UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6623
---------------------
Nuveen California Select Tax-Free Income Portfolio
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: March 31
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Date of reporting period: March 31, 2005
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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.
ANNUAL REPORT March 31, 2005
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
NXP
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
NXQ
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
NXR
NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NXC
NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
NXN
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DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU
KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the twelve-month period covered by
this annual report your Fund continued to provide you with monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please see the Portfolio Managers' Comments and Performance Overview
sections of this report.
As I noted in my last letter to you, our conversations with financial advisors
and investors suggest that many of you may be wondering whether longer-term
interest rates will soon begin to rise substantially, mirroring the rise that
has taken place in shorter-term rates. If longer-term rates do begin to rise
significantly, some of you also may be wondering if that makes this a good time
to adjust your holdings of fixed-income investments. We can't answer these
questions for you - no one knows what the future will bring.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK."
From our experience, we do know that a well-balanced portfolio, structured and
carefully monitored with the help of a trusted investment professional, can be
an important component in helping you achieve your long-term financial goals. In
fact, a well-diversified portfolio may actually help to reduce your overall
investment risk. That is one reason why we believe that a municipal bond
investment like your Nuveen Fund can be an important building block in a
comprehensive investment program designed to perform well in a variety of market
conditions.
As in past reports, I urge you to consider receiving future Fund reports and
other Fund information by e-mail and the Internet. Not only will you be able to
receive the information faster, but this also may help lower your Fund's
expenses. Sign up is quick and easy - see the inside front cover of this report
for instructions.
Some of you may have heard that in April, 2005, The St. Paul Travelers
Companies, Inc., which had owned 79% of Nuveen Investments, Inc. (the parent of
your Fund's investment adviser) completed a public offering of a substantial
portion of its equity stake in Nuveen. At the same time, St. Paul Travelers also
entered into agreements to sell the balance of its shares in Nuveen to us or to
others at a future date.
These transactions will have no impact on the investment objectives or
management of your Fund. However, taken as a whole they are considered to be an
"assignment" of your Fund's investment management agreement. This means that you
and your fellow Fund shareholders soon will be asked to formally approve the
continuation of your Fund's management contract with Nuveen. We will be sending
you more information about this process in the coming weeks.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
May 16, 2005
Nuveen Municipal Closed-End Exchange-Traded Funds
(NXP, NXQ, NXR, NXC, NXN)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding, Scott Romans and Paul Brennan review the market
environment, key investment strategies and the annual performance of these
Nuveen Select Portfolios. With 30 years of investment experience, Tom has
managed the three national Portfolios since 1999. Scott, who joined Nuveen in
2000, and Paul, who has 14 years of investment experience, have managed NXC and
NXN, respectively, since 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
REPORTING PERIOD ENDED MARCH 31, 2005?
During this 12-month period, the Federal Reserve implemented seven quarter-point
increases in the fed funds rate, beginning on June 30, 2004, and continuing
through March 22, 2005. These increases, which were intended to control economic
growth and head off significant growth in the rate of inflation, raised the
short-term target to 2.75% from 1.00%. (On May 3, 2005, after the close of this
reporting period, the fed funds rate was raised to 3.00%.) Ironically, while
short-term rates rose over the period, yields on the Bond Buyer 25 index, a
widely followed measure of long-term municipal bond interest rates, fell by more
than 30 basis points. As a result, we saw a flattening of the municipal yield
curve over the course of the 12 months.
After growing at an annualized rate of 3.3% in the second quarter of 2004, the
gross domestic product (GDP) expanded by 4.0% (annualized) in the third quarter
of 2004 and 3.8% (annualized) in the fourth quarter of 2004. However,
expectations for higher interest rates and higher energy prices acted to
restrain both consumer spending and business investment in the first three
months of 2005. GDP growth for the first quarter moderated to 3.1% (annualized),
its slowest pace in two years.
Rising energy costs also served to reignite concerns about the potential for
inflation, as the Consumer Price Index (CPI) rose at a rate of 4.3% (annualized)
over the first three months of 2005. In addition to the CPI, the municipal
market also continued to closely monitor the national employment picture. While
the unemployment rate dropped to 5.2% in March 2005, from 5.7% in March 2004,
job growth in 2005 lagged that of 2004.
Over the 12-month period, municipal supply nationwide remained strong, as $369.7
billion in new bonds came to market. New issue supply for the first quarter of
2005 was $96.6 billion, a new record for the first three months on any calendar
year. First quarter 2005 refundings increased 25% over the first quarter 2004 as
issuers sought to take advantage of the prevalent interest rates.
4
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA AND NEW YORK DURING THIS
PERIOD?
California continued its steady economic recovery, outperforming a number of
national averages over the 12-month period. Leading areas of job growth within
the state included professional and business services, construction and trade,
transportation, and utilities. California also benefited from expanding
international trade, particularly with Asia. The jobless rate dropped to 5.4% in
March 2005, compared with 6.4% in March 2004. This 5.4% rate is the lowest level
since July 2001.
During this period, California made significant progress toward resolving cash
flow problems and improving balance sheet liquidity following the March 2004
passage of Proposition 57, which enabled the state to issue a total of $11
billion in economic recovery bonds (ERBs). The combination of economic and
budgetary improvements led all three major credit rating agencies to upgrade the
state's outstanding general obligation debt. In May 2004, Moody's revised its
rating of California general obligation bonds (GOs) to A3 from Baa1, followed by
Standard & Poor's upgrade to A from BBB in August. In September, Fitch moved its
rating for California GOs to A- from BBB. During this reporting period,
California issuers offered $56.9 billion in new municipal bonds, up 9% from the
previous 12-month period. In July 2004, California enacted a $105 billion fiscal
2005 budget, closing a $14 billion gap without tax increases.
In New York, the economy continued to be led by financial services, healthcare
and education. Although well diversified, the recovery of the state economy has
proceeded more slowly than many national averages. However, employment growth
was an exception, as New York's jobless rate dropped to 4.6% in March 2005 from
6.1% in March 2004. This is the lowest state unemployment rate since June 2001.
As of March 31, 2005, the state was forecast to have a fiscal 2005 ending
surplus of $1.2 billion, driven primarily by higher revenues from personal
income taxes.
During this 12-month reporting period, New York issuers brought $39.6 billion in
new municipal bonds to market, down 9% from the prior 12 months. In November
2004, Moody's upgraded the credit rating on New York State GOs to A1 from A2,
based on the state's improving economic outlook. That rating was reconfirmed in
February 2005, as was S&P's AA rating. On April 4, 2005, following the end of
this reporting period,
5
Moody's upgraded its rating of New York City GOs to A1 from A2, the highest
rating ever given to the city by Moody's.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE
12 MONTHS ENDED MARCH 31, 2005?
With the market anticipating increases in interest rates throughout the period,
our focus centered on finding bonds that, in our judgment, could add immediate
value to the Portfolios and that also had the potential to perform well under a
variety of future market scenarios.
We believed the national Portfolios--NXP, NXQ and NXR--were generally well
positioned coming into this reporting period, and as a result turnover was
relatively light during these 12 months. When we needed to reinvest proceeds
from called bonds, we tended to look for insured or AA or A rated bonds in the
25-year part of the yield curve. We also looked for opportunities to add to our
healthcare holdings, based on this sector's continued strong performance and
potential for additional yield. While we continued to keep the Portfolios well
diversified geographically, we often looked to the states with greater
issuance--such as California, Texas, New York, Florida and Illinois--to find
these opportunities.
In both NXC and NXN, we actively sought lower-rated investment-grade bonds as we
continued to transition these two Portfolios from their previous status as 100%
insured Portfolios. This helped the performance of these Portfolios during this
reporting period, as BBB rated bonds were among the best performers during this
period. In general, additions to the Portfolios during this time were financed
with the proceeds from called bonds and the sale of pre-refunded bonds and bonds
with shorter maturities, which tended to underperform in the interest rate
environment of the 12-month period.
In NXC, another goal during this period was to improve overall call exposure. We
sought to do this by focusing most of our purchases and reinvestment activity in
the 20-year part of the yield curve.
During the period for NXN, we began to place greater emphasis on bonds further
out on the yield curve, specifically those with 20 years or more to maturity. In
our opinion, these bonds generally offered more attractive opportunities and
better value. While we
6
continued to diversify the credit quality of NXN, issuance in New York was
dominated by high-quality and insured issues and did not provide many
opportunities to add lower-rated investment-grade bonds to this Portfolio.
HOW DID THE PORTFOLIOS PERFORM?
Individual results for the Nuveen Select Portfolios, as well as for comparative
indexes and peer groups, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 3/31/05
NATIONAL PORTFOLIOS 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NXP 4.00% 5.73% 6.05%
--------------------------------------------------------------------------------
NXQ 3.82% 5.37% 5.82%
--------------------------------------------------------------------------------
NXR 4.01% 5.45% 5.95%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index1 2.67% 6.58% 6.33%
--------------------------------------------------------------------------------
Lipper General and Insured
Unleveraged Municipal
Debt Funds Average2 4.27% 5.52% 5.78%
--------------------------------------------------------------------------------
CALIFORNIA PORTFOLIO
--------------------------------------------------------------------------------
NXC 3.99% 5.44% 5.81%
--------------------------------------------------------------------------------
Lehman Brothers CA
Tax-Exempt
Bond Index1 3.54% 6.55% 6.45%
--------------------------------------------------------------------------------
Lipper CA Municipal
Debt Funds Average2 5.56% 8.04% 7.07%
--------------------------------------------------------------------------------
NEW YORK PORTFOLIO
--------------------------------------------------------------------------------
NXN 3.10% 5.36% 5.62%
--------------------------------------------------------------------------------
Lehman Brothers NY
Tax-Exempt
Bond Index1 2.54% 6.52% 6.48%
--------------------------------------------------------------------------------
Lipper NY
Municipal Debt Funds
Average2 3.67% 8.08% 6.76%
--------------------------------------------------------------------------------
All returns are annualized.
Past performance is not predictive of future results. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Portfolio distributions
or upon the sale of Portfolio shares. Current performance may be higher or lower
than the data shown.
For additional information, see the individual Performance Overview for your
Portfolio in this report.
1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index containing a broad range of investment-grade municipal
bonds. The Lehman Tax-Exempt Bond Indexes for California and New York are
also unleveraged and unmanaged and comprise a broad range of municipal
bonds issued in California and New York, respectively. Results for the
Lehman indexes do not reflect any expenses.
2 Each of the Lipper Municipal Debt Funds averages shown in this report are
calculated using the returns of all closed-end exchange-traded funds in
their respective categories for each period as follows: Lipper General and
Insured Unleveraged category, 1 year, 8 funds; 5 years, 8 funds; and 10
years, 8 funds; Lipper California category, 1 year, 29 funds; 5 years, 18
funds; and 10 years, 16 funds; and Lipper New York category, 1 year, 22
funds; 5 years, 11 funds; and 10 years, 9 funds. Portfolio and Lipper
returns assume reinvestment of dividends.
7
For the 12 months ended March 31, 2005, the total returns on net asset value
(NAV) for all five Select Portfolios outperformed the returns on the respective
Lehman Brothers indexes. All five Portfolios underperformed their Lipper fund
group averages for this period. The strong performance of the CA and NY state
peer groups is at least partly explained by the fact that the vast majority of
funds in these peer groups were leveraged, which tended to significantly boost
those funds' performance due to historically low short-term interest rates they
paid over this period on their leveraging instruments.
As the municipal yield curve flattened during this reporting period, the prices
of bonds with longer maturities, which are more sensitive to interest rate
movements, generally tended to perform better than those of securities with
shorter maturities. Our trading activity over the past 12 months, which
emphasized investments in the intermediate and long intermediate parts of the
yield curve as bonds with shorter maturities were called or sold from the
Portfolios, helped the performances of all five Portfolios for the period
relative to the Lehman indexes.
All of the Portfolios also benefited from their allocations of lower
investment-grade quality bonds during this period, with bonds rated BBB ranking
among the best performing credit quality sectors as the demand for these bonds
increased. Among the lower-rated holdings making positive contributions to the
Portfolios' annual returns were hospital bonds. This sector ranked among the top
Lehman Brothers index municipal revenue sectors in terms of performance for the
12-month period. Bonds backed by the 1998 master tobacco settlement agreement
also produced solid performance during this period, as the litigation
environment improved and the supply/demand situation drove tobacco bond prices
higher. As of March 31, 2005, the three national Portfolios maintained exposures
between 4% and 5% to tobacco bonds that were uninsured or not backed by others
sources of revenue, while NXC and NXN each held approximately 2% of these types
of securities.
NXC's holdings of California general obligation bonds and other securities
benefited from the upgrade in the state's credit rating, as the prices on these
bonds rose relative to national AAA credits with similar maturities. NXC also
continued to hold some older, high-coupon bonds that performed very strongly
during this period.
8
The performance of NXN was boosted by several advance refundings of its holdings
during this period, which resulted in price appreciation as well as enhanced
credit quality for this Portfolio. At the same time, holdings of older
pre-refunded bonds in all of the Portfolios tended to underperform the general
municipal market during this period, due primarily to the shorter effective
maturities of these bonds.
HOW WERE THE PORTFOLIOS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS
OF MARCH 31, 2005?
We continued to believe that, given the current geopolitical and economic
climate, maintaining strong credit quality was an important requirement. As of
March 31, 2005, these five Portfolios continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
64% in NXC to 73% in NXR, 76% in NXP, 81% in NXQ and 91% in NXN.
As of March 31, 2005, potential call exposure for these Portfolios for the
period April 2005 through the end of 2006 ranged from 2% in NXN to 8% in NXP,
10% in NXC, 12% in NXR and 17% in NXQ. The number of actual bond calls in all of
these Portfolios depends largely on future market interest rates.
9
Dividend and Share Price
INFORMATION
As short-term interest rates remained relatively low throughout this reporting
period, proceeds from calls or maturing higher-yielding bonds had to be
reinvested in the current lower interest rate environment. This led to one
dividend cut in NXC and NXN and two reductions in NXP, NXQ and NXR during the
12-month period.
Due to capital gains generated by normal portfolio activity, shareholders of the
following Portfolios received capital gains and/or net ordinary income
distributions at the end of December 2004 as indicated:
LONG-TERM
CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NXP $0.0979 $ 0.0044
--------------------------------------------------------------------------------
NXQ $0.0413 $ --
--------------------------------------------------------------------------------
NXR $0.0343 $ 0.0023
--------------------------------------------------------------------------------
NXC $0.0468 $ --
--------------------------------------------------------------------------------
NXN $0.0640 $ --
--------------------------------------------------------------------------------
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, 2005, all of the Select Portfolios had negative
UNII balances for financial statement purposes and positive UNII balances for
tax purposes.
10
As of March 31, 2005, the share prices of the Select Portfolios were trading at
discounts to their NAVs as shown in the accompanying chart:
3/31/05 12-MONTH AVERAGE
DISCOUNT DISCOUNT
--------------------------------------------------------------------------------
NXP -7.66% -7.53%
--------------------------------------------------------------------------------
NXQ -9.04% -9.11%
--------------------------------------------------------------------------------
NXR -9.85% -8.95%
--------------------------------------------------------------------------------
NXC -7.84% -8.53%
--------------------------------------------------------------------------------
NXN -4.41% -6.53%
--------------------------------------------------------------------------------
11
Nuveen Select Tax-Free Income Portfolio
NXP
Performance
OVERVIEW As of March 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 16%
A 15%
BBB 8%
BB or Lower 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.061
May 0.061
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.059
Oct 0.059
Nov 0.059
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.057
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
4/1/04 14.32
14.17
13.84
13.8
13.8
13.82
13.78
13.5
13.63
13.56
13.51
13.48
13.38
13.4
13.2
13.2
13.13
13.1
13.05
13.1
13.26
13.07
13.05
12.95
13.06
12.95
12.77
12.71
12.63
12.65
12.8
12.89
12.86
12.86
12.85
12.83
12.94
12.98
13.02
13.17
13.28
13.28
13.2
13.17
13.25
13.06
13.1
13.05
13.04
13.07
12.87
12.91
12.96
13.01
12.96
12.95
13.1
13.15
13.18
13.28
13.28
13.27
13.34
13.38
13.42
13.48
13.45
13.44
13.46
13.56
13.38
13.53
13.56
13.52
13.52
13.57
13.37
13.39
13.38
13.41
13.4
13.46
13.42
13.49
13.49
13.57
13.53
13.51
13.52
13.63
13.64
13.61
13.57
13.57
13.54
13.53
13.63
13.66
13.71
13.69
13.68
13.69
13.83
13.83
13.81
13.79
13.85
13.85
13.83
13.68
13.7
13.77
13.78
13.77
13.79
13.74
13.68
13.8
13.75
13.69
13.72
13.75
13.8
13.83
13.87
13.89
13.85
13.77
13.73
13.78
13.82
13.69
13.74
13.9
13.85
13.9
13.85
13.8
13.8
13.76
13.85
13.91
13.91
13.94
14
13.87
13.83
13.79
13.89
13.78
13.8
13.84
13.88
13.66
13.45
13.63
13.66
13.82
13.78
13.69
13.65
13.64
13.61
13.55
13.56
13.61
13.6
13.63
13.51
13.54
13.48
13.48
13.75
13.64
13.61
13.63
13.65
13.6
13.42
13.42
13.47
13.35
13.31
13.37
13.38
13.49
13.43
13.36
13.34
13.37
13.36
13.34
13.53
13.59
13.7
13.55
13.56
13.53
13.53
13.47
13.44
13.51
13.71
13.59
13.65
13.7
13.74
13.68
13.7
13.81
13.73
13.7
13.77
13.89
13.94
13.92
13.85
14
14.03
14.05
14.2
14.11
14.06
14.13
14
13.82
13.8
13.84
13.94
14.05
13.942
13.98
13.96
14
13.98
13.93
14.03
14
13.95
13.96
13.87
13.87
13.87
13.8
13.84
13.74
13.65
13.54
13.45
13.48
13.5
13.6
3/31/05 13.5
FUND SNAPSHOT
------------------------------------
Share Price $13.50
------------------------------------
Common Share
Net Asset Value $14.62
------------------------------------
Premium/(Discount) to NAV -7.66%
------------------------------------
Market Yield 5.07%
------------------------------------
Taxable-Equivalent Yield1 7.04%
------------------------------------
Net Assets ($000) $239,460
------------------------------------
Average Effective
Maturity on Securities (Years) 15.89
------------------------------------
Modified Duration 5.48
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 0.17% 4.00%
------------------------------------
5-Year 6.13% 5.73%
------------------------------------
10-Year 5.44% 6.05%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 14.4%
------------------------------------
Colorado 13.8%
------------------------------------
Washington 9.8%
------------------------------------
Texas 8.9%
------------------------------------
Indiana 8.6%
------------------------------------
South Carolina 7.4%
------------------------------------
Florida 7.4%
------------------------------------
Nevada 6.8%
------------------------------------
California 4.2%
------------------------------------
Other 18.7%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 22.1%
------------------------------------
Transportation 14.8%
------------------------------------
Tax Obligation/Limited 12.9%
------------------------------------
U.S. Guaranteed 12.2%
------------------------------------
Utilities 11.4%
------------------------------------
Tax Obligation/General 11.1%
------------------------------------
Water and Sewer 5.4%
------------------------------------
Other 10.1%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. For investments
that generate qualified dividend income, the taxable-equivalent yield is
lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1023 per share.
12
Nuveen Select Tax-Free Income Portfolio 2
NXQ
Performance
OVERVIEW As of March 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 61%
AA 20%
A 10%
BBB 8%
BB or Lower 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.0585
May 0.0585
Jun 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.0565
Oct 0.0565
Nov 0.0565
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
4/1/04 13.8
13.6
13.5
13.3
13.48
13.48
13.4
13.15
13.06
12.98
13.17
13.12
13.04
12.93
12.83
12.84
12.72
12.63
12.67
12.55
12.7
12.71
12.66
12.59
12.58
12.5
12.61
12.6
12.64
12.36
12.45
12.4
12.5
12.53
12.59
12.67
12.78
12.82
12.8
12.92
12.94
12.94
12.76
12.77
12.85
12.75
12.7
12.68
12.61
12.52
12.54
12.66
12.57
12.56
12.56
12.68
12.8
12.65
12.75
12.84
12.78
12.74
12.78
12.94
13.05
12.9
12.95
12.99
12.99
13.01
12.89
12.87
12.92
12.99
12.95
12.89
12.83
12.83
12.84
12.85
12.77
12.85
12.89
12.96
12.96
12.96
12.99
12.93
12.96
13.12
13.03
12.95
12.95
12.91
12.97
12.94
12.96
12.918
12.9
12.94
12.9
12.88
12.9
12.93
12.99
13
13.08
13.04
13.07
13.01
13.05
13.12
13.15
13.156
13.16
13.25
13.14
13.26
13.16
13.19
13.2
13.21
13.19
13.34
13.3
13.38
13.3
13.17
13.15
13.12
13.09
13.15
13.11
13.17
13.2
13.24
13.17
13.24
13.2
13.23
13.22
13.22
13.2
13.25
13.3
13.27
13.3
13.38
13.35
13.24
13.27
13.28
13.33
13.12
13
13.2
13.1
13.1
13.15
13.13
13.12
13.16
13.18
13.22
13.15
13.12
13.11
13.14
13.09
13.14
13.1
13.03
13.1
13.14
13.06
13.15
13.2
13.14
13.1
13.06
13.06
13
13.02
12.95
12.96
12.98
12.96
12.94
12.94
12.95
12.99
13.01
13.1
13.04
13.14
13.05
13.1
13.12
13.1
13.23
13.1
13.25
13.25
13.16
13.16
13.2
13.15
13.01
13.09
13.1
13.16
13.35
13.3
13.29
13.21
13.3
13.32
13.37
13.42
13.34
13.31
13.36
13.4
13.34
13.31
13.2
13.32
13.3
13.42
13.44
13.45
13.41
13.5
13.38
13.31
13.34
13.38
13.32
13.27
13.15
13.04
13.06
13.05
13.04
12.99
13.01
13.02
13
13
13.15
13
13
3/31/05 13.08
FUND SNAPSHOT
------------------------------------
Share Price $13.08
------------------------------------
Common Share
Net Asset Value $14.38
------------------------------------
Premium/(Discount) to NAV -9.04%
------------------------------------
Market Yield 5.05%
------------------------------------
Taxable-Equivalent Yield1 7.01%
------------------------------------
Net Assets ($000) $253,158
------------------------------------
Average Effective
Maturity on Securities (Years) 17.61
------------------------------------
Modified Duration 5.25
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/21/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 0.11% 3.82%
------------------------------------
5-Year 5.80% 5.37%
------------------------------------
10-Year 5.49% 5.82%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Texas 15.1%
------------------------------------
Illinois 14.5%
------------------------------------
Colorado 8.7%
------------------------------------
Nevada 7.1%
------------------------------------
South Carolina 6.4%
------------------------------------
California 5.6%
------------------------------------
New York 5.4%
------------------------------------
Washington 3.7%
------------------------------------
Indiana 3.2%
------------------------------------
Pennsylvania 2.7%
------------------------------------
Vermont 2.7%
------------------------------------
New Mexico 2.5%
------------------------------------
Florida 2.5%
------------------------------------
Other 19.9%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 18.6%
------------------------------------
Transportation 17.5%
------------------------------------
Utilities 12.6%
------------------------------------
Tax Obligation/Limited 12.5%
------------------------------------
Tax Obligation/General 8.6%
------------------------------------
U.S. Guaranteed 8.3%
------------------------------------
Consumer Staples 5.0%
------------------------------------
Education and Civic
Organizations 4.4%
------------------------------------
Other 12.5%
------------------------------------
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%. For investments
that generate qualified dividend income, the taxable-equivalent yield is
lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0413 per share.
13
Nuveen Select Tax-Free Income Portfolio 3
NXR
Performance
OVERVIEW As of March 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 44%
AA 29%
A 20%
BBB or Lower 7%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.0575
May 0.0575
Jun 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.0565
Oct 0.0565
Nov 0.0565
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
4/1/04 13.62
13.48
13.2
13.09
13.25
13.24
13.15
12.81
12.96
13.05
12.93
12.86
12.8
12.91
12.67
12.76
12.53
12.55
12.67
12.65
12.85
12.6
12.52
12.57
12.58
12.42
12.4
12.34
12.37
12.22
12.33
12.64
12.49
12.48
12.68
12.54
12.63
12.78
12.7
12.9
13
13
12.96
12.87
12.86
12.79
12.69
12.75
12.57
12.53
12.6
12.55
12.69
12.72
12.65
12.68
12.65
12.67
12.59
12.7
12.66
12.65
12.67
12.69
12.76
12.73
12.79
12.8
12.84
12.83
12.79
12.72
12.77
12.8
12.84
12.74
12.6
12.63
12.68
12.73
12.68
12.76
12.76
12.9
12.9
12.78
12.93
12.9
12.86
12.93
12.86
12.79
12.82
12.8
12.87
12.87
12.86
12.86
12.79
12.79
12.74
12.78
12.75
12.86
12.89
12.85
12.88
12.98
12.95
12.95
12.95
12.94
13.03
13.13
13.09
13.01
12.99
13.04
13.08
13.06
13.04
13.11
13.06
13.14
13.2
13.31
13.16
13.17
13.19
13.11
13.17
13.22
13.15
13.11
13.16
13.18
13.17
13.19
13.15
13.21
13.3
13.26
13.21
13.17
13.18
13.19
13.16
13.23
13.22
13.31
13.27
13.25
13.24
13
12.88
13
12.92
12.94
13.03
13.18
13.1
13.07
13.11
13.06
13.05
12.99
12.98
13.03
12.93
12.85
12.89
12.78
12.87
12.87
13
12.96
13.05
13.1
12.98
12.9
12.92
12.83
12.75
12.75
12.81
12.76
12.79
12.87
12.85
12.82
12.91
12.92
12.96
13.05
12.99
13.01
12.95
12.96
13
13.03
13.11
13.01
13.12
13.05
12.97
12.98
12.95
12.95
12.93
12.96
13.02
13.16
13.15
13.12
13.11
13.18
13.18
13.21
13.3
13.28
13.23
13.16
13.22
13.25
13.17
13.16
13.06
13.18
13.19
13.17
13.14
13.2
13.18
13.17
13.16
13.19
13.18
13.12
13.14
12.97
12.96
12.96
12.91
12.91
12.84
12.86
12.75
12.79
12.79
12.9
12.83
12.8
3/31/05 12.82
FUND SNAPSHOT
------------------------------------
Share Price $12.82
------------------------------------
Common Share
Net Asset Value $14.22
------------------------------------
Premium/(Discount) to NAV -9.85%
------------------------------------
Market Yield 5.10%
------------------------------------
Taxable-Equivalent Yield1 7.08%
------------------------------------
Net Assets ($000) $184,379
------------------------------------
Average Effective
Maturity on Securities (Years) 16.72
------------------------------------
Modified Duration 5.63
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/24/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -0.17% 4.01%
------------------------------------
5-Year 5.91% 5.45%
------------------------------------
10-Year 5.88% 5.95%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 19.3%
------------------------------------
Texas 15.3%
------------------------------------
California 6.1%
------------------------------------
Colorado 5.8%
------------------------------------
New York 5.6%
------------------------------------
Michigan 5.1%
------------------------------------
Florida 5.0%
------------------------------------
Nevada 4.9%
------------------------------------
North Carolina 4.3%
------------------------------------
Indiana 3.7%
------------------------------------
Iowa 3.4%
------------------------------------
South Carolina 3.2%
------------------------------------
Other 18.3%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 21.2%
------------------------------------
Utilities 19.0%
------------------------------------
Tax Obligation/Limited 15.3%
------------------------------------
Tax Obligation/General 12.7%
------------------------------------
Transportation 9.2%
------------------------------------
Education and Civic
Organizations 6.5%
------------------------------------
Consumer Staples 5.1%
------------------------------------
Other 11.0%
------------------------------------
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%. For investments
that generate qualified dividend income, the taxable-equivalent yield is
lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0366 per share.
14
Nuveen California Select Tax-Free Income Portfolio
NXC
Performance
OVERVIEW As of March 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 59%
AA 5%
A 27%
BBB 8%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.056
May 0.056
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Oct 0.055
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
4/1/04 13.99
13.8
13.74
13.45
13.43
13.39
13.35
13.3
13.25
13.28
13.25
13.23
13.25
13.06
12.99
12.97
12.75
12.85
12.7
12.83
12.88
12.87
12.87
12.94
12.86
12.61
12.52
12.6
12.74
12.71
12.73
12.72
12.82
12.87
13
13.05
13.04
12.98
13.02
13.14
13.18
13.18
13.15
13.13
13.14
13.16
13.12
13.07
13.05
13.04
12.89
12.86
12.71
12.72
12.8
12.8
12.75
12.72
12.77
12.72
12.79
12.8
12.85
12.94
12.99
13.01
13.1
13.11
13.06
13.08
13.03
13.08
13.09
13.09
13.08
13.12
12.95
12.97
13
13.13
12.99
13.09
13.11
13.11
13.11
13.19
13.15
13.13
13.15
13.35
13.25
13.29
13.25
13.24
13.27
13.32
13.34
13.29
13.32
13.32
13.49
13.35
13.42
13.36
13.46
13.4
13.45
13.44
13.53
13.38
13.39
13.38
13.46
13.41
13.38
13.38
13.36
13.39
13.48
13.4
13.46
13.52
13.6
13.7
13.56
13.48
13.52
13.51
13.66
13.65
13.56
13.59
13.63
13.69
13.69
13.63
13.67
13.67
13.69
13.62
13.52
13.49
13.48
13.52
13.475
13.53
13.53
13.48
13.46
13.4
13.46
13.47
13.45
13.38
13.19
13.2
13.12
13.2
13.19
13.29
13.33
13.35
13.41
13.27
13.27
13.36
13.4
13.4
13.34
13.2
13.33
13.3
13.26
13.29
13.36
13.38
13.28
13.3
13.23
13.23
13.34
13.21
13.12
13
13.01
12.97
13.05
13
13.12
13.13
13.03
13.09
13.09
13.18
13.19
13.22
13.29
13.36
13.21
13.29
13.31
13.28
13.13
13.19
13.22
13.19
13.3
13.31
13.37
13.33
13.43
13.59
13.6
13.57
13.62
13.7
13.59
13.64
13.6
13.73
13.58
13.66
13.58
13.6
13.58
13.57
13.57
13.69
13.62
13.68
13.6
13.59
13.67
13.73
13.75
13.88
13.83
13.73
13.56
13.53
13.51
13.48
13.4
13.37
13.35
13.38
13.64
13.63
13.35
13.22
13.23
13.33
3/31/05 13.4
FUND SNAPSHOT
------------------------------------
Share Price $13.40
------------------------------------
Common Share
Net Asset Value $14.54
------------------------------------
Premium/(Discount) to NAV -7.84%
------------------------------------
Market Yield 4.93%
------------------------------------
Taxable-Equivalent Yield1 7.53%
------------------------------------
Net Assets ($000) $90,949
------------------------------------
Average Effective
Maturity on Securities (Years) 16.23
------------------------------------
Modified Duration 6.23
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 0.50% 3.99%
------------------------------------
5-Year 5.17% 5.44%
------------------------------------
10-Year 5.43% 5.81%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 22.0%
------------------------------------
Tax Obligation/Limited 14.9%
------------------------------------
Education and Civic
Organizations 14.2%
------------------------------------
Transportation 12.1%
------------------------------------
Healthcare 11.8%
------------------------------------
Utilities 9.5%
------------------------------------
Water and Sewer 7.9%
------------------------------------
Other 7.6%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0468 per share.
15
Nuveen New York Select Tax-Free Income Portfolio
NXN
Performance
OVERVIEW As of March 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 80%
AA 11%
A 3%
BBB or Lower 6%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.056
May 0.056
Jun 0.056
Jul 0.056
Aug 0.056
Sep 0.056
Oct 0.056
Nov 0.056
Dec 0.0535
Jan 0.0535
Feb 0.0535
Mar 0.0535
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
4/1/04 14.8
14.55
14.3
13.7
13.7
13.86
13.75
13.45
13.45
13.4
13.4
13.4
13.41
13.12
13.13
13.2
13.2
13.2
13.17
13
13.15
13.1
13.05
13.03
13.1
13.03
12.95
12.99
12.95
12.8
12.94
12.95
12.88
12.75
12.76
12.8
12.8
12.8
12.98
13
13.12
13.12
13.03
13.04
12.97
13
13.07
12.94
12.96
12.96
12.64
12.71
12.7
12.77
12.74
12.69
12.73
12.66
12.75
12.8
12.9
12.91
12.88
12.85
12.95
12.89
12.85
12.95
13.04
13
13
13
13.02
13.2
13.09
13.02
13
13.2
13.01
12.96
12.87
12.92
12.98
13.04
13.04
13.08
13.12
13.17
13.19
13.31
13.31
13.5
13.35
13.21
13.32
13.5
13.51
13.43
13.39
13.31
13.38
13.38
13.35
13.44
13.47
13.52
13.56
13.61
13.7
13.65
13.65
13.7
13.52
13.52
13.68
13.64
13.56
13.61
13.68
13.65
13.61
13.66
13.53
13.54
13.5
13.62
13.58
13.55
13.61
13.49
13.49
13.66
13.66
13.61
13.72
13.82
13.75
13.82
13.82
13.68
13.74
13.86
13.9
13.86
13.86
13.99
14
13.88
13.9
13.89
13.81
13.89
13.84
13.67
13.64
13.46
13.4
13.41
13.45
13.37
13.44
13.4
13.51
13.46
13.4
13.55
13.48
13.76
13.66
13.65
13.61
13.56
13.7
13.84
13.83
13.83
14.23
14.05
13.66
13.45
13.67
13.67
13.59
13.65
13.57
13.45
13.49
13.42
13.28
13.26
13.26
13.19
13.19
13.16
13.19
13.27
13.26
13.22
13.26
13.21
13.21
13.22
13.27
13.28
13.29
13.33
13.39
13.44
13.44
13.46
13.49
13.51
13.52
13.5
13.5
13.67
13.56
13.48
13.45
13.46
13.54
13.67
13.56
13.6
13.6
13.59
13.6
13.6
13.63
13.7
13.62
13.64
13.64
13.71
13.65
13.74
13.85
13.65
13.62
13.51
13.43
13.49
13.51
13.51
13.51
13.63
13.48
13.5
13.5
13.5
13.6
13.66
3/31/05 13.65
FUND SNAPSHOT
------------------------------------
Share Price $13.65
------------------------------------
Common Share
Net Asset Value $14.28
------------------------------------
Premium/(Discount) to NAV -4.41%
------------------------------------
Market Yield 4.70%
------------------------------------
Taxable-Equivalent Yield1 7.01%
------------------------------------
Net Assets ($000) $55,817
------------------------------------
Average Effective
Maturity on Securities
(Years) 16.42
------------------------------------
Modified Duration 5.71
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 0.05% 3.10%
------------------------------------
5-Year 7.24% 5.36%
------------------------------------
10-Year 6.10% 5.62%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 15.3%
------------------------------------
Water and Sewer 12.3%
------------------------------------
Healthcare 11.4%
------------------------------------
U.S. Guaranteed 10.8%
------------------------------------
Education and Civic
Organizations 10.0%
------------------------------------
Long-Term Care 9.3%
------------------------------------
Housing Single Family 8.3%
------------------------------------
Utilities 7.2%
------------------------------------
Tax Obligation/General 6.2%
------------------------------------
Housing/Multifamily 5.3%
------------------------------------
Other 3.9%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0640 per share.
16
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES 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
NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
We have audited the accompanying statements of assets and liabilities 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), including the portfolios of investments, as of March 31, 2005, 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, 2005, by correspondence with the custodian and
brokers. 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 the
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, 2005, and 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 U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
May 13, 2005
17
Nuveen Select Tax-Free Income Portfolio (NXP)
Portfolio of
INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.1%
$ 2,475 Alaska Municipal Bond Bank Authority, General Obligation Bonds, 12/13 at 100.00 AAA $ 2,652,903
Series 2003E, 5.250%, 12/01/23 - MBIA Insured
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CALIFORNIA - 4.1%
2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,419,660
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 - AMBAC Insured
3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,786,876
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
200 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 214,346
Refunding, Merrithew Memorial Hospital Replacement Project,
Series 1997, 5.375%, 11/01/17 - MBIA Insured
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,166,050
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
1,130 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 1,152,657
Waterworks Revenue Refunding Bonds, Series 2001A,
5.125%, 7/01/41 - FGIC Insured
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COLORADO - 13.5%
Colorado Health Facilities Authority, Revenue Bonds, Catholic
Health Initiatives, Series 2002A:
1,700 5.500%, 3/01/22 3/12 at 100.00 AA*** 1,877,684
1,300 5.500%, 3/01/22 3/12 at 100.00 AA 1,386,268
1,000 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 AAA 1,106,080
Small Water Resources Revenue Bonds, Series 2000A,
5.800%, 11/01/20 - FGIC Insured
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,404,000
Refunding Bonds, Series 2001A, 5.625%, 11/15/17
(Alternative Minimum Tax) - FGIC Insured
10,750 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 12,656,513
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
640 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 667,590
Bonds, Series 1996A, 5.500%, 11/15/25 - MBIA Insured
230 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 239,915
Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured
Denver Convention Center Hotel Authority, Colorado, Senior
Revenue Bonds, Convention Center Hotel, Series 2003A:
1,000 5.000%, 12/01/22 - XLCA Insured 12/13 at 100.00 AAA 1,035,130
3,000 5.000%, 12/01/23 - XLCA Insured 12/13 at 100.00 AAA 3,101,040
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,289,850
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded
to 9/01/10) - MBIA Insured
3,160 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 3,461,211
Revenue Bonds, Senior Series 2001A, 5.500%, 6/15/20 -
AMBAC Insured
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DISTRICT OF COLUMBIA - 0.6%
1,000 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 1,061,160
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured
265 District of Columbia, Revenue Bonds, Catholic University 10/09 at 101.00 AAA 287,642
of America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
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FLORIDA - 7.2%
450 Escambia County, Florida, Pollution Control Revenue Bonds, 6/05 at 101.00 BBB 453,519
Champion International Corporation, Series 1993,
5.875%, 6/01/22 (Alternative Minimum Tax)
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
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FLORIDA (continued)
$ 10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 $ 10,498,500
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17
6,100 JEA St. John's River Power Park System, Florida, Revenue 4/05 at 100.00 Aa2 6,198,149
Refunding Bonds, Issue Two, Series Nine, 5.250%, 10/01/21
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HAWAII - 0.6%
1,330 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,396,354
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
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ILLINOIS - 14.1%
Chicago Heights, Illinois, General Obligation Corporate Purpose
Bonds, Series 1993:
3,820 5.650%, 12/01/15 - FGIC Insured 12/08 at 100.00 AAA 4,113,070
2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 AAA 2,797,626
2,500 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 425,000
O'Hare International Airport, United Air Lines Inc. Project,
Series 2001C, 6.300%, 5/01/16#
1,000 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 1,077,820
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 - FSA Insured
1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101.00 A 1,034,080
Midwestern University, Series 1998B, 5.500%, 5/15/18 -
ACA Insured
4,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 4,225,480
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
1,530 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R*** 1,615,925
Evangelical Hospitals Corporation, Series 1992B,
6.500%, 4/15/09
300 Illinois Health Facilities Authority, Revenue Bonds, 5/05 at 101.00 AAA 303,489
Rush-Presbyterian St. Luke's Medical Center Obligated
Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured
1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,388,746
Memorial Hospital, Series 2001, 5.600%, 10/01/16
2,700 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 2,951,451
Forest Hospital, Series 2002A, 6.000%, 7/01/17
2,275 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,513,306
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa2 638,034
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 1,759,906
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/17 - FGIC Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 5,232,500
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
1,300 Schaumburg, Illinois, General Obligation Bonds, 12/14 at 100.00 AAA 1,375,140
Series 2004B, 5.250%, 12/01/34 - FGIC Insured
Yorkville, Illinois, General Obligation Debt Certificates,
Series 2003:
1,000 5.000%, 12/15/19 - RAAI Insured 12/11 at 100.00 AA 1,022,210
1,000 5.000%, 12/15/20 - RAAI Insured 12/11 at 100.00 AA 1,019,900
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INDIANA - 8.3%
5,000 Duneland School Building Corporation, Indiana, First 2/09 at 101.00 AAA 5,294,350
Mortgage Refunding Bonds, Series 1999, 5.125%, 2/01/18 -
MBIA Insured
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,340
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 - FGIC Insured
2,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,400,880
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
9,855 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 10,396,335
Waterworks Project, Series 2002A, 5.125%, 7/01/21 -
MBIA Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 783,915
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22
(WI, settling 4/06/05) - MBIA Insured
19
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
$ 750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA $ 793,748
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
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KENTUCKY - 0.5%
1,100 Jefferson County, Kentucky, Health System Revenue Bonds, 10/08 at 101.00 AAA 1,144,682
Alliant Health System Inc., Series 1998, 5.125%, 10/01/18 -
MBIA Insured
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LOUISIANA - 0.4%
1,000 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 BBB 989,740
Tobacco Settlement Asset-Backed Bonds, Series 2001B,
5.875%, 5/15/39
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MASSACHUSETTS - 0.2%
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 555,460
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17
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MICHIGAN - 1.9%
665 Detroit, Michigan, Second Lien Water Supply System Revenue 7/05 at 101.00 AAA 676,824
Bonds, Series 1995A, 5.500%, 7/01/25 (Pre-refunded
to 7/01/05) - MBIA Insured
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,012,288
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 904,020
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
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MINNESOTA - 0.2%
430 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 447,355
Revenue Bonds, Series 1995A, 5.200%, 1/01/17
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MISSISSIPPI - 1.6%
3,600 Calhoun County, Mississippi, Solid Waste Disposal Revenue 4/07 at 103.00 BBB 3,846,240
Bonds, Weyerhauser Company Project, Series 1992,
6.875%, 4/01/16 (Alternative Minimum Tax)
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NEVADA - 6.6%
2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 2,604,425
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
2,360 0.000%, 1/01/21 - AMBAC Insured No Opt. Call AAA 1,079,204
3,500 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,510,565
6,025 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 6,227,982
4,070 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 4,433,695
Series 2002, 5.500%, 6/01/21 - FGIC Insured
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NEW HAMPSHIRE - 0.3%
705 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 709,117
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
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NEW JERSEY - 1.2%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,504,700
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
250 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 249,125
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
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NEW MEXICO - 1.6%
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,940,280
Revenue Bonds, Series 2004, 4.625%, 7/01/25 - FSA Insured
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NEW YORK - 1.3%
450 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 474,363
General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 -
FSA Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA $ 1,035,300
Mortgage Revenue Bonds, Kaleida Health, Series 2004,
5.050%, 2/15/25
1,600 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 1,671,456
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17
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NORTH CAROLINA - 1.1%
2,195 North Carolina Eastern Municipal Power Agency, Power 7/05 at 100.00 BBB 2,197,019
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/21
500 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 535,405
Revenue Bonds, Series 2001A, 5.250%, 11/01/17 -
FGIC Insured
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OHIO - 0.5%
1,125 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 1,178,921
Securities Program Residential Mortgage Remarketed
Revenue Bonds, Series 1997A-1, 6.050%, 9/01/17
(Alternative Minimum Tax)
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OKLAHOMA - 1.7%
4,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 4,067,160
St. John Health System, Series 2004, 5.000%, 2/15/24
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PENNSYLVANIA - 0.5%
500 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 BBB+ 514,340
Revenue Bonds, Widner University, Series 2003,
5.250%, 7/15/24
700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 2/14 at 100.00 AAA 764,379
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
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SOUTH CAROLINA - 7.3%
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA-*** 11,509,500
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded to 12/01/12)
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,647,135
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18
2,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 2,562,200
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002A, 5.625%, 11/15/30
1,720 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 1,736,202
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
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TEXAS - 8.6%
5,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 5,435,250
Texas, Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33
(Alternative Minimum Tax) (Mandatory put 5/15/17)
360 Dallas-Fort Worth International Airport Public Facility 1/09 at 100.00 AAA 381,384
Corporation, Texas, Airport Hotel Revenue Bonds,
Series 2001, 5.500%, 1/15/20 - FSA Insured
6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,563,834
General Obligation Refunding Bonds, Series 2002,
5.250%, 2/15/20
2,300 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,351,612
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
3,500 Irving Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 3,563,945
General Obligation Refunding Bonds, Series 2002A,
5.000%, 2/15/31
San Antonio, Texas, Water System Revenue Refunding Bonds,
Series 1992:
465 6.000%, 5/15/16 - MBIA Insured No Opt. Call AAA 523,790
95 6.000%, 5/15/16 (Pre-refunded to 5/15/07) - MBIA Insured 5/07 at 100.00 AAA 101,076
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,771,053
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
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WASHINGTON - 9.5%
250 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 273,630
Bonds, Columbia Generating Station, Nuclear Project 2,
Series 2002C, 5.500%, 7/01/17 - MBIA Insured
21
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 5,700 Snohomish County Public Utility District 1, Washington, 7/05 at 100.00 Aaa $ 6,473,718
Generation System Revenue Bonds, Series 1989,
6.750%, 1/01/12
2,535 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,641,343
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
3,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 3,150,990
Bonds, Catholic Health Initiatives, Series 1997A,
5.125%, 12/01/17 - MBIA Insured
9,750 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 10,213,223
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
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WEST VIRGINIA - 0.9%
1,885 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,088,882
Bonds, Series 1992, 6.500%, 5/15/10
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WISCONSIN - 1.6%
250 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 254,027
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,585,400
Series 2003-3, 5.000%, 11/01/26
1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,063,970
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.500%, 8/15/17
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$ 229,865 Total Long-Term Investments (cost $221,056,736) - 97.3% 232,885,557
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 6,574,817
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 239,460,374
====================================================================================================================
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UALCorporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
22
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Portfolio of
INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.6%
$ 1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA $ 1,048,860
and Construction Bonds, Series 2002A, 5.000%, 10/01/19 -
FSA Insured
1,000 Sebastian County Health Facilities Board, Arkansas, Hospital 11/11 at 101.00 Baa1 994,260
Revenue Improvement Bonds, Sparks Regional Medical
Center, Series 2001A, 5.250%, 11/01/21
2,000 University of Arkansas, Fayetteville, Various Facilities Revenue 12/12 at 100.00 Aaa 2,049,120
Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured
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CALIFORNIA - 5.6%
1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 709,830
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 - AMBAC Insured
2,500 California, General Obligation Bonds, Series 1997, 10/07 at 101.00 AAA 2,616,675
5.000%, 10/01/18 - AMBAC Insured
3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,786,876
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
2,000 California State Public Works Board, Lease Revenue Refunding No Opt. Call Aa2 2,211,720
Bonds, Various University of California Projects,
Series 1993A, 5.500%, 6/01/14
500 California State Public Works Board, Lease Revenue Refunding 12/08 at 101.00 A- 518,390
Bonds, Community Colleges Projects, Series 1998A,
5.250%, 12/01/16
500 Contra Costa Water District, California, Water Revenue 10/07 at 100.00 AA 519,470
Refunding Bonds, Series 1997H, 5.000%, 10/01/17
500 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 535,865
Refunding, Merrithew Memorial Hospital Replacement
Project, Series 1997, 5.375%, 11/01/17 - MBIA Insured
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,166,050
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
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COLORADO - 8.6%
Colorado Health Facilities Authority, Revenue Bonds, Catholic
Health Initiatives, Series 2002A:
1,700 5.500%, 3/01/22 3/12 at 100.00 AA*** 1,877,684
1,300 5.500%, 3/01/22 3/12 at 100.00 AA 1,386,268
1,555 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 1,703,176
Refunding Bonds, Series 2001, 5.500%, 11/15/16 -
FGIC Insured
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,404,000
Refunding Bonds, Series 2001A, 5.625%, 11/15/17
(Alternative Minimum Tax) - FGIC Insured
3,185 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,749,860
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,101,040
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/23 - XLCA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 2000B:
5,000 0.000%, 9/01/28 (Pre-refunded to 9/01/10) - MBIA Insured 9/10 at 31.42 AAA 1,289,850
5,000 0.000%, 9/01/24 - MBIA Insured No Opt. Call AAA 1,864,300
250 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 260,725
Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 -
FSA Insured
1,100 University of Colorado Hospital Authority, Revenue Bonds, 11/11 at 100.00 A3 1,128,710
Series 2001A, 5.600%, 11/15/31
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DISTRICT OF COLUMBIA - 0.2%
500 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 530,580
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured
23
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.4%
$ 6,060 JEA St. John's River Power Park System, Florida, Revenue 4/05 at 100.00 Aa2 $ 6,157,505
Refunding Bonds, Issue Two, Series Nine, 5.250%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5%
1,100 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,154,879
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.3%
4,425 Chicago Metropolitan Housing Development Corporation, 7/05 at 100.00 AA 4,432,080
Illinois, FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17
2,400 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 408,000
O'Hare International Airport, United Air Lines Inc. Project,
Series 2001C, 6.300%, 5/01/16#
250 Illinois Development Finance Authority, Economic Development 8/08 at 100.00 Baa2 258,568
Revenue Bonds, Latin School of Chicago Project, Series 1998,
5.200%, 8/01/11
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of 9/15 at 100.00 AA 2,172,218
Southwest Illinois, Series 2005, 5.000%, 9/01/31
(WI, settling 4/12/05) - RAAI Insured
3,000 Illinois Health Facilities Authority, Revenue Bonds, 5/05 at 101.00 AAA 3,034,890
Rush-Presbyterian St. Luke's Medical Center Obligated
Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured
1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 1,085,162
University Health System, Series 2001A, 6.125%, 7/01/31
2,255 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 2,471,796
Hospital, Series 2002A, 6.250%, 7/01/22
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa2 638,034
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,953,023
5.000%, 6/15/22
45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/05 at 100.00 A1 45,219
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 7,325,500
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA 5,131,421
Source Bonds, Tax Increment, Series 2002A,
5.000%, 6/01/22 - RAAI Insured
Sauk Village, Illinois, General Obligation Alternate Revenue
Source Bonds, Tax Increment, Series 2002B:
1,060 0.000%, 12/01/17 - RAAI Insured No Opt. Call AA 555,281
1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 561,984
1,100 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,163,580
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,017,590
Series 2003, 5.000%, 12/15/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.1%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,340
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 - FGIC Insured
4,380 Indiana Municipal Power Agency, Power Supply System 1/12 at 100.00 AAA 4,615,425
Revenue Bonds, Series 2002A, 5.125%, 1/01/21 -
AMBAC Insured
1,440 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 1,484,323
Revenue Bonds, Series 2002C-2, 5.250%, 7/01/23
(Alternative Minimum Tax)
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 783,915
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22
(WI, settling 4/06/05) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.7%
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
1,000 5.300%, 6/01/25 6/11 at 101.00 BBB 936,970
3,500 5.600%, 6/01/35 6/11 at 101.00 BBB 3,312,540
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
$ 2,125 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA $ 2,244,361
Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 -
MBIA Insured
3,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 3,119,970
University, Series 2002A, 5.125%, 7/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.1%
3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,125,160
Revenue Bonds, Berkshire Health System, Series 2001E,
6.250%, 10/01/31
2,090 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 2,295,677
Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0%
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,012,288
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
2,000 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 2,040,440
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.0%
500 Clark County, Nevada, Limited Tax General Obligation 7/06 at 101.00 AAA 519,985
Las Vegas Convention and Visitors Authority Bonds,
Series 1996, 5.500%, 7/01/17 - MBIA Insured
1,500 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 1,617,960
Southern Nevada Water Authority Loan, Series 2001,
5.300%, 6/01/19 - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
4,595 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,983,156
13,250 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,696,393
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.0%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,504,700
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.4%
University of New Mexico, FHA-Insured Mortgage Hospital
Revenue Bonds, Series 2004:
555 4.625%, 1/01/25 - FSA Insured 7/14 at 100.00 AAA 546,836
660 4.625%, 7/01/25 - FSA Insured 7/14 at 100.00 AAA 650,146
2,000 4.750%, 7/01/27 - FSA Insured 7/14 at 100.00 AAA 1,997,140
3,000 4.750%, 1/01/28 - FSA Insured 7/14 at 100.00 AAA 2,987,400
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.9%
2,000 New York City Municipal Water Finance Authority, 12/14 at 100.00 AAA 2,061,600
New York, Water and Sewerage System Revenue Bonds,
Fiscal Series 2005B, 5.000%, 6/15/36 - FSA Insured
2,700 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Ba1 2,820,582
Bonds, Mount Sinai NYU Health Obligated Group,
Series 2000A, 6.500%, 7/01/17
3,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 3,271,830
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
3,810 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 4,224,223
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6%
1,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,517,970
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.1%
2,800 Cuyahoga County, Ohio, Hospital Revenue Bonds, Cleveland 8/05 at 102.00 AAA 2,896,068
Clinic Foundation - Meridia Health System, Series 1995,
6.250%, 8/15/14 (Pre-refunded to 8/15/05)
25
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.7%
$ 1,020 Carlisle Area School District, Cumberland County, Pennsylvania, 9/09 at 100.00 Aaa $ 1,066,645
General Obligation Bonds, Series 2004A, 5.000%, 9/01/20 -
FGIC Insured
1,000 Dauphin County General Authority, Pennsylvania, Health 2/09 at 101.00 AAA 1,047,090
System Revenue Bonds, Pinnacle Health System Project,
Series 1999, 5.125%, 8/15/17 - MBIA Insured
1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,075,200
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.500%, 7/01/17 (Alternative
Minimum Tax) - FGIC Insured
3,250 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,612,213
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded
to 2/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.2%
3,000 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA*** 3,131,670
Revenue Bonds, Series 2003, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.0%
5,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,029,550
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.3%
4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA-*** 4,603,800
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded to 12/01/12)
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,745,225
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18
8,350 South Carolina Public Service Authority, Revenue Refunding 1/06 at 102.00 AAA 8,691,515
Bonds, Santee Cooper Electric System, Series 1996A,
5.750%, 1/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4%
1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,015,530
Revenue Bonds, Sioux Valley Hospital and Health System,
Series 2004A, 5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.0%
4,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 4,348,200
Texas, Environmental Facilities Revenue Bonds, Dow
Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33
(Alternative Minimum Tax) (Mandatory put 5/15/17)
1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,518,945
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
1,330 Cleveland Housing Corporation, Texas, FHA-Insured 7/05 at 100.00 AAA 1,332,115
Section 8 Assisted Mortgage Revenue Refunding Bonds,
Series 1992C, 7.375%, 7/01/24 - MBIA Insured
4,550 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 AAA 579,443
Revenue Bonds, Series 2001H, 0.000%, 11/15/41 -
MBIA Insured
2,500 Harris County Health Facilities Development Corporation, 10/05 at 102.00 AAA 2,769,475
Texas, Hospital Revenue Bonds, Texas Children's Hospital,
Series 1995, 5.500%, 10/01/16 - MBIA Insured
3,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 3,067,320
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
2,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 2,150,780
Bonds, Series 2002A, 5.625%, 7/01/20 (Alternative
Minimum Tax) - FSA Insured
3,125 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 3,180,250
Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.000%, 2/15/32
1,000 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 1,044,930
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
1,000 Lewisville Independent School District, Denton County, 8/11 at 100.00 AAA 1,032,980
Texas, General Obligation Bonds, Series 2004,
5.000%, 8/15/23
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,074,473
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,000 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 $ 1,012,030
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
8,900 Texas Turnpike Authority, Dallas North Tollway System 1/06 at 102.00 AAA 9,217,641
Revenue Bonds, President George Bush Turnpike,
Series 1995, 5.250%, 1/01/23 - FGIC Insured
1,250 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 1,288,038
Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6%
1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,505,875
Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.7%
3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA 3,137,640
Series 1999C, 5.800%, 8/15/16 - FSA Insured
3,600 Vermont Industrial Development Authority, Industrial 9/05 at 100.00 A 3,605,792
Development Revenue Refunding Bonds, Stanley Works
Inc. Project, Series 1992, 6.750%, 9/01/10
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/05 at 102.00 AAA 259,480
5.750%, 11/01/13 - MBIA Insured
1,000 Virginia Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 1,045,500
Refunding Bonds, U.S. Route 58 Corridor Development
Program, Series 1997C, 5.125%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.6%
2,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 2,100,660
Bonds, Catholic Health Initiatives, Series 1997A,
5.125%, 12/01/17 - MBIA Insured
6,715 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 7,034,030
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1%
4,000 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 4,157,960
Home Ownership Revenue Bonds, Series 2002G,
4.850%, 9/01/17
1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,058,970
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.500%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
$ 254,910 Total Long-Term Investments (cost $241,268,311) - 98.3% 248,871,402
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4%
1,000 New York City, New York, General Obligation Bonds, Variable A-1+ 1,000,000
Rate Demand Obligations, Fiscal Series 2002A-7,
2.260%, 11/01/24 - AMBAC Insured +
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $242,268,311) - 98.7% 249,871,402
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 3,286,113
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 253,157,515
====================================================================================================================
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UALCorporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in
effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
27
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Portfolio of
INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.3%
$ 500 Marshall County Healthcare Authority, Alabama, Revenue 1/12 at 101.00 A- $ 542,710
Bonds, Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.4%
700 Tucson, Arizona, Junior Lien Street and Highway User Revenue 7/11 at 100.00 AAA 738,332
Bonds, Series 2001, 5.000%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.1%
2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,277,210
General Obligation Bonds, Series 2002, 5.375%, 7/01/21 -
FSA Insured
3,350 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,815,349
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,166,050
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
2,000 Golden State Tobacco Securitization Corporation, California, 6/05 at 100.00 A- 2,007,920
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.250%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.8%
Colorado Health Facilities Authority, Revenue Bonds, Catholic
Health Initiatives, Series 2002A:
2,265 5.500%, 3/01/22 3/12 at 100.00 AA*** 2,501,738
1,735 5.500%, 3/01/22 3/12 at 100.00 AA 1,850,135
2,700 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,178,845
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,092,370
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/24 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250 Connecticut Health and Educational Facilities Authority, 7/05 at 100.00 AAA 250,738
Revenue Bonds, Bridgeport Hospital Issue, Series 1992A,
6.625%, 7/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
235 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 268,198
Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured
15 District of Columbia, General Obligation Bonds, Series 1993E, 6/05 at 100.00 AAA 15,083
6.000%, 6/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.0%
4,000 JEA, Florida, Subordinate Lien Electric System Revenue Bonds, 10/07 at 100.00 Aa3 4,000,000
Series 2002D, 4.625%, 10/01/22
5,020 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 5,253,380
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
1,325 Atlanta, Georgia, Airport Facilities Revenue Bonds, No Opt. Call AAA 1,030,148
Series 1990, 0.000%, 1/01/10 (Alternative Minimum Tax) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 19.3%
1,175 Chicago Metropolitan Housing Development Corporation, 7/05 at 100.00 AA 1,184,142
Illinois, FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22
700 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 119,000
O'Hare International Airport, United Air Lines Inc. Project,
Series 2001C, 6.300%, 5/01/16#
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 A- $ 2,062,282
Midwestern University, Series 2001B, 5.750%, 5/15/16
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of 9/15 at 100.00 AA 2,172,218
Southwest Illinois, Series 2005, 5.000%, 9/01/31 (WI,
settling 4/12/05) - RAAI Insured
1,500 Illinois Health Facilities Authority, Revenue Bonds, No Opt. Call N/R*** 1,797,045
Evangelical Hospitals Corporation, Series 1992C,
6.250%, 4/15/22
4,000 Illinois Health Facilities Authority, Revenue Bonds, Franciscan 9/06 at 100.00 AAA 4,216,560
Sisters Healthcare Corporation, Series 1992B,
6.625%, 9/01/13 (Pre-refunded to 9/01/06) - MBIA Insured
4,465 Illinois Health Facilities Authority, Remarketed Revenue 8/11 at 103.00 Aa1 4,844,391
Bonds, University of Chicago Project, Series 1985A,
5.500%, 8/01/20
2,225 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,458,069
Elmhurst Memorial Healthcare, Series 2002,
6.250%, 1/01/17
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,953,023
5.000%, 6/15/22
2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 6/07 at 101.00 AAA 2,120,060
5.600%, 6/15/17
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,279,000
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,375,140
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,015,290
Series 2003, 5.000%, 12/15/22 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.7%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,340
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 - FGIC Insured
3,500 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A+ 3,603,635
Bonds, Methodist Hospitals Inc., Series 2001,
5.375%, 9/15/22
2,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 2,102,500
Waterworks Project, Series 2002A, 5.250%, 7/01/33 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.4%
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
3,850 5.300%, 6/01/25 6/11 at 101.00 BBB 3,607,335
2,850 5.600%, 6/01/35 6/11 at 101.00 BBB 2,697,354
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.8%
1,000 Massachusetts Development Finance Agency, Resource 12/08 at 102.00 BBB 1,005,280
Recovery Revenue Bonds, Ogden Haverhill Associates,
Series 1998B, 5.200%, 12/01/13 (Alternative Minimum Tax)
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 555,460
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.1%
400 East Lansing School District, Ingham County, Michigan, 5/10 at 100.00 AA*** 441,452
General Obligation Bonds, Series 2000, 5.625%, 5/01/30
(Pre-refunded to 5/01/10)
4,000 Michigan Housing Development Authority, Single Family 6/06 at 102.00 AA+ 4,148,880
Mortgage Revenue Bonds, Series 1996C, 5.950%, 12/01/17
235 Michigan State Hospital Finance Authority, Revenue Refunding 8/05 at 100.00 Ba3 235,221
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,012,288
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
1,600 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 1,632,352
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18
29
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
$ 725 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R $ 736,129
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9%
3,500 Nebraska Public Power District, General Revenue Bonds, 1/13 at 100.00 AAA 3,593,590
Series 2002B, 5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.9%
4,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 4,134,760
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
4,510 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 4,913,014
Series 2002, 5.500%, 6/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.5%
865 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 870,052
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.1%
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,941,160
Revenue Bonds, Series 2004, 4.625%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.7%
2,335 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 2,470,477
General Revenue Bonds, Series 2001A, 5.375%, 9/01/21
35 New York City, New York, General Obligation Bonds, 8/05 at 100.00 A1 35,107
Series 1991B, 7.000%, 2/01/18
2,130 Dormitory Authority of the State of New York, Second No Opt. Call A2 2,369,774
General Resolution Consolidated Revenue Bonds, City
University System, Series 1990C, 7.500%, 7/01/10
1,850 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 1,995,725
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.3%
5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,392,600
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 -
MBIA Insured
2,345 Piedmont Triad Airport Authority, North Carolina, Airport 7/11 at 101.00 AAA 2,514,966
Revenue Bonds, Series 2001A, 5.250%, 7/01/16 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 3,050,370
St. John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5%
2,435 Dauphin County Industrial Development Authority, No Opt. Call A- 2,949,613
Pennsylvania, Water Development Revenue Refunding
Bonds, Dauphin Consolidated Water Supply Company,
Series 1992B, 6.700%, 6/01/17
500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 514,340
Bonds, Widner University, Series 2003, 5.250%, 7/15/24
1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,075,200
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.500%, 7/01/17 (Alternative
Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.2%
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,647,135
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18
1,500 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 1,601,730
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 8/15/20 - MBIA Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 2,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- $ 2,562,200
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.1%
1,010 South Dakota Health and Educational Facilities Authority, 7/12 at 101.00 AAA 1,050,834
Revenue Bonds, Avera Health, Series 2002,
5.125%, 7/01/27 - AMBAC Insured
1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,015,530
Revenue Bonds, Sioux Valley Hospital and Health System,
Series 2004A, 5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
2,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 2,055,560
Board, Tennessee, Hospital Revenue Bonds, Baptist Health
System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.3%
1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,518,945
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
3,755 Grand Prairie Industrial Development Authority, Texas, No Opt. Call A- 3,766,603
Industrial Development Revenue Refunding Bonds, Baxter
International Inc. Project, Series 1992, 6.550%, 12/01/12
2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,556,100
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
3,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 3,275,670
Bonds, Series 2002B, 5.500%, 7/01/18 - FSA Insured
3,125 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 3,180,250
Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.000%, 2/15/32
1,825 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 1,906,997
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
5,000 North Central Texas Health Facilities Development 5/06 at 102.00 AA- 5,116,600
Corporation, Hospital Revenue Refunding Bonds, Baylor
Healthcare System, Series 1995, 5.250%, 5/15/16
4,750 Sam Rayburn Municipal Power Agency, Texas, Power 10/12 at 100.00 AA 5,074,473
Supply System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,771,053
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
1,710 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 A+ 1,742,199
Refunding Bonds, Series 1996D, 5.000%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.1%
3,880 Washington, General Obligation Bonds, Series 1993A, 4/05 at 100.00 Aa1 3,880,111
4.500%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4%
2,500 Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 11/13 at 100.00 AA- 2,585,400
5.000%, 11/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 173,250 Total Long-Term Investments (cost $174,412,065) - 97.9% 180,533,790
=============-----------------------------------------------------------------------------------------------------------------------
31
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.9%
$ 3,500 New York City, New York, General Obligation Bonds, A-1+ $ 3,500,000
Variable Rate Demand Obligations, Fiscal Series 2002A-7,
2.260%, 11/01/24 - AMBAC Insured +
------------------------------------------------------------------------------------------------------------------------------------
$ 3,500 Total Short-Term Investments (cost $3,500,000) 3,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $177,912,065) - 99.8% 184,033,790
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.2% 345,595
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 184,379,385
====================================================================================================================
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UALCorporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in
effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
32
Nuveen California Select Tax-Free Income Portfolio (NXC)
Portfolio of
INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0%
$ 1,885 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB $ 1,858,912
Settlement Asset-Backed Revenue Bonds, Fresno County
Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.9%
1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,035,260
Stanford University, Series 1999P, 5.000%, 12/01/23
750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1 779,453
Pepperdine University, Series 2002A, 5.500%, 8/01/32
2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 2,697,188
University of the Pacific, Series 2002, 5.250%, 11/01/21
1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,051,240
University of San Diego, Series 2002A, 5.500%, 10/01/32
3,000 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,190,170
Bonds, J. David Gladstone Institutes, Series 2001,
5.500%, 10/01/19
2,000 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 2,074,020
University of California System, Series 2002A,
5.000%, 10/01/22 - FSA Insured
750 California Statewide Community Development Authority, 8/12 at 100.00 A 780,195
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
1,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 1,048,020
Refunding Bonds, Long Beach Aquarium of the South Pacific,
Series 2001, 5.250%, 11/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.6%
2,500 California Health Facilities Financing Authority, Insured Hospital 4/05 at 100.00 AAA 2,545,950
Revenue Bonds, Scripps Memorial Hospital, Series 1992A,
6.400%, 10/01/12 - MBIA Insured
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A 2,100,760
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
1,880 California Statewide Community Development Authority, 6/07 at 101.00 AAA 1,986,220
Revenue Bonds, Los Angeles Orthopaedic Hospital
Foundation, Series 2000, 5.500%, 6/01/17 - AMBAC Insured
1,500 California Statewide Community Development Authority, 11/09 at 102.00 A 1,562,730
Insured Mortgage Hospital Revenue Bonds, Mission
Community Hospital, Series 2001, 5.375%, 11/01/26
1,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 1,601,970
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
790 Central California Joint Powers Health Finance Authority, 8/05 at 100.00 Baa2 764,941
Certificates of Participation, Community Hospitals of Central
California, Series 1993, 5.000%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.4%
1,250 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 1,278,388
Disposal Revenue Bonds, Republic Services Inc., Series 2002C,
5.250%, 6/01/23 (Alternative Minimum Tax) (Mandatory
put 12/01/17)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
1,500 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,554,990
California, Insured Senior Living Revenue Bonds, Odd Fellows
Home of California, Series 2003A, 5.200%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.7%
500 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA 515,595
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26
33
Nuveen California Select Tax-Free Income Portfolio (NXC) (continued)
Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
California, General Obligation Bonds, Series 2003:
$ 500 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA $ 533,035
1,450 5.250%, 2/01/21 8/13 at 100.00 A 1,533,665
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,060,490
California, General Obligation Bonds, Series 2004:
750 5.000%, 2/01/23 2/14 at 100.00 A 775,102
800 5.125%, 4/01/25 4/14 at 100.00 A 830,968
2,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 2,094,220
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
Golden West Schools Financing Authority, California, General
Obligation Revenue Refunding Bonds, School District Program,
Series 1999A:
4,650 0.000%, 8/01/16 - MBIA Insured No Opt. Call AAA 2,775,632
1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 1,009,348
2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,338,336
2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,276,595
395 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 412,649
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
Mountain View-Los Altos Union High School District, Santa Clara
County, California, General Obligation Capital Appreciation
Bonds, Series 1995C:
1,015 0.000%, 5/01/17 - MBIA Insured No Opt. Call AAA 578,652
1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 581,008
1,500 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 1,653,060
General Obligation Bonds, Series 2003E, 5.250%, 7/01/24 -
FSA Insured
2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,680,399
General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 -
FSA Insured (DD, settling 4/01/05)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.7%
1,000 Bell Community Redevelopment Agency, California, 10/13 at 100.00 AA 1,064,930
Tax Allocation Bonds, Bell Project Area, Series 2003,
5.625%, 10/01/33 - RAAI Insured
California, Economic Recovery Revenue Bonds, Series 2004A:
1,250 5.000%, 7/01/15 7/14 at 100.00 AA- 1,344,275
1,000 5.000%, 7/01/16 7/11 at 100.00 AA- 1,057,760
1,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 1,080,220
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/23
3,500 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 4,236,575
Department of Corrections, Calipatria State Prison,
Series 1991A, 6.500%, 9/01/17 - MBIA Insured
1,400 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A- 1,490,272
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33
1,300 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,332,149
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
605 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 673,419
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,032,940
of Participation, Series 2002, 5.000%, 4/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.9%
1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,046,650
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
5,000 Los Angeles Harbors Department, California, Revenue Refunding 8/11 at 100.00 AAA 5,382,900
Bonds, Series 2001B, 5.500%, 8/01/17 (Alternative
Minimum Tax) - AMBAC Insured
3,305 Palm Springs Financing Authority, California, Palm Springs 7/05 at 100.00 AAA 3,313,659
Regional Airport Revenue Bonds, Series 1992,
6.000%, 1/01/12 (Alternative Minimum Tax) -
MBIA Insured
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,070,770
5.250%, 11/01/20 - FGIC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 2.4%
$ 2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA $ 2,210,020
General Obligation Bonds, Series 2002A, 5.000%, 8/01/22
(Pre-refunded to 8/01/12) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.3%
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,000 5.750%, 5/01/17 5/12 at 101.00 A2 2,212,780
2,000 5.125%, 5/01/19 5/12 at 101.00 A2 2,103,920
200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 210,292
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
2,550 M-S-R Public Power Agency, California, Revenue Bonds, 7/05 at 100.00 AAA 2,588,760
San Juan Project, Series 1991E, 6.000%, 7/01/22 -
MBIA Insured
1,225 Turlock Irrigation District, California, Revenue Refunding No Opt. Call AAA 1,380,379
Bonds, Series 1992A, 6.250%, 1/01/12 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.7%
2,160 California Statewide Community Development Authority, 10/11 at 101.00 AAA 2,279,448
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2001B, 5.125%, 10/01/22 - FSA Insured
2,800 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 2,896,404
Series 1998A, 5.000%, 6/01/23 - FGIC Insured
825 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 823,050
Revenue Certificates of Participation, Solar Photovoltaic
Project, Series 2003, 5.375%, 4/01/24
1,000 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 1,036,200
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
$ 90,850 Total Long-Term Investments (cost $85,595,768) - 98.3% 89,426,933
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 1,522,198
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 90,949,131
====================================================================================================================
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
(DD) Security purchased on delayed delivery basis.
N/R Investment is not rated.
See accompanying notes to financial statements.
35
Nuveen New York Select Tax-Free Income Portfolio (NXN)
Portfolio of
INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.1%
$ 1,120 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 BBB $ 1,146,555
Series 2002-1, 5.500%, 7/15/24
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.9%
1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,775,242
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 -
AMBAC Insured
100 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 101,245
Civic Facility Revenue Bonds, St. Francis College,
Series 2004, 5.000%, 10/01/34
500 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 513,725
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
570 Dormitory Authority of the State of New York, Second No Opt. Call AAA 638,765
General Resolution Consolidated Revenue Bonds, City
University System, Series 1990C, 7.500%, 7/01/10 -
FGIC Insured
1,425 Dormitory Authority of the State of New York, Insured 7/07 at 101.00 AAA 1,493,186
Revenue Bonds, Rochester Institute of Technology,
Series 1997, 5.250%, 7/01/22 - MBIA Insured
785 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 812,679
Bonds, Iona College, Series 2002, 5.000%, 7/01/22 -
XLCA Insured
200 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 206,986
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.3%
750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 800,265
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/21 - AMBAC Insured
250 New York City Industrial Development Agency, New York, 7/12 at 101.00 Ba3 246,498
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
250 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 258,925
Mortgage Revenue Bonds, Montefiore Hospital,
Series 2004, 5.000%, 8/01/29 - FGIC Insured
415 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 451,910
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 514,645
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
670 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 703,714
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - MBIA Insured
250 Dormitory Authority of the State of New York, Revenue 5/13 at 100.00 A3 259,780
Bonds, North Shore Long Island Jewish Group, Series 2003,
5.375%, 5/01/23
1,680 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,795,046
Winthrop-South Nassau University Health System Obligated
Group, Series 2001A, 5.250%, 7/01/17 - AMBAC Insured
1,195 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,276,834
Winthrop-South Nassau University Health System Obligated
Group, Series 2001B, 5.250%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.2%
1,000 East Rochester Housing Authority, New York, Revenue Bonds, 12/12 at 103.00 AAA 1,064,060
GNMA/FHA Secured Revenue Bonds, St. Mary's Residence
Project, Series 2002A, 5.375%, 12/20/22
1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA 1,063,030
FHA-Insured Mortgage Revenue Bonds, Sunset Woods
Apartments II Project, Series 2002, 5.350%, 2/01/20
775 New York State Housing Finance Agency, FHA-Insured 8/05 at 100.00 AAA 776,155
Mortgage Multifamily Housing Revenue Bonds, Series 1992C,
6.450%, 8/15/14 - MBIA Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.2%
$ 2,500 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa $ 2,515,175
Thirty-First Series A, 5.300%, 10/01/31 (Alternative
Minimum Tax)
2,000 New York State Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,054,120
Revenue Bonds, Series 101, 5.000%, 10/01/18 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.2%
2,000 East Rochester Housing Authority, New York, FHA-Insured 8/12 at 101.00 AAA 2,055,060
Mortgage Revenue Refunding Bonds, Jewish Home of
Rochester, Series 2002, 4.625%, 2/15/17
1,000 New York City Industrial Development Agency, New York, 11/12 at 101.00 AA+ 1,002,980
GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor
House Inc. Project, Series 2002A, 4.950%, 11/20/32
2,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 2,078,580
Nursing Home Mortgage Revenue Bonds, Norwegian Christian
Home and Health Center, Series 2001, 5.200%, 8/01/36 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.1%
Clarkstown, Rickland County, New York, Various Purposes
Serial Bonds, Series 1992:
505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 558,050
525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 584,750
525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 592,121
750 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AAA 798,578
Series 2004I, 5.000%, 8/01/17 - MBIA Insured
225 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A1 241,724
Series 2004B, 5.250%, 8/01/15
300 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A1 321,180
Series 2004C, 5.250%, 8/15/16
285 West Islip Union Free School District, Suffolk County, No Opt. Call Aaa 309,806
New York, General Obligation Bonds, Series 2005,
5.000%, 10/01/14 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.1%
600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 625,920
Series 2003A, 5.000%, 11/01/23
500 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 561,015
School Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
500 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 547,095
Service Contract Refunding Bonds, Series 2002A,
5.500%, 1/01/20 - MBIA Insured
95 Nassau County Interim Finance Authority, New York, Sales 11/06 at 101.00 AAA 99,044
Tax Secured Revenue Bonds, Series 2001A-2,
5.125%, 11/15/21 - AMBAC Insured
670 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 696,579
Future Tax Secured Bonds, Fiscal Series 2003E,
5.000%, 2/01/23
Dormitory Authority of the State of New York, Revenue Bonds,
Mental Health Services Facilities Improvements, Series 2005D:
175 5.000%, 2/15/14 - FGIC Insured No Opt. Call AAA 189,040
320 5.000%, 8/15/14 - FGIC Insured No Opt. Call AAA 346,352
50 New York State Thruway Authority, Highway and Bridge 4/05 at 102.00 AAA 51,088
Trust Fund Bonds, Series 1995A, 5.125%, 4/01/15 -
MBIA Insured
750 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 803,618
Fund Bonds, Second General, Series 2003A,
5.250%, 4/01/23 - MBIA Insured
250 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 263,423
Fund Bonds, Second General, Series 2004, 5.000%, 4/01/21 -
MBIA Insured
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
250 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 262,075
200 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 209,342
1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,275,433
37
Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued)
Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
$ 1,000 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA $ 1,070,830
250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 266,640
500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 542,175
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
75 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 83,154
Center Bonds, Series 1990E, 7.250%, 1/01/10
500 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB- 543,215
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.250%, 2/01/16
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.7%
400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 421,948
Series 2001A, 5.625%, 7/15/25
500 Metropolitan Transportation Authority, New York, No Opt. Call AAA 543,715
Transportation Revenue Bonds, Series 2003A,
5.000%, 11/15/15 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 10.7%
1,365 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 1,642,668
Facilities Lease Revenue Bonds, Suffolk County Issue,
Series 1986, 7.375%, 7/01/16
1,430 Dormitory Authority of the State of New York, Revenue 7/11 at 101.00 AA-*** 1,556,298
Bonds, Upstate Community Colleges, Series 2002A,
5.000%, 7/01/23 (Pre-refunded to 7/01/11)
1,000 New York State Urban Development Corporation, State 3/13 at 100.00 AAA 1,119,320
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded
to 3/15/13) - FGIC Insured
485 Suffolk County Water Authority, New York, Water Revenue No Opt. Call AAA 556,232
Bonds, Series 1986V, 6.750%, 6/01/12
1,000 West Islip Union Free School District, Suffolk County, 10/10 at 100.00 Aaa 1,084,610
New York, General Obligation Bonds, Series 2001,
5.000%, 10/01/17 (Pre-refunded to 10/01/10) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2%
2,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 2,108,280
General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 -
FSA Insured
1,000 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 1,062,390
General Revenue Bonds, Series 2003C, 5.000%, 9/01/16 -
CIFG Insured
500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 497,770
Pollution Control Revenue Bonds, New York State Electric
and Gas Corporation, Series 2005A, 4.100%, 3/15/15 -
MBIA Insured
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa1 268,363
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Alternative Minimum Tax)
(Mandatory put 11/15/12)
60 Westchester County Industrial Development Agency, 7/07 at 101.00 BBB 62,305
Westchester County, New York, Resource Recovery
Revenue Bonds, RESCO Company, Series 1996,
5.500%, 7/01/09 (Alternative Minimum Tax)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.2%
$ 2,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ $ 2,575,675
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 2,167,420
2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,065,180
------------------------------------------------------------------------------------------------------------------------------------
$ 52,150 Total Long-Term Investments (cost $53,118,155) - 98.9% 55,179,581
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 637,676
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 55,817,257
====================================================================================================================
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
39
Statement of
ASSETS AND LIABILITIES March 31, 2005
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value
(cost $221,056,736, $242,268,311,
$177,912,065 $85,595,768 and
$53,118,155, respectively) $232,885,557 $249,871,402 $184,033,790 $89,426,933 $55,179,581
Cash -- 636,993 -- -- --
Receivables:
Interest 3,798,537 3,807,935 2,776,217 1,334,998 753,967
Investments sold 4,260,868 1,918,050 625,890 3,060,000 --
Other assets 65,882 69,342 52,349 29,907 21,808
------------------------------------------------------------------------------------------------------------------------------------
Total assets 241,010,844 256,303,722 187,488,246 93,851,838 55,955,356
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 597,825 -- 796,219 143,785 90,567
Payable for investments purchased 783,563 2,955,928 2,172,366 2,688,374 --
Accrued expenses:
Management fees 48,147 61,541 45,272 22,644 13,904
Other 120,935 128,738 95,004 47,904 33,628
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,550,470 3,146,207 3,108,861 2,902,707 138,099
------------------------------------------------------------------------------------------------------------------------------------
Net assets $239,460,374 $253,157,515 $184,379,385 $90,949,131 $55,817,257
====================================================================================================================================
Shares outstanding 16,378,096 17,607,068 12,964,124 6,257,070 3,908,223
====================================================================================================================================
Net asset value per share outstanding
(net assets divided by shares outstanding) $ 14.62 $ 14.38 $ 14.22 $ 14.54 $ 14.28
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,082
Paid-in surplus 227,635,043 245,690,697 178,372,582 87,121,715 53,622,239
Undistributed (Over-distribution of)
net investment income (175,666) (431,664) (272,407) (115,819) (77,492)
Accumulated net realized gain from investments 8,395 119,320 27,844 49,499 172,002
Net unrealized appreciation of investments 11,828,821 7,603,091 6,121,725 3,831,165 2,061,426
------------------------------------------------------------------------------------------------------------------------------------
Net assets $239,460,374 $253,157,515 $184,379,385 $90,949,131 $55,817,257
====================================================================================================================================
Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
40
Statement of
OPERATIONS Year Ended March 31, 2005
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 $12,232,747 $12,773,356 $ 9,275,222 $4,490,761 $ 2,736,085
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 575,022 729,898 536,276 268,217 165,342
Shareholders' servicing agent fees and expenses 41,837 38,741 30,325 10,819 8,118
Custodian's fees and expenses 53,621 55,385 43,221 26,955 17,158
Trustees' fees and expenses 2,204 3,499 3,823 1,305 701
Professional fees 37,185 38,571 20,292 9,846 7,629
Shareholders' reports - printing and mailing expenses 36,659 39,979 29,054 12,864 9,069
Stock exchange listing fees 9,634 9,634 9,634 10,905 10,737
Investor relations expense 27,741 21,601 21,928 10,443 6,709
Other expenses 8,920 9,220 7,675 5,397 4,666
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 792,823 946,528 702,228 356,751 230,129
Custodian fee credit (20,409) (30,251) (24,054) (6,955) (2,735)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 772,414 916,277 678,174 349,796 227,394
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,460,333 11,857,079 8,597,048 4,140,965 2,508,691
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from investments 1,298,950 392,947 465,025 49,639 246,834
Change in net unrealized appreciation
(depreciation) of investments (3,258,427) (2,835,579) (1,854,352) (670,557) (1,058,725)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (1,959,477) (2,442,632) (1,389,327) (620,918) (811,891)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 9,500,856 $ 9,414,447 $ 7,207,721 $3,520,047 $ 1,696,800
====================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
CHANGES IN NET ASSETS
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR)
---------------------------- ------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/05 3/31/04 3/31/05 3/31/04 3/31/05 3/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,460,333 $ 11,905,808 $ 11,857,079 $ 12,376,091 $ 8,597,048 $ 8,972,377
Net realized gain from investments 1,298,950 1,631,548 392,947 1,107,932 465,025 388,100
Change in net unrealized
appreciation (depreciation)
of investments (3,258,427) 764,039 (2,835,579) 2,207,042 (1,854,352) 1,738,203
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 9,500,856 14,301,395 9,414,447 15,691,065 7,207,721 11,098,680
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (11,587,432) (12,405,127) (11,902,381) (12,700,072) (8,741,600) (9,009,179)
From accumulated net realized
gains from investments (1,618,228) (1,399,973) (727,172) (973,580) (444,780) (868,194)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (13,205,660) (13,805,100) (12,629,553) (13,673,652) (9,186,380) (9,877,373)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets (3,704,804) 496,295 (3,215,106) 2,017,413 (1,978,659) 1,221,307
Net assets at the beginning
of year 243,165,178 242,668,883 256,372,621 254,355,208 186,358,044 185,136,737
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $239,460,374 $243,165,178 $253,157,515 $256,372,621 $184,379,385 $186,358,044
====================================================================================================================================
Undistributed (Over-distribution
of) net investment income
at the end of year $ (175,666) $ (46,057) $ (431,664) $ (373,447) $ (272,407) $ (125,424)
====================================================================================================================================
See accompanying notes to financial statements.
42
CALIFORNIA NEW YORK
SELECT TAX-FREE (NXC) SELECT TAX-FREE (NXN)
----------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/05 3/31/04 3/31/05 3/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,140,965 $ 4,230,020 $ 2,508,691 $ 2,640,505
Net realized gain from investments 49,639 528,424 246,834 314,601
Change in net unrealized appreciation
(depreciation) of investments (670,557) 704,451 (1,058,725) 294,010
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 3,520,047 5,462,895 1,696,800 3,249,116
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (4,142,182) (4,262,921) (2,587,119) (2,668,659)
From accumulated net realized gains
from investments (292,831) (310,999) (250,126) (322,333)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (4,435,013) (4,573,920) (2,837,245) (2,990,992)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- -- 16,500
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (914,966) 888,975 (1,140,445) 274,624
Net assets at the beginning of year 91,864,097 90,975,122 56,957,702 56,683,078
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $90,949,131 $91,864,097 $55,817,257 $56,957,702
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the
end of year $ (115,819) $ (114,580) $ (77,492) $ 2,359
====================================================================================================================================
See accompanying notes to financial statements.
43
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding New York
Stock Exchange symbols are Nuveen Select Tax-Free Income Portfolio (NXP), Nuveen
Select Tax-Free Income Portfolio 2 (NXQ), Nuveen Select Tax-Free Income
Portfolio 3 (NXR), Nuveen California Select Tax-Free Income Portfolio (NXC) and
Nuveen New York Select Tax-Free Income Portfolio (NXN). The Funds are registered
under the Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide stable dividends consistent with the preservation of
capital, exempt from regular federal and designated state income taxes, where
applicable, by investing primarily in a diversified portfolio of municipal
obligations.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service or, in the absence of a pricing service for a particular
security, the Board of Trustees of the Funds, or its designee, may establish
fair market value using a wide variety of market data including yields or prices
of municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, market quotes or indications of value from securities dealers,
evaluations of anticipated cash flows or collateral, general market conditions
and other information and analysis, including the obligor's credit
characteristics considered relevant by the pricing service or the Board of
Trustees' designee. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Securities purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any securities so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At March 31, 2005, Select
Tax-Free (NXP), Select Tax-Free 2 (NXQ), Select Tax-Free 3 (NXR) and California
Select Tax-Free (NXC) had outstanding when-issued and delayed delivery purchase
commitments of $783,563, $2,955,928, $2,172,366 and $2,688,374, respectively.
There were no such outstanding purchase commitments in New York Select Tax-Free
(NXN).
44
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, where applicable, to retain such tax-exempt status when
distributed to shareholders of the Funds. All monthly tax-exempt income
dividends paid during the fiscal year ended March 31, 2005, have been designated
Exempt Interest Dividends. Net realized capital gains and ordinary income
distributions paid by the Funds are subject to federal taxation.
Dividends and Distributions to Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, if any, are recorded on the ex-dividend
date. The amount and timing of distributions are determined in accordance with
federal income tax regulations, which may differ from U.S. generally accepted
accounting principles.
Derivative Financial Instruments
The Funds are not authorized to invest in derivative financial instruments.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
45
Notes to
FINANCIAL STATEMENTS (continued)
2. FUND SHARES
None of the Funds engaged in transactions in their own shares during the fiscal
year ended March 31, 2005, nor during the fiscal year ended March 31, 2004, with
the exception of New York Select-Tax Free (NXN) which issued 1,154 shares to
shareholders due to reinvestment of distributions during the fiscal year ended
March 31, 2004.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended March 31, 2005, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Purchases $26,796,412 $32,045,842 $28,492,260 $11,577,856 $7,388,638
Sales and maturities 28,932,100 31,945,500 29,794,950 12,382,963 7,948,160
=========================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At March 31, 2005, the cost of investments was as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Cost of investments $220,744,301 $242,187,050 $177,867,707 $85,595,121 $53,114,143
=========================================================================================================
46
Gross unrealized appreciation and gross unrealized depreciation of investments
at March 31, 2005, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $14,393,193 $9,916,787 $6,919,717 $3,942,473 $2,152,176
Depreciation (2,251,937) (2,232,435) (753,634) (110,661) (86,738)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $12,141,256 $7,684,352 $6,166,083 $3,831,812 $2,065,438
=========================================================================================================
The tax components of undistributed net investment income and net realized gains
at March 31, 2005, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $445,452 $455,464 $389,781 $227,670 $127,589
Undistributed net ordinary income** -- -- -- 49,498 --
Undistributed net long-term capital gains 8,396 119,320 27,844 -- 172,003
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on March 1, 2005, paid on April 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal years ended March 31,
2005 and March 31, 2004, 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
2005 (NXP) (NXQ) (NXR) (NXC) (NXN)
-----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,595,693 $11,964,006 $8,750,786 $4,148,439 $2,596,891
Distributions from net ordinary income** 71,645 -- 29,707 -- --
Distributions from net long-term capital gains 1,603,834 727,172 444,780 292,832 250,126
=======================================================================================================================
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
2004 (NXP) (NXQ) (NXR) (NXC) (NXN)
-----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $12,087,037 $12,571,449 $8,945,252 $4,242,294 $2,672,502
Distributions from net ordinary income** 334,467 163,837 63,927 27,740 --
Distributions from net long-term capital gains 1,399,973 973,580 868,194 310,142 322,333
=======================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
47
Notes to
FINANCIAL STATEMENTS (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Effective January 1, 2005, Nuveen Institutional Advisory Corp. ("NIAC"), the
Funds' previous Adviser, and its affiliate, Nuveen Advisory Corp. ("NAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NIAC or NAC.
As approved by the Board of Trustees, effective August 1, 2004, a complex-wide
management fee structure was adopted for all funds sponsored by the Adviser, or
its predecessor and its affiliates. This fee structure separates each fund's
management fee into two components - a complex-level component, based on the
aggregate amount of all fund assets managed by the Adviser, and a specific
fund-level component, based only on the amount of assets within each individual
fund. This pricing structure enables Nuveen fund shareholders to benefit from
growth in the assets within each individual fund as well as from growth in the
amount of complex-wide assets managed by the Adviser. Under no circumstances
will this pricing structure result in a fund paying management fees at a rate
higher than would otherwise have been applicable had the complex-wide management
fee structure not been implemented. As of April 30, 2005, the complex-level fee
rate was .1915%; that is, the funds' effective management fees were reduced by
approximately .0085%.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets of each Fund as follows:
SELECT TAX-FREE 2 (NXQ)
SELECT TAX-FREE 3 (NXR)
CALIFORNIA SELECT TAX-FREE (NXC)
SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN)
AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE FUND-LEVEL FEE RATE
----------------------------------------------------------------------------------------------
For the first $125 million .0500% .1000%
For the next $125 million .0375 .0875
For the next $250 million .0250 .0750
For the next $500 million .0125 .0625
==============================================================================================
48
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
of each Fund as follows:
SELECT TAX-FREE 2 (NXQ)
SELECT TAX-FREE 3 (NXR)
CALIFORNIA SELECT TAX-FREE (NXC)
AVERAGE DAILY NET ASSETS SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------
For the first $125 million .2500% .3000%
For the next $125 million .2375 .2875
For the next $250 million .2250 .2750
For the next $500 million .2125 .2625
For the next $1 billion .2000 .2500
For net assets over $2 billion .1875 .2375
================================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
49
Notes to
FINANCIAL STATEMENTS (continued)
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. The settlement of transactions (C) and (D) above would likely
be deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and NAM, which would result in the
automatic termination of each agreement under the 1940 Act. The Board of
Trustees will consider approval of new ongoing investment management agreements
for each Fund and the submission of those agreements for approval by each
respective Fund's shareholders. Those agreements, if approved by a Fund's
shareholders, would take effect upon such approval. There can be no assurance
that these approvals will be obtained.
7. SUBSEQUENT EVENT
Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on May 2, 2005, to shareholders of record on April 15,
2005, as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
--------------------------------------------------------------------------------
Dividend per share $.0570 $.0550 $.0545 $.0550 $.0535
================================================================================
50
Financial
HIGHLIGHTS
51
Financial
HIGHLIGHTS
Selected data for a share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------- --------------------------------
Net Ending
Beginning Net Realized/ Net Net Ending
Net Asset Investment Unrealized Investment Capital Asset Market
Value Income Gain (Loss) Total Income Gains Total Value Value
====================================================================================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 $14.85 $.70 $(.12) $ .58 $(.71) $(.10) $(.81) $14.62 $13.50
2004 14.82 .73 .15 .88 (.76) (.09) (.85) 14.85 14.30
2003 14.67 .77 .37 1.14 (.82) (.17) (.99) 14.82 14.15
2002 15.05 .88 (.38) .50 (.86) (.02) (.88) 14.67 13.85
2001 14.89 .91 .15 1.06 (.90) -- (.90) 15.05 14.50
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 14.56 .67 (.13) .54 (.68) (.04) (.72) 14.38 13.08
2004 14.45 .70 .19 .89 (.72) (.06) (.78) 14.56 13.80
2003 14.53 .76 .14 .90 (.80) (.18) (.98) 14.45 13.49
2002 14.89 .86 (.36) .50 (.84) (.02) (.86) 14.53 13.66
2001 14.75 .87 .14 1.01 (.87) -- (.87) 14.89 14.15
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 14.37 .66 (.11) .55 (.67) (.03) (.70) 14.22 12.82
2004 14.28 .69 .16 .85 (.69) (.07) (.76) 14.37 13.56
2003 14.26 .73 .12 .85 (.76) (.07) (.83) 14.28 13.06
2002 14.53 .81 (.28) .53 (.80) -- (.80) 14.26 13.42
2001 14.32 .81 .21 1.02 (.81) -- (.81) 14.53 13.70
CALIFORNIA SELECT
TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 14.68 .66 (.09) .57 (.66) (.05) (.71) 14.54 13.40
2004 14.54 .68 .19 .87 (.68) (.05) (.73) 14.68 14.06
2003 14.44 .71 .26 .97 (.73) (.14) (.87) 14.54 13.59
2002 14.79 .78 (.34) .44 (.77) (.02) (.79) 14.44 14.25
2001 14.57 .79 .23 1.02 (.79) (.01) (.80) 14.79 13.94
NEW YORK SELECT
TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 14.57 .64 (.21) .43 (.66) (.06) (.72) 14.28 13.65
2004 14.51 .68 .14 .82 (.68) (.08) (.76) 14.57 14.40
2003 14.17 .70 .43 1.13 (.70) (.09) (.79) 14.51 13.60
2002 14.51 .73 (.33) .40 (.74) -- (.74) 14.17 13.76
2001 14.31 .78 .20 .98 (.78) -- (.78) 14.51 14.05
====================================================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Total Returns Before Credit After Credit**
---------------------- ---------------------------- ---------------------------
Ratio of Net Ratio of Net
Based on Ending Ratio of Investment Ratio of Investment
Based on Net Net Expenses to Income to Expenses to Income to Portfolio
Market Asset Assets Average Average Average Average Turnover
Value* Value* (000) Net Assets Net Assets Net Assets Net Assets Rate
====================================================================================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 .17% 4.00% $239,460 .33% 4.76% .32% 4.77% 11%
2004 7.34 6.13 243,165 .34 4.90 .33 4.91 16
2003 9.51 7.84 242,669 .37 5.20 .36 5.21 35
2002 1.54 3.41 240,275 .38 5.89 .37 5.89 26
2001 12.63 7.32 246,475 .35 6.06 .35 6.07 2
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 .11 3.82 253,158 .37 4.68 .36 4.69 13
2004 8.35 6.31 256,373 .39 4.86 .38 4.86 10
2003 6.01 6.33 254,355 .42 5.20 .41 5.21 46
2002 2.57 3.41 255,887 .43 5.79 .42 5.80 21
2001 12.46 7.04 262,144 .41 5.89 .40 5.90 2
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 (.17) 4.01 184,379 .38 4.66 .37 4.67 16
2004 9.96 6.13 186,358 .38 4.84 .38 4.85 6
2003 3.51 6.09 185,137 .42 5.09 .41 5.10 51
2002 3.84 3.70 184,837 .44 5.59 .42 5.60 9
2001 12.97 7.36 188,344 .47 5.66 .46 5.67 2
CALIFORNIA SELECT
TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 .50 3.99 90,949 .39 4.55 .39 4.56 13
2004 9.14 6.16 91,864 .40 4.64 .39 4.65 30
2003 1.34 6.86 90,975 .43 4.84 .42 4.85 42
2002 7.95 3.03 90,346 .44 5.27 .43 5.28 12
2001 7.23 7.21 92,517 .43 5.38 .42 5.39 2
NEW YORK SELECT
TAX-FREE (NXN)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2005 .05 3.10 55,817 .41 4.48 .41 4.48 13
2004 11.81 5.84 56,958 .43 4.65 .42 4.65 16
2003 4.73 8.17 56,683 .46 4.85 .45 4.86 35
2002 3.17 2.75 55,362 .49 5.04 .48 5.05 28
2001 17.36 7.02 56,679 .48 5.39 .47 5.40 3
===================================================================================================================================
* Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Net Asset Value is
the combination of changes in net asset value, reinvested dividend income
at net asset value and reinvested capital gains distributions at net asset
value, if any. Total returns are not annualized.
** After custodian fee credit, where applicable.
See accompanying notes to financial statements.
52-53 SPREAD
Board Members
AND 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 Funds is currently set
at nine. None of the board members who are not "interested" persons of the Funds
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 OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 154
3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and
333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (3); Chairman and Director
(since 1997) of Nuveen Asset Management; Director (since
1996) of Institutional Capital Corporation; Chairman and
Director (since 1999) of Rittenhouse Asset Management,
Inc.; Chairman of Nuveen Investments Advisers Inc.
(since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 154
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 154
7/29/34 Trust Company; Director, Community Advisory Board for
333 W. Wacker Drive Highland Park and Highwood, United Way of the North
Chicago, IL 60606 Shore (since 2002).
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 154
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire & Casualty Company; formerly, Director, Federal Reserve
Chicago, IL 60606 Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 154
3/6/48 Business at the University of Connecticut (since 2003);
333 W. Wacker Drive previously Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003);
Director, Credit Research Center at Georgetown University;
Director of Xerox Corporation (since 2004).
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (2004) as Chairman, JPMorgan Fleming Asset 153
10/28/42 Management, President and CEO, Banc One Investment
333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual
Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One Investment
Management Group; Board of Regents, Luther College; currently
a member of the American and Wisconsin Bar Associations.
54
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman, formerly, Senior Partner and Chief Operating 154
9/24/44 Officer, Miller-Valentine Partners Ltd., a real estate
333 W. Wacker Drive investment company; formerly, Vice President, Miller-Valentine
Chicago, IL 60606 Realty, a construction company; Chair, Premier
Health Partners, the not-for-profit company of Miami
Valley Hospital; Board Member, formerly Chair, Dayton
Development Coalition; President, Philharmonic
Orchestra; formerly, Member, Community Advisory
Board, National City Bank, Dayton, Ohio and Business
Advisory Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 154
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance (since 1997), 154
1/22/50 Northwestern University; Director (since 2003), Chicago
333 W. Wacker Drive Board of Options Exchange; Director (since 2003), National
Chicago, IL 60606 Mentor Holdings, a privately-held, national provider of home
and community-based services; Chairman (since 1997), Board
of Directors, Rubicon, an insurance company owned by
Northwestern University; Director (since 1997), Evanston
of Commerce and Evanston Inventure, a business development
organization.
------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 154
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp. (3);
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management; Managing Director (since
2004) and Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset Management,
Inc. (since 2003); Chartered Financial Analyst.
55
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), previously, Vice President 154
9/22/63 (since 2002), formerly, Assistant Vice President (since 1999)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 154
2/3/66 and Assistant President (since 2000), previously, Associate of Nuveen
333 W. Wacker Drive Secretary Investments, LLC.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 154
11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice
333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since
Chicago, IL 60606 1999); Vice President and Treasurer of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp (since 1999) (3); Vice
President and Treasurer of Nuveen Asset Management
(since 2002) and of Nuveen Investments Advisers Inc. (since
2002); Assistant Treasurer of NWQ Investment Management
Company, LLC (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 154
9/24/64 and Secretary (since 1998), formerly, Assistant Vice President (since 1998)
333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp. (3); and Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 154
10/24/45 Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory Corp.
Chicago, IL 60606 and Nuveen Institutional Advisory Corp. (3); Managing Director
of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 154
3/2/64 LLC; Managing Director (since 2001), formerly Vice President
333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp. (since 1995) (3); Managing Director of Nuveen Asset
Management (since 2001); Vice President of Nuveen Investment
Advisers Inc. (since 2002); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 154
5/31/54 and Controller of Nuveen Investments, LLC and Vice President and Funds
333 W. Wacker Drive Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 154
4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc.,
333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management,
Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of
Compliance (2004) of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp. (3); formerly, Senior
Attorney (1994 to 2004), The Northern Trust Company.
56
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 154
3/22/63 LLC, previously Assistant Vice President (since 1999);
333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 154
8/27/61 President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 154
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (3); Assistant Secretary of
Nuveen Investments, Inc. and (since 1997) Nuveen Asset
Management, Vice President (since 2000), Assistant
Secretary and Assistant General Counsel (since 1998)
of Rittenhouse Asset Management; Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) 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.
57
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
58
Other Useful
INFORMATION
Effective Jan. 1, 2005, the asset management services and operations of Nuveen
Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part
of Nuveen Asset Management (NAM). This internal consolidation is intended to
simplify the delivery of services to the investment management clients of Nuveen
Investments. It does not affect the investment objectives or portfolio
management of any Fund.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2004, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
The Funds' Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each of the Funds has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
MODIFIED DURATION: Duration is a measure of the expected period over which a
bond's principal and interest will be paid and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market interest
rates change. Generally, the longer a bond's or Fund's duration, the more the
price of the bond or Fund will change as interest rates change.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. No shares were
repurchased during the period covered by this report. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
59
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $115 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-B-0305D
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/etf. (To view the
code, click on the Investor Resources drop down menu box, 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 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, Chairman of the Audit Committee, 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 California 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 entered into on or after May 6, 2003, 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 BILLED TO FUND BILLED TO FUND BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
March 31, 2005 $ 7,814 $ 0 $ 407 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
March 31, 2004 $ 7,419 $ 0 $ 364 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were 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 ("Control Affiliate") 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 table also shows 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, 2005 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
March 31, 2004 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved N/A N/A N/A
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. For
engagements entered into on or after May 6, 2003, 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 de minimis 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, 2005 $ 407 $ 0 $ 0 $ 407
March 31, 2004 $ 364 $ 0 $ 0 $ 364
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 of Directors or Trustees has a separately designated
audit committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") (15 U.S.C.
78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner,
Lawrence H. Brown, Jack B. Evans and William J. Schneider.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Schedule I in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
the Adviser 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 Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. 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/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, 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 California Select Tax-Free Income Portfolio
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: June 8, 2005
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: June 8, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: June 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.