UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6548
---------------------
Nuveen Select Tax-Free Income Portfolio
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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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
-------------------
Date of fiscal year end: March 31
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Date of reporting period: March 31, 2006
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT March 31, 2006
Nuveen Investments
Municipal Exchange-Traded
Closed-End Funds
NUVEEN SELECT
TAX-FREE INCOME
PORTFOLIO
NXP
NUVEEN SELECT
TAX-FREE INCOME
PORTFOLIO 2
NXQ
NUVEEN SELECT
TAX-FREE INCOME
PORTFOLIO 3
NXR
NUVEEN CALIFORNIA
SELECT TAX-FREE
INCOME PORTFOLIO
NXC
NUVEEN NEW YORK
SELECT TAX-FREE
INCOME PORTFOLIO
NXN
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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Photo: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the twelve-month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Managers' Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
Municipal bonds can be an important building block in a well balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a recognized way
to try to reduce some of the risk that comes with investing. I encourage you to
contact your personal financial advisor who can help explain this important
investment strategy.
"PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK
THAT COMES WITH INVESTING."
Nuveen Investments is pleased to offer you choices when it comes to receiving
your fund reports. As an alternative to mailed print copies, you can also sign
up to receive future Fund reports and other Fund information by e-mail and the
Internet. Not only will you receive the information faster, but this may also
help lower your Fund's expenses. The inside front cover of this report contains
information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
May 3, 2006
Nuveen Investments Select Tax-Free Income Portfolios
(NXP, NXQ, NXR, NXC, NXN)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding, Scott Romans, and Paul Brennan review the
economic and municipal market environments, key investment strategies, and
annual performance of the Nuveen Select Tax-Free Income Portfolios. With 31
years of investment experience, Tom has managed the three national Portfolios
since 1999. Scott, who joined Nuveen in 2000, and Paul, who has 15 years of
investment experience, have managed NXC and NXN, respectively, since 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED MARCH 31, 2006?
During this reporting period, we saw an increase in interest rates across the
yield curve, although short-term rates rose at a much faster pace than
longer-term rates. Between April 1, 2005 and March 31, 2006, the Federal Reserve
announced eight increases of 0.25% each in the fed funds rate, raising this
short-term target by 200 basis points (from 2.75% to 4.75%). In all, the Fed has
implemented fifteen .25% hikes in the fed funds rate since June 2004. However,
yields in the longer part of the curve proved to be more resistant to increases.
The yield on the benchmark 10-year U.S. Treasury note ended March 2006 at 4.85%,
up from 4.50% twelve months earlier, while the yield on the Bond Buyer 25
Revenue Bond Index, a widely followed measure of longer-term municipal market
rates, was 5.14% at the end of March 2006, an increase of just 11 basis points
from the beginning of April 2005. As interest rates increased, bond valuations
generally declined, and the yield curve flattened as shorter-term rates
approached the levels of longer-term rates.
Even with rising interest rates, increased energy prices, and a housing market
that gave some indications of softening, the economy remained resilient, with a
healthy pattern of growth. After expanding at a rate of 3.3% in the second
quarter of 2005, the U.S. gross domestic product (GDP) grew by 4.1% in the third
quarter before slowing to 1.7% in the fourth quarter (all GDP numbers are
annualized). In the first quarter of 2006, the GDP rebounded to 4.8%, fueled by
the return of consumer and federal spending and increased business investment in
equipment. The overall employment picture remained positive, with national
unemployment at 4.7% in March 2006, down from 5.1% in March 2005. Despite a
slight increase in inflation expectations, the year-over-year increase in the
Consumer Price Index as of March 2006 remained relatively benign, at 3.4%.
However, for the first three months of 2006, inflation rose at the slightly
faster pace of 4.3% annualized, compared with 3.4% for all of 2005.
4
Over the 12 months ended March 2006, municipal bond supply nationwide remained
relatively strong, as $403.6 billion in new securities came to market, down 1.5%
from the previous 12 months. However, following record levels of issuance in
calendar year 2005, we saw a dramatic drop-off in supply during the first three
months of 2006, when municipal issuance totaled $69.6 billion, a decrease of 29%
from the same period in 2005. During the first quarter of 2006, the
transportation and education sectors and general purpose bonds experienced the
largest drops in issuance. A major factor in 2006's decline was the sharp
reduction in pre-refunding volume, which was off 55% from last year's levels.
Although interest rates remained favorable for refundings, most borrowers
already had ample opportunities to come to the market during 2005. Overall,
demand for municipal bonds remained strong and diversified during this period.
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA AND NEW YORK DURING THIS
PERIOD?
During this reporting period, California's economy experienced significant
improvement in the employment sector. Gains in construction, natural resources,
and tourism led the way, overshadowing small job losses in the information
services sector. As of March 2006, California's unemployment rate was 4.8%, down
from 5.5% in March 2005. Although the state continued to work toward the
political consensus necessary to address the balanced budget issue and other
fiscal problems of the past few years, Californiarecent economic expansion has
led to strong growth in both personal and corporate income, which in turn has
generated higher tax revenues.
In July 2005, both Moody's and Fitch upgraded their ratings on California's
general obligation debt--to A2 from A3 and to A from A-, respectively. Standard
and Poor's maintained its California GO rating at A. In announcing the upgrades,
the rating agencies cited the improvements in state revenues. For the 12 months
ended March 31, 2006, municipal issuance in California totaled $56.9 billion, a
decrease of 10% from the previous 12 months. During the first three months of
2006, supply in the state continued to decline, with $9.1 billion in new
issuance, down 23% from January-March 2005. California continued to rank as the
largest state issuer in the nation for both time periods.
5
New York also continued to recover economically, with employment growth in
financial services, healthcare and education, and natural resources. However,
the state's manufacturing sector continued to lose jobs. Although more
diversified than it was a decade ago, the New York economy remained highly
dependent on the financial services sector, making it more susceptible to
economic cycles. In March 2006, unemployment in New York stood at 4.7%, down
from 4.8% in March 2005.
As of March 2006, New York State general obligation bonds were rated Aa3 by
Moody's, AA by S&P, and AA- by Fitch; all three rating agencies maintained a
stable outlook for the state. In February 2006, S&P upgraded the credit rating
on New York personal income tax (PIT) bonds to AAA from AA. S&P's upgrade of the
PIT credits, which are issued by public authorities such as New York Dormitory
Authority, New York Urban Development Corporation, New York Housing Finance
Authority, and New York Thruway Authority, affected billions of dollars of debt
and served as an indication of the state's improving financial status. New York
City's credit rating was upgraded by Moody's (A1 from A2) and S&P (A+ from A) in
April and May 2005, respectively, representing the highest ratings ever given
New York City by these agencies. During the reporting period ended March 31,
2006, municipal issuance in New York totaled $42.5 billion, a decrease of 3%
from the previous 12 months. The first three months of 2006 saw state supply
drop off more precipitously, with $6.1 billion in new issuance, down 38% from
the first quarter of 2005. For the annual period, New York ranked second only to
California in terms of municipal issuance.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE
12 MONTHS ENDED MARCH 31, 2006?
As interest rates rose and the yield curve flattened, one of our key strategies
continued to be careful duration1 management. Our purchase activity during this
period focused on the varying duration needs of the Portfolios. For the three
national Portfolios, we sought to purchase attractively priced bonds with more
than 15 years to maturity, and we looked for bonds that mature in 10 to 20 years
for NXN. For NXC, we continued to see a substantial number of advance
refundings2 in the California market. While these refundings benefited NXC's
performance during this period, they also had a shortening effect on the
Portfolio's duration. Our purchase activity in this Portfolio therefore
emphasized longer bonds maturing in 20 to 30 years.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
6
To help us maintain the Portfolios' durations within a preferred strategic
range, we were also selectively selling holdings with shorter durations,
including bonds priced to short call dates and, in NXN, bonds that were
currently callable and short-dated pre-refunded bonds. Selling these shorter
duration bonds and reinvesting further out on the yield curve also helped to
improve the Portfolios' overall call protection profiles.
In NXN, rising yields during this period also provided some opportunities to
sell a few of our holdings that were purchased when yields were lower and
replace them with similar, newer credits that yielded comparatively more. This
process allowed us to maintain NXN's current portfolio characteristics while
strengthening its income stream. It also enabled us to realize some capital
losses that can be used to offset any capital gains realized in 2006 or carried
forward to offset future realized gains.
In looking for potential purchase candidates during this period, we kept an
opportunistic eye toward all types of issuance that we believed could add value
to the Portfolios. In general, portfolio activity was relatively light, due in
part to the overall decline in municipal supply, especially during the last
three months of this period. Much of the new supply was highly rated and/or
insured, and the majority of our new purchases during this time were
higher-rated credits.
In the national Portfolios, we added some zero coupon bonds, purchased at times
when we believed these credits were attractively priced. Zero coupon bonds
feature very long durations and were helpful as part of our duration management
strategies in extending the Portfolios' average maturities and durations. In
addition, zeros' long durations helped to place them among the best performing
sectors of the market during this period. In general, we looked to states with
stronger issuance, including New York, Texas, Illinois, Massachusetts, and New
Jersey, for opportunities to add value to our National Portfolios. Overall, the
Portfolios remained well diversified geographically. We should also note that,
during this period, we reached a settlement agreement with United Airlines,
which emerged from bankruptcy in February 2006.
7
In NXN, we participated in one of the larger issues of the period, the $950
million Long Island Power Authority (LIPA) offering in March 2006. The LIPA
bonds were issued in two series, the first of which refinanced bonds issued by
LIPA in 1998 and the second of which will be used to reimburse LIPA's treasury
for capital improvements. We purchased a significant amount of these insured
bonds for NXN, both to replace the 1998 LIPA bonds that were advance refunded
and to add to our position in these credits.
While we continued to emphasize maintaining the Portfolios' weightings of bonds
rated BBB or lower and nonrated bonds, tighter supply meant fewer opportunities
to find additional lower-rated issues that we believed represented value for
shareholders. One area where we did find opportunities to purchase lower-rated
bonds was the tobacco sector. In NXN, we participated in the $1.4 billion
issuance of BBB rated tobacco bonds by TSASC, Inc. New York in February 2006,
and in NXC, we added BBB rated tobacco bonds issued by Sonoma County. Although
the Sonoma County bonds had lower coupons and shorter maturities than we had
strategically targeted for NXC during this period, we believed that this was
offset by the attractive structures and return potential offered by these
credits. In NXC, we also further diversified our exposure to the lower end of
the credit spectrum by purchasing BBB+ bonds issued for Daughters of Charity
Health System and A3 rated credits issued for Cedars-Sinai Medical Center.
8
HOW DID THE PORTFOLIOS PERFORM?
Individual results for the Nuveen Select Portfolios, as well as for relevant
indexes and peer groups, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 3/31/06
NATIONAL PORTFOLIOS 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NXP 4.74% 5.21% 5.63%
--------------------------------------------------------------------------------
NXQ 5.12% 4.99% 5.46%
--------------------------------------------------------------------------------
NXR 5.10% 5.00% 5.61%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index3 3.81% 5.18% 5.87%
--------------------------------------------------------------------------------
Lipper General and
Insured Unleveraged
Municipal Debt Funds
Average4 5.08% 5.05% 5.47%
--------------------------------------------------------------------------------
CALIFORNIA PORTFOLIO
--------------------------------------------------------------------------------
NXC 5.17% 5.03% 5.56%
--------------------------------------------------------------------------------
Lehman Brothers CA
Tax-Exempt
Bond Index3 4.37% 5.29% 6.02%
--------------------------------------------------------------------------------
Lipper CA
Municipal Debt Funds
Average4 6.54% 6.62% 6.57%
--------------------------------------------------------------------------------
NEW YORK PORTFOLIO
--------------------------------------------------------------------------------
NXN 4.19% 4.79% 5.32%
--------------------------------------------------------------------------------
Lehman Brothers NY
Tax-Exempt
Bond Index3 3.68% 5.06% 5.98%
--------------------------------------------------------------------------------
Lipper NY
Municipal Debt Funds
Average4 5.81% 6.44% 6.28%
--------------------------------------------------------------------------------
* Annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Portfolio distributions or upon the
sale of Portfolio shares.
For additional information, see the individual Performance Overview for your
Portfolio in this report.
3 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index containing a broad range of investment-grade municipal
bonds. The Lehman Brothers Tax-Exempt Bond Indexes for California and New
York are also unleveraged and unmanaged and comprise a broad range of
municipal bonds issued in California and New York, respectively. Results
for the Lehman indexes do not reflect any expenses.
4 Each of the Lipper Municipal Debt Funds averages shown in this report are
calculated using the returns of all exchange-traded closed-end funds in
their respective categories for each period as follows: Lipper General and
Insured Unleveraged category, 1 year, 8; 5 years, 8; and 10 years, 8;
Lipper California category, 1 year, 26; 5 years, 16; and 10 years, 13; and
Lipper New York category, 1 year, 20; 5 years, 10; and 10 years, 7.
Portfolio and Lipper returns assume reinvestment of dividends.
9
For the 12 months ended March 31, 2006, the total returns on net asset value
(NAV) for all five Select Portfolios outperformed the returns on their
respective Lehman Brothers benchmarks. NXQ and NXR performed in line with the
Lipper General and Insured Unleveraged peer group for this period, while NXP
trailed this average. Both NXC and NXN underperformed the average returns for
their respective Lipper California and New York peer groups. The strong
performances of the Lipper peer groups for California and New York are due in
part to the fact that the majority of the funds that make up these groups are
leveraged. This strategy provides opportunities for enhanced returns accompanied
by additional risk exposure. NXC and NXN are not leveraged, which hurt their
performance relative to their peer groups over this period.
During this reporting period, positive contributors to the Portfolios' returns
included yield curve and duration positioning, allocations to lower-rated
credits, and pre-refunding activity. NXC's holdings of California general
obligation debt were also positively impacted by Moody's and Fitch's upgrades of
these bonds in July 2005. In addition, the credit quality and value of NXN was
enhanced by Moody's and S&P's upgrades of New York City GO bonds in April and
May 2005, respectively, as well as S&P's upgrade of New York personal income tax
(PIT) bonds in February 2006. In addition, security-specific issues--including
security selection, credit spreads, and the timing and amount of advance
refundings--accounted for some of the Portfolios' performances during this
period.
As the yield curve continued to flatten over the course of this period, yield
curve and duration positioning played important roles in the Portfolios'
performances. On the whole, short and intermediate bonds were the most impacted
by the changes in the yield curve during this period. As a result, these bonds
generally underperformed longer bonds as well as the municipal market as a
whole, with credits having the longest durations posting the best returns for
this period. Our efforts to position the Portfolios more advantageously along
the yield curve, or--more specifically--greater exposure to those parts of the
yield curve that performed well and less exposure to the parts of the curve that
underperformed, helped their performances during this period.
With bonds rated BBB or lower and nonrated bonds generally outperforming other
credit quality sectors during this period, all of these Portfolios benefited
from their allocations of lower-quality credits. The performance of this sector
was largely the result of investor demand for the higher yields typically
associated with lower-quality bonds, which drove
10
up their value and kept credit spreads narrow. As of March 31, 2006, bonds rated
BBB or lower and nonrated bonds accounted for 5% of NXR's portfolio, 6% of NXN,
10% of NXC, and 11% of NXP and NXQ.
Among the lower-rated holdings making contributions to the Portfolios' total
returns for this period were healthcare (including hospitals) and tobacco
credits. At period end, the national Portfolios each held between 3% and 6% of
their portfolios in unenhanced, uninsured tobacco bonds, while NXC and NXN had
allocations of approximately 2% to these credits.
We continued to see a number of advance refundings during this period, which
benefited the Portfolios through price appreciation and enhanced credit quality.
Both NXQ and NXR had positions ($4.5 million and $6.7 million, respectively) in
tobacco credits issued by the Iowa Tobacco Settlement Authority that were
pre-refunded. Approximately 7% of NXC was advance-refunded during this period,
including a $2 million position in A2 rated power supply revenue bonds issued
for the California Department of Water Resources.
While advance refundings generally enhanced performance for this period, the
rising interest rate environment--especially at the short end of the yield
curve--meant that the Portfolios' holdings of older, previously pre-refunded
bonds tended to underperform the general municipal market, due primarily to the
shorter effective maturities of these bonds. This was especially true in NXP,
which had the largest allocation of pre-refunded bonds among the three national
Portfolios.
HOW WERE THE PORTFOLIOS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS
OF MARCH 31, 2006?
We continued to believe that maintaining strong credit quality was an important
requirement. As of March 31, 2006, these five Portfolios continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 69% in NXC to 74% in NXP, 78% in NXQ and NXR to 92% in NXN.
As of March 31, 2006, potential call exposure for these Portfolios for the
period April 2006 through the end of 2007 ranged from 3% in NXN to 6% in NXC,
8% in NXP, 9% in NXQ, and 12% in NXR. We continued to work to manage the call
structure of all of these Portfolios. The number of actual bond calls will
depend largely on future market interest rates.
11
Dividend and Share Price
INFORMATION
During the 12-month reporting period ended March 31, 2006, the Portfolios'
income streams were impacted as proceeds from older, higher-yielding bonds that
matured or were called or pre-refunded were reinvested into bonds generally
offering lower yields. This resulted in one monthly dividend reduction in NXQ,
NXR, NXC, and NXN during this period. The dividend of NXP remained stable
throughout the reporting period.
Due to capital gains generated by normal portfolio activity, shareholders of
these Portfolios received capital gains and net ordinary income distributions at
the end of December 2005, as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NXP $0.0006 --
--------------------------------------------------------------------------------
NXQ $0.0148 --
--------------------------------------------------------------------------------
NXR $0.0029 --
--------------------------------------------------------------------------------
NXC $0.0528 $0.0079
--------------------------------------------------------------------------------
NXN $0.0655 --
--------------------------------------------------------------------------------
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, 2006, each of the Funds in this report, with the
exception of NXP, had a negative UNII balance for financial statement purposes
and a positive UNIIbalance for tax purposes. As of March 31, 2006, NXPhad a
positive UNIIbalance for both financial statement and tax purposes.
12
At the end of the reporting period on March 31, 2006, the share prices of the
Nuveen Select Portfolios were trading at discounts to their NAVs as shown in the
accompanying chart:
3/31/06 12-MONTH AVERAGE
DISCOUNT DISCOUNT
--------------------------------------------------------------------------------
NXP -2.80% -3.75%
--------------------------------------------------------------------------------
NXQ -7.41% -7.71%
--------------------------------------------------------------------------------
NXR -5.88% -7.85%
--------------------------------------------------------------------------------
NXC -6.93% -5.87%
--------------------------------------------------------------------------------
NXN -5.92% -5.76%
--------------------------------------------------------------------------------
13
Nuveen Select Tax-Free Income Portfolio
NXP
Performance
OVERVIEW As of March 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total municipal bonds)
AAA/U.S. Guaranteed 60%
AA 14%
A 15%
BBB 10%
BB or Lower 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.057
May 0.057
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.057
Oct 0.057
Nov 0.057
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.
4/01/05 13.62
13.58
13.56
13.59
13.71
13.84
13.72
14
14.02
13.88
13.86
13.79
13.8
13.67
13.92
13.99
13.94
13.9
13.87
13.99
13.95
13.95
13.87
13.98
14.03
14.17
14.12
14.23
14.21
14.2
14.02
13.95
14.07
14.13
14.2
14.11
14.01
14.05
14.11
14.18
14.18
14.2
14.16
14.27
14.26
14.31
14.25
14.29
14.27
14.15
14.09
14.07
13.99
14
13.96
14.02
13.99
14.08
14.08
14.1
14
14.02
14.04
14.01
14.05
13.98
13.95
14.01
13.98
14.07
14.01
14.08
14.06
14.05
14.06
14.06
14.01
14.16
14.17
14.18
14.09
14
14.05
14.16
14.18
14.18
14.2
14.34
14.39
14.4
14.19
14.12
14.1
14.04
13.92
13.9
13.93
13.97
14.02
14.15
14.05
14.34
14.35
14.35
14.26
14.35
14.4
14.31
14.24
14.35
14.37
14.36
14.37
14.47
14.48
14.45
14.29
14.16
14.15
13.97
14.31
14.26
14.36
14.33
14.33
14.23
14.22
14.43
14.54
14.55
14.55
14.52
14.51
14.47
14.39
14.47
14.49
14.38
14.37
14.25
14.32
14.14
14.22
14.11
14.32
14.13
14.23
14.03
14.02
14
14.16
14.23
14.34
14.25
14.42
14.34
14.32
14.03
13.9
13.8
13.91
13.72
13.81
13.79
13.86
13.9
14.04
14.02
13.86
13.79
13.77
13.95
14.11
14.1
14.21
14.24
14.36
14.38
14.52
14.5
14.2
14.41
14.27
14.35
14.3
14.38
14.4
14.3
14.64
14.26
14.34
14.22
14.19
14.19
14.1
14.27
14.29
14.4
14.55
14.42
14.21
14.19
14.22
14.29
14.6
14.63
14.61
14.35
14.56
14.41
14.34
14.33
14.45
14.47
14.4
14.37
14.26
14.47
14.38
14.45
14.34
14.39
14.22
14.19
14.22
14.19
14.24
14.3
14.4
14.22
14.35
14.37
14.41
14.41
14.52
14.42
14.25
14.27
14.27
14.39
14.39
14.41
14.4
14.44
14.47
14.45
14.39
14.34
14.37
14.38
14.45
14.36
14.39
14.33
14.29
3/31/06 14.21
FUND SNAPSHOT
------------------------------------
Share Price 14.21
------------------------------------
Net Asset Value 14.62
------------------------------------
Premium/(Discount) to NAV -2.80%
------------------------------------
Market Yield 4.81%
------------------------------------
Taxable-Equivalent Yield1 6.68%
------------------------------------
Net Assets ($000) $239,406
------------------------------------
Average Effective
Maturity on Securities (Years) 14.72
------------------------------------
Modified Duration 5.19
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 10.41% 4.74%
------------------------------------
5-Year 5.71% 5.21%
------------------------------------
10-Year 5.57% 5.63%
------------------------------------
STATES
(as a % of total municipal bonds)
------------------------------------
Illinois 14.3%
------------------------------------
Colorado 13.4%
------------------------------------
Washington 9.5%
------------------------------------
Texas 8.8%
------------------------------------
Indiana 8.4%
------------------------------------
South Carolina 7.7%
------------------------------------
Nevada 6.8%
------------------------------------
California 4.7%
------------------------------------
Florida 4.6%
------------------------------------
New Jersey 2.7%
------------------------------------
Oklahoma 2.2%
------------------------------------
Michigan 1.7%
------------------------------------
New Mexico 1.7%
------------------------------------
Wisconsin 1.7%
------------------------------------
Mississippi 1.6%
------------------------------------
Other 10.2%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 22.2%
------------------------------------
U.S. Guaranteed 17.2%
------------------------------------
Transportation 14.6%
------------------------------------
Tax Obligation/Limited 11.9%
------------------------------------
Tax Obligation/General 11.9%
------------------------------------
Utilities 8.7%
------------------------------------
Consumer Staples 5.0%
------------------------------------
Other 8.5%
------------------------------------
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%. When comparing
this Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2005 of
$0.0006 per share.
14
Nuveen Select Tax-Free Income Portfolio 2
NXQ
Performance
OVERVIEW As of March 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total municipal bonds)
AAA/U.S. Guaranteed 61%
AA 17%
A 11%
BBB 10%
BB or Lower 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.055
May 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Oct 0.055
Nov 0.055
Dec 0.053
Jan 0.053
Feb 0.053
Mar 0.053
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
4/01/05 13.16
13.15
13.1
13.12
13.06
13.06
13.04
13.11
13.1
13.05
13.13
13.08
13.12
13.12
13.09
13.04
13.1
13.1
13.1
13.17
13.16
13.16
13.27
13.2
13.23
13.17
13.18
13.27
13.17
13.26
13.21
13.2
13.28
13.25
13.28
13.33
13.26
13.27
13.34
13.34
13.4
13.4
13.44
13.51
13.48
13.56
13.49
13.51
13.57
13.56
13.56
13.45
13.5
13.52
13.47
13.51
13.52
13.53
13.53
13.56
13.51
13.5
13.5
13.53
13.55
13.54
13.52
13.53
13.51
13.61
13.53
13.6
13.57
13.55
13.55
13.48
13.56
13.6
13.5
13.49
13.51
13.52
13.55
13.58
13.59
13.59
13.63
13.61
13.69
13.62
13.5
13.51
13.5
13.6
13.52
13.47
13.5
13.62
13.66
13.64
13.57
13.6
13.55
13.56
13.6
13.6
13.62
13.61
13.76
13.77
13.78
13.81
13.8
13.79
13.82
13.74
13.62
13.54
13.53
13.58
13.58
13.48
13.5
13.44
13.45
13.47
13.46
13.52
13.55
13.56
13.58
13.53
13.53
13.45
13.6
13.53
13.49
13.34
13.29
13.29
13.33
13.31
13.33
13.29
13.42
13.49
13.44
13.2
13.34
13.26
13.47
13.38
13.34
13.32
13.34
13.33
13.42
13.42
13.42
13.4
13.37
13.3
13.37
13.37
13.36
13.43
13.35
13.42
13.35
13.4
13.34
13.37
13.34
13.32
13.32
13.26
13.32
13.34
13.34
13.31
13.14
13.14
13.22
13.27
13.26
13.26
13.21
13.2
13.31
13.29
13.33
13.27
13.33
13.33
13.33
13.38
13.38
13.38
13.39
13.37
13.27
13.25
13.31
13.32
13.32
13.27
13.28
13.28
13.37
13.34
13.31
13.32
13.37
13.41
13.31
13.32
13.34
13.41
13.38
13.41
13.35
13.41
13.39
13.31
13.32
13.32
13.4
13.47
13.44
13.4
13.43
13.37
13.4
13.42
13.38
13.34
13.24
13.22
13.23
13.29
13.3
13.32
13.32
13.27
13.38
13.34
13.37
13.44
13.5
13.46
13.5
13.49
13.49
13.5
13.5
3/31/06 13.37
FUND SNAPSHOT
------------------------------------
Share Price 13.37
------------------------------------
Net Asset Value 14.44
------------------------------------
Premium/(Discount) to NAV -7.41%
------------------------------------
Market Yield 4.76%
------------------------------------
Taxable-Equivalent Yield1 6.61%
------------------------------------
Net Assets ($000) $254,205
------------------------------------
Average Effective
Maturity on Securities (Years) 17.39
------------------------------------
Modified Duration 5.11
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/21/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 7.39% 5.12%
------------------------------------
5-Year 4.84% 4.99%
------------------------------------
10-Year 4.95% 5.46%
------------------------------------
STATES
(as a % of total municipal bonds)
------------------------------------
Illinois 14.2%
------------------------------------
Texas 12.4%
------------------------------------
Colorado 8.7%
------------------------------------
Nevada 7.7%
------------------------------------
California 7.5%
------------------------------------
New York 5.6%
------------------------------------
South Carolina 4.5%
------------------------------------
Washington 3.6%
------------------------------------
Massachusetts 3.2%
------------------------------------
Indiana 3.1%
------------------------------------
Vermont 2.7%
------------------------------------
Pennsylvania 2.7%
------------------------------------
New Mexico 2.5%
------------------------------------
Iowa 2.3%
------------------------------------
Louisiana 2.1%
------------------------------------
Rhode Island 2.1%
------------------------------------
Wisconsin 2.1%
------------------------------------
Michigan 2.0%
------------------------------------
Other 11.0%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 21.4%
------------------------------------
Transportation 15.7%
------------------------------------
Tax Obligation/Limited 12.4%
------------------------------------
Tax Obligation/General 10.8%
------------------------------------
U.S. Guaranteed 9.0%
------------------------------------
Utilities 7.6%
------------------------------------
Consumer Staples 5.5%
------------------------------------
Housing/Multifamily 4.1%
------------------------------------
Other 13.5%
------------------------------------
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%. When comparing
this Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2005 of
$0.0148 per share.
15
Nuveen Select Tax-Free Income Portfolio 3
NXR
Performance
OVERVIEW As of March 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total municipal bonds)
AAA/U.S. Guaranteed 51%
AA 27%
A 17%
BBB 5%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.0545
May 0.0545
Jun 0.0535
Jul 0.0535
Aug 0.0535
Sep 0.0535
Oct 0.0535
Nov 0.0535
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.
4/01/05 12.83
12.89
12.81
12.9
12.88
12.9
12.95
12.95
13.02
13.07
13.11
13.25
13.07
12.98
13
12.96
12.98
13.03
13.01
13.1
13.13
13.13
13.11
13.09
13.06
13.04
13.02
13
13.04
13.05
13.01
13.05
13.13
13.15
13.18
13.13
13.1
13.18
13.16
13.16
13.17
13.23
13.23
13.31
13.36
13.38
13.32
13.36
13.38
13.38
13.39
13.27
13.31
13.29
13.31
13.28
13.31
13.33
13.36
13.42
13.44
13.41
13.41
13.35
13.35
13.36
13.27
13.33
13.36
13.39
13.43
13.38
13.37
13.38
13.42
13.34
13.36
13.32
13.36
13.36
13.37
13.32
13.34
13.35
13.31
13.31
13.34
13.31
13.4
13.33
13.26
13.25
13.3
13.28
13.34
13.24
13.26
13.34
13.24
13.34
13.29
13.36
13.41
13.32
13.33
13.38
13.34
13.34
13.45
13.47
13.47
13.49
13.65
13.63
13.65
13.61
13.56
13.52
13.42
13.33
13.34
13.28
13.35
13.28
13.36
13.36
13.37
13.39
13.3
13.25
13.32
13.34
13.39
13.26
13.32
13.23
13.34
13.17
13.14
13.16
13.06
13.16
13.17
13.07
13.2
13.15
13.2
13.07
13.02
13.08
13.22
13.24
13.26
13.16
13.31
13.19
13.27
13.27
13.25
13.12
13.04
13.14
13.06
13.09
13.15
13.24
13.18
13.23
13.15
13.28
13.3
13.32
13.15
13.23
13.24
13.3
13.24
13.27
13.39
13.3
13.2
13.12
13.21
13.27
13.2
13.25
13.2
13.17
13.3
13.28
13.27
13.25
13.31
13.31
13.27
13.27
13.22
13.27
13.28
13.32
13.2
13.23
13.28
13.27
13.31
13.31
13.31
13.3
13.32
13.29
13.3
13.21
13.31
13.34
13.23
13.23
13.37
13.3
13.22
13.26
13.29
13.33
13.34
13.34
13.32
13.36
13.42
13.5
13.42
13.4
13.38
13.31
13.5
13.45
13.4
13.22
13.21
13.17
13.29
13.23
13.25
13.25
13.25
13.18
13.2
13.13
13.26
13.21
13.22
13.18
13.23
13.3
13.28
13.39
13.32
3/31/06 13.45
FUND SNAPSHOT
------------------------------------
Share Price 13.45
------------------------------------
Net Asset Value 14.29
------------------------------------
Premium/(Discount) to NAV -5.88%
------------------------------------
Market Yield 4.77%
------------------------------------
Taxable-Equivalent Yield1 6.63%
------------------------------------
Net Assets ($000) $185,233
------------------------------------
Average Effective
Maturity on Securities (Years) 15.51
------------------------------------
Modified Duration 5.05
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/24/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 10.12% 5.10%
------------------------------------
5-Year 5.37% 5.00%
------------------------------------
10-Year 5.75% 5.61%
------------------------------------
STATES
(as a % of total municipal bonds)
------------------------------------
Illinois 19.2%
------------------------------------
Texas 13.9%
------------------------------------
Indiana 6.7%
------------------------------------
Colorado 6.0%
------------------------------------
California 5.4%
------------------------------------
Michigan 5.3%
------------------------------------
Florida 5.2%
------------------------------------
Nevada 5.1%
------------------------------------
North Carolina 4.4%
------------------------------------
Iowa 4.0%
------------------------------------
New York 3.6%
------------------------------------
South Carolina 3.3%
------------------------------------
Pennsylvania 2.5%
------------------------------------
New Mexico 2.2%
------------------------------------
Nebraska 2.0%
------------------------------------
Other 11.2%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 22.2%
------------------------------------
Utilities 19.4%
------------------------------------
Tax Obligation/Limited 13.7%
------------------------------------
U.S. Guaranteed 11.9%
------------------------------------
Transportation 9.4%
------------------------------------
Tax Obligation/General 9.4%
------------------------------------
Education and
Civic Organizations 6.5%
------------------------------------
Other 7.5%
------------------------------------
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%. When comparing
this Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2005 of
$0.0029 per share.
16
Nuveen California Select Tax-Free Income Portfolio
NXC
Performance
OVERVIEW As of March 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 66%
AA 3%
A 21%
BBB 8%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.055
May 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Oct 0.055
Nov 0.055
Dec 0.053
Jan 0.053
Feb 0.053
Mar 0.053
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
4/01/05 13.48
13.37
13.34
13.32
13.3
13.21
13.26
13.22
13.26
13.36
13.45
13.38
13.42
13.5
13.43
13.34
13.35
13.5
13.59
13.6
13.65
13.65
13.42
13.46
13.59
13.57
13.47
13.63
13.53
13.57
13.5
13.48
13.54
13.81
13.77
13.77
13.83
13.8
13.78
13.78
13.76
13.85
13.76
13.88
13.84
13.83
13.83
13.85
13.85
13.83
13.86
13.71
13.89
13.8
13.87
13.9
13.9
13.85
13.9
13.98
13.94
13.88
13.88
13.97
13.98
14
14.18
14.2
14.37
14.33
14.15
14.2
14.29
14.17
14.12
14.12
14.17
14.08
14.07
14.19
14.49
14.49
14.45
14.23
14.09
14.09
14.09
14.06
14.05
14.03
13.95
13.94
13.85
13.77
13.64
13.61
13.56
13.54
13.55
13.55
13.65
13.75
13.75
13.8
13.82
13.82
13.85
13.81
13.86
13.89
13.96
14
13.98
14
14.11
14.12
14.05
14.07
14.18
14.18
14.21
14.24
14.35
14.38
14.35
14.29
14.31
14.27
14.26
14.23
14.3
14.3
14.3
14.27
14.26
14.22
14.26
14.16
14.05
14.12
13.96
14.1
14
14.02
13.91
13.88
13.73
13.74
13.86
13.89
13.93
13.92
13.92
14.02
13.91
13.9
13.93
14.01
14.2
14.15
13.9
13.89
13.87
13.97
13.98
14
14.02
14.05
13.9
13.91
13.92
13.97
13.99
13.96
14
14
14.13
14.16
14.19
14.15
13.94
14.02
13.81
13.8
13.8
13.76
13.78
13.81
13.74
13.62
13.69
13.66
13.7
13.7
13.8
13.98
14.12
14.26
14.1
14.03
13.97
13.8
13.88
13.88
13.95
13.95
13.87
13.8
13.68
13.67
13.67
13.68
13.65
13.65
13.67
13.63
13.63
13.7
13.68
13.7
13.72
13.73
13.74
13.75
13.74
13.84
13.8
13.75
13.86
13.81
13.77
13.79
13.72
13.67
13.79
13.6
13.61
13.61
13.61
13.6
13.6
13.58
13.55
13.55
13.61
13.62
13.63
13.64
13.54
13.6
13.55
13.61
13.53
13.56
13.5
3/31/06 13.56
FUND SNAPSHOT
------------------------------------
Share Price 13.56
------------------------------------
Net Asset Value 14.57
------------------------------------
Premium/(Discount) to NAV -6.93%
------------------------------------
Market Yield 4.69%
------------------------------------
Taxable-Equivalent Yield1 7.16%
------------------------------------
Net Assets ($000) $91,152
------------------------------------
Average Effective
Maturity on Securities (Years) 14.48
------------------------------------
Modified Duration 5.88
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 6.52% 5.17%
------------------------------------
5-Year 5.03% 5.03%
------------------------------------
10-Year 5.11% 5.56%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.6%
------------------------------------
Tax Obligation/Limited 16.7%
------------------------------------
Education and
Civic Organizations 12.4%
------------------------------------
Transportation 11.5%
------------------------------------
U.S. Guaranteed 10.3%
------------------------------------
Health Care 9.3%
------------------------------------
Water and Sewer 7.8%
------------------------------------
Other 8.4%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0607 per share.
17
Nuveen New York Select Tax-Free Income Portfolio
NXN
Performance
OVERVIEW As of March 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 80%
AA 12%
A 2%
BBB 5%
BB or Lower 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Apr 0.0535
May 0.0535
Jun 0.051
Jul 0.051
Aug 0.051
Sep 0.051
Oct 0.051
Nov 0.051
Dec 0.051
Jan 0.051
Feb 0.051
Mar 0.051
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
4/01/05 13.75
13.75
13.75
13.75
13.83
13.83
13.83
13.83
13.9
13.82
13.8
13.86
13.9
13.82
13.79
13.79
13.82
13.89
14.01
14.45
14.39
14.39
14.32
14.4
14.23
14.09
14
14.02
14
13.93
13.93
13.9
13.94
13.96
14.02
13.92
13.99
14.06
14.08
14.08
14.13
14.15
14.04
14.22
14.26
14.25
14.51
14.48
14.39
14.32
14.25
14.15
14
13.88
13.88
13.98
13.99
14.02
14.06
14.09
14.15
14.18
14.28
14.25
14.29
14.34
14.35
14.35
14.35
14.1
14.5
14.78
14.45
14.24
14.24
14.16
14.16
14.2
14.19
14.19
14.19
14.1
14.02
14.04
14.04
14.04
14
14.02
13.91
13.9
13.83
13.82
13.83
13.87
13.72
13.7
13.6
13.61
13.62
13.62
13.6
13.63
13.63
13.67
13.64
13.73
13.78
13.75
13.79
13.81
13.78
13.8
13.77
13.77
13.8
13.94
13.87
13.87
13.88
13.87
13.9
13.9
13.9
13.81
13.7
13.53
13.6
13.53
13.53
13.55
13.8
13.61
13.56
13.57
13.42
13.35
13.47
13.38
13.29
13.12
13.13
12.98
12.97
12.96
12.93
13.02
13.06
13
13.16
13.1
13
13.04
13.01
13.01
13.03
12.98
13
13.07
13.05
13.05
12.5
12.74
12.75
12.87
12.86
12.87
12.82
12.78
12.8
12.89
12.85
12.82
12.89
12.91
12.96
12.98
12.95
13.18
12.96
12.88
12.82
12.76
12.75
12.95
12.86
12.9
12.82
12.86
12.92
12.87
12.98
13.12
13.08
13.08
13.15
13.29
13.35
13.3
13.22
13.35
13.35
13.29
13.2
13.24
13.25
13.24
13.28
13.35
13.3
13.25
13.2
13.12
13.15
13.17
13.18
13.14
13.06
13.1
13.12
13.18
13.16
13.22
13.18
13.18
13.21
13.18
13.29
13.3
13.25
13.24
13.29
13.29
13.35
13.27
13.36
13.33
13.11
13.15
13.18
13.23
13.26
13.17
13.13
13.16
13.25
13.2
13.33
13.19
13.26
13.2
13.2
13.27
13.22
13.45
13.44
3/31/06 13.35
FUND SNAPSHOT
------------------------------------
Share Price 13.35
------------------------------------
Net Asset Value 14.19
------------------------------------
Premium/(Discount) to NAV -5.92%
------------------------------------
Market Yield 4.58%
------------------------------------
Taxable-Equivalent Yield1 6.84%
------------------------------------
Net Assets ($000) $55,473
------------------------------------
Average Effective
Maturity on Securities (Years) 16.14
------------------------------------
Modified Duration 5.54
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.84% 4.19%
------------------------------------
5-Year 4.45% 4.79%
------------------------------------
10-Year 5.49% 5.32%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 14.0%
------------------------------------
Water and Sewer 12.5%
------------------------------------
Health Care 12.0%
------------------------------------
Long-Term Care 9.5%
------------------------------------
U.S. Guaranteed 9.5%
------------------------------------
Education and
Civic Organizations 9.3%
------------------------------------
Housing/Single Family 8.4%
------------------------------------
Utilities 7.3%
------------------------------------
Tax Obligation/General 6.1%
------------------------------------
Housing/Multifamily 5.3%
------------------------------------
Other 6.1%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2005 of
$0.0655 per share.
18
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Select Tax-Free Income Portfolio,
Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income
Portfolio 3, Nuveen California Select Tax-Free Income Portfolio, and Nuveen New
York Select Tax-Free Income Portfolio, as of March 31, 2006, 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, 2006, 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
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, 2006, the results of their operations for the year then ended, changes in
their net assets for each of the two years in the period then ended, and their
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 11, 2006
19
Nuveen Select Tax-Free Income Portfolio (NXP)
Portfolio of
INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 97.9%
ALASKA - 1.1%
$ 2,475 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA $ 2,649,215
Bonds, Series 2003E, 5.250%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.6%
2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,530,920
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 3,721,274
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
200 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 209,048
Refunding, Merrithew Memorial Hospital Replacement,
Series 1997, 5.375%, 11/01/17 - MBIA Insured
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,363,510
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 1,160,171
Waterworks Revenue Refunding Bonds, Series 2001A,
5.125%, 7/01/41 - FGIC Insured
365 Los Angeles, California, Parking System Revenue Bonds, 5/09 at 101.00 AAA 382,119
Series 1999A, 5.250%, 5/01/29 - AMBAC Insured
750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 757,740
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
10,770 Total California 11,124,782
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 13.2%
1,300 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA 1,384,526
Health Initiatives, Series 2002A, 5.500%, 3/01/22
1,700 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (3) 1,836,544
Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
1,000 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 AAA 1,083,630
Small Water Resources Revenue Bonds, Series 2000A,
5.800%, 11/01/20 - FGIC Insured
10,750 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 12,173,404
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 652,928
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 234,646
Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,321,050
Refunding Bonds, Series 2001A, 5.625%, 11/15/17 - FGIC
Insured (Alternative Minimum Tax)
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 1,038,960
3,000 5.000%, 12/01/23 - XLCA Insured 12/13 at 100.00 AAA 3,112,920
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,328,200
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded
9/01/10) - MBIA Insured
3,160 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 3,435,268
Revenue Bonds, Senior Series 2001A, 5.500%, 6/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,780 Total Colorado 31,602,076
------------------------------------------------------------------------------------------------------------------------------------
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.5%
$ 1,000 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA $ 1,027,550
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured (ETM)
265 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA 281,555
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,265 Total District of Columbia 1,309,105
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.6%
450 Escambia County, Florida, Pollution Control Revenue Bonds, 6/06 at 100.00 BBB 455,211
Champion International Corporation, Series 1993,
5.875%, 6/01/22 (Alternative Minimum Tax)
10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 10,456,700
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
10,450 Total Florida 10,911,911
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.6%
1,330 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,378,545
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.0%
1,965 Board of Trustees of Southern Illinois University, Housing No Opt. Call AAA 1,029,640
and Auxiliary Facilities System Revenue Bonds, Series 1999A,
0.000%, 4/01/20 - MBIA Insured
Chicago Heights, Illinois, General Obligation Corporate Purpose
Bonds, Series 1993:
3,820 5.650%, 12/01/15 - FGIC Insured 12/08 at 100.00 AAA 3,996,904
2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 AAA 2,719,600
195 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 208,892
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 - FSA Insured
805 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 871,767
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured
1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101.00 A 1,026,640
Midwestern University, Series 1998B, 5.500%, 5/15/18 -
ACA Insured
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa3 646,836
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
4,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 4,244,440
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,387,954
Memorial Hospital, Series 2001, 5.600%, 10/01/16
2,700 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 2,913,732
Forest Hospital, Series 2002A, 6.000%, 7/01/17
300 Illinois Health Facilities Authority, Revenue Bonds, 5/06 at 100.00 AAA 300,324
Rush-Presbyterian St. Luke's Medical Center Obligated Group,
Series 1993, 5.250%, 11/15/20 - MBIA Insured
2,275 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,507,823
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
1,075 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R (3) 1,107,669
Evangelical Hospitals Corporation, Series 1992B,
6.500%, 4/15/09 (ETM)
3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 1,907,344
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/17 - FGIC Insured
500 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 160,500
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 6/15/30 - MBIA Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 5,224,050
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 1,382,199
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 1,023,840
1,000 5.000%, 12/15/20 - RAAI Insured 12/11 at 100.00 AA 1,021,820
------------------------------------------------------------------------------------------------------------------------------------
34,580 Total Illinois 33,681,974
------------------------------------------------------------------------------------------------------------------------------------
21
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.3%
$ 5,000 Duneland School Building Corporation, Indiana, First Mortgage 2/09 at 101.00 AAA $ 5,207,750
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 1,043,000
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 2,317,680
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 10,560,618
Waterworks Project, Series 2002A, 5.125%, 7/01/21
(Pre-refunded 7/01/12) - MBIA Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 783,848
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,605 Total Indiana 19,912,896
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 796,425
Gas and Electric Compa ny, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5%
1,100 Jefferson County, Kentucky, Health System Revenue Bonds, 10/08 at 101.00 AAA 1,136,344
Alliant Health System Inc., Series 1998, 5.125%, 10/01/18 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.4%
1,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,051,780
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.4%
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 547,600
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17
410 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 414,715
System Revenue Bonds, Subordinate Series 1999A,
5.000%, 1/01/39 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
910 Total Massachusetts 962,315
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.7%
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 967,030
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,042,854
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
3,900 Total Michigan 4,009,884
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2%
345 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 354,629
Revenue Bonds, Series 1995A, 5.200%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
3,600 Calhoun County, Mississippi, Solid Waste Disposal Revenue 4/07 at 103.00 BBB 3,787,272
Bonds, Weyerhauser Company Project, Series 1992,
6.875%, 4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7%
5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 1,580,050
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.7%
2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 2,607,850
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
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 $ 1,184,602
3,500 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,671,950
6,025 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 6,272,085
1,515 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 1,631,322
Series 2002, 5.500%, 6/01/21 - FGIC Insured
2,555 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 2,789,012
Series 2002, 5.500%, 6/01/21 (Pre-refunded 6/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,455 Total Nevada 16,156,821
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
510 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 514,136
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.9%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,583,475
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
1,820 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,892,017
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
4,320 Total New Jersey 4,475,492
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.7%
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,997,200
Revenue Bonds, Series 2004, 4.625%, 7/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.3%
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 1,035,870
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 1,723,408
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17
450 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 467,176
Revenue Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,050 Total New York 3,226,454
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4%
500 Appalachian State University, North Carolina, Utilities System 5/08 at 102.00 AAA 519,635
Revenue Refunding Bonds, Series 1998, 5.000%, 5/15/24 -
MBIA Insured
2,195 North Carolina Eastern Municipal Power Agency, Power System 7/06 at 100.00 BBB 2,202,178
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/21
500 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 530,975
Revenue Bonds, Series 2001A, 5.250%, 11/01/17 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,195 Total North Carolina 3,252,788
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.5%
300 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 323,415
Series 2001, 5.500%, 12/01/17 - AMBAC Insured
880 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 911,222
Securities Program Residential Mortgage Remarketed Revenue
Bonds, Series 1997A-1, 6.050%, 9/01/17 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,180 Total Ohio 1,234,637
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.1%
1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 1,009,480
Revenue Bonds, Series 2005, 5.375%, 9/01/36
4,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 4,116,440
St. John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Oklahoma 5,125,920
------------------------------------------------------------------------------------------------------------------------------------
23
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.8%
$ 500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ $ 519,740
Bonds, Widener University, Series 2003, 5.250%, 7/15/24
700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 766,290
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
520 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AAA 545,787
5.000%, 9/15/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,720 Total Pennsylvania 1,831,817
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.6%
1,000 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 1,047,780
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/20
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (3) 11,175,100
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded 12/01/12)
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,641,930
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- 2,620,725
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 1,804,555
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
16,720 Total South Carolina 18,290,090
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.7%
5,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 5,473,400
Texas, Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,548,828
General Obligation Refunding Bonds, Series 2002,
5.250%, 2/15/20
360 Dallas-Fort Worth International Airport Public Facility 1/09 at 100.00 AAA 374,710
Corporation, Texas, Airport Hotel Revenue Bonds,
Series 2001, 5.500%, 1/15/20 - FSA Insured
2,300 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,354,004
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 3,582,915
General Obligation Refunding Bonds, Series 2002A,
5.000%, 2/15/31
San Antonio, Texas, Water System Revenue Refunding Bonds,
Series 1992:
95 6.000%, 5/15/16 (Pre-refunded 5/15/07) - MBIA Insured 5/07 at 100.00 AAA 97,550
465 6.000%, 5/15/16 (Pre-refunded 5/15/12) - MBIA Insured 5/12 at 100.00 AAA 519,447
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,776,478
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,620 Total Texas 20,727,332
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4%
775 Utah State Building Ownership Authority, Lease Revenue Bonds, 11/11 at 100.00 AA+ 820,307
State Facilities Master Lease Program, Series 2001B,
5.250%, 5/15/24
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.4%
250 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 270,683
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.500%, 7/01/17 - MBIA Insured
5,700 Snohomish County Public Utility District 1, Washington, No Opt. Call Aaa 6,246,516
Generation System Revenue Bonds, Series 1989,
6.750%, 1/01/12 (ETM)
3,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 3,089,400
Bonds, Catholic Health Initiatives, Series 1997A,
5.125%, 12/01/17 - MBIA Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 9,750 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA $ 10,136,880
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
2,465 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,679,800
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
21,165 Total Washington 22,423,279
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8%
1,885 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,008,222
Bonds, Series 1992, 6.500%, 5/15/10 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
240 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 253,961
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,065,060
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.500%, 8/15/17
2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,593,300
Series 2003-3, 5.000%, 11/01/26
------------------------------------------------------------------------------------------------------------------------------------
3,740 Total Wisconsin 3,912,321
------------------------------------------------------------------------------------------------------------------------------------
$ 234,195 Total Long-Term Municipal Bonds (cost $221,079,981) 234,246,019
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL BONDS - 0.8%
2,000 New Jersey Economic Development Authority, Dock Facility VMIG-1 2,000,000
Revenue Refunding Bonds, Bayonne/IMTT Project, Variable
Rate Demand Obligations, Series 1993C, 3.140%, 12/01/27 (4)
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Total Short-Term Municipal Bonds (cost $2,000,000) 2,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (cost $223,079,981) 236,246,019
--------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.2%
AIRLINES - 0.2%
10,660 UAL Corporation (5) (6) 425,654
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $437,087) 425,654
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $223,517,068) - 98.9% 236,671,673
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,733,967
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 239,405,640
====================================================================================================================
(1) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(2) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
(5) Non-income producing.
(6) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds. On February 1,
2006, UAL emerged from federal bankruptcy with the
acceptance of its reorganization plan by the bankruptcy
court. Under the settlement agreement established to
meet UAL's unsecured bond obligations, the bondholders,
including the Fund, received three distributions of UAL
common stock over the subsequent months, and the
bankruptcy court dismissed all unsecured claims of
bondholders, including those of the Fund. Subsequent to
fiscal year-end, the Fund liquidated its UAL common
stock holdings.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
25
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Portfolio of
INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 96.9%
ARKANSAS - 1.6%
$ 1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA $ 1,047,680
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 Baa2 1,014,670
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 2,059,820
Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Arkansas 4,122,170
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.4%
1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 765,460
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 3,721,274
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
500 California State Public Works Board, Lease Revenue Refunding 12/08 at 101.00 A- 514,455
Bonds, Community Colleges Projects, Series 1998A,
5.250%, 12/01/16
2,000 California State Public Works Board, Lease Revenue Refunding No Opt. Call Aa2 2,171,720
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/14
190 California, General Obligation Bonds, Series 1997, 10/07 at 101.00 AAA 195,301
5.000%, 10/01/18 - AMBAC Insured
California, General Obligation Bonds, Series 1997:
2,105 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 2,171,834
205 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 211,509
2,500 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A 2,581,825
500 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 522,620
Refunding, Merrithew Memorial Hospital Replacement,
Series 1997, 5.375%, 11/01/17 - MBIA Insured
500 Contra Costa Water District, California, Water Revenue 10/07 at 100.00 AA 509,365
Refunding Bonds, Series 1997H, 5.000%, 10/01/17
3,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,587,744
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
1,750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,768,060
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
17,775 Total California 18,721,167
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.6%
1,300 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA 1,384,526
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22
1,700 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (3) 1,836,544
Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
3,185 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,606,726
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,321,049
Refunding Bonds, Series 2001A, 5.625%, 11/15/17 -
FGIC Insured (Alternative Minimum Tax)
1,555 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 1,664,130
Refunding Bonds, Series 2001, 5.500%, 11/15/16 -
FGIC Insured
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,112,920
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/23 - XLCA Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA $ 2,109,950
Bonds, Series 2000B, 0.000%, 9/01/24 - MBIA Insured
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,328,200
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) -
MBIA Insured
250 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 261,445
Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 -
FSA Insured
1,100 University of Colorado Hospital Authority, Revenue Bonds, 11/11 at 100.00 Baa1 1,139,721
Series 2001A, 5.600%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
27,090 Total Colorado 21,765,211
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
500 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 513,775
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured (ETM)
500 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 518,005
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,000 Total District of Columbia 1,031,780
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.9%
1,500 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 1,564,350
Refunding and Improvement Bonds, Series 2002,
5.000%, 10/01/21 - FGIC Insured
2,500 JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 4/15 at 100.00 AAA 2,578,425
5.000%, 10/01/41 - FSA Insured
625 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 Aaa 649,313
Revenue Refunding Bonds, Series 2001, 5.125%, 7/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,625 Total Florida 4,792,088
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4%
1,100 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,140,150
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.0%
1,230 Chicago Metropolitan Housing Development Corporation, 7/06 at 100.00 AA 1,231,833
Illinois, FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,724,024
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
250 Illinois Development Finance Authority, Economic Development 8/08 at 100.00 Baa2 (3) 257,815
Revenue Bonds, Latin School of Chicago, Series 1998,
5.200%, 8/01/11 (Pre-refunded 8/01/08)
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa3 646,836
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,225,991
Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured
2,255 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- 2,464,512
Lake Forest Hospital, Series 2002A, 6.250%, 7/01/22
1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 1,109,607
University Health System, Series 2001A, 6.125%, 7/01/31
3,000 Illinois Health Facilities Authority, Revenue Bonds, 5/06 at 100.00 AAA 3,003,240
Rush-Presbyterian St. Luke's Medical Center Obligated
Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured
1,000 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 AAA 1,004,200
Series 2005E, 4.750%, 7/01/30 - FGIC Insured
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,948,234
5.000%, 6/15/22
45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/06 at 100.00 A1 45,091
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 7,313,669
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
27
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA $ 5,153,619
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 595,169
1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 602,923
1,100 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,169,553
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,020,310
Series 2003, 5.000%, 12/15/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
35,325 Total Illinois 35,516,626
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.1%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,000
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 - FGIC Insured
1,110 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 1,141,924
Revenue Bonds, Series 2002C-2, 5.250%, 7/01/23 (Alternative
Minimum Tax)
4,380 Indiana Municipal Power Agency, Power Supply System 1/12 at 100.00 AAA 4,603,030
Revenue Bonds, Series 2002A, 5.125%, 1/01/21 -
AMBAC Insured
285 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/08 at 101.00 AAA 282,047
Memorial Health System, Series 1998A, 4.625%, 8/15/28 -
MBIA Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 783,848
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,525 Total Indiana 7,853,849
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.3%
1,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 925,180
Revenue Bonds, Series 2005B, 0.000%, 6/01/34
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
1,000 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 1,065,920
3,500 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,811,675
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total Iowa 5,802,775
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4%
1,000 Salina, Kansas, Hospital Revenue Bonds, Salina Regional 4/13 at 100.00 A1 965,570
Medical Center, Series 2006, 4.500%, 10/01/26 (WI/DD,
Settling 4/07/06)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
2,125 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 2,253,223
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 3,087,600
University, Series 2002A, 5.125%, 7/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,125 Total Louisiana 5,340,823
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.1%
3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,160,620
Revenue Bonds, Berkshire Health System, Series 2001E,
6.250%, 10/01/31
2,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 2,534,075
System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 -
MBIA Insured
2,090 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 2,257,576
Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,590 Total Massachusetts 7,952,271
------------------------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0%
$ 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- $ 3,042,854
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 2,038,280
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
4,900 Total Michigan 5,081,134
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.6%
1,500 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 1,591,350
Southern Nevada Water Authority Loan, Series 2001,
5.300%, 6/01/19 - FGIC Insured
500 Clark County, Nevada, Limited Tax General Obligation 7/06 at 101.00 AAA 507,180
Las Vegas Convention and Visitors Authority Bonds,
Series 1996, 5.500%, 7/01/17 - MBIA Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
4,595 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 2,195,032
13,250 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,793,382
1,100 Nevada, General Obligation Refunding Bonds, Municipal Bond 5/08 at 100.00 AAA 1,125,267
Bank Projects 65 and R-6, Series 1998, 5.000%, 5/15/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,945 Total Nevada 19,212,211
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.9%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,583,475
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
1,000 6.375%, 6/01/32 6/13 at 100.00 BBB 1,089,100
1,010 6.250%, 6/01/43 6/13 at 100.00 BBB 1,092,436
------------------------------------------------------------------------------------------------------------------------------------
4,510 Total New Jersey 4,765,011
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.5%
University of New Mexico, FHA-Insured Mortgage Hospital
Revenue Bonds, Series 2004:
555 4.625%, 1/01/25 - FSA Insured 7/14 at 100.00 AAA 554,617
660 4.625%, 7/01/25 - FSA Insured 7/14 at 100.00 AAA 659,538
2,000 4.750%, 7/01/27 - FSA Insured 7/14 at 100.00 AAA 2,014,800
3,000 4.750%, 1/01/28 - FSA Insured 7/14 at 100.00 AAA 3,018,120
------------------------------------------------------------------------------------------------------------------------------------
6,215 Total New Mexico 6,247,075
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.6%
2,700 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 2,908,251
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17
2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,074,880
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/36 - FSA Insured
3,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 3,213,060
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
3,150 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 3,382,155
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
10,850 Total New York 11,578,346
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6%
1,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,523,985
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.3%
1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 1,009,480
Revenue Bonds, Series 2005, 5.375%, 9/01/36
------------------------------------------------------------------------------------------------------------------------------------
29
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6%
$ 1,020 Carlisle Area School District, Cumberland County, Pennsylvania, 9/09 at 100.00 Aaa $ 1,054,935
General Obligation Bonds, Series 2004A, 5.000%, 9/01/20 -
FGIC Insured
545 Dauphin County General Authority, Pennsylvania, Health System 2/09 at 101.00 AAA 567,116
Revenue Bonds, Pinnacle Health System Project, Series 1999,
5.125%, 8/15/17 - MBIA Insured
455 Dauphin County General Authority, Pennsylvania, Health 2/09 at 101.00 AAA 476,781
System Revenue Bonds, Pinnacle Health System Project,
Series 1999, 5.125%, 8/15/17 (Pre-refunded 2/15/09) -
MBIA Insured
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,065,730
Airport Revenue Bonds, Philadelphia Airport System Project,
Series 2001A, 5.500%, 7/01/17 - FGIC Insured (Alternative
Minimum Tax)
3,250 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,539,640
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,270 Total Pennsylvania 6,704,202
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.2%
3,000 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA 3,126,780
Revenue Bonds, Series 2003, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.1%
5,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,291,050
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.4%
700 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 733,446
Installment Purchase Revenue Bonds, GROWTH,
Series 2004, 5.250%, 12/01/20
620 Florence, South Carolina, Water and Sewerage Revenue Bonds, 3/10 at 101.00 AAA 669,222
Series 2000, 5.750%, 3/01/20 - AMBAC Insured
4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (3) 4,470,040
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded 12/01/12)
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,736,550
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18
2,435 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 2,597,853
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,255 Total South Carolina 11,207,111
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3%
1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,035,370
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.2%
4,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 4,378,720
Texas, Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,530,255
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
1,270 Cleveland Housing Corporation, Texas, FHA-Insured 7/06 at 100.00 AAA 1,272,096
Section 8 Assisted Mortgage Revenue Refunding Bonds,
Series 1992C, 7.375%, 7/01/24 - MBIA Insured
2,500 Harris County Health Facilities Development Corporation, Texas, No Opt. Call AAA 2,748,475
Hospital Revenue Bonds, Texas Children's Hospital,
Series 1995, 5.500%, 10/01/16 - MBIA Insured (ETM)
3,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 3,070,440
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
5,050 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 AAA 752,399
Revenue Bonds, Series 2001H, 0.000%, 11/15/41 -
MBIA Insured
2,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 2,138,660
Bonds, Series 2002A, 5.625%, 7/01/20 - FSA Insured
(Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,125 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA $ 3,195,781
Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.000%, 2/15/32
1,400 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 1,414,014
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005, 5.375%, 8/15/35
220 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 224,739
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
780 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 799,640
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
(Pre-refunded 2/15/08)
1,000 Lewisville Independent School District, Denton County, Texas, 8/11 at 100.00 AAA 1,037,480
General Obligation Bonds, Series 2004, 5.000%, 8/15/23
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,032,435
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
1,250 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 1,263,025
Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18
500 Texas Water Development Board, Senior Lien State Revolving 7/10 at 100.00 AAA 534,220
Fund Revenue Bonds, Series 2000A, 5.625%, 7/15/13
1,560 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,583,603
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
33,905 Total Texas 30,975,982
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6%
1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,500,508
Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.6%
3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA 3,101,100
Series 1999C, 5.800%, 8/15/16 - FSA Insured
3,600 Vermont Industrial Development Authority, Revenue Refunding 9/06 at 100.00 A 3,607,416
Bonds, Stanley Works Inc., Series 1992, 6.750%, 9/01/10
------------------------------------------------------------------------------------------------------------------------------------
6,600 Total Vermont 6,708,516
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/07 at 100.00 AAA 255,413
5.750%, 11/01/13 - MBIA Insured
1,000 Virginia Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 1,024,240
Refunding Bonds, U.S. Route 58 Corridor Development
Program, Series 1997C, 5.125%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
1,250 Total Virginia 1,279,653
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.6%
2,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 2,059,600
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 6,981,450
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,715 Total Washington 9,041,050
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.0%
$ 1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A $ 1,063,580
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.500%, 8/15/18
4,000 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 4,108,880
Home Ownership Revenue Bonds, Series 2002G,
4.850%, 9/01/17
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Wisconsin 5,172,460
------------------------------------------------------------------------------------------------------------------------------------
$ 250,005 Total Long-Term Municipal Bonds (cost $236,338,090) 246,464,404
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL BONDS - 1.4%
1,000 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ 1,000,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2005, 3.150%, 7/01/35 - FSA Insured (4)
2,500 New York City, New York, General Obligation Bonds, Variable A-1+ 2,500,000
Rate Demand Obligations, Fiscal Series 2002A-7,
3.120%, 11/01/24 - AMBAC Insured (4)
------------------------------------------------------------------------------------------------------------------------------------
$ 3,500 Total Short-Term Municipal Bonds (cost $3,500,000) 3,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (cost $239,838,090) 249,964,404
--------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.2%
AIRLINES - 0.2%
10,233 UAL Corporation (5) (6) 408,604
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $419,603) 408,604
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $240,257,693) - 98.5% 250,373,008
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 3,832,437
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 254,205,445
====================================================================================================================
(1) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(2) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
(5) Non-income producing.
(6) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds. On February 1,
2006, UAL emerged from federal bankruptcy with the
acceptance of its reorganization plan by the bankruptcy
court. Under the settlement agreement established to
meet UAL's unsecured bond obligations, the bondholders,
including the Fund, received three distributions of UAL
common stock over the subsequent months, and the
bankruptcy court dismissed all unsecured claims of
bondholders, including those of the Fund. Subsequent to
fiscal year-end, the Fund liquidated its UAL common
stock holdings.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
32
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Portfolio of
INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 96.5%
ALABAMA - 0.3%
$ 500 Marshall County Healthcare Authority, Alabama, Revenue 1/12 at 101.00 A- $ 544,415
Bonds, Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.2%
2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,262,328
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 3,749,253
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,363,510
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
250 Santa Ana Unified School District, Orange County, California, 8/10 at 101.00 AAA 270,778
General Obligation Bonds, Series 2000, 5.700%, 8/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,705 Total California 9,645,869
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.8%
1,735 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA 1,847,810
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22
2,265 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 2,446,925
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
2,700 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,057,507
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 3,112,920
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/24 - XLCA Insured
325 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA 332,134
Bonds, Series 1997A, 5.000%, 9/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,025 Total Colorado 10,797,296
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250 Connecticut Health and Educational Facilities Authority, 7/06 at 100.00 AAA 251,785
Revenue Bonds, Bridgeport Hospital Issue, Series 1992A,
6.625%, 7/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
15 District of Columbia, General Obligation Bonds, Series 1993E, 6/06 at 100.00 AAA 15,029
6.000%, 6/01/13 - MBIA Insured (ETM)
235 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 259,290
Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
250 Total District of Columbia 274,319
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.0%
5,020 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 5,244,243
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/18
4,000 JEA, Florida, Subordinate Lien Electric System Revenue Bonds, 10/07 at 100.00 Aa3 4,005,720
Series 2002D, 4.625%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
9,020 Total Florida 9,249,963
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.5%
1,175 Atlanta, Georgia, Airport Facilities Revenue Bonds, No Opt. Call AAA 960,292
Series 1990, 0.000%, 1/01/10 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
33
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.6%
$ 290 Chicago Metropolitan Housing Development Corporation, Illinois, 7/06 at 100.00 AA $ 291,731
FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22
1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 A- 2,045,260
Midwestern University, Series 2001B, 5.750%, 5/15/16
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,225,991
Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured
4,460 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 4,820,145
University of Chicago Project, Series 1985A, 5.500%, 8/01/20
1,500 Illinois Health Facilities Authority, Revenue Bonds, Evangelical No Opt. Call N/R (3) 1,812,585
Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 (ETM)
4,000 Illinois Health Facilities Authority, Revenue Bonds, Franciscan 9/06 at 100.00 Aaa 4,049,800
Sisters Healthcare Corporation, Series 1992B,
6.625%, 9/01/13 (Pre-refunded 9/01/06) - MBIA Insured
2,225 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,452,706
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 5,948,235
5.000%, 6/15/22
2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 6/07 at 101.00 AAA 2,063,060
5.600%, 6/15/17
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,268,857
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 1,382,199
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,018,800
Series 2003, 5.000%, 12/15/22 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
32,590 Total Illinois 34,379,369
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.4%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,000
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+ 3,601,430
Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,897,100
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
2,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 2,156,980
Waterworks Project, Series 2002A, 5.250%, 7/01/33
(Pre-refunded 7/01/12) - MBIA Insured
2,295 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AAA 2,219,609
Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,295 Total Indiana 11,918,119
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.9%
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
3,850 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,103,792
2,850 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,103,793
------------------------------------------------------------------------------------------------------------------------------------
6,700 Total Iowa 7,207,585
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.7%
1,200 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 1,289,196
Revenue Bonds, Series 1999B, 6.000%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
1,000 Massachusetts Development Finance Agency, Resource 12/08 at 102.00 BBB 1,029,950
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- 547,600
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Massachusetts 1,577,550
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.1%
$ 400 East Lansing School District, Ingham County, Michigan, 5/10 at 100.00 AA (3) $ 428,952
General Obligation Bonds, Series 2000, 5.625%, 5/01/30
(Pre-refunded 5/01/10)
4,000 Michigan Housing Development Authority, Single Family 6/06 at 102.00 AA+ 4,088,800
Mortgage Revenue Bonds, Series 1996C, 5.950%, 12/01/17
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,042,854
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
235 Michigan State Hospital Finance Authority, Revenue Refunding 8/06 at 100.00 BB- 235,120
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
1,600 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 1,630,624
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
9,135 Total Michigan 9,426,350
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
725 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 729,575
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 3,607,870
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 4,164,040
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
1,680 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 1,810,889
Series 2002, 5.500%, 6/01/22 - FGIC Insured
2,830 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 3,089,200
Series 2002, 5.500%, 6/01/22 (Pre-refunded 6/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,510 Total Nevada 9,064,129
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
625 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 630,069
Mortgage Acquisition Bonds, Series 2001A,
5.600%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.2%
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
1,000 6.750%, 6/01/39 6/13 at 100.00 BBB 1,119,880
1,000 6.250%, 6/01/43 6/13 at 100.00 BBB 1,081,620
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total New Jersey 2,201,500
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.2%
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,997,240
Revenue Bonds, Series 2004, 4.625%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.5%
1,835 Dormitory Authority of the State of New York, Second No Opt. Call A1 1,981,690
General Resolution Consolidated Revenue Bonds, City
University System, Series 1990C, 7.500%, 7/01/10
2,335 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 2,477,622
General Revenue Bonds, Series 2001A, 5.375%, 9/01/21
35 New York City, New York, General Obligation Bonds, 8/06 at 100.00 A+ 35,092
Series 1991B, 7.000%, 2/01/18
1,850 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 1,962,350
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
6,055 Total New York 6,456,754
------------------------------------------------------------------------------------------------------------------------------------
35
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.2%
$ 5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA $ 5,328,150
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 2,489,100
Revenue Bonds, Series 2001A, 5.250%, 7/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,345 Total North Carolina 7,817,250
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 3,087,330
St. John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.4%
2,435 Dauphin County Industrial Development Authority, No Opt. Call A- 2,897,918
Pennsylvania, Water Development Revenue Refunding Bonds,
Dauphin Consolidated Water Supply Company, Series 1992B,
6.700%, 6/01/17
500 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 BBB+ 519,740
Revenue Bonds, Widener University, Series 2003,
5.250%, 7/15/24
1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,065,730
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.500%, 7/01/17 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,935 Total Pennsylvania 4,483,388
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.2%
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,641,930
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 1,601,400
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 8/15/20 - MBIA Insured
2,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 2,620,725
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total South Carolina 5,864,055
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.1%
1,010 South Dakota Health and Educational Facilities Authority, 7/12 at 101.00 AAA 1,049,400
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+ 1,035,370
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
2,010 Total South Dakota 2,084,770
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
2,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 2,124,940
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.4%
1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,530,255
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,558,700
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 3,231,000
Bonds, Series 2002B, 5.500%, 7/01/18 - FSA Insured
3,125 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 3,195,781
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/32
400 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 408,616
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
1,425 Killeen Independent School District, Bell County, Texas, General 2/08 at 100.00 AAA 1,460,882
Obligation Bonds, Series 1998, 5.000%, 2/15/14
(Pre-refunded 2/15/08)
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 North Central Texas Health Facilities Development 5/06 at 102.00 AA- $ 5,078,450
Corporation, Hospital Revenue Refunding Bonds, Baylor
Healthcare System, Series 1995, 5.250%, 5/15/16
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,032,435
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 1,776,478
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
500 Victoria, Texas, General Obligation Bonds, Series 2001, 8/11 at 100.00 AAA 518,740
5.000%, 8/15/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,950 Total Texas 24,791,337
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
1,710 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 A+ 1,733,461
Refunding Bonds, Series 1996D, 5.000%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4%
2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,593,300
Series 2003-3, 5.000%, 11/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 169,710 Total Long-Term Municipal Bonds (cost $171,396,391) 178,789,076
=============-----------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.1%
AIRLINES - 0.1%
2,984 UAL Corporation (4) (5) 119,151
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $122,370) 119,151
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $171,518,761) - 96.6% 178,908,227
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.4% 6,324,643
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 185,232,870
====================================================================================================================
(1) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(2) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Non-income producing.
(5) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds. On February 1,
2006, UAL emerged from federal bankruptcy with the
acceptance of its reorganization plan by the bankruptcy
court. Under the settlement agreement established to
meet UAL's unsecured bond obligations, the bondholders,
including the Fund, received three distributions of UAL
common stock over the subsequent months, and the
bankruptcy court dismissed all unsecured claims of
bondholders, including those of the Fund. Subsequent to
fiscal year-end, the Fund liquidated its UAL common
stock holdings.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
37
Nuveen California Select Tax-Free Income Portfolio (NXC)
Portfolio of
INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 98.4%
CONSUMER STAPLES - 2.1%
$ 235 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 227,701
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
1,675 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB 1,693,626
Settlement Asset-Backed Revenue Bonds, Fresno County
Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
1,910 Total Consumer Staples 1,921,327
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.2%
1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,042,490
Stanford University, Series 1999P, 5.000%, 12/01/23
1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,065,090
University of San Diego, Series 2002A, 5.500%, 10/01/32
2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 2,698,488
University of the Pacific, Series 2002, 5.250%, 11/01/21
3,000 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 3,156,240
Revenue Bonds, J. David Gladstone Institutes, Series 2001,
5.500%, 10/01/19
2,000 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 2,074,640
University of California, UCLA Replacement Hospital Project,
Series 2002A, 5.000%, 10/01/22 - FSA Insured
1,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 1,052,470
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,600 Total Education and Civic Organizations 11,089,418
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 9.2%
335 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 339,968
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,106,320
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
1,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 1,596,990
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
1,500 California Statewide Community Development Authority, 11/09 at 102.00 A 1,564,485
Insured Mortgage Hospital Revenue Bonds, Mission
Community Hospital, Series 2001, 5.375%, 11/01/26
90 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 93,296
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/24
1,880 California Statewide Community Development Authority, 6/07 at 101.00 AAA 1,936,532
Revenue Bonds, Los Angeles Orthopaedic Hospital
Foundation, Series 2000, 5.500%, 6/01/17 - AMBAC Insured
790 Central California Joint Powers Health Finance Authority, 8/06 at 100.00 Baa2 789,984
Certificates of Participation, Community Hospitals of Central
California, Series 1993, 5.000%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
8,095 Total Health Care 8,427,575
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.0%
750 California Statewide Community Development Authority, 8/12 at 100.00 A 784,785
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5%
1,250 California Pollution Control Financing Authority, Solid Waste 6/23 at 100.00 BBB+ 1,303,700
Disposal Revenue Bonds, Republic Services Inc., Series 2002C,
5.250%, 6/01/23 (Mandatory put 12/01/17) (Alternative
Minimum Tax)
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
$ 1,500 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A $ 1,557,480
California, Insured Senior Living Revenue Bonds, Odd Fellows
Home of California, Series 2003A, 5.200%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.3%
California, General Obligation Bonds, Series 2003:
500 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 536,965
1,450 5.250%, 2/01/21 8/13 at 100.00 A 1,542,800
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,066,790
California, General Obligation Bonds, Series 2004:
750 5.000%, 2/01/23 2/14 at 100.00 A 776,738
800 5.125%, 4/01/25 4/14 at 100.00 A 835,744
1,000 California, General Obligation Bonds, Series 2005, 5.000%, 8/01/28 8/15 at 100.00 A 1,035,000
2,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 2,093,540
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 2,974,140
1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 1,083,933
2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,438,086
2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,376,843
395 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 413,727
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 621,637
1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 626,864
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
130 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 135,758
135 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 140,875
1,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 1,632,600
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
100 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 104,857
150 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 157,049
2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,685,529
General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,690 Total Tax Obligation/General 21,279,475
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.1%
1,000 Bell Community Redevelopment Agency, California, 10/13 at 100.00 AA 1,072,920
Tax Allocation Bonds, Bell Project Area, Series 2003,
5.625%, 10/01/33 - RAAI Insured
3,500 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 4,110,890
Department of Corrections, Calipatria State Prison,
Series 1991A, 6.500%, 9/01/17 - MBIA Insured
1,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 1,087,230
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/23
660 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 705,230
5.000%, 7/01/15
1,000 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 1,035,180
Revenue Bonds, North Fontana Redevelopment Project,
Series 2005A, 5.000%, 10/01/32 - AMBAC Insured
90 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 94,442
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
1,300 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,378,689
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
39
Nuveen California Select Tax-Free Income Portfolio (NXC) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 105 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA $ 108,298
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
215 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 221,809
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
605 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 669,172
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
3,000 San Mateo County Transit District, California, Sales Tax Revenue 6/15 at 100.00 AAA 3,165,690
Bonds, Series 2005A, 5.000%, 6/01/21 - MBIA Insured
1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,032,470
of Participation, Series 2002, 5.000%, 4/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,475 Total Tax Obligation/Limited 14,682,020
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.4%
1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,113,292
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 5,315,998
Bonds, Series 2001B, 5.500%, 8/01/17 - AMBAC Insured
(Alternative Minimum Tax)
2,915 Palm Springs Financing Authority, California, Palm Springs 7/06 at 100.00 AAA 2,919,868
Regional Airport Revenue Bonds, Series 1992,
6.000%, 1/01/12 - MBIA Insured (Alternative Minimum Tax)
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,073,240
5.250%, 11/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,065 Total Transportation 10,422,398
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.2% (3)
400 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA (3) 428,448
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26 (Pre-refunded 8/01/12)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,000 5.750%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,236,060
2,000 5.125%, 5/01/19 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,168,560
750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1 (3) 794,708
Pepperdine University, Series 2002A, 5.500%, 8/01/32
(Pre-refunded 8/01/09)
1,400 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,534,666
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33 (Pre-refunded 6/01/13)
2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA 2,149,860
General Obligation Bonds, Series 2002A, 5.000%, 8/01/22
(Pre-refunded 8/01/12) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,550 Total U.S. Guaranteed 9,312,302
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.9%
200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 209,262
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
215 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 224,458
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
1,225 Turlock Irrigation District, California, Revenue Refunding No Opt. Call Aaa 1,337,112
Bonds, Series 1992A, 6.250%, 1/01/12 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,640 Total Utilities 1,770,832
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.8%
2,160 California Statewide Community Development Authority, 10/11 at 101.00 AAA 2,287,289
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 2,914,240
Series 1998A, 5.000%, 6/01/23 - FGIC Insured
825 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 849,214
Revenue Certificates of Participation, Solar Photovoltaic
Project, Series 2003, 5.375%, 4/01/24
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,000 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ $ 1,036,060
of Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
6,785 Total Water and Sewer 7,086,803
------------------------------------------------------------------------------------------------------------------------------------
$ 90,310 Total Long-Term Municipal Bonds (cost $85,598,756) 89,638,115
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL BONDS - 0.7%
150 California Department of Water Resources, Power Supply A-1+ 150,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 3.170%, 5/01/22 - FSA Insured (4)
100 California Statewide Community Development Authority, VMIG-1 100,000
Revenue Bonds, Variable Rate Demand Obligations,
Gemological Institute of America Inc., Series 2001,
3.170%, 5/01/25 - AMBAC Insured (4)
400 Irvine Assessment District No. 97-17, California, Limited VMIG-1 400,000
Obligation Improvement Bonds, Variable Rate Demand
Obligations, Series 1998, 3.100%, 9/02/23 (4)
------------------------------------------------------------------------------------------------------------------------------------
$ 650 Total Short-Term Municipal Bonds (cost $650,000) 650,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $86,248,756) - 99.1% 90,288,115
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 863,815
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 91,151,930
====================================================================================================================
(1) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(2) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
N/R Not rated.
See accompanying notes to financial statements.
41
Nuveen New York Select Tax-Free Income Portfolio (NXN)
Portfolio of
INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 98.0%
CONSUMER DISCRETIONARY - 0.3%
$ 100 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 100,743
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0%
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
540 4.750%, 6/01/22 6/16 at 100.00 BBB 536,053
540 5.000%, 6/01/26 6/16 at 100.00 BBB 533,542
------------------------------------------------------------------------------------------------------------------------------------
1,080 Total Consumer Staples 1,069,595
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.1%
1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,777,333
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 -
AMBAC Insured
785 Dormitory Authority of the State of New York, Insured 7/12 at 100.00 AAA 810,222
Revenue Bonds, Iona College, Series 2002, 5.000%, 7/01/22 -
XLCA Insured
1,000 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 101.00 AAA 1,029,750
Bonds, Rochester Institute of Technology, Series 1997,
5.250%, 7/01/22 - MBIA Insured
490 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 530,930
Resolution Consolidated Revenue Bonds, City University
System, Series 1990C, 7.500%, 7/01/10 - FGIC Insured
100 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 102,316
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
100 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 101,858
Civic Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
500 New York City Industrial Development Agency, New York, Civic 2/11 at 100.00 A- 516,865
Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
200 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 204,800
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
4,875 Total Education and Civic Organizations 5,074,074
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.7%
250 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 259,660
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Lenox Hill Hospital Obligated Group, Series 2001:
110 5.375%, 7/01/20 7/11 at 101.00 Ba2 109,773
100 5.500%, 7/01/30 7/11 at 101.00 Ba2 99,131
670 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 698,267
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - MBIA Insured
415 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 445,258
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
250 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 A3 263,985
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 1,792,258
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 1,274,850
Winthrop South Nassau University Health System Obligated
Group, Series 2001B, 5.250%, 7/01/17 - AMBAC Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 $ 517,620
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 797,700
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/21 - AMBAC Insured
250 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 255,415
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
------------------------------------------------------------------------------------------------------------------------------------
6,170 Total Health Care 6,513,917
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.1%
1,000 East Rochester Housing Authority, New York, Revenue Bonds, 12/12 at 103.00 AAA 1,074,720
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 1,064,450
FHA-Insured Mortgage Revenue Bonds, Sunset Woods
Apartments II Project, Series 2002, 5.350%, 2/01/20
250 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 261,373
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
160 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 160,851
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
295 New York State Housing Finance Agency, FHA-Insured 8/06 at 100.00 AAA 295,448
Multifamily Housing Mortgage Revenue Bonds, Series 1992C,
6.450%, 8/15/14 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,705 Total Housing/Multifamily 2,856,842
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.3%
2,000 New York State Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,037,520
Revenue Bonds, Series 101, 5.000%, 10/01/18 (Alternative
Minimum Tax)
2,500 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa 2,545,325
Thirty-First Series A, 5.300%, 10/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,500 Total Housing/Single Family 4,582,845
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.4%
2,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 2,069,920
Nursing Home Mortgage Revenue Bonds, Norwegian
Christian Home and Health Center, Series 2001,
5.200%, 8/01/36 - MBIA Insured
50 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 A 50,718
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured
2,000 East Rochester Housing Authority, New York, FHA-Insured 8/12 at 101.00 AAA 2,050,020
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+ 1,021,300
GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor
House Inc., Series 2002A, 4.950%, 11/20/32
------------------------------------------------------------------------------------------------------------------------------------
5,050 Total Long-Term Care 5,191,958
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.0%
Clarkstown, Rickland County, New York, Various Purposes
Serial Bonds, Series 1992:
505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 542,183
525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 569,966
525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 578,539
300 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 320,280
Fiscal Series 2004C, 5.250%, 8/15/16
500 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 526,535
Series 2004E, 5.000%, 11/01/19 - FSA Insured
225 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 239,609
Series 2006C, 5.000%, 8/01/16 - FSA Insured
500 West Islip Union Free School District, Suffolk County, 10/15 at 100.00 Aaa 534,385
New York, General Obligation Bonds, Series 2005,
5.000%, 10/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,080 Total Tax Obligation/General 3,311,497
------------------------------------------------------------------------------------------------------------------------------------
43
Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued)
Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.7%
$ 600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA $ 628,770
Series 2003A, 5.000%, 11/01/23
300 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 320,127
Mental Health Services Facilities Improvements,
Series 2005D-1, 5.000%, 2/15/15 - FGIC Insured
175 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 186,345
Mental Health Services Facilities Improvements,
Series 2005D, 5.000%, 2/15/14 - FGIC Insured
500 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 555,420
Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
500 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 543,815
Contract Refunding Bonds, Series 2002A, 5.500%, 1/01/20 -
MBIA Insured
95 Nassau County Interim Finance Authority, New York, Sales 11/06 at 101.00 AAA 96,897
Tax Secured Revenue Bonds, Series 2001A-2, 5.125%, 11/15/21 -
AMBAC Insured
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
250 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 262,300
200 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 209,550
1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,281,705
670 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 696,472
Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
250 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 262,345
Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/21 -
MBIA Insured
570 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 648,158
Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 -
AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
1,000 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 1,065,300
250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 266,005
500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 539,355
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
60 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 64,422
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
7,145 Total Tax Obligation/Limited 7,626,986
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.8%
400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 424,588
Series 2001A, 5.625%, 7/15/25
500 Metropolitan Transportation Authority, New York, No Opt. Call AAA 537,025
Transportation Revenue Bonds, Series 2003A,
5.000%, 11/15/15 - FGIC Insured
50 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 52,063
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
New York State Thruway Authority, General Revenue
Bonds, Series 2005G:
100 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 104,397
600 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 625,452
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
250 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 266,485
105 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 109,703
------------------------------------------------------------------------------------------------------------------------------------
2,005 Total Transportation 2,119,713
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 9.3% (3)
1,305 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,556,982
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16 (ETM)
750 New York State Thruway Authority, Highway and Bridge 4/13 at 100.00 AAA 813,652
Trust Fund Bonds, Second Generation, Series 2003A,
5.250%, 4/01/23 (Pre-refunded 4/01/13) - MBIA Insured
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (3) (continued)
$ 1,000 New York State Urban Development Corporation, State 3/13 at 100.00 AAA $ 1,099,760
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded
3/15/13) - FGIC Insured
485 Suffolk County Water Authority, New York, Water Revenue No Opt. Call AAA 536,366
Bonds, Series 1986V, 6.750%, 6/01/12 (ETM)
1,080 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,163,182
Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12)
------------------------------------------------------------------------------------------------------------------------------------
4,620 Total U.S. Guaranteed 5,169,942
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.1%
1,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 1,038,170
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 1,056,040
General Revenue Bonds, Series 2003C, 5.000%, 9/01/16 -
CIFG Insured
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
570 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 598,950
430 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 450,399
500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 497,140
Pollution Control Revenue Bonds, New York State Electric
and Gas Corporation, Series 2005A, 4.100%, 3/15/15 -
MBIA Insured
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 263,898
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Mandatory put 11/15/12)
(Alternative Minimum Tax)
60 Westchester County Industrial Development Agency, 7/07 at 101.00 BBB 61,351
Westchester County, New York, Resource Recovery Revenue
Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,810 Total Utilities 3,965,948
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.2%
2,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 2,575,151
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 2,144,800
2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,067,160
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Water and Sewer 6,787,111
------------------------------------------------------------------------------------------------------------------------------------
$ 51,640 Total Long-Term Municipal Bonds (cost $52,619,625) 54,371,171
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 1,101,887
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 55,473,058
====================================================================================================================
(1) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(2) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
45
Statement of
ASSETS AND LIABILITIES March 31, 2006
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value
(cost $223,517,068, $240,257,693, $171,518,761,
$86,248,756 and $52,619,625, respectively) $236,671,673 $250,373,008 $178,908,227 $90,288,115 $54,371,171
Cash -- 1,163,418 -- -- 369,601
Receivables:
Interest 3,740,184 3,740,858 2,729,759 1,231,841 755,406
Investments sold 495,628 -- 3,895,285 -- --
Other assets 71,201 75,101 56,330 31,828 22,715
------------------------------------------------------------------------------------------------------------------------------------
Total assets 240,978,686 255,352,385 185,589,601 91,551,784 55,518,893
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,411,446 -- 222,701 331,059 --
Payable for investments purchased -- 966,200 -- -- --
Accrued expenses:
Management fees 47,470 61,102 44,955 22,484 13,677
Other 114,130 119,638 89,075 46,311 32,158
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,573,046 1,146,940 356,731 399,854 45,835
------------------------------------------------------------------------------------------------------------------------------------
Net assets $239,405,640 $254,205,445 $185,232,870 $91,151,930 $55,473,058
====================================================================================================================================
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 $ 14.44 $ 14.29 $ 14.57 $ 14.19
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,082
Paid-in surplus 227,634,455 245,689,700 178,371,732 87,121,715 53,622,239
Undistributed (Over-distribution of)
net investment income 46,969 (343,250) (190,008) (112,468) (78,390)
Accumulated net realized gain (loss)
from investments (1,594,170) (1,432,391) (467,961) 40,753 138,581
Net unrealized appreciation (depreciation)
of investments 13,154,605 10,115,315 7,389,466 4,039,359 1,751,546
------------------------------------------------------------------------------------------------------------------------------------
Net assets $239,405,640 $254,205,445 $185,232,870 $91,151,930 $55,473,058
====================================================================================================================================
Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
46
Statement of
OPERATIONS Year Ended March 31, 2006
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 $12,164,634 $12,462,181 $9,091,003 $4,421,497 $2,636,788
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 565,075 724,347 533,204 266,984 163,008
Shareholders' servicing agent fees and expenses 36,982 34,787 27,381 9,941 7,595
Custodian's fees and expenses 60,723 66,157 43,755 24,303 19,789
Trustees' fees and expenses 4,495 4,471 3,214 1,728 1,101
Professional fees 17,918 17,365 13,394 8,834 7,949
Shareholders' reports - printing and mailing expenses 32,928 32,916 24,827 11,923 9,359
Stock exchange listing fees 10,245 10,245 10,245 10,075 10,251
Investor relations expense 28,924 30,393 22,749 12,047 8,371
Other expenses 7,746 10,192 7,673 5,391 4,715
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 765,036 930,873 686,442 351,226 232,138
Custodian fee credit (25,840) (36,916) (26,737) (12,692) (5,825)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 739,196 893,957 659,705 338,534 226,313
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,425,438 11,568,224 8,431,298 4,082,963 2,410,475
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (1,593,512) (1,292,123) (459,059) 371,058 222,568
Change in net unrealized appreciation
(depreciation) of investments 1,325,784 2,512,224 1,267,741 208,194 (309,880)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (267,728) 1,220,101 808,682 579,252 (87,312)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $11,157,710 $12,788,325 $9,239,980 $4,662,215 $2,323,163
====================================================================================================================================
See accompanying notes to financial statements.
47
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
3/31/06 3/31/05 3/31/06 3/31/05 3/31/06 3/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,425,438 $ 11,460,333 $ 11,568,224 $ 11,857,079 $ 8,431,298 $ 8,597,048
Net realized gain (loss)
from investments (1,593,512) 1,298,950 (1,292,123) 392,947 (459,059) 465,025
Change in net unrealized
appreciation (depreciation)
of investments 1,325,784 (3,258,427) 2,512,224 (2,835,579) 1,267,741 (1,854,352)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
from operations 11,157,710 9,500,856 12,788,325 9,414,447 9,239,980 7,207,721
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (11,202,617) (11,587,432) (11,479,810) (11,902,381) (8,348,899) (8,741,600)
From accumulated net
realized gains (9,827) (1,618,228) (260,585) (727,172) (37,596) (444,780)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (11,212,444) (13,205,660) (11,740,395) (12,629,553) (8,386,495) (9,186,380)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets (54,734) (3,704,804) 1,047,930 (3,215,106) 853,485 (1,978,659)
Net assets at the
beginning of year 239,460,374 243,165,178 253,157,515 256,372,621 184,379,385 186,358,044
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $239,405,640 $239,460,374 $254,205,445 $253,157,515 $185,232,870 $184,379,385
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 46,969 $ (175,666) $ (343,250) $ (431,664) $ (190,008) $ (272,407)
====================================================================================================================================
See accompanying notes to financial statements.
48
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN)
-------------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/06 3/31/05 3/31/06 3/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,082,963 $ 4,140,965 $ 2,410,475 $ 2,508,691
Net realized gain (loss) from investments 371,058 49,639 222,568 246,834
Change in net unrealized appreciation
(depreciation) of investments 208,194 (670,557) (309,880) (1,058,725)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 4,662,215 3,520,047 2,323,163 1,696,800
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (4,079,612) (4,142,182) (2,411,373) (2,587,119)
From accumulated net realized gains (379,804) (292,831) (255,989) (250,126)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (4,459,416) (4,435,013) (2,667,362) (2,837,245)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 202,799 (914,966) (344,199) (1,140,445)
Net assets at the beginning of year 90,949,131 91,864,097 55,817,257 56,957,702
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $91,151,930 $90,949,131 $55,473,058 $55,817,257
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the
end of year $ (112,468) $ (115,819) $ (78,390) $ (77,492)
====================================================================================================================================
See accompanying notes to financial statements.
49
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 market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service or, in the absence of a pricing service for a
particular security, the Board of Trustees of the Funds, or its designee, may
establish fair market value using a wide variety of market data including yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, market quotes or indications of value from securities
dealers, evaluations of anticipated cash flows or collateral, general market
conditions and other information and analysis, including the obligorcredit
characteristics considered relevant by the pricing service or the Board of
Trustees' designee. Exchange-listed securities are generally valued at the last
sales price on the securities exchange on which such securities are primarily
traded. Securities traded on a securities exchange for which there are no
transactions on a given day or securities not listed on a securities exchange
are valued at the mean of the closing bid and asked prices. Securities traded on
Nasdaq are valued at the Nasdaq Official Closing Price. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term investments are valued at amortized cost, which approximates market
value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At March 31, 2006, Select
Tax-Free 2 (NXQ) had an outstanding when-issued/delayed delivery purchase
commitment of $966,200. There were no such outstanding purchase commitments in
any of the other Funds.
50
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any. Dividend
income, if any, is recorded on the ex-dividend date.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and applicable state
income taxes, if any, to retain such tax-exempt status when distributed to
shareholders of the Funds. All monthly tax-exempt income dividends paid during
the fiscal year ended March 31, 2006, 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.
51
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, 2006, nor during the fiscal year ended March 31, 2005.
3. INVESTMENT TRANSACTIONS
Purchases and sales of investments (excluding short-term investments) during the
fiscal year ended March 31, 2006, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Purchases $10,327,559 $28,162,251 $10,100,926 $7,116,572 $7,107,673
Sales and maturities 8,330,051 31,133,645 12,180,330 7,728,237 7,716,748
=========================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At March 31, 2006, the cost of investments was as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
--------------------------------------------------------------------------------------------------------------
Cost of investments $223,151,460 $240,161,347 $171,459,559 $86,247,560 $52,614,855
==============================================================================================================
52
Gross unrealized appreciation and gross unrealized depreciation of investments
at March 31, 2006, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
--------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $13,735,055 $10,533,444 $7,701,072 $4,082,475 $1,832,235
Depreciation (214,842) (321,783) (252,404) (41,920) (75,919)
--------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)
of investments $13,520,213 $10,211,661 $7,448,668 $4,040,555 $1,756,316
==============================================================================================================
The tax components of undistributed net investment income and net realized gains
at March 31, 2006, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
-------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $614,913 $493,578 $444,373 $217,959 $116,162
Undistributed net ordinary income** -- -- -- -- --
Undistributed net long-term capital gains -- -- -- 40,753 138,581
=============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on March 1, 2006, paid on April 3, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the tax years ended March 31,
2006 and March 31, 2005, 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
2006 (NXP) (NXQ) (NXR) (NXC) (NXN)
-----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,202,618 $11,515,026 $8,361,862 $4,092,125 $2,421,145
Distributions from net ordinary income** 126 -- -- 49,498 --
Distributions from net long-term capital gains*** 9,113 259,588 36,746 330,306 255,989
=============================================================================================================================
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
=============================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds designated as a long-term capital gain dividend, pursuant to
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the
earnings and profits of the Funds related to net capital gain to zero for
the tax period ended March 31, 2006.
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2005 through March 31, 2006 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen on the first day of the following fiscal
year:
SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3
(NXP) (NXQ) (NXR)
--------------------------------------------------------------------------------
$1,594,170 $1,432,391 $467,961
================================================================================
53
Notes to
FINANCIAL STATEMENTS (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., and a specific fund-level component, based only on the amount
of assets within each individual fund. This pricing structure enables Nuveen
fund shareholders to benefit from growth in the assets within each individual
fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
SELECT TAX-FREE 2 (NXQ)
SELECT TAX-FREE 3 (NXR)
CALIFORNIA SELECT TAX-FREE (NXC)
SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN)
AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------------
For the first $125 million .0500% .1000%
For the next $125 million .0375 .0875
For the next $250 million .0250 .0750
For the next $500 million .0125 .0625
======================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of March 31, 2006, the complex-level fee rate was .1887%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
54
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO SHAREHOLDERS
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on May 1, 2006, to shareholders of record on April 15,
2006, as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
--------------------------------------------------------------------------------
Dividend per share $.0570 $.0530 $.0535 $.0530 $.0510
================================================================================
55
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:
2006 $14.62 $.70 $(.02) $ .68 $(.68) $ -- $(.68) $14.62 $14.21
2005 14.85 .70 (.12) .58 (.71) (.10) (.81) 14.62 13.50
2004 14.82 .73 .15 .88 (.76) (.09) (.85) 14.85 14.30
2003 14.67 .77 .37 1.14 (.82) (.17) (.99) 14.82 14.15
2002 15.05 .88 (.38) .50 (.86) (.02) (.88) 14.67 13.85
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 14.38 .66 .06 .72 (.65) (.01) (.66) 14.44 13.37
2005 14.56 .67 (.13) .54 (.68) (.04) (.72) 14.38 13.08
2004 14.45 .70 .19 .89 (.72) (.06) (.78) 14.56 13.80
2003 14.53 .76 .14 .90 (.80) (.18) (.98) 14.45 13.49
2002 14.89 .86 (.36) .50 (.84) (.02) (.86) 14.53 13.66
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 14.22 .65 .06 .71 (.64) -- (.64) 14.29 13.45
2005 14.37 .66 (.11) .55 (.67) (.03) (.70) 14.22 12.82
2004 14.28 .69 .16 .85 (.69) (.07) (.76) 14.37 13.56
2003 14.26 .73 .12 .85 (.76) (.07) (.83) 14.28 13.06
2002 14.53 .81 (.28) .53 (.80) -- (.80) 14.26 13.42
CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 14.54 .65 .09 .74 (.65) (.06) (.71) 14.57 13.56
2005 14.68 .66 (.09) .57 (.66) (.05) (.71) 14.54 13.40
2004 14.54 .68 .19 .87 (.68) (.05) (.73) 14.68 14.06
2003 14.44 .71 .26 .97 (.73) (.14) (.87) 14.54 13.59
2002 14.79 .78 (.34) .44 (.77) (.02) (.79) 14.44 14.25
NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 14.28 .62 (.02) .60 (.62) (.07) (.69) 14.19 13.35
2005 14.57 .64 (.21) .43 (.66) (.06) (.72) 14.28 13.65
2004 14.51 .68 .14 .82 (.68) (.08) (.76) 14.57 14.40
2003 14.17 .70 .43 1.13 (.70) (.09) (.79) 14.51 13.60
2002 14.51 .73 (.33) .40 (.74) -- (.74) 14.17 13.76
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------
TOTAL RETURNS BEFORE CREDIT AFTER CREDIT**
-------------------- ---------------------------- ----------------------------
RATIO OF NET RATIO OF NET
BASED ON ENDING RATIO OF INVESTMENT RATIO OF INVESTMENT
BASED ON NET NET EXPENSES TO INCOME TO EXPENSES TO INCOME TO PORTFOLIO
MARKET ASSET ASSETS AVERAGE AVERAGE AVERAGE AVERAGE TURNOVER
VALUE* VALUE* (000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE
====================================================================================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 10.41% 4.74% $239,406 .32% 4.72% .31% 4.73% 4%
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
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 7.39 5.12 254,205 .36 4.51 .35 4.52 11
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
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 10.12 5.10 185,233 .37 4.51 .35 4.52 6
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
CALIFORNIA SELECT
TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 6.52 5.17 91,152 .38 4.42 .37 4.43 8
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
NEW YORK SELECT
TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006 2.84 4.19 55,473 .41 4.28 .40 4.29 13
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
====================================================================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Net Asset Value is the
combination of changes in net asset value, reinvested dividend income at
net asset value and reinvested capital gains distributions at net asset
value, if any. Total returns are not annualized.
** After custodian fee credit, where applicable.
See accompanying notes to financial statements.
56-57 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 Fund 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 (since 1996) and Director of Nuveen Investments, 161
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Board Nuveen Institutional Advisory Corp.(3); Director (since 1996)
Chicago, IL 60606 Member of Institutional Capital Corporation; Chairman and Director
(since 1997) of Nuveen Asset Management; Chairman and
Director of Rittenhouse Asset Management, Inc. (since 1999);
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. 161
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 161
7/29/34 Northern Trust Company; Director (since 2002) Community
333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United
Chicago, IL 60606 Way of the North Shore.
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 161
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College and Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 161
3/6/48 Business at the University of Connecticut (since 2002);
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
(since 1997), Credit Research Center at Georgetown University;
Director (since 2004) of Xerox Corporation; Director, SS&C
Technologies, Inc. (May 2005 - October 2005).
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 159
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;
member of the Wisconsin Bar Association; member of Board
of Directors, Friends of Boerner Botanical Gardens.
58
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 of Miller-Valentine Partners Ltd., a real estate 161
9/24/44 investment company; formerly, Senior Partner and Chief
333 W. Wacker Drive Operating Officer (retired, December 2004) of Miller-Valentine
Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty;
Chair of the Finance Committee and member of the Audit
Committee of Premier Health Partners, the not-for-profit
company of Miami Valley Hospital; Vice President, Dayton
Philharmonic Orchestra Association; Board Member,
Regional Leaders Forum, which promotes cooperation on
economic development issues; Director, Dayton Development
Coalition; 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 161
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, 161
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003),
Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider
of home and community-based services; Chairman (since
1997), Board of Directors, Rubicon, a pure captive insurance
company owned by Northwestern University; Director (since
1997), Evanston Chamber 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 FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 161
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 (2002-2004), General Counsel (1998-2004)
and Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
1997), 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.
59
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), formerly Vice President 161
9/22/63 (since 2002); formerly, Assistant Vice President (since 2000)
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 161
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); Vice 161
11/28/67 and Treasurer President and Treasurer (since 1999) of Nuveen Investments,
333 W. Wacker Drive Inc.; Vice President and Treasurer (1999-2004) of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(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.
------------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 161
8/24/61 Investments, LLC (since January 2005); formerly, Director,
333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004),
Chicago, IL 60606 Director, Business Development and Transformation, Deutsche
Trust Bank Japan (2002-2003); previously, Senior Vice
President, Head of Investment Operations and Systems,
Scudder Investments Japan, (2000-2002), Senior Vice
President, Head of Plan Administration and Participant
Services, Scudder Investments (1995-2002).
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 161
9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant
333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004)
formerly, Assistant Vice President of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3); Vice President and
Assistant Secretary (since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 161
10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly,
333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 161
3/2/64 Nuveen Investments; Managing Director (1997-2004) of
333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp.(3); Managing Director (since 2001) of Nuveen Asset
Management; Vice President (since 2002) of Nuveen
Investments Advisers Inc.; Chartered Financial Analyst.
60
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):
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 161
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds 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) 161
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 (1994-2004), The Northern
Trust Company.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 161
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 161
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 161
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; formerly, Vice President
333 W. Wacker Drive Secretary and Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005)
and Assistant Secretary of Nuveen Investments, Inc.; Vice
President (since 2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President (since 2000),
Assistant Secretary and Assistant General Counsel (since
1998) of Rittenhouse Asset Management, Inc.; 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.
61
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
62
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
MODIFIED DURATION: Duration is a measure of the expected period over which a
bond's principal and interest will be paid and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market interest
rates change. Generally, the longer a bond's or Fund's duration, the more the
price of the bond or Fund will change as interest rates change.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. No shares were
repurchased during the period covered by this report. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
63
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 $145 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.
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EAN-B-0306D
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 Select Tax-Free Income Portfolio
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
-----------------------------------------------------------------------------------------------------------------------------
March 31, 2006 $ 12,030 $ 0 $ 410 $ 0
-----------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------------------------
March 31, 2005 $ 11,296 $ 0 $ 417 $ 0
-----------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon
procedures required by the rating agencies to rate fund preferred shares. 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 tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
--------------------------------------------------------------------------------------------------------------
March 31, 2006 $ 0 $ 275,000 $ 0
--------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------
March 31, 2005 (1) $ 0 $ 282,575 $ 0
--------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Nuveen
Closed-End Funds tax return preparation.
(1) "Tax Fees Billed to Adviser and Affiliated Fund Service Providers" for the
year ended 3/31/05 have been revised and primarily reflect fees billed to the
Adviser for Nuveen Closed-End Funds tax return preparation.
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, 2006 $ 410 $ 275,000 $ 0 $ 275,410
March 31, 2005 $ 417 $ 282,575 $ 0 $ 282,992
The above "Non-Audit Fees billed to Adviser" for both fiscal year ends include
"Tax Fees" billed to Adviser in their respectable amounts from the previous
table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board 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 (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the Registrant's investment strategies:
NAME FUND
Thomas Spalding Nuveen Select Tax-Free Income Portfolio
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
TYPE OF ACCOUNT
NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Thomas Spalding Registered Investment Company 13 $1l,519 million
Other Pooled Investment Vehicles -0- $0
Other Accounts 5 $10 million
* Assets are as of March 31, 2006. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. The portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining the portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of May 31, 2006, the S&P/Investortools Municipal Bond index was
comprised of 46,877 securities with an aggregate current market value of $879
billion.
Base salary. The portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. The portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by the portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
NAM's investment team, the performance of the accounts for which he serves as
portfolio manager relative to any benchmarks established for those accounts, his
effectiveness in communicating investment performance to stockholders and their
representatives, and his contribution to NAM's investment process and to the
execution of investment strategies. The cash bonus component is also impacted by
the overall performance of Nuveen Investments, Inc. in achieving its business
objectives.
Long-term incentive compensation. The portfolio manager is eligible to receive
bonus compensation in the form of equity-based awards issued in securities
issued by Nuveen Investments, Inc. The amount of such compensation is dependent
upon the same factors articulated for cash bonus awards but also factors in his
long-term potential with the firm.
Material Conflicts of Interest. The portfolio manager's simultaneous management
of the Fund and the other accounts noted above may present actual or apparent
conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
NAM has adopted several policies that address potential conflicts of interest,
including best execution and trade allocation policies that are designed to
ensure (1) that portfolio management is seeking the best price for portfolio
securities under the circumstances, (2) fair and equitable allocation of
investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of the March 31, 2006, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
-------------------------- ---------------------------------------------- ----------------- ----------------------
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
BENEFICIALLY BY NAM'S MUNICIPAL
NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
-------------------------- ---------------------------------------------- ----------------- ----------------------
Thomas Spalding Nuveen Select Tax-Free Income Portfolio $0 $50,001-$100,000
-------------------------- ---------------------------------------------- ----------------- ----------------------
PORTFOLIO MANAGER BIO:
Thomas Spalding, CFA is Vice President and Senior Investment Officer of Nuveen
Investments. He has direct investment responsibility for the National Long Term
funds. He joined Nuveen in 1975 as assistant portfolio manager and has been the
portfolio manager of the Nuveen Municipal Value Fund, Nuveen's first closed-end
exchange traded fund, since its inception in 1987. Currently, he manages
investments for 14 Nuveen-sponsored investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During this reporting period, the registrant's Board of Trustees implemented a
change to the procedures by which shareholders may recommend nominees to the
registrant's board of trustees by amending the registrant's by-laws to include a
provision specifying the date by which shareholder nominations for election as
trustee at a subsequent meeting must be submitted to the registrant.
Shareholders must deliver or mail notice to the registrant not less than
forty-five days nor more than sixty days prior to the first anniversary date of
the date on which the registrant first mailed its proxy materials for the prior
year's annual meeting; provided, however, if and only if the annual meeting is
not scheduled to be held within a period that commences thirty days before the
first anniversary date of the annual meeting for the preceding year and ends
thirty days after such anniversary date (an annual meeting date outside such
period being referred to as an "Other Annual Meeting Date" hereafter), the
shareholder notice must be given no later than the close of business on the date
forty-five days prior to such Other Annual Meeting Date or the tenth business
day following the date such Other Annual Meeting Date is first publicly
announced or disclosed. The shareholder's notice must be in writing and set
forth the name, age, date of birth, business address, residence address and
nationality of the person(s) being nominated and the class or series, number of
all shares of the registrant owned of record or beneficially be each such
person(s), any other information regarding such person required by Item 401 of
Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities
Exchange Act of 1934, as amended, any other information regarding the person(s)
to be nominated that would be required to be disclosed in a proxy statement or
other filings required to be made in connection with solicitation of proxies for
election of trustees, and whether such shareholder believes any nominee is or
will be an "interested person" (as that term is defined in the Investment
Company Act of 1940, as amended) of the registrant or sufficient information to
enable the registrant to make that determination and the written and signed
consent of the person(s) to be nominated.
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 Select Tax-Free Income Portfolio
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: June 8, 2006
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: June 8, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: June 8, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.