Investment Company Act file number 811-6693
Nuveen Select Tax-Free Income Portfolio 3
(Exact name of
registrant as specified in charter)
Nuveen
Investments
333 West
Wacker Drive, Chicago, Illinois 60606
(Address of
principal executive offices) (Zip code)
Kevin
J. McCarthy Vice President and
Secretary
333 West Wacker
Drive, Chicago, Illinois 60606
(Name and address of
agent for service)
Registrant's telephone number, including area code: 312-917-7700
Date of fiscal year end: 03/31
Date of reporting period: 12/31/07
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.
Item 1. Schedule of Investments
Portfolio of Investments (Unaudited) | ||||||||
Nuveen Select Tax-Free Income Portfolio 3 (NXR) | ||||||||
December 31, 2007 | ||||||||
Principal | Optional Call | |||||||
Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | ||||
|
||||||||
Municipal Bonds – 99.1% | ||||||||
Alabama – 0.3% | ||||||||
$ 500 | Marshall County Healthcare Authority, Alabama, Revenue Bonds, Series 2002A, 6.250%, 1/01/22 | 1/12 at 101.00 | A– | $ | 529,770 | |||
|
||||||||
California – 6.8% | ||||||||
2,105 | Azusa Unified School District, Los Angeles County, California, General Obligation Bonds, | 7/12 at 100.00 | AAA | 2,266,643 | ||||
Series 2002, 5.375%, 7/01/21 – FSA Insured | ||||||||
3,350 | California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, | 5/12 at 101.00 | Aa3 | 3,715,519 | ||||
6.000%, 5/01/14 | ||||||||
2,595 | California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, | 4/16 at 100.00 | A+ | 2,521,017 | ||||
Series 2006, 5.000%, 4/01/37 | ||||||||
445 | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement | 6/17 at 100.00 | BBB | 400,887 | ||||
Asset-Backed Bonds, Series 2007A-1, 4.500%, 6/01/27 | ||||||||
3,000 | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed | 6/13 at 100.00 | AAA | 3,470,280 | ||||
Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) | ||||||||
250 | Santa Ana Unified School District, Orange County, California, General Obligation Bonds, Series | 8/10 at 101.00 | AAA | 264,128 | ||||
2000, 5.700%, 8/01/29 – FGIC Insured | ||||||||
|
||||||||
11,745 | Total California | 12,638,474 | ||||||
|
||||||||
Colorado – 6.6% | ||||||||
1,540 | Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/40 – | 10/16 at 100.00 | AAA | 1,561,883 | ||||
XLCA Insured | ||||||||
400 | Colorado Department of Transportation, Certificates of Participation, Series 2004, 5.000%, | 6/14 at 100.00 | AAA | 409,852 | ||||
6/15/34 – MBIA Insured | ||||||||
2,265 | Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series | 3/12 at 100.00 | AA (4) | 2,425,498 | ||||
2002A, 5.500%, 3/01/22 (ETM) | ||||||||
1,735 | Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series | 3/12 at 100.00 | AA (4) | 1,885,546 | ||||
2002A, 5.500%, 3/01/22 (Pre-refunded 3/01/12) | ||||||||
2,395 | Denver City and County, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13 | No Opt. Call | A+ | 2,668,437 | ||||
(Alternative Minimum Tax) | ||||||||
3,000 | Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds, Convention Center | 12/13 at 100.00 | Aaa | 3,264,450 | ||||
Hotel, Series 2003A, 5.000%, 12/01/24 (Pre-refunded 12/01/13) – XLCA Insured | ||||||||
|
||||||||
11,335 | Total Colorado | 12,215,666 | ||||||
|
||||||||
Connecticut – 0.2% | ||||||||
250 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital | 1/08 at 100.00 | AAA | 251,055 | ||||
Issue, Series 1992A, 6.625%, 7/01/18 – MBIA Insured | ||||||||
|
||||||||
District of Columbia – 0.2% | ||||||||
15 | District of Columbia, General Obligation Bonds, Series 1993E, 6.000%, 6/01/13 – MBIA | 6/08 at 100.00 | AAA | 15,034 | ||||
Insured (ETM) | ||||||||
235 | District of Columbia, General Obligation Refunding Bonds, Series 1994A-1, 6.500%, 6/01/10 – | No Opt. Call | AAA | 252,691 | ||||
MBIA Insured | ||||||||
|
||||||||
250 | Total District of Columbia | 267,725 | ||||||
|
||||||||
Florida – 5.5% | ||||||||
1,000 | Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa | 10/16 at 100.00 | A3 | 965,450 | ||||
General Hospital, Series 2006, 5.250%, 10/01/41 | ||||||||
5,020 | JEA St. John’s River Power Park System, Florida, Revenue Refunding Bonds, Issue 2, Series | 10/11 at 100.00 | Aa2 | 5,256,141 | ||||
2002-17, 5.000%, 10/01/18 | ||||||||
4,000 | JEA, Florida, Subordinate Lien Electric System Revenue Bonds, Series 2002D, 4.625%, 10/01/22 | 4/08 at 100.00 | Aa3 | 4,000,160 | ||||
|
||||||||
10,020 | Total Florida | 10,221,751 | ||||||
|
||||||||
Georgia – 0.3% | ||||||||
545 | Atlanta, Georgia, Airport Facilities Revenue Bonds, Series 1990, 0.000%, 1/01/10 – MBIA | No Opt. Call | AAA | 488,887 | ||||
Insured (Alternative Minimum Tax) | ||||||||
|
||||||||
Illinois – 18.2% | ||||||||
125 | Chicago Metropolitan Housing Development Corporation, Illinois, FHA-Insured Section 8 Assisted | 1/08 at 100.00 | AA | 128,801 | ||||
Housing Development Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22 | ||||||||
1,930 | Illinois Development Finance Authority, Revenue Bonds, Midwestern University, Series 2001B, | 5/11 at 101.00 | A– (4) | 2,106,325 | ||||
5.750%, 5/15/16 (Pre-refunded 5/15/11) | ||||||||
705 | Illinois Finance Authority, Revenue Bonds, University of Chicago, Series 2007, Residual 73TP, | 7/17 at 100.00 | AA | 727,440 | ||||
7.588%, 7/01/46 (IF) | ||||||||
2,185 | Illinois Finance Authority, Revenue Bonds, YMCA of Southwest Illinois, Series 2005, 5.000%, | 9/15 at 100.00 | AA | 2,074,439 | ||||
9/01/31 – RAAI Insured | ||||||||
4,450 | Illinois Health Facilities Authority, Remarketed Revenue Bonds, University of Chicago Project, | 8/11 at 103.00 | Aa1 | 4,740,808 | ||||
Series 1985A, 5.500%, 8/01/20 | ||||||||
1,500 | Illinois Health Facilities Authority, Revenue Bonds, Evangelical Hospitals Corporation, Series | No Opt. Call | N/R (4) | 1,820,520 | ||||
1992C, 6.250%, 4/15/22 (ETM) | ||||||||
2,225 | Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare, | 1/13 at 100.00 | A2 | 2,402,778 | ||||
Series 2002, 6.250%, 1/01/17 | ||||||||
2,500 | Illinois Housing Development Authority, Homeowner Mortgage Revenue Bonds, Series 2006C2, | 2/16 at 100.00 | AA | 2,475,350 | ||||
5.050%, 8/01/27 (Alternative Minimum Tax) | ||||||||
5,700 | Illinois, Sales Tax Revenue Bonds, First Series 2002, 5.000%, 6/15/22 | 6/13 at 100.00 | AAA | 5,962,884 | ||||
2,000 | Illinois, Sales Tax Revenue Bonds, Series 1997X, 5.600%, 6/15/17 | 6/08 at 100.50 | AAA | 2,023,900 | ||||
1,000 | Kankakee & Will Counties Community Unit School District 5, Illinois, General Obligation Bonds, | No Opt. Call | Aaa | 491,240 | ||||
Series 2006, 0.000%, 5/01/23 – FSA Insured | ||||||||
6,000 | Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place | 6/12 at 101.00 | AAA | 6,300,060 | ||||
Expansion Project, Series 2002B, 5.000%, 6/15/21 – MBIA Insured | ||||||||
1,300 | Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.250%, 12/01/34 – FGIC Insured | 12/14 at 100.00 | AAA | 1,363,258 | ||||
1,000 | Yorkville, Illinois, General Obligation Debt Certificates, Series 2003, 5.000%, 12/15/22 | 12/11 at 100.00 | AA (4) | 1,068,860 | ||||
(Pre-refunded 12/15/11) – RAAI Insured | ||||||||
|
||||||||
32,620 | Total Illinois | 33,686,663 | ||||||
|
||||||||
Indiana – 6.4% | ||||||||
1,000 | Franklin Community Multi-School Building Corporation, Marion County, Indiana, First Mortgage | 7/14 at 100.00 | AAA | 1,092,780 | ||||
Revenue Bonds, Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) – FGIC Insured | ||||||||
3,500 | Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Methodist Hospitals Inc., | 9/11 at 100.00 | A– | 3,510,185 | ||||
Series 2001, 5.375%, 9/15/22 | ||||||||
2,500 | Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, Columbus | No Opt. Call | AAA | 2,853,975 | ||||
Regional Hospital, Series 1993, 7.000%, 8/15/15 – FSA Insured | ||||||||
2,000 | Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project, Series 2002A, | 7/12 at 100.00 | AAA | 2,166,640 | ||||
5.250%, 7/01/33 (Pre-refunded 7/01/12) – MBIA Insured | ||||||||
2,295 | Shelbyville Central Renovation School Building Corporation, Indiana, First Mortgage Bonds, | 7/15 at 100.00 | AAA | 2,257,959 | ||||
Series 2005, 4.375%, 7/15/25 – MBIA Insured | ||||||||
|
||||||||
11,295 | Total Indiana | 11,881,539 | ||||||
|
||||||||
Iowa – 5.7% | ||||||||
2,745 | Iowa Finance Authority, Health Facility Revenue Bonds, Care Initiatives Project, Series 2006A, | 7/16 at 100.00 | BBB– | 2,661,881 | ||||
5.000%, 7/01/20 | ||||||||
750 | Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, | 6/17 at 100.00 | BBB | 695,040 | ||||
5.600%, 6/01/34 | ||||||||
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 | 4,095,669 | ||||
2,850 | 5.600%, 6/01/35 (Pre-refunded 6/01/11) | 6/11 at 101.00 | AAA | 3,081,221 | ||||
|
||||||||
10,195 | Total Iowa | 10,533,811 | ||||||
|
||||||||
Kansas – 1.1% | ||||||||
Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial Hospital, Series 2006: | ||||||||
1,425 | 5.125%, 7/01/26 | 7/16 at 100.00 | A3 | 1,433,294 | ||||
700 | 4.875%, 7/01/36 | 7/16 at 100.00 | A3 | 654,563 | ||||
|
||||||||
2,125 | Total Kansas | 2,087,857 | ||||||
|
||||||||
Maine – 0.7% | ||||||||
125 | Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Series 1999B, 6.000%, | 7/09 at 101.00 | AAA | 130,874 | ||||
7/01/19 – MBIA Insured | ||||||||
1,075 | Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Series 1999B, 6.000%, | 7/09 at 101.00 | Aaa | 1,132,319 | ||||
7/01/19 (Pre-refunded 7/01/09) – MBIA Insured | ||||||||
|
||||||||
1,200 | Total Maine | 1,263,193 | ||||||
|
||||||||
Massachusetts – 0.8% | ||||||||
1,000 | Massachusetts Development Finance Agency, Resource Recovery Revenue Bonds, Ogden Haverhill | 12/08 at 102.00 | BBB | 1,003,840 | ||||
Associates, Series 1998B, 5.200%, 12/01/13 (Alternative Minimum Tax) | ||||||||
15 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Partners HealthCare | 7/11 at 101.00 | AA | 16,353 | ||||
System Inc., Series 2001C, 6.000%, 7/01/17 | ||||||||
485 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Partners HealthCare | 7/11 at 101.00 | Aa2 (4) | 534,902 | ||||
System Inc., Series 2001C, 6.000%, 7/01/17 (Pre-refunded 7/01/11) | ||||||||
|
||||||||
1,500 | Total Massachusetts | 1,555,095 | ||||||
|
||||||||
Michigan – 3.4% | ||||||||
1,500 | Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second Lien, Series 2006B, 4.625%, | 7/16 at 100.00 | AAA | 1,468,575 | ||||
7/01/34 – FGIC Insured | ||||||||
2,900 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health | 12/12 at 100.00 | AA | 2,976,618 | ||||
Credit Group, Series 2002C, 5.375%, 12/01/30 | ||||||||
235 | Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center | 2/08 at 100.00 | BB– | 235,157 | ||||
Obligated Group, Series 1993A, 6.500%, 8/15/18 | ||||||||
1,600 | Plymouth-Canton Community School District, Wayne and Washtenaw Counties, Michigan, Unlimited | 5/09 at 100.00 | AA– | 1,622,944 | ||||
Tax General Obligation School Building and Site Bonds, Series 1999, 4.750%, 5/01/18 | ||||||||
|
||||||||
6,235 | Total Michigan | 6,303,294 | ||||||
|
||||||||
Mississippi – 0.4% | ||||||||
725 | Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds, Baptist Memorial | 9/14 at 100.00 | N/R | 734,585 | ||||
Healthcare, Series 2004B-1, 5.000%, 9/01/24 | ||||||||
|
||||||||
Nebraska – 1.9% | ||||||||
3,500 | Nebraska Public Power District, General Revenue Bonds, Series 2002B, 5.000%, 1/01/33 – | 1/13 at 100.00 | AAA | 3,570,525 | ||||
AMBAC Insured | ||||||||
|
||||||||
Nevada – 4.9% | ||||||||
4,095 | Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas | 1/10 at 100.00 | AAA | 4,122,355 | ||||
Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured | ||||||||
1,680 | Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.500%, 6/01/22 – FGIC Insured | 6/12 at 100.00 | AAA | 1,795,769 | ||||
2,830 | Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.500%, 6/01/22 (Pre-refunded | 6/12 at 100.00 | AAA | 3,091,747 | ||||
6/01/12) – FGIC Insured | ||||||||
|
||||||||
8,605 | Total Nevada | 9,009,871 | ||||||
|
||||||||
New Hampshire – 0.3% | ||||||||
500 | New Hampshire Housing Finance Authority, Single Family Mortgage Acquisition Bonds, Series | 5/11 at 100.00 | Aa2 | 509,340 | ||||
2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) | ||||||||
|
||||||||
New Jersey – 1.5% | ||||||||
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, | ||||||||
Series 2003: | ||||||||
1,000 | 6.750%, 6/01/39 (Pre-refunded 6/01/13) | 6/13 at 100.00 | AAA | 1,163,180 | ||||
1,355 | 6.250%, 6/01/43 (Pre-refunded 6/01/13) | 6/13 at 100.00 | AAA | 1,542,884 | ||||
|
||||||||
2,355 | Total New Jersey | 2,706,064 | ||||||
|
||||||||
New Mexico – 2.7% | ||||||||
1,000 | New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series | 9/17 at 100.00 | AAA | 975,760 | ||||
2007A, 5.250%, 9/01/42 (Alternative Minimum Tax) | ||||||||
4,000 | University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds, Series 2004, 4.625%, | 7/14 at 100.00 | AAA | 4,031,280 | ||||
1/01/25 – FSA Insured | ||||||||
|
||||||||
5,000 | Total New Mexico | 5,007,040 | ||||||
|
||||||||
New York – 3.6% | ||||||||
1,180 | Dormitory Authority of the State of New York, Second General Resolution Consolidated Revenue | No Opt. Call | A1 | 1,248,416 | ||||
Bonds, City University System, Series 1990C, 7.500%, 7/01/10 | ||||||||
2,335 | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A, | 9/11 at 100.00 | AAA | 2,519,769 | ||||
5.375%, 9/01/21 (Pre-refunded 9/01/11) | ||||||||
35 | New York City, New York, General Obligation Bonds, Series 1991B, 7.000%, 2/01/18 | 2/08 at 100.00 | AA | 35,094 | ||||
1,000 | New York Dorm Authority, FHA Insured Mortgage Hospital Revenue Bonds, Kaleida Health, | 8/16 at 100.00 | AAA | 956,100 | ||||
Series 2006, 4.700%, 2/15/35 (UB) | ||||||||
1,850 | New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and | 6/10 at 100.00 | AA– | 1,928,644 | ||||
State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15 | ||||||||
|
||||||||
6,400 | Total New York | 6,688,023 | ||||||
|
||||||||
North Carolina – 4.2% | ||||||||
5,000 | North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%, | 1/13 at 100.00 | AAA | 5,352,000 | ||||
1/01/18 – MBIA Insured | ||||||||
2,345 | Piedmont Triad Airport Authority, North Carolina, Airport Revenue Bonds, Series 2001A, 5.250%, | 7/11 at 101.00 | AAA | 2,497,448 | ||||
7/01/16 – FSA Insured | ||||||||
|
||||||||
7,345 | Total North Carolina | 7,849,448 | ||||||
|
||||||||
Oklahoma – 1.6% | ||||||||
3,000 | Oklahoma Development Finance Authority, Revenue Bonds, St. John Health System, Series 2004, | 2/14 at 100.00 | AA– | 3,049,650 | ||||
5.000%, 2/15/24 | ||||||||
|
||||||||
Pennsylvania – 2.4% | ||||||||
2,435 | Dauphin County Industrial Development Authority, Pennsylvania, Water Development Revenue | No Opt. Call | A– | 2,939,118 | ||||
Refunding Bonds, Dauphin Consolidated Water Supply Company, Series 1992B, 6.700%, 6/01/17 | ||||||||
500 | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Widener University, | 7/13 at 100.00 | BBB+ | 505,730 | ||||
Series 2003, 5.250%, 7/15/24 | ||||||||
1,000 | Philadelphia Authority for Industrial Development, Pennsylvania, Airport Revenue Bonds, | 7/11 at 101.00 | AAA | 1,062,970 | ||||
Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 – FGIC Insured (Alternative | ||||||||
Minimum Tax) | ||||||||
|
||||||||
3,935 | Total Pennsylvania | 4,507,818 | ||||||
|
||||||||
South Carolina – 4.8% | ||||||||
1,500 | Lexington County Health Service District, South Carolina, Hospital Revenue Refunding and | 11/13 at 100.00 | A+ (4) | 1,699,200 | ||||
Improvement Bonds, Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13) | ||||||||
1,500 | Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds, | 8/14 at 100.00 | AAA | 1,588,830 | ||||
Series 2004A, 5.250%, 8/15/20 – MBIA Insured | ||||||||
2,500 | South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, Bon | 11/12 at 100.00 | A– | 2,543,425 | ||||
Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 | ||||||||
3,010 | Tobacco Settlement Revenue Management Authority, South Carolina, Tobacco Settlement | 5/11 at 101.00 | BBB | 3,060,086 | ||||
Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 | ||||||||
|
||||||||
8,510 | Total South Carolina | 8,891,541 | ||||||
|
||||||||
South Dakota – 1.1% | ||||||||
1,010 | South Dakota Health and Educational Facilities Authority, Revenue Bonds, Avera Health, Series | 7/12 at 101.00 | AAA | 1,033,522 | ||||
2002, 5.125%, 7/01/27 – AMBAC Insured | ||||||||
1,000 | South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sioux Valley | 11/14 at 100.00 | AA– | 1,013,380 | ||||
Hospitals, Series 2004A, 5.250%, 11/01/34 | ||||||||
|
||||||||
2,010 | Total South Dakota | 2,046,902 | ||||||
|
||||||||
Tennessee – 1.1% | ||||||||
2,000 | Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue | 4/12 at 101.00 | Ba2 | 2,043,759 | ||||
Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22 | ||||||||
|
||||||||
Texas – 10.7% | ||||||||
1,500 | Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue | 1/15 at 100.00 | AAA | 1,503,945 | ||||
Bonds, Series 2005, 5.000%, 1/01/45 – FGIC Insured | ||||||||
2,500 | Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds, | 11/13 at 100.00 | AAA | 2,520,725 | ||||
TECO Project, Series 2003, 5.000%, 11/15/30 – MBIA Insured | ||||||||
3,000 | Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2002B, 5.500%, 7/01/18 – | 7/12 at 100.00 | AAA | 3,221,310 | ||||
FSA Insured | ||||||||
3,125 | Katy Independent School District, Harris, Fort Bend and Waller Counties, Texas, General | 2/12 at 100.00 | AAA | 3,336,156 | ||||
Obligation Bonds, Series 2002A, 5.000%, 2/15/32 (Pre-refunded 2/15/12) | ||||||||
400 | Killeen Independent School District, Bell County, Texas, General Obligation Bonds, Series | 2/08 at 100.00 | AAA | 400,868 | ||||
1998, 5.000%, 2/15/14 | ||||||||
1,425 | Killeen Independent School District, Bell County, Texas, General Obligation Bonds, Series | 2/08 at 100.00 | AAA | 1,428,449 | ||||
1998, 5.000%, 2/15/14 (Pre-refunded 2/15/08) | ||||||||
4,750 | Sam Rayburn Municipal Power Agency, Texas, Power Supply System Revenue Refunding Bonds, | 10/12 at 100.00 | AA | 4,974,533 | ||||
Series 2002A, 5.500%, 10/01/17 – RAAI Insured | ||||||||
1,750 | Texas, General Obligation Bonds, Water Financial Assistance Program, Series 2003A, 5.125%, | 8/13 at 100.00 | Aa1 | 1,753,955 | ||||
8/01/42 (Alternative Minimum Tax) | ||||||||
500 | Victoria, Texas, General Obligation Bonds, Series 2001, 5.000%, 8/15/23 – FGIC Insured | 8/11 at 100.00 | AAA | 518,474 | ||||
|
||||||||
18,950 | Total Texas | 19,658,415 | ||||||
|
||||||||
Washington – 0.3% | ||||||||
510 | Port of Seattle, Washington, Revenue Bonds, Series 2001A, 5.000%, 4/01/31 – FGIC Insured | 10/11 at 100.00 | AAA | 520,913 | ||||
|
||||||||
Wisconsin – 1.4% | ||||||||
2,500 | Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 5.000%, 11/01/26 | 11/13 at 100.00 | AA– | 2,586,024 | ||||
|
||||||||
$ 175,660 | Total Municipal Bonds (cost $176,482,373) | 183,304,698 | ||||||
|
|
|||||||
Shares | Description (1) | Value | ||||||
|
||||||||
Common Stocks – 0.0% | ||||||||
Airlines – 0.0% | ||||||||
220 | UAL Corporation, (5) (6) | $ | 7,845 | |||||
|
||||||||
Total Common Stocks (cost $0) | 7,845 | |||||||
|
||||||||
Total Investments (cost $176,482,373) – 99.1% | 183,312,543 | |||||||
|
||||||||
Floating Rate Obligations – (0.4)% | (665,000) | |||||||
|
||||||||
Other Assets Less Liabilities – 1.3% | 2,319,038 | |||||||
|
||||||||
Net Assets – 100% | $ | 184,966,581 | ||||||
|
The Fund may invest in “zero coupon” securities. A zero coupon security does not pay a regular interest | ||
coupon to its holders during the life of the security. Tax-exempt income to the holder of the security | ||
comes from accretion of the difference between the original purchase price of the security at issuance | ||
and the par value of the security at maturity and is effectively paid at maturity. Such securities are | ||
included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market | ||
prices of zero coupon securities generally are more volatile than the market prices of securities that | ||
pay interest periodically. | ||
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common | |
Shares unless otherwise noted. | ||
(2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There | |
may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be | ||
subject to periodic principal paydowns. | ||
(3) | Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, | |
Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be | ||
below investment grade. | ||
The AAA ratings shown in the Portfolio of Investments reflect the AAA ratings on certain bonds insured | ||
by AMBAC, FGIC, XCLA or MBIA and/or the A ratings on certain bonds insured by ACA as of December 31, | ||
2007. During December 2007, at least one rating agency reduced the rating for ACA bonds to CCC. | ||
Subsequent to December 31, 2007, at least one rating agency reduced the rating for AMBAC-insured bonds | ||
to AA, the rating for XCLA-insured bonds to A and the rating for FGIC-insured bonds to A3. One or more | ||
rating agencies have placed each of these insurers on “negative credit watch”, which may presage one or | ||
more rating reductions for such insurer or insurers in the future. If one or more insurers’ ratings are reduced | ||
below AAA (or A in the case of ACA) by these rating agencies, it would likely reduce the effective rating | ||
of many of the bonds insured by that insurer or insurers. | ||
(4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities | |
which ensure the timely payment of principal and interest. Such investments are normally considered to be | ||
equivalent to AAA rated securities. | ||
(5) | Non-income producing. | |
(6) | On December 9, 2002, UAL Corporation (“UAL”), the holding company of United Air Lines, Inc. (“United”) | |
filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not | ||
remain current on their interest payment obligations with respect to the bonds previously held and thus | ||
the Fund had stopped accruing interest on its UAL bonds. On February 1, 2006, UAL emerged from federal | ||
bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement | ||
agreement established to meet UAL’s unsecured bond obligations, the bondholders, including the Fund, | ||
received three distributions of UAL common stock over the subsequent months, and the bankruptcy court | ||
dismissed all unsecured claims of bondholders, including those of the Fund. On May 5, 2006, the Fund | ||
liquidated such UAL common stock holdings. On September 29, 2006, May 30, 2007 and November 14, 2007, | ||
the Fund received additional distributions of 532, 172 and 48 shares, respectively, of UAL common stock | ||
as a result of its earlier ownership of the UAL bonds. The Fund liquidated 532 shares of such UAL | ||
common stock holdings on November 15, 2006. The remaining 220 shares of UAL common stock were | ||
still held by the Fund at December 31, 2007. | ||
N/R | Not rated. | |
(ETM) | Escrowed to maturity. | |
(IF) | Inverse floating rate investment. | |
(UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the | |
provisions of SFAS No. 140. |
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, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No.140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
At December 31, 2007, the cost of investments was $175,761,774.
Gross unrealized appreciation and gross unrealized depreciation of investments at December 31, 2007, were as follows:
|
||
Gross unrealized: | ||
Appreciation | $7,660,428 | |
Depreciation | (774,882) | |
|
||
Net unrealized appreciation (depreciation) of investments | $6,885,546 | |
|
Item 2. Controls and Procedures.
Item 3. Exhibits.
File as exhibits as part of this Form 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)), exactly as set forth below: EX-99 CERT Attached hereto.
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 3
By (Signature and Title)*
/s/ Kevin J.
McCarthy
Kevin
J.
McCarthy
Vice President and Secretary
Date February 29, 2008
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 February 29, 2008
By (Signature and Title)*
/s/ Stephen D.
Foy
Stephen
D.
Foy
Vice President and Controller (principal financial officer)
Date February 29, 2008
* Print the name and title of each signing officer under his or her signature.