-----------------------------------------------------------------------------------------------------------
March 31, 2010 $ 0 $ 0 $ 0
-----------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------
March 31, 2009 $ 0 $ 0 $ 0
-----------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
--------------------------------------------------------------------------------------------------------------------------
March 31, 2010 $ 0 $ 0 $ 0 $ 0
March 31, 2009 $ 0 $ 0 $ 0 $ 0
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees"
and "All Other Fees" billed to Fund in their respective amounts from the
previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Thomas Spalding Nuveen Select Tax-Free Income Portfolio
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ASSETS ACCOUNTS
--------------------------------------------------------------------------------
Thomas Spalding Registered Investment Company 11 $9.05 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 4 $17.2 million
* Assets are as of March 31, 2010. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of March 31, 2010, the
S&P/Investortools Municipal Bond index was comprised of 54,797 securities with
an aggregate current market value of $1,187 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors lead by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event. In
addition, in July 2009, Nuveen Investments created and funded a trust, as part
of a newly-established incentive program, which purchased shares of certain
Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain
employees, including portfolio managers.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the Fund and the other accounts noted above may present actual or apparent
conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Fund and the other account. The
Adviser, however, believes that such potential conflicts are mitigated by the
fact that the Adviser has adopted several policies that address potential
conflicts of interest, including best execution and trade allocation policies
that are designed to ensure (1) that portfolio management is seeking the best
price for portfolio securities under the circumstances, (2) fair and equitable
allocation of investment opportunities among accounts over time and (3)
compliance with applicable regulatory requirements. All accounts are to be
treated in a non-preferential manner, such that allocations are not based upon
account performance, fee structure or preference of the portfolio manager. In
addition, the Adviser has adopted a Code of Conduct that sets forth policies
regarding conflicts of interest.
Beneficial Ownership of Securities. As of the March 31, 2010, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Fund and other Nuveen Funds managed by NAM's municipal investment
team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE BENEFICIALLY OWNED
OF EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS
BENEFICIALLY MANAGED BY NAM'S
NAME OF PORTFOLIO OWNED IN FUND MUNICIPAL
MANAGER FUND INVESTMENT TEAM
-----------------------------------------------------------------------------------------------------------
Thomas Spalding Nuveen Select Tax-Free Income Portfolio $0 $500,001-$1,000,000
PORTFOLIO MANAGER BIO:
Thomas Spalding, CFA is Vice President and Senior Investment Officer of Nuveen
Investments. He has direct investment responsibility for National Long Term
funds. He joined Nuveen in 1976 as assistant portfolio manager and has been the
portfolio manager of the Nuveen Municipal Value Fund, Nuveen's first closed-end
exchange traded fund, since its inception in 1987. Currently, he manages
investments for 12 Nuveen-sponsored investment companies.
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. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, click on Fund Governance and then Code of Conduct.)
(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/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: June 7, 2010
-------------------------------------------------------------------
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: June 7, 2010
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: June 7, 2010
-------------------------------------------------------------------