Nuveen Exchange-Traded Portfolios
Providing tax-free income to help you live your dreams.
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
SEMIANNUAL REPORT/SEPTEMBER 30, 1995
Photographic image of man seated at breakfast table with wife standing behind
him.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
12 Commonly used terms
14 Shareholder meeting report
15 Portfolio of investments
36 Statement of net assets
38 Statement of operations
40 Statement of changes in net assets
43 Notes to financial statements
52 Financial highlights
<PAGE>
Dear shareholder
Photographic image of Donald E. Sveen, Chairman of the Board
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
Since the beginning of 1995, we have enjoyed a welcome rebound in the bond
markets, as we put 1994--a very volatile period in bond market history--behind
us. During this period, the Nuveen Tax-Free Exchange-Traded Portfolios
continued to meet their investment objectives while improving their share
price performance from a year ago. And we believe that these municipal bond
portfolios continue to be one of the best ways to invest for the long term,
offering stable, dependable tax-free income and diversification across market
sectors.
As of September 30, 1995, current yields on share prices for the portfolios
covered in this report ranged from 5.83% to 6.43%. To match these yields, an
investor in the 36% federal income tax bracket would have had to earn at least
9.11% on taxable alternatives of comparable quality. And if state taxes are
taken into account for the California and New York portfolios, the equivalent
yields would be even higher. Without a doubt, taxable yields at these levels
on investments of comparable quality are difficult to achieve in today's
markets.
The 12-month total returns on net asset value were also impressive, ranging
from 10.36% to 11.54%. These performance results remind us of the important
role that municipal bonds--and the tax-free income they provide--can play as
part of an investment strategy focused on diversification and long-term
performance. Over time, municipal bonds have proven to be a valuable and
dependable component of successful investment programs.
The value and dependability of your municipal bond investments are enhanced
by the fact that you have chosen tax-free exchange-traded portfolios managed
by Nuveen. We follow a value investing strategy--a disciplined approach to
security selection and portfolio construction supported by one of the largest
and most respected research teams in the municipal industry. This combination
of professional management, award-winning research, and shareholder service
distinguishes Nuveen as a fund manager.
As you review the following pages detailing the performance of your
portfolio, I hope you come away with the feeling that these results, coupled
with Nuveen's continued pledge of superior service, add up to a rewarding
investing experience. We look forward to serving your tax-free investment
needs in the future.
Sincerely,
Donald E. Sveen
Chairman of the Board
November 15, 1995
<PAGE>
Answering your questions
Ron Toupin, manager of Nuveen's Select Tax-Free Portfolios, offers insights
into our approach to fund management and the outlook for Nuveen's
Exchange-Traded Portfolios.
How are these portfolios different from the other exchange-traded funds that
Nuveen offers?
To answer that question it's important first to look at the objectives of the
Select Portfolios. These portfolios are designed to blend the benefits of
broad portfolio diversification with yield and price characteristics of
an individual, longer-term municipal bond. Since these investments are
structured to provide steady, dependable tax-free income and a scheduled
maturity, they are not intended to trade extensively. In fact, bonds can only
be purchased to replace called bonds, lower yielding bonds, or those sold for
credit reasons.
With this in mind, we actively monitor the portfolios for quality and we
constantly review relative values in the municipal market. For shareholders,
this very low turnover approach has advantages. First, the portfolios' yields
are highly dependable. Also, thanks to their structure, the portfolios have
low expenses.
<PAGE>
How does the work done by Nuveen's Research Department help support the value
of the portfolios?
Photograpic image of Ron Toupin
Ron Toupin, manager of Nuveen's Select Tax-Free Portfolios, answers investors'
questions on developments in the municipal market.
At Nuveen, we believe that attention to detail combined with years of
experience is the foundation for sound research. And sound research is one of
the core elements of our disciplined approach to providing you with dependable
income, credit quality, and diversification--key factors in a successful fixed
income investment program.
Our award-winning team of more than 30 research professionals provides us
with invaluable support, assisting us in careful analysis of bond issues
considered for purchase--even those rated AAA by the rating agencies. On a
daily basis, our research analysts prepare credit reviews to assist in the
selection of bonds that offer the best combination of yield and security,
monitor the continued creditworthiness of portfolio holdings, and analyze
economic, political, and demographic trends affecting the markets. This daily
surveillance of events and trends in the credit markets assists us in
monitoring the underlying value of our holdings.
It is this combination of in-depth research and review that enables us to
provide tax-free municipal investments that meet your objectives for
dependable income and credit safety.
<PAGE>
What impact have Federal Reserve Board actions had on bond prices?
Over the 12-month period ended February 28, 1995, the Federal Reserve Board
raised short-term rates an unprecedented seven times, suggesting that the
hikes would cause the economy to slow enough to prevent any significant growth
in the rate of inflation. The short-term rate increases impacted bond
portfolios by reducing the demand for long-term bonds, which had the
complementary effects of lowering bond prices and raising bond yields.
On July 6, 1995, after much anticipation, the Federal Reserve cautiously
declared victory for its policy, by making the first move to ease rates in
nearly three years. The long-term bond market had already anticipated the
Fed's move with substantial declines in yields and corresponding price
increases. In subsequent statements, the Fed has reiterated that it is closely
monitoring the pace of economic growth and progress toward a balanced federal
budget, but it has held off on any further changes to short-term rates,
sending the message that it believes the economy continues to be on the right
track.
<PAGE>
What is the current outlook for municipal bonds?
With the rebound in the bond market at the beginning of 1995 and some
consensus that inflation is under control, economic indicators are favorable
for municipal bonds. Technical factors also point to a more favorable climate.
One technical factor that affects bond prices is the supply and demand
situation. While supply of new municipal bonds has been lagging over the past
few quarters, new issue supply rose sharply in the second quarter of 1995.
Demand from individuals has been somewhat subdued by extraordinary market
volatility over the past 18 months and by the mounting discussion of the
ramifications of proposed reforms in the federal tax laws.
We anticipate that demand among individual investors will gain strength over
time based on the fact that municipal bonds continue to be a fundamentally
sound and attractive investment option, offering one of the few remaining
tax-advantaged alternatives. Once investors are more confident that the
interest rate environment has stabilized, we expect to see the demand for
municipal investments resume its long-term upward trend.
<PAGE>
<TABLE>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
NXP
For 40 continuous months, shareholders enjoyed unchanged monthly dividends. A
modest adjustment in November of this year brought the dividend to .0765. The
scheduled maturity date is February 2017.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/7/94 $0.0790
11/8/94 $0.0790
12/9/94 $0.0790 $0.0444
1/9/95 $0.0790
2/9/95 $0.0790
3/9/95 $0.0790
4/7/95 $0.0790
5/9/95 $0.0790
6/13/95 $0.0790
7/12/95 $0.0790
8/11/95 $0.0790
9/13/95 $0.0790
<CAPTION>
FUND HIGHLIGHTS 9/30/95
<S> <C>
Yield 6.43%
Taxable-equivalent yield 10.05%
Annual total return on NAV 11.54%
Taxable-equivalent total return 15.37%
Share price $14.75
NAV $14.99
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
NXQ
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. This dividend has
remained constant for the past 38 months. The scheduled maturity date is May
2017.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/7/94 $0.0756
11/8/94 $0.0756
12/9/94 $0.0756
1/9/95 $0.0756
2/9/95 $0.0756
3/9/95 $0.0756
4/7/95 $0.0756
5/9/95 $0.0756
6/13/95 $0.0756
7/12/95 $0.0756
8/11/95 $0.0756
9/13/95 $0.0756
<CAPTION>
FUND HIGHLIGHTS 9/30/95
<S> <C>
Yield 6.37%
Taxable-equivalent yield 9.95%
Annual total return on NAV 10.92%
Taxable-equivalent total return 14.61%
Share price $14.25
NAV $14.83
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
NXR
Nuveen Select Portfolios set dividends with stability in mind, seeking a level
that is expected to be sustainable for extended periods. Shareholders have
enjoyed more than 28 months of steady dividends. The scheduled maturity date
is June 2017.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/7/94 $0.0700
11/8/94 $0.0700
12/9/94 $0.0700
1/9/95 $0.0700
2/9/95 $0.0700
3/9/95 $0.0700
4/7/95 $0.0700
5/9/95 $0.0700
6/13/95 $0.0700
7/12/95 $0.0700
8/11/95 $0.0700
9/13/95 $0.0700
<CAPTION>
FUND HIGHLIGHTS 9/30/95
<S> <C>
Yield 6.34%
Taxable-equivalent yield 9.91%
Annual total return on NAV 11.38%
Taxable-equivalent total return 14.99%
Share price $13.25
NAV $14.14
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NXC
Shareholders in this Fund have enjoyed more than 37 months of steady
dividends. The dividend was changed to .0670 in November 1995. The scheduled
maturity date is May 2017.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/7/94 $0.0681
11/8/94 $0.0681
12/9/94 $0.0681
1/9/95 $0.0681
2/9/95 $0.0681
3/9/95 $0.0681
4/7/95 $0.0681
5/9/95 $0.0681
6/13/95 $0.0681
7/12/95 $0.0681
8/11/95 $0.0681
9/13/95 $0.0681
<CAPTION>
FUND HIGHLIGHTS 9/30/95
<S> <C>
Yield 5.94%
Taxable-equivalent yield 10.33%
Annual total return on NAV 10.36%
Taxable-equivalent total return 14.86%
Share price $13.75
NAV $14.34
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
NXN
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. This dividend has
remained constant for the past 30 months. The scheduled maturity date is May
2017.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/7/94 $0.0650
11/8/94 $0.0650
12/9/94 $0.0650
1/9/95 $0.0650
2/9/95 $0.0650
3/9/95 $0.0650
4/7/95 $0.0650
5/9/95 $0.0650
6/13/95 $0.0650
7/12/95 $0.0650
8/11/95 $0.0650
9/13/95 $0.0650
<CAPTION>
FUND HIGHLIGHTS 9/30/95
<S> <C>
Yield 5.83%
Taxable-equivalent yield 9.88%
Annual total return on NAV 10.55%
Taxable-equivalent total return 14.63%
Share price $13.375
NAV $14.23
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded portfolio's annualized monthly dividend on a given date (in
the case of this report, September 30, 1995) divided by its closing price per
share on that date.
Taxable equivalent yield
The return an investor subject to a given income tax rate would need to obtain
from a fully taxable investment to equal the portfolio's stated annualized
yield on share price. For shareholders in Nuveen Select Tax-Free Income
Portfolio, Select Portfolio 2, and Select Portfolio 3, this rate is assumed to
be 36%, based on incomes of $117,950-$256,500 for investors filing singly,
$143,600-$256,500 for those filing jointly. For shareholders in the Insured
California Select Portfolio, the combined state and federal rate is assumed to
be 42.5%, based on incomes of $117,950-$214,928 for investors filing singly,
$143,600-$256,500 for those filing jointly; and for Insured New York Select
Portfolio shareholders, it is assumed to be 41%, based on incomes of
$117,950-$256,500 for investors filing singly, $143,600-$256,500 for those
filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
portfolio, minus any liabilities. The NAV per share is the portfolio's net
assets divided by its total number of shares outstanding.
Annual total return on NAV
The percentage change in a fund's NAV per share over the previous 12 months,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given income tax rate would need to
obtain from a fully taxable investment to equal the portfolio's stated total
return on NAV.
<PAGE>
<TABLE>
SHAREHOLDER MEETING REPORT
On July 18, 1995, the Nuveen Select Tax-Free Income Portfolios held an Annual
Meeting of Shareholders. At the meeting, shareholders voted to elect trustees
of the Portfolios and to ratify the auditors for the Portfolios. The trustees
elected at the meeting include: James E. Bacon, Anthony T. Dean, William L.
Kissick, Thomas E. Leafstrand, Donald E. Sveen, and Sheila W. Wellington.
<CAPTION>
NXP NXQ NXR NXC NXN
<S> <C> <C> <C> <C> <C>
Approval of the trustees
was reached as follows:
James E. Bacon
For 14,462,351 15,278,002 11,457,308 5,584,840 3,413,118
Abstain 130,577 142,941 141,506 64,269 27,449
---------- ---------- ---------- --------- ---------
Total 14,592,928 15,420,943 11,598,814 5,649,109 3,440,567
Anthony T. Dean
For 14,464,293 15,284,189 11,461,596 5,584,874 3,414,118
Abstain 128,635 136,754 137,218 64,235 26,449
---------- ---------- ---------- --------- ---------
Total 14,592,928 15,420,943 11,598,814 5,649,109 3,440,567
William L. Kissick
For 14,464,493 15,288,189 11,465,855 5,585,792 3,412,818
Abstain 128,435 132,754 132,959 63,317 27,749
---------- ---------- ---------- --------- ---------
Total 14,592,928 15,420,943 11,598,814 5,649,109 3,440,567
Thomas E. Leafstrand
For 14,464,668 15,287,839 11,471,296 5,587,974 3,414,118
Abstain 128,260 133,104 127,518 61,135 26,449
---------- ---------- ---------- --------- ---------
Total 14,592,928 15,420,943 11,598,814 5,649,109 3,440,567
Donald E. Sveen
For 14,463,976 15,286,989 11,459,227 5,585,774 3,415,118
Abstain 128,952 133,954 139,587 63,335 25,449
---------- ---------- ---------- --------- ---------
Total 14,592,928 15,420,943 11,598,814 5,649,109 3,440,567
Sheila W. Wellington
For 14,464,651 15,284,898 11,468,775 5,587,574 3,413,818
Abstain 128,277 136,045 130,039 61,535 26,749
---------- ---------- ---------- --------- ---------
Total 14,592,928 15,420,943 11,598,814 5,649,109 3,440,567
Ratification of auditors
was reached as follows:
For 14,351,968 15,215,822 11,432,293 5,540,765 3,404,421
Against 59,304 44,155 48,607 20,216 13,437
Abstain 181,656 160,966 117,914 88,128 22,709
---------- ---------- ---------- --------- ---------
Total 14,592,928 15,420,943 11,598,814 5,649,109 3,440,567
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.2%
$ 540,000 Alabama Housing Finance Authority, Single Family
Mortgage, 6.550%, 10/01/14 4/04 at 102 Aaa $ 564,608
ARKANSAS - 1.1%
2,500,000 Little Rock Health Facilities Board (Baptist Medical
Center-Parkway Village Project), 7.000%, 10/01/17 4/02 at 102 A 2,654,525
CALIFORNIA - 6.2%
3,000,000 California Public Works Board, Department of
Corrections (California State Prison-Monterey
County), 6.875%, 11/01/14 11/04 at 102 A 3,188,400
4,905,000 California Statewide Communities Development
Authority (Cedars-Sinai Medical Center),
6.500%, 8/01/15 8/02 at 102 A1 4,980,095
4,750,000 California Public Works Board (California
Community Colleges), 7.000%, 3/01/14 3/04 at 102 A 5,072,050
2,000,000 Los Angeles County Metropolitan Transportation
Authority, 5.625%, 7/01/18 7/03 at 102 Aaa 1,916,900
COLORADO - 7.8%
Colorado Housing and Finance Authority, Single
Family Program:
4,680,000 6.800%, 11/01/12 5/02 at 102 AA 4,937,728
1,320,000 6.875%, 11/01/16 5/02 at 102 AA 1,388,402
10,750,000 City and County of Denver Airport System,
Alternative Minimum Tax, 7.750%, 11/15/13 No Opt. Call Baa 12,797,230
FLORIDA - 3.8%
7,000,000 Florida State Board of Education, Public Education
Capital Outlay, 6.625%, 6/01/22 6/02 at 101 Aa 7,454,650
2,000,000 Escambia County Pollution Control (Champion
International Project), Alternative Minimum Tax,
5.875%, 6/01/22 12/03 at 102 Baa1 1,851,900
ILLINOIS - 11.8%
2,365,000 Illinois Health Facilities Authority (Evangelical
Hospitals Corporation), 6.500%, 4/15/09 4/02 at 102 AA- 2,470,361
Illinois Educational Facilities Authority
(Loyola University of Chicago):
1,260,000 7.125%, 7/01/11 7/01 at 102 A1 1,363,837
3,000,000 6.100%, 7/01/15 7/03 at 102 A1 2,991,120
2,000,000 Illinois General Obligation, 5.875%, 8/01/14 8/04 at 102 AA- 1,982,940
3,850,000 Illinois Health Facilities Authority (Sarah Bush
Lincoln Health Center), 7.250%, 5/15/22 5/02 at 102 BBB+ 3,961,227
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
Chicago Heights General Obligation Bonds:
$ 3,820,000 5.650%, 12/01/15 12/08 at 100 Aaa $ 3,712,238
2,600,000 5.650%, 12/01/17 12/08 at 100 Aaa 2,510,586
7,000,000 Cook County General Obligation, 6.600%, 11/15/22 11/02 at 102 Aaa 7,376,670
2,500,000 Regional Transportation Authority, 5.800%, 6/01/13 6/03 at 102 Aaa 2,486,100
INDIANA - 2.7%
3,000,000 Indiana Bond Bank, Special Hospital Program
(Hendricks Community Hospital Finance Program),
7.125%, 4/01/13 4/02 at 102 A 3,233,880
Indiana Bond Bank, Special Program Bonds:
1,000,000 7.000%, 8/01/12 2/02 at 102 A 1,061,380
2,250,000 7.000%, 8/01/18 2/02 at 102 A 2,358,113
IOWA - 1.1%
2,565,000 Woodbury County (St. Luke's Regional Medical
Center), 6.750%, 3/01/21 3/01 at 102 Aaa 2,737,932
KANSAS - 3.9%
9,000,000 CSJ Health Systems of Wichita, Inc.,
7.200%, 10/01/15 11/01 at 102 A- 9,537,480
KENTUCKY - 1.5%
3,230,000 Lexington-Fayette Urban County Government
(University of Kentucky Alumni Association, Inc.,
Library Project), 6.750%, 11/01/15 11/04 at 102 Aaa 3,634,299
MAINE - 3.1%
Maine Educational Loan Authority, Educational
Loan Revenue Bonds:
2,535,000 6.800%, 12/01/07 12/02 at 102 AAA 2,744,949
1,575,000 7.150%, 1/01/16 12/02 at 102 A 1,680,714
2,870,000 7.000%, 12/01/16 12/02 at 102 AAA 3,102,212
MASSACHUSETTS - 0.9%
2,000,000 Plymouth County (Correctional Facility), Certificates
of Participation, 7.000%, 4/01/22 10/02 at 102 A- 2,180,280
MISSISSIPPI - 1.5%
3,600,000 Calhoun County Solid Waste Disposal (Weyerhauser
Company Project), 6.875%, 4/01/16 4/07 at 103 A 3,718,692
NEW HAMPSHIRE - 4.3%
10,000,000 New Hampshire Housing Finance Authority,
Multi-Family Housing, 7.050%, 7/01/11 7/01 at 102 A1 10,534,600
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK - 11.9%
New York Local Government Assistance Corporation:
$ 1,365,000 7.000%, 4/01/18 (Pre-refunded to 4/01/02) 4/02 at 102 AAA $ 1,571,866
2,090,000 7.000%, 4/01/21 (Pre-refunded to 4/01/01) 4/01 at 100 AAA 2,345,523
4,465,000 Dormitory Authority of the State of New York
(State University), 7.250%, 5/15/18
(Pre-refunded to 5/15/02) 5/02 at 102 Aaa 5,214,048
New York State Medical Care Facilities Finance
Agency, Mental Health Services Facilities:
2,865,000 7.400%, 2/15/18 2/02 at 102 Baa1 3,099,701
1,080,000 7.500%, 2/15/21 2/01 at 102 Baa1 1,167,058
7,250,000 Metropolitan Transportation Authority, Commuter
Facilities Service Contract, 7.000%, 7/01/12 7/01 at 102 Baa1 7,721,105
3,000,000 Metropolitan Transportation Authority, Service
Contract Bonds, Transit Facilities, 6.000%, 7/01/11 7/02 at 100 Baa1 2,951,670
5,170,000 New York City General Obligation, 6.250%, 8/01/10 8/04 at 101 1/2 Baa1 5,159,557
PENNSYLVANIA - 5.0%
2,500,000 Pennsylvania Higher Educational Facilities Authority
(Thomas Jefferson University), 6.625%, 8/15/09 8/02 at 102 Aa 2,668,125
2,000,000 Pennsylvania Housing Finance Agency,
Single Family Mortgage, 6.900%, 4/01/17 4/02 at 102 Aa 2,103,580
7,235,000 Delaware County Authority, First Mortgage (The
Dunwoody Project), 8.125%, 4/01/17 4/02 at 102 N/R 7,622,217
SOUTH CAROLINA - 4.0%
5,000,000 South Carolina Housing Finance Development
Authority, Multi-Family Housing,
6.875%, 11/15/23 5/02 at 102 Aaa 5,181,850
4,060,000 York County Justice Center, Certificates of
Participation, 7.500%, 6/01/11 (Pre-refunded
to 6/01/01) 6/01 at 102 Aaa 4,715,406
TENNESSEE - 2.3%
5,750,000 Memphis-Shelby County Airport Authority Special
Facilities (Federal Express Corporation),
6.200%, 7/01/14 7/03 at 102 Baa2 5,736,660
TEXAS - 9.5%
9,825,000 Harris County Health Facilities Development
Corporation (Memorial Hospital System),
7.125%, 6/01/15 6/02 at 102 A 10,385,909
4,000,000 Corpus Christi Port Authority of Nueces County,
Pollution Control (Hoechst Celanese Corporation
Project), Alternative Minimum Tax, 6.875%, 4/01/17 4/02 at 102 AA- 4,181,720
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 3,500,000 Red River Authority, Pollution Control (Hoechst
Celanese Corporation Project), 6.875%, 4/01/17 4/02 at 102 AA- $ 3,659,005
5,000,000 San Antonio Water System, 6.000%, 5/15/16 5/02 at 100 Aaa 5,004,950
VIRGINIA - 2.2%
5,070,000 Virginia Housing Development Authority,
7.100%, 1/01/17 1/02 at 102 AA+ 5,284,258
WASHINGTON - 9.0%
2,750,000 Washington Health Care Facilities Authority (Sacred
Heart Medical Center Spokane), 6.875%, 2/15/12 2/02 at 102 AA- 2,886,070
10,000,000 Washington Public Power Supply System, Nuclear
Project No. 1, 6.875%, 7/01/17 7/01 at 102 Aa 10,378,200
2,500,000 Snohomish County Public Utility District No. 1,
Electric Revenue Refunding, 7.000%, 1/01/16 1/01 at 102 A1 2,625,525
5,700,000 Snohomish County Public Utility District No. 1,
6.750%, 1/01/12 1/01 at 102 Aaa 6,308,931
WEST VIRGINIA - 1.2%
1,000,000 West Virginia Housing Development Fund,
Housing Finance Bonds, 7.000%, 5/01/24 5/02 at 103 Aa1 1,056,360
1,885,000 Marshall County, Special Obligation,
6.500%, 5/15/10 No Opt. Call AAA 2,011,822
WISCONSIN - 2.1%
5,000,000 Wisconsin Housing and Economic Development
Authority, 7.050%, 11/01/22 4/02 at 102 A1 5,213,900
WYOMING - 1.3%
3,000,000 Wyoming Community Development Authority,
Single Family Mortgage, 7.200%, 6/01/10 11/01 at 103 Aa 3,202,560
$228,525,000 Total Investments - (cost $224,162,289) - 98.4% 241,643,674
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 100,000 New York State Job Development Authority,
============
Alternative Minimum Tax, Variable Rate Demand
Bonds, 4.850%, 3/01/05t VMIG-1 100,000
Other Assets Less Liabilities - 1.5% 3,840,812
Net Assets - 100% $245,584,486
============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 18 $ 63,140,890 26%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 53,653,959 22
PORTFOLIO OF A+ A1 6 27,709,077 12
INVESTMENTS A, A- A, A2, A3 11 45,071,423 19
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 9 44,446,108 18
TEMPORARY Non-rated Non-rated 1 7,622,217 3
INVESTMENTS):
TOTAL 59 $241,643,674 100%
<FN>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA - 4.4%
$ 2,000,000 California Public Works Board (Regents of the
University of California), 5.500%, 6/01/14 No Opt. Call A $ 1,852,460
5,000,000 California State Public Works Board (State Prisons-
Monterey County), 6.875%, 11/01/14 11/04 at 102 A 5,314,000
3,250,000 California State Public Works Board (California
Community Colleges), 7.000%, 3/01/14 3/04 at 102 A 3,470,350
1,000,000 Fresno Health Facilities (Holy Cross Health System
Corporation), 5.625%, 12/01/15 12/03 at 102 Aaa 955,240
COLORADO - 6.6%
4,740,000 Colorado Housing Finance Authority, Single Family
Program, Senior Bonds, 7.000%, 11/01/24 5/02 at 102 AA 4,903,151
11,465,000 City and County of Denver Airport System,
Alternative Minimum Tax, 7.250%, 11/15/12 11/02 at 102 Baa 12,235,677
DISTRICT OF COLUMBIA - 4.7%
7,500,000 District of Columbia General Obligation,
6.300%, 6/01/12 6/02 at 102 Aaa 7,659,750
4,600,000 District of Columbia (Washington Hospital Center),
7.125%, 8/15/19 8/02 at 102 Baa1 4,575,942
FLORIDA - 3.3%
8,180,000 Hillsborough County, Environmentally Sensitive Land
Acquisition and Protection Program, 6.375%, 7/01/11 7/02 at 102 A 8,549,818
ILLINOIS - 11.6%
Illinois Educational Facilities Authority
(Columbia College):
3,750,000 6.875%, 12/01/17 12/04 at 100 BBB 3,811,913
2,500,000 6.125%, 12/01/18 12/03 at 102 BBB 2,306,975
8,500,000 Chicago Metropolitan Housing Development
Corporation (FHA-Insured), 6.800%, 7/01/17 7/02 at 102 AA 8,752,705
8,070,000 Cook County General Obligation, 6.600%, 11/15/22 11/02 at 102 Aaa 8,504,247
2,250,000 Metropolitan Pier and Exposition Authority
(McCormick Place Expansion Project),
6.500%, 6/15/22 6/03 at 102 A+ 2,291,850
5,000,000 Regional Transportation Authority, 5.800%, 6/01/13 6/03 at 102 Aaa 4,972,200
INDIANA - 5.8%
10,000,000 Indiana Educational Facilities Authority (Butler
University Project), 6.600%, 1/01/18 1/02 at 102 Aaa 10,467,700
2,005,000 Howard County Jail and Juvenile Detention Center
Corporation, 6.850%, 1/01/12 1/02 at 102 A1 2,264,908
2,400,000 Westfield-Washington South School Building
Corporation, First Mortgage Bonds,
6.500%, 7/15/13 7/02 at 102 A 2,474,184
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY - 3.2%
Kentucky Housing Corporation:
$ 4,455,000 6.600%, 7/01/11 7/02 at 102 Aaa $ 4,656,010
3,455,000 6.700%, 7/01/17 7/02 at 102 Aaa 3,569,913
LOUISIANA - 4.6%
2,590,000 Louisiana Public Facilities Authority (Tulane
University of Louisiana), 6.625%, 11/15/21
(Pre-refunded to 11/15/02) 11/02 at 102 A1 2,926,027
8,835,000 Louisiana Public Facilities Authority (Tulane
University of Louisiana), 6.625%, 11/15/21 11/02 at 102 A1 9,211,636
MASSACHUSETTS - 2.7%
3,000,000 Massachusetts Health and Educational Facilities
(Jordan Memorial Hospital Issue),
6.875%, 10/01/22 10/02 at 102 A- 3,079,860
3,630,000 Massachusetts General Obligation, 6.500%, 8/01/11 8/01 at 102 A+ 3,874,880
MICHIGAN - 1.6%
4,000,000 Royal Oak Hospital Finance Authority (Beaumont
Properties, Inc.), 6.625%, 1/01/19 1/02 at 102 Aa 4,152,480
MONTANA - 0.8%
2,065,000 Billings Tax Increment Urban Renewal,
7.100%, 3/01/08 3/02 at 101 Baa 2,167,094
NEW YORK - 11.2%
800,000 New York State General Obligation Bonds,
5.875%, 3/15/15 3/05 at 101 A 793,112
4,000,000 New York State Medical Care Facilities, Finance
Agency (New York Hospital), FHA-Insured,
6.750%, 8/15/14 2/05 at 102 Aaa 4,357,880
2,695,000 Dormitory Authority of the State of New York
(State University), 7.250%, 5/15/15
(Pre-refunded to 5/15/00) 5/00 at 102 Aaa 3,058,529
3,850,000 Metropolitan Transportation Authority, Service
Contract, Transit Facilities, 6.000%, 7/01/11 7/02 at 100 Baa1 3,787,977
New York City, General Obligation Bonds:
8,000,000 7.100%, 2/01/11 2/02 at 101 1/2 Baa1 8,479,120
3,150,000 7.100%, 2/01/12 2/02 at 101 1/2 Baa1 3,330,148
5,000,000 Triborough Bridge and Tunnel Authority,
Convention Center Project, 7.250%, 1/01/10 No Opt. Call Baa1 5,587,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OHIO - 2.3%
$ 2,800,000 Cuyahoga County (Meridia Health System),
6.250%, 8/15/14 8/05 at 102 A1 $ 2,851,464
3,000,000 Erie County Hospital Improvement (Firelands
Community Hospital Project), 6.750%, 1/01/15 1/02 at 102 A 3,079,650
OKLAHOMA - 2.4%
6,000,000 Oklahoma City Water Utilities Trust, Water and
Sewer, 6.400%, 7/01/17 7/02 at 100 Aaa 6,201,540
PENNSYLVANIA - 2.7%
6,295,000 Pennsylvania Intergovernmental Cooperation Authority,
Special Tax (Philadelphia Funding Program),
6.800%, 6/15/22 (Pre-refunded to 6/15/02) 6/02 at 100 A- 7,074,699
RHODE ISLAND - 2.4%
5,500,000 Rhode Island Depositors Economic Protection
Corporation, Special Obligation, 6.900%, 8/01/13
(Pre-refunded to 8/01/02) 8/02 at 102 AAA 6,304,705
SOUTH CAROLINA - 2.8%
7,000,000 Richland County, Solid Waste Disposal Facilities
(Union Camp Corporation Project), 6.750%, 5/01/22 5/02 at 102 A1 7,238,770
TENNESSEE - 5.9%
9,985,000 Tennessee Housing Development Agency,
Homeownership Program, 6.800%, 7/01/17 7/02 at 102 Aa 10,376,911
4,500,000 Memphis-Shelby County Airport Authority
(Federal Express Corporation), 7.875%, 9/01/09 9/01 at 103 Baa2 5,040,180
TEXAS - 7.0%
3,275,000 Bexar County Health Facilities Development
Corporation (Baptist Memorial Hospital System
Project), 6.900%, 2/15/14 8/04 at 102 Aaa 3,541,716
4,865,000 Cleveland Housing Corporation, Mortgage Refunding,
7.375%, 7/01/24 1/01 at 102 Aaa 5,176,700
7,600,000 Corpus Christi Port Authority of Nueces County,
Pollution Control (Hoechst Celanese Corporation
Project), Alternative Minimum Tax, 6.875%, 4/01/17 4/02 at 102 AA- 7,945,268
1,460,000 Red River Authority, Pollution Control Revenue
(Hoechst Celanese Corporation Project),
6.875%, 4/01/17 (Pre-refunded to 4/01/02) 4/02 at 102 AA- 1,526,328
UTAH - 1.6%
2,320,000 Utah Housing Finance Agency, Single Family
Mortgage, Refunding Senior Bonds,
6.800%, 1/01/12 7/02 at 102 Aa 2,443,076
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
UTAH (CONTINUED)
$ 1,655,000 Weber County Ogden City School District,
Municipal Building Authority (Central Middle
School Project), 6.700%, 1/01/12 1/02 at 101 Baa1 $ 1,718,187
VERMONT - 1.4%
3,600,000 Vermont Industrial Development Authority (Stanley
Works Project), 6.750%, 9/01/10 9/02 at 102 A2 3,728,880
VIRGINIA - 0.9%
2,000,000 Covington-Alleghany County Industrial Development
Authority (Alleghany Regional Hospital),
6.625%, 4/01/12 (Pre-refunded to 4/01/02) 4/02 at 102 A- 2,243,200
WASHINGTON - 3.8%
Washington Public Power Supply System, Nuclear
Project #3:
3,600,000 6.750%, 7/01/11 7/01 at 102 Aa 3,722,220
6,160,000 6.500%, 7/01/18 7/01 at 102 Aa 6,215,070
WEST VIRGINIA - 0.7%
1,750,000 West Virginia School Building Authority, Capital
Improvement, 6.625%, 7/01/22 7/02 at 102 A 1,791,142
WISCONSIN - 4.1%
10,000,000 Wisconsin Housing and Economic Development
Authority, Alternative Minimum Tax,
7.200%, 11/01/13 4/02 at 102 A1 10,605,800
$245,100,000 Total Investments - (cost $242,783,894) - 98.5% 257,220,642
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 400,000 New York State Energy Research and Development
============
Authority Pollution Control (New York State
Electric and Gas Corporation), Variable Rate
Demand Bonds, 4.500%, 6/01/29t VMIG-1 400,000
Other Assets Less Liabilities - 1.3% 3,449,991
Net Assets - 100% $261,070,633
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 13 $ 69,426,130 27%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 9 50,037,209 19
PORTFOLIO OF A+ A1 8 41,265,335 16
INVESTMENTS A, A- A, A2, A3 12 43,451,355 17
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 11 53,040,613 21
TEMPORARY
INVESTMENTS):
TOTAL 53 $257,220,642 100%
<FN>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA - 2.6%
$ 3,000,000 California State Public Works Board, Department
of Corrections (California State Prison-Monterey
County), 6.875%, 11/01/14 11/04 at 102 A $ 3,188,400
1,600,000 Torrance (Little Company of Mary Hospital),
6.875%, 7/01/15 7/02 at 102 A 1,652,832
COLORADO - 6.8%
2,500,000 Colorado Springs Utilities System,
6.125%, 11/15/20 11/02 at 100 Aa 2,513,375
City and County of Denver Airport System,
Alternative Minimum Tax:
1,500,000 7.750%, 11/15/13 No Opt. Call Baa 1,785,660
4,000,000 6.750%, 11/15/13 11/02 at 102 Baa 4,023,880
4,000,000 7.250%, 11/15/23 11/02 at 102 Baa 4,209,280
CONNECTICUT - 0.1%
250,000 Connecticut Health and Educational Facilities
Authority (Bridgeport Hospital), 6.625%, 7/01/18 7/02 at 102 Aaa 265,208
DISTRICT OF COLUMBIA - 3.4%
4,245,000 District of Columbia, General Obligation Bonds,
6.000%, 6/01/13 6/03 at 102 Aaa 4,221,695
2,000,000 District of Columbia (Washington Hospital Center),
7.125%, 8/15/19 8/02 at 102 Baa1 1,989,540
FLORIDA - 2.3%
4,000,000 Tampa (The Florida Aquarium Project),
7.550%, 5/01/12 5/02 at 102 N/R 4,205,920
GEORGIA - 2.2%
Fulton County Hospital Authority, Anticipation
Certificates (Georgia Baptist Health Care System):
2,250,000 6.250%, 9/01/13 9/02 at 102 Baa1 2,197,778
2,000,000 6.375%, 9/01/22 9/02 at 102 Baa1 1,883,780
ILLINOIS - 14.1%
1,500,000 Illinois Health Facilities Authority (Evangelical
Hospitals Corporation), 6.250%, 4/15/22 4/02 at 102 AA- 1,467,630
4,000,000 Illinois Health Facilities Authority (Franciscan
Sisters Health Care Corporation Project),
6.625%, 9/01/13 9/02 at 102 Aaa 4,195,840
1,000,000 Illinois Health Facilities Authority (Mercy Center
for Health Care Services), 6.650%, 10/01/22 10/02 at 102 Baa1 1,003,340
7,750,000 Illinois Toll Highway Authority, 6.375%, 1/01/15 1/03 at 102 A1 7,832,615
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 3,000,000 Bryant Pollution Control (Central Illinois Light),
6.500%, 2/01/18 2/02 at 102 Aa2 $ 3,059,520
2,500,000 Chicago Metropolitan Housing Development
Corporation (FHA-Insured), 6.850%, 7/01/22 7/02 at 102 AA 2,574,175
2,550,000 Chicago, FHA-Insured (Lakeview Towers Project),
6.600%, 12/01/20 12/02 at 102 AAA 2,619,054
1,700,000 Chicago-O'Hare International Airport (Second Lien),
Alternative Minimum Tax, 5.600%, 1/01/18 1/03 at 102 Aaa 1,592,152
1,360,000 Board of Regents of Sangamon State University
(Illinois), Auxiliary Facilities System,
6.375%, 10/01/17 10/02 at 102 Aaa 1,394,122
INDIANA - 5.5%
4,000,000 Indiana Office Building Commission, Correctional
Facilities Program, 6.375%, 7/01/16 12/01 at 102 A1 4,074,680
1,205,000 Allen County Certificates of Participation,
6.500%, 11/01/17 5/02 at 101 Aa 1,222,894
2,000,000 Warren Township School Building Corporation
(Marion County), 6.000%, 7/15/12 7/02 at 102 A 2,031,160
2,725,000 Warrick County, Indiana, Adjustable Rate
Environmental Improvement (Southern Indiana
Gas and Electric Company Project),
6.000%, 5/01/23 5/03 at 102 Aa2 2,688,649
KENTUCKY - 2.7%
Trimble County, Pollution Control (Louisville Gas
and Electric Company Project):
620,000 6.550%, 11/01/20 (Pre-refunded to 9/16/02) 9/02 at 102 Aa2 690,916
4,080,000 6.550%, 11/01/20 9/02 at 102 Aa2 4,251,564
LOUISIANA - 5.8%
Louisiana Public Facilities Authority (Pendleton
Memorial Methodist Hospital):
1,000,000 6.750%, 6/01/10 6/02 at 102 Baa1 1,015,970
5,470,000 6.750%, 6/01/22 6/02 at 102 Baa1 5,386,200
4,000,000 Louisiana Public Facilities Authority (Baton Rouge
Water Works Company Project), 6.400%, 2/01/10 2/03 at 101 AA- 4,210,480
MASSACHUSETTS - 0.7%
1,395,000 Massachusetts Health and Educational Facilities
Authority (Metrowest Health), 6.500%, 11/15/18 11/02 at 102 A 1,321,595
MICHIGAN - 4.7%
8,240,000 Michigan Housing Development Authority, Limited
Obligation (Greenwood Villa Project),
6.625%, 9/15/17 9/02 at 103 Aaa 8,552,873
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEVADA - 1.6%
Clark County (Las Vegas-McCarran International
Airport), Passenger Facility:
$ 1,955,000 6.500%, 7/01/12 7/02 at 102 A $ 1,992,595
1,000,000 6.250%, 7/01/22 7/02 at 102 A 998,580
NEW YORK - 10.4%
2,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-Insured
(Mt. Sinai Hospital), 6.250%, 8/15/12 8/02 at 102 AAA 2,040,740
2,130,000 Dormitory Authority of the State of New York
(City University), 7.500%, 7/01/10 No Opt. Call Baa1 2,457,828
New York City, General Obligation:
2,000,000 7.100%, 2/01/11 2/02 at 101 1/2 Baa1 2,119,780
1,000,000 7.000%, 6/01/12 6/01 at 101 1/2 Baa1 1,039,480
1,750,000 7.000%, 8/01/17 8/02 at 101 1/2 Baa1 1,821,033
1,500,000 7.500%, 2/01/18 2/02 at 101 1/2 Baa1 1,606,245
1,060,000 7.000%, 2/01/18 2/02 at 101 1/2 Baa1 1,101,170
New York City Municipal Water Finance Authority,
Water and Sewer System:
4,000,000 6.000%, 6/15/17 6/02 at 101 1/2 A 3,939,920
2,785,000 6.375%, 6/15/22 6/02 at 101 A 2,822,681
PENNSYLVANIA - 6.2%
2,000,000 Pennsylvania Higher Educational Facilities Authority
(Drexel University), 6.375%, 5/01/17 5/03 at 102 BBB+ 2,001,980
4,000,000 Pennsylvania Housing Finance Agency, Rental
Housing Refunding (FNMA), 6.500%, 7/01/23 7/02 at 102 Aaa 4,093,200
2,500,000 Cambria County Hospital Development Authority
(Conemaugh Valley Memorial Hospital Project),
6.375%, 7/01/18 7/02 at 102 AAA 2,571,400
2,435,000 Dauphin County Industrial Development Authority,
Water Development (Dauphin Consolidated Water
Supply Company), 6.700%, 6/01/17 No Opt. Call A3 2,745,389
SOUTH CAROLINA - 3.1%
4,000,000 South Carolina Public Service Authority,
6.375%, 7/01/11 7/02 at 102 A1 4,125,240
1,600,000 Spartanburg Water System Improvement,
6.250%, 6/01/17 6/02 at 101 AA- 1,623,328
SOUTH DAKOTA - 2.2%
4,000,000 South Dakota Health and Educational Facilities
Authority (Rapid City Regional Hospital Issue),
6.150%, 9/01/18 9/02 at 102 Aaa 4,016,080
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE - 2.5%
$ 4,420,000 Memphis-Shelby County Airport Authority
(Federal Express Corporation), 6.750%, 9/01/12 9/02 at 102 Baa2 $ 4,618,237
TEXAS - 3.5%
3,755,000 Grand Prairie Industrial Development Authority
(Baxter International Inc. Project),
6.550%, 12/01/12 12/02 at 102 A3 3,848,086
2,500,000 Harris County Health Facilities Development
Corporation (Hermann Hospital),
6.375%, 10/01/17 10/04 at 101 Aaa 2,588,975
UTAH - 1.6%
3,250,000 Intermountain Power Agency, 5.500%, 7/01/20 7/03 at 102 Aa 3,013,920
VIRGINIA - 2.3%
4,000,000 Virginia Housing Development Authority,
7.100%, 1/01/22 1/02 at 102 AA+ 4,187,280
WASHINGTON - 9.9%
5,840,000 Washington (State Office Building Project),
Certificates of Participation, 6.000%, 4/01/12 4/01 at 102 A1 5,860,906
Washington Public Power Supply System, Nuclear
Project No. 1:
4,000,000 6.500%, 7/01/15 7/02 at 102 Aa 4,052,680
4,000,000 6.875%, 7/01/17 7/01 at 102 Aa 4,151,280
4,000,000 Port of Seattle, Alternative Minimum Tax,
6.000%, 11/01/17 11/02 at 100 AA- 3,939,600
WEST VIRGINIA - 4.4%
2,250,000 West Virginia School Building Authority, Capital
Improvement, 6.500%, 7/01/12 7/02 at 102 A 2,331,675
2,500,000 Berkeley County Building Commission (City
Hospital Project), 6.500%, 11/01/09 11/02 at 102 A- 2,572,300
3,000,000 Mason County Pollution Control (Appalachian Power
Company Project), 6.600%, 10/01/22 10/02 at 102 A3 3,075,600
$176,670,000 Total Investments - (cost $175,916,805) - 98.6% 180,679,985
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 400,000 New York Job Development Authority, Alternative
Minimum Tax, Variable Rate Demand Bonds,
4.850%, 3/01/05t VMIG-1 $ 400,000
100,000 Sullivan County, Industrial Development
Authority (Mead Corporation), Variable Rate
Demand Bonds, 4.750%, 10/01/16t A-1+ 100,000
$ 500,000 Total Temporary Investments - 0.2% 500,000
============
Other Assets Less Liabilities - 1.2% 2,140,280
Net Assets - 100% $183,320,265
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 12 $ 38,151,339 22%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 43,647,291 24
PORTFOLIO OF A+ A1 4 21,893,441 12
INVESTMENTS A, A- A, A2, A3 13 32,520,813 18
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 17 40,261,181 22
TEMPORARY Non-rated Non-rated 1 4,205,920 2
INVESTMENTS):
TOTAL 62 $180,679,985 100%
<FN>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,050,000 California Educational Facilities Authority (Loyola
Marymount University), 6.000%, 10/01/14 10/01 at 100 Aaa $ 2,053,055
1,000,000 California Health Facilities Financing Authority
(Adventist Health System West), 6.500%, 3/01/11 3/01 at 102 Aaa 1,053,990
2,500,000 California Health Facilities Financing Authority
(Scripps Memorial Hospitals), 6.400%, 10/01/12 10/02 at 102 Aaa 2,596,950
4,000,000 California Health Facilities Financing Authority
(San Diego Hospital Association), 6.125%, 8/01/11 8/02 at 102 Aaa 4,094,080
3,500,000 California Public Works Board, Department of
Corrections, 6.500%, 9/01/17 No Opt. Call Aaa 3,806,145
500,000 California Statewide Communities Development
Authority (Sutter Health), Certificates of
Participation, 5.500%, 8/15/23 8/03 at 102 Aaa 465,035
2,320,000 Brea Public Finance Authority, Lease Revenue Bonds,
6.250%, 7/01/21 7/00 at 102 Aaa 2,351,552
4,000,000 Eastern Municipal Water District, Water and Sewer,
Certificates of Participation, 6.300%, 7/01/20 7/01 at 101 Aaa 4,083,000
1,250,000 Fairfield-Suisun Sewer District (Solano County),
6.250%, 5/01/16 5/01 at 102 Aaa 1,280,975
4,000,000 Los Angeles Community Redevelopment Agency,
Tax Allocation (Hollywood Redevelopment Project),
6.100%, 7/01/22 7/02 at 102 Aaa 4,023,760
4,000,000 Los Angeles Wastewater System, 6.250%, 6/01/12 6/02 at 102 Aaa 4,137,440
2,430,000 Los Angeles County (Edmund D. Edelman
Children's Court and Petersen Museum Projects),
Certificates of Participation, 6.000%, 4/01/12 4/02 at 102 Aaa 2,462,246
1,500,000 Los Angeles County Metropolitan Transportation
Authority, Sales Tax, 5.625%, 7/01/18 7/03 at 102 Aaa 1,437,675
3,450,000 M-S-R Public Power Agency (San Juan Project),
6.000%, 7/01/22 7/01 at 100 Aaa 3,413,327
2,430,000 Modesto Irrigation District, Refunding and Capital
Improvement Projects, Certificates of Participation,
6.000%, 10/01/21 10/01 at 100 Aaa 2,401,618
1,500,000 Modesto Irrigation District Financing Authority,
Domestic Water Project, 6.125%, 9/01/19 9/02 at 102 Aaa 1,514,775
3,000,000 Northern California Power Agency, 6.250%, 7/01/12 7/02 at 102 Aaa 3,103,800
4,000,000 Oakland Alameda County, General Obligation,
6.000%, 6/15/17 6/02 at 102 Aaa 3,999,560
3,675,000 Palm Springs Financing Authority (Palm Springs
Regional Airport), 6.000%, 1/01/12 1/02 at 102 Aaa 3,686,429
3,750,000 Port of Oakland, 6.500%, 11/01/16 11/02 at 102 Aaa 3,879,600
Rio Linda Union School District, General
Obligation Bonds:
500,000 6.250%, 8/01/15 8/02 at 102 Aaa 513,945
3,310,000 6.375%, 8/01/17 8/02 at 102 Aaa 3,402,978
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,800,000 Sacramento Municipal Utility District, Electric
System, 6.375%, 8/15/22 8/02 at 102 Aaa $ 3,923,006
4,000,000 San Bernardino County (West Valley Detention
Center Refinancing), Certificates of Participation,
6.000%, 11/01/18 11/02 at 102 Aaa 3,994,760
4,000,000 San Diego County (1994 Inmate Reception and
Cooling Plant), Certificates of Participation,
6.750%, 8/01/14 8/04 at 102 Aaa 4,272,280
3,500,000 San Francisco Airports Commission (San Francisco
International Airport), 6.300%, 5/01/11 5/02 at 102 Aaa 3,645,635
2,150,000 San Francisco Airports Commission, Alternative
Minimum Tax, 6.200%, 5/01/20 5/03 at 102 Aaa 2,171,500
1,000,000 Tulare County (1992 Financing Project), Certificates
of Participation, 6.125%, 11/15/12 11/02 at 102 Aaa 1,016,450
1,225,000 Turlock Irrigation District, 6.250%, 1/01/12 No Opt. Call Aaa 1,309,109
4,000,000 Walnut Public Financing Authority (Los Angeles
County), Tax Allocation, 6.500%, 9/01/22 9/02 at 102 Aaa 4,198,319
4,000,000 Walnut Valley Water District (Badillo/Grand
Transmission Main), Certificates of
Participation, 6.125%, 2/01/18 2/01 at 102 Aaa 4,012,439
$86,340,000 Total Investments - (cost $85,610,904) - 98.4% 88,305,433
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 400,000 California Health Facilities Financing Authority
===========
(St. Joseph Health System), Variable Rate
Demand Bonds, 4.300%, 7/01/09t VMIG-1 400,000
Other Assets Less Liabilities - 1.1% 996,708
Net Assets - 100% $89,702,141
===========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 31 $88,305,433 100%
RATINGS**
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 31 $88,305,433 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities to ensure the timely payment of principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO (NXN)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,245,000 New York State Housing Finance Agency,
Multi-Family Mortgage, 6.450%, 8/15/14 8/02 at 102 Aaa $ 1,287,342
New York State Medical Care Facilities Finance
Agency, Mental Health Services, Facilities
Improvement:
250,000 6.100%, 8/15/13 8/02 at 102 Aaa 253,828
2,165,000 6.250%, 8/15/18 2/02 at 102 Aaa 2,211,461
2,500,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-Insured
(Mt. Sinai Hospital), 6.250%, 8/15/12 8/02 at 102 Aaa 2,568,275
2,500,000 New York State Medical Care Facilities Finance
Agency, New York Hospital (FHA-Insured),
6.750%, 8/15/14 2/05 at 102 Aaa 2,723,675
1,945,000 New York State Power Authority, General Purpose,
AA., 6.250%, 1/01/23 1/02 at 102 Aaa 1,990,027
1,500,000 New York State Thruway Authority, 5.500%, 1/01/23 1/02 at 100 Aaa 1,394,115
2,000,000 New York State Thruway Authority, Local Highway
and Bridge Service Contract, 6.000%, 4/01/10 4/02 at 102 Aaa 2,038,660
Clarkstown, Rickland County, Various Purposes:
505,000 5.600%, 6/15/10 No Opt. Call Aaa 514,085
525,000 5.600%, 6/15/11 No Opt. Call Aaa 531,531
525,000 5.600%, 6/15/12 No Opt. Call Aaa 529,494
1,560,000 Dormitory Authority of the State of New York,
Judicial Facilities Lease, 7.375%, 7/01/16 No Opt. Call Aaa 1,831,034
1,100,000 Dormitory Authority of the State of New York
(Mount Sinai School of Medicine), 6.750%, 7/01/15 7/01 at 102 Aaa 1,187,560
2,400,000 Dormitory Authority of the State of New York
(Hamilton College), 6.500%, 7/01/21 7/01 at 102 Aaa 2,520,264
570,000 Dormitory Authority of the State of New York
(City University), 7.500%, 7/01/10 No Opt. Call Aaa 685,414
2,050,000 Dormitory Authority of the State of New York
(Ithaca College), 6.500%, 7/01/10 7/01 at 102 Aaa 2,187,084
2,250,000 Dormitory Authority of the State of New York
(New York University), 6.250%, 7/01/09 7/01 at 102 Aaa 2,371,095
2,500,000 Dormitory Authority of the State of New York
(Marist College), Series 1992, 6.000%, 7/01/12 7/02 at 102 Aaa 2,535,375
1,370,000 Dormitory Authority of the State of New York
(Siena College Project), 6.000%, 7/01/11 7/02 at 102 Aaa 1,402,606
3,500,000 Metropolitan Transportation Authority, Commuter
Facilities, 6.250%, 7/01/17 7/02 at 102 Aaa 3,580,010
2,250,000 Metropolitan Transportation Authority, Transit
Facilities, 6.375%, 7/01/10 7/02 at 102 Aaa 2,386,710
1,450,000 New Hartford Housing Development Corporation,
FHA-Insured (Village Point Project),
7.375%, 1/01/24 7/02 at 100 Aaa 1,552,559
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
New York City General Obligation:
$ 255,000 6.250%, 8/01/11 8/02 at 101 1/2 Aaa $ 262,823
2,000,000 6.950%, 8/15/12 8/04 at 101 Aaa 2,193,040
New York City Municipal Water Finance Authority,
Water and Sewer System:
4,900,000 5.750%, 6/15/18 6/02 at 101 1/2 Aaa 4,760,448
1,250,000 6.250%, 6/15/21 6/01 at 100 Aaa 1,259,375
1,000,000 6.200%, 6/15/21 6/02 at 101 1/2 Aaa 1,019,600
1,000,000 New York City Industrial Development Agency,
Civic Facility (USTA National Tennis Center
Incorporated Project), 6.375%, 11/15/14 11/04 at 102 Aaa 1,044,070
2,500,000 Port Authority of New York and New Jersey,
Alternative Minimum Tax, 6.500%, 7/15/19 1/05 at 101 Aaa 2,653,600
485,000 Suffolk County Water Authority, 6.750%, 6/01/12 No Opt. Call AAA 531,026
2,250,000 Triborough Bridge and Tunnel Authority, Special
Obligation, 6.625%, 1/01/17 1/01 at 102 Aaa 2,405,204
$52,300,000 Total Investments - (cost $52,218,154) - 97.9% 54,411,390
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.1%
$ 500,000 New York State Job Development Authority,
Alternative Minimum Tax, Variable Rate Demand
Bonds, 4.850%, 3/01/05t VMIG-1 500,000
100,000 New York Job Development Authority, Series B,
Alternative Minimum Tax, Variable Rate Demand
Bonds, 4.850%, 3/01/05t VMIG-1 100,000
$ 600,000 Total Temporary Investments - 1.1% 600,000
===========
Other Assets Less Liabilities - 1.0% 574,381
Net Assets - 100% $55,585,771
===========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 31 $54,411,390 100%
RATINGS**
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 31 $54,411,390 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities to ensure the timely payment of principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $241,643,674 $257,220,642 $180,679,985 $88,305,433
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 100,000 400,000 500,000 400,000
Cash 40,728 84,590 515 34,990
Receivables:
Interest 5,229,152 4,712,196 3,135,962 1,456,669
Investments sold 5,000 117,209 -- --
Other assets 3,734 15,797 32,284 5,650
------------ ------------ ------------ -----------
Total assets 247,022,288 262,550,434 184,348,746 90,202,742
------------ ------------ ------------ -----------
LIABILITIES
Accrued expenses:
Surveillance and administration fees (note 6) 49,252 62,819 47,534 22,119
Other 94,680 85,888 73,458 52,376
Dividends payable 1,293,870 1,331,094 907,489 426,106
------------ ------------ ------------ -----------
Total liabilities 1,437,802 1,479,801 1,028,481 500,601
------------ ------------ ------------ -----------
Net assets (note 7) $245,584,486 $261,070,633 $183,320,265 $89,702,141
============ ============ ============ ===========
Shares of beneficial interest outstanding 16,378,097 17,607,068 12,964,123 6,257,068
============ ============ ============ ===========
Net asset value per share of beneficial interest
outstanding (net assets dividend by shares of
beneficial interest outstanding) $ 14.99 $ 14.83 $ 14.14 $ 14.34
============ ============ ============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NXN
<S> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $54,411,390
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 600,000
Cash 77,557
Receivables:
Interest 801,777
Investments sold --
Other assets 9,027
-----------
Total assets 55,899,751
-----------
LIABILITIES
Accrued expenses:
Surveillance and administration fees (note 6) 13,720
Other 46,301
Dividends payable 253,959
-----------
Total liabilities 313,980
-----------
Net assets (note 7) $55,585,771
===========
Shares of beneficial interest outstanding 3,907,068
===========
Net asset value per share of beneficial interest
outstanding (net assets dividend by shares of
beneficial interest outstanding) $ 14.23
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended September 30, 1995
(Unaudited)
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 7,896,935 $ 8,297,769 $5,770,848 $2,700,188
----------- ----------- ---------- ----------
Expenses:
Surveillance and administration fees (note 6) 298,040 380,687 270,269 134,234
Shareholders' servicing agent fees and expenses 32,158 23,038 23,110 7,500
Custodian's fees and expenses 25,638 28,210 25,016 19,837
Trustees' fees and expenses (note 6) 19,596 27,034 17,566 6,875
Professional fees 8,561 8,431 7,400 10,050
Shareholders' reports--printing and mailing expenses 36,007 32,827 24,089 9,007
Stock exchange listing fees 14,420 10,714 13,483 6,797
Investor relations expense 7,426 1,711 5,115 1,567
Other expenses 12,031 15,145 17,944 4,785
----------- ----------- ---------- ----------
Total expenses 453,877 527,797 403,992 200,652
----------- ----------- ---------- ----------
Net investment income 7,443,058 7,769,972 5,366,856 2,499,536
----------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (63,223) (4,589) 16,411 33,972
Net change in unrealized appreciation or depreciation
of investments 5,078,341 4,743,518 3,155,557 1,139,283
----------- ----------- ---------- ----------
Net gain from investments 5,015,118 4,738,929 3,171,968 1,173,255
----------- ----------- ---------- ----------
Net increase in net assets from operations $12,458,176 $12,508,901 $8,538,824 $3,672,791
=========== =========== ========== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended September 30, 1995
(Unaudited)
<CAPTION>
NXN
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $1,664,760
----------
Expenses:
Surveillance and administration fees (note 6) 83,246
Shareholders' servicing agent fees and expenses 2,147
Custodian's fees and expenses 19,044
Trustees' fees and expenses (note 6) 4,432
Professional fees 6,353
Shareholders' reports--printing and mailing expenses 11,176
Stock exchange listing fees 7,436
Investor relations expense 2,091
Other expenses 3,899
----------
Total expenses 139,824
----------
Net investment income 1,524,936
----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 9,780
Net change in unrealized appreciation or depreciation
of investments 719,580
----------
Net gain from investments 729,360
----------
Net increase in net assets from operations $2,254,296
==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NXP NXQ
6 months ended Year ended 6 months ended Year ended
9/30/95 3/31/95 9/30/95 3/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 7,443,058 $ 14,931,669 $ 7,769,972 $ 15,582,255
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (63,223) (67,051) (4,589) 25,692
Net change in unrealized appreciation or depreciation
of investments 5,078,341 1,880,493 4,743,518 815,324
------------ ------------ ------------ ------------
Net increase in net assets from operations 12,458,176 16,745,111 12,508,901 16,423,271
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income (7,763,220) (15,526,437) (7,986,566) (15,973,129)
From accumulated net realized gains from
investment transactions -- (727,189) -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (7,763,220) (16,253,626) (7,986,566) (15,973,129)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition of
Nuveen Select Tax-Free Income Portfolio 4, as
applicable (note 1) -- -- -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions -- -- -- --
------------ ------------ ------------ ------------
Net increase in net assets 4,694,956 491,485 4,522,335 450,142
Net assets at beginning of period 240,889,530 240,398,045 256,548,298 256,098,156
------------ ------------ ------------ ------------
Net assets at end of period $245,584,486 $240,889,530 $261,070,633 $256,548,298
============ ============ ============ ============
Balance of undistributed net investment income
at end of period $ 442,331 $ 762,493 $ 788,294 $ 1,004,888
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NXR NXC
6 months ended Year ended 6 months ended Year ended
9/30/95 3/31/95 9/30/95 3/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 5,366,856 $ 8,821,636 $ 2,499,536 $ 4,972,866
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 16,411 48,956 33,972 185,925
Net change in unrealized appreciation or depreciation
of investments 3,155,557 605,044 1,139,283 1,424,200
------------ ------------ ----------- -----------
Net increase in net assets from operations 8,538,824 9,475,636 3,672,791 6,582,991
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income (5,444,904) (8,872,133) (2,556,639) (5,113,278)
From accumulated net realized gains from
investment transaction -- -- -- --
------------ ------------ ----------- -----------
Decrease in net assets from distributions to shareholders (5,444,904) (8,872,133) (2,556,639) (5,113,278)
------------ ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition of
Nuveen Select Tax-Free Income Portfolio 4, as
applicable (note 1) -- 89,634,486 -- --
------------ ------------ ----------- -----------
Net increase in net assets derived from capital
share transactions -- 89,634,486 -- --
------------ ------------ ----------- -----------
Net increase in net assets 3,093,920 90,237,989 1,116,152 1,469,713
Net assets at beginning of period 180,226,345 89,988,356 88,585,989 87,116,276
------------ ------------ ----------- -----------
Net assets at end of period $183,320,265 $180,226,345 $89,702,141 $88,585,989
============ ============ =========== ===========
Balance of undistributed net investment income
at end of period $ 367,985 $ 446,060 $ 120,881 $ 177,983
============ ============ =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NXN
6 months ended Year ended
9/30/95 3/31/95
<S> <C> <C>
OPERATIONS
Net investment income $ 1,524,936 $ 3,002,551
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 9,780 (332,456)
Net change in unrealized appreciation or depreciation
of investments 719,580 1,073,300
----------- -----------
Net increase in net assets from operations 2,254,296 3,743,395
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income (1,523,758) (3,047,515)
From accumulated net realized gains from
investment transactions -- --
----------- -----------
Decrease in net assets from distributions to shareholders (1,523,758) (3,047,515)
----------- -----------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition of
Nuveen Select Tax-Free Income Portfolio 4, as
applicable (note 1) -- --
----------- -----------
Net increase in net assets derived from capital
share transactions -- --
----------- -----------
Net increase in net assets 730,538 695,880
Net assets at beginning of period 54,855,233 54,159,353
----------- -----------
Net assets at end of period $55,585,771 $54,855,233
=========== ===========
Balance of undistributed net investment income
at end of period $ 79,946 $ 78,769
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At September 30, 1995, the Trusts 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 Insured California
Select Tax-Free Income Portfolio (NXC) and Nuveen Insured New York Select
Tax-Free Income Portfolio (NXN).
The Trusts are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
Each Trust's portfolio of investments consists of municipal obligations that
1) have maturities of 18 to 28 years, with an average maturity of
approximately 20-25 years; 2) are rated within the four highest investment
grades by Standard & Poor's or Moody's; and 3) on average, may not be redeemed
at the option of the issuer thereof for approximately seven to eight years
from the date of purchase by the Trusts. The Trusts' investment adviser,
Nuveen Institutional Advisory Corp. (the "Adviser"), a wholly owned subsidiary
of The John Nuveen Company, administers the investments comprising the
portfolios and maintains ongoing surveillance of such investments to seek to
insure that they continue to meet the Trusts' investment objectives and credit
quality standards. The Adviser does not intend to adjust the portfolios except
1) to invest interest payments on municipal obligations that are not currently
needed to pay dividends or expenses; 2) to reinvest principal payments on
municipal obligations in anticipation of their maturity or early redemption;
3) to sell municipal obligations when the Adviser believes that continuing to
hold them would be inconsistent with maintaining the Trusts' high credit
quality, and to reinvest the proceeds of such sales; and 4) for certain other
purposes.
The Trusts intend to liquidate all of their assets approximately 20-25 years
after the completion of the public offerings of their shares but not later
than the year 2017, unless extended, making a single liquidating distribution
to shareholders at that time. Any extension of these dates may be made only by
an amendment to each Trust's declaration of Trust approved by the Board of
Trustees and by the shareholders.
On August 4, 1994, NXR acquired all of the net assets of Nuveen Select
Tax-Free Income Portfolio 4 (NXS) pursuant to a plan of reorganization
approved by NXS shareholders on August 3, 1994. The acquisition was
accomplished by a tax-free exchange of 6,457,053 shares of NXR (valued at
$89,634,486) for the 6,353,141 shares of NXS outstanding on August 4, 1994.
The net assets of NXS on that date of $89,634,486 included $1,489,183 of
unrealized appreciation which was combined with that of NXR. The combined net
assets of NXR immediately after the acquisition were $179,963,293.
<PAGE>
The following is a summary of significant accounting policies followed by the
Trusts in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Trustees. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Trusts have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At September 30, 1995, there were no such purchase commitments in
any of the Trusts.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Income Taxes
The Trusts' policy is to comply with the requirements of the Internal Revenue
Code that are applicable to regulated investment companies in the distribution
of tax-free and taxable income to shareholders. Taxable income earned by the
Trusts will consist primarily of short-term capital gains realized upon the
sale of investments in municipal bonds. In light of the Adviser's intention
not to adjust the Trusts' investments except under limited conditions, it is
expected that the Trusts will generally realize minimal, if any, amounts of
both long-term and short-term capital gains. The Trusts intend to retain such
minimal amounts and, therefore, will provide federal income taxes on the
amounts retained. Such retained amounts, net of taxes provided, will be
included in paid-in surplus in the financial statements. To the extent more
significant amounts of capital gains are realized, the Trusts may elect to
distribute such amounts to shareholders and no federal income tax provision on
these amounts will then be required.
<PAGE>
Furthermore, each Trust intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
income tax for all Trusts and exempt from California state income taxes for
NXC and from New York State income taxes for NXN, to retain such tax-exempt
status when distributed to shareholders.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized capital gains, if
applicable.
Insurance
NXC and NXN invest in municipal securities which are covered by insurance
guaranteeing the timely payment of principal and interest thereon or backed by
an escrow or trust account containing sufficient U.S. Government or U.S.
Government agency securities to ensure the timely payment of principal and
interest. Each insured municipal security is covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance
does not guarantee the market value of the municipal securities or the value
of the Trusts' shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the
Trusts ultimately dispose of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance
or Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held
by the Trusts. Accordingly, neither the prices used in determining the market
value of the underlying municipal securities nor the net asset value of the
Trusts' shares include value, if any, attributable to the Portfolio Insurance.
Each policy of the Portfolio Insurance does, however, give the Trusts the
right to obtain permanent insurance with respect to a municipal security
covered by the Portfolio Insurance policy at the time of its sale.
<PAGE>
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments
which prescribes disclosure requirements for transactions in certain
derivative financial instruments including futures, forward, swap, and option
contracts, and other financial instruments with similar characteristics.
Although the Funds are authorized to invest in such financial instruments, and
may do so in the future, they did not make any such investments during the six
months ended September 30, 1995, other than occasional purchases of high
quality synthetic money market securities which were held temporarily pending
the re-investment in long-term portfolio securities.
2. TRUST SHARES
There were no share transactions during the six months ended September 30,
1995, in any of the Trusts. There were no share transactions during fiscal
year ended March 31, 1995, in any of the Trusts except for 6,457,053 shares
issued by NXR in the acquisition of NXS, as discussed in note 1.
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
September 30, 1995, were as follows:
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $1,982,780 $ 944,910 $ -- $ --
Temporary municipal investments 1,480,000 2,535,000 1,100,000 1,000,000
SALES AND MATURITIES
Investments in municipal securities 2,383,240 921,220 274,908 410,922
Temporary municipal investments 1,380,000 2,135,000 880,000 600,000
========== ========== ========== ==========
<CAPTION>
NXN
<S> <C>
PURCHASES
Investments in municipal securities $ --
Temporary municipal investments 880,000
SALES AND MATURITIES
Investments in municipal securities 551,788
Temporary municipal investments 280,000
========
At September 30, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Trust.
At March 31, 1995, the Trusts' last financial year end, the following Trusts
had unused capital loss carryovers available for federal income tax purposes
to be applied against future capital gains, if any. If not applied, the
carryovers will expire as follows:
<CAPTION>
NXP NXR NXC NXN
<S> <C> <C> <C> <C>
Expiration year:
2001 $ -- $200,114 $332,080 $618,333
2002 -- 15,243* -- 432
2003 13,520 -- -- 1,954
------- -------- -------- --------
Total $13,520 $215,357 $332,080 $620,719
======= ======== ======== ========
<FN>
*Due to the acquisition of NXS by NXR (see note 1), NXS had net realized
losses from investment transactions of $15,243 which were carried forward by
NXR, as permitted under applicable tax regulations.
</TABLE>
<PAGE>
<TABLE>
4. Distributions to Shareholders
On October 2, 1995, the Trusts declared dividend distributions from their
ordinary income which were paid November 1, 1995, to shareholders of record on
October 15, 1995, as follows:
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
Dividend per share $.0790 $.0756 $.0700 $.0681
====== ====== ====== ======
<CAPTION>
NXN
<S> <C>
Dividend per share $.0650
======
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 1995, were as follows:
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $17,612,439 $14,546,946 $5,363,552 $2,696,072
Depreciation (131,054) (110,198) (600,372) (1,543)
----------- ----------- ---------- ----------
Net unrealized appreciation $17,481,385 $14,436,748 $4,763,180 $2,694,529
=========== =========== ========== ==========
<CAPTION>
NXN
<S> <C>
Gross unrealized:
Appreciation $2,201,883
Depreciation (8,647)
----------
Net unrealized appreciation $2,193,236
==========
</TABLE>
<PAGE>
<TABLE>
6. SURVEILLANCE AND ADMINISTRATION FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Trusts' investment management agreements with the Adviser, each
Trust pays to the Adviser an annual surveillance and administration fee,
payable monthly, at the rates set forth below, which are based upon the
average daily net asset value of each Trust:
<CAPTION>
Average daily net asset value NXP NXQ, NXR, NXC, NXN
<S> <C> <C>
For the first $125,000,000 .25 of 1% .3 of 1%
For the next $125,000,000 .2375 of 1 .2875 of 1
For the next $250,000,000 .225 of 1 .275 of 1
For the next $500,000,000 .2125 of 1 .2625 of 1
For the next $1,000,000,000 .2 of 1 .25 of 1
For net assets over $2,000,000,000 .1875 of 1 .2375 of 1
The fee compensates the Adviser for performing ongoing administration,
surveillance and portfolio adjustment services. The Trusts pay no compensation
directly to those trustees who are affiliated with the Adviser or to their
officers, all of whom receive remuneration for their services to the Trusts
from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. Composition of Net Assets
At September 30, 1995, each Trust had an unlimited number of $.01 par
value shares of beneficial interest authorized. Net assets consisted of:
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
Capital paid-in $ 163,781 $ 176,071 $ 129,641 $ 62,571
Paid-in surplus 227,626,766 245,660,186 178,450,447 87,122,268
Undistributed net investment income 442,331 788,294 367,985 120,881
Accumulated net realized gain (loss) from
investment transactions (129,777) 9,334 (390,988) (298,108)
Net unrealized appreciation or depreciation
of investments 17,481,385 14,436,748 4,763,180 2,694,529
------------ ------------ ------------ -----------
Net assets $245,584,486 $261,070,633 $183,320,265 $89,702,141
============ ============ ============ ===========
<CAPTION>
NXN
<S> <C>
Capital paid-in $ 39,071
Paid-in surplus 54,215,787
Undistributed net investment income 79,946
Accumulated net realized gain (loss) from
investment transactions (942,269)
Net unrealized appreciation or depreciation
of investments 2,193,236
-----------
Net assets $55,585,771
===========
</TABLE>
<PAGE>
<TABLE>
8. Investment Composition
Each Trust invests in municipal securities which include general obligation,
escrowed and revenue bonds. At September 30, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
Revenue Bonds:
Lease Rental Facilities 7% 8% 11% 25%
Educational Facilities 10 12 3 2
Housing Facilities 16 21 13 --
Health Care Facilities 21 9 18 9
Transportation 5 5 15 15
Electric Utilities 5 4 10 16
Pollution Control Facilities 8 10 14 --
Water / Sewer Facilities 2 2 6 13
Other 3 4 1 11
General Obligation Bonds 14 17 8 9
Escrowed Bonds 9 8 1 --
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
<CAPTION>
NXN
<S> <C>
Revenue Bonds:
Lease Rental Facilities --%
Educational Facilities 23
Housing Facilities 15
Health Care Facilities --
Transportation 19
Electric Utilities 4
Pollution Control Facilities --
Water / Sewer Facilities 13
Other 6
General Obligation Bonds 16
Escrowed Bonds 4
----
100%
====
</TABLE>
<PAGE>
<TABLE>
Certain long-term and intermediate-term investments owned by the Trusts are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (21% for NXP, 27% for NXQ, 17% for NXR, 100%
for NXC, and 100% for NXN). Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of any of
the Trusts' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Trust.
FINANCIAL HIGHLIGHTS
(Unaudited)
selected data for a common share outstanding throughout each period is as
follows:
<CAPTION>
Operating performance
Net asset Net realized & Dividends
value Net unrealized from net Distributions
beginning investment gain (loss) from investment from
of period income investmentstt income capital gains
NXP
<S> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 $14.710 $.454 $ .300 $(.474) $ --
Year ended 3/31,
1995 14.680 .912 .110 (.948) (.044)
1994 15.030 .911 (.313) (.948) --
1993 13.920 .903 .997 (.790) --
3/19/92 to
3/31/92 14.230 .007 .018 -- --
<CAPTION>
NXQ
<S> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 14.570 .442 .272 (.454) --
Year ended 3/31,
1995 14.550 .885 .042 (.907) --
1994 14.760 .881 (.184) (.907) --
5/21/92 to
3/31/93 14.150 .710 .702 (.605) --
<CAPTION>
NXR
<S> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 13.900 .414 .246 (.420) --
Year ended 3/31,
1995 13.830 .798 .112 (.840) --
1994 14.270 .820 (.419) (.841) --
7/24/92 to
3/31/93 14.150 .521 .280 (.424) --
<PAGE>
<CAPTION>
Per
Common
share
market
Organiza- Net asset value
Portfolio tion and value end end of
structuring fee offering costs of period period
NXP
<S> <C> <C> <C> <C>
6 mos. ended
9/30/95 $ -- $ -- $14.990 $14.750
Year ended 3/31,
1995 -- -- 14.710 14.625
1994 -- -- 14.680 14.375
1993 -- -- 15.030 15.250
3/19/92 to
3/31/92 (.212) (.123) 13.920 15.000
<CAPTION>
NXQ
<S> <C> <C> <C> <C>
6 mos. ended
9/30/95 -- -- 14.830 14.250
Year ended 3/31,
1995 -- -- 14.570 14.000
1994 -- -- 14.550 13.750
5/21/92 to
3/31/93 (.134) (.063) 14.760 14.750
<CAPTION>
NXR
<S> <C> <C> <C> <C>
6 mos. ended
9/30/95 -- -- 14.140 13.250
Year ended 3/31,
1995 -- -- 13.900 13.000
1994 -- -- 13.830 13.500
7/24/92 to
3/31/93 (.134) (.123) 14.270 14.125
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets net assets rate
NXP
<S> <C> <C> <C> <C> <C> <C>>
6 mos. ended
9/30/95 4.14% 5.18% $245,584 .37%* 6.07%* 1%
Year ended 3/31,
1995 9.14 7.38 240,890 .37 6.32 17
1994 .23 3.85 240,398 .38 5.90 10
1993 7.38 13.98 246,166 .27t 6.23 1
3/19/92 to
3/31/92 -- (2.18) 212,430 .39* 3.64* --
<CAPTION>
NXQ
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 5.06 4.95 261,071 .41* 5.96* --
Year ended 3/31,
1995 8.84 6.74 256,548 .41 6.22 12
1994 (.94) 4.63 256,098 .41 5.79 1
5/21/92 to
3/31/93 2.59 8.60 259,876 .42* 5.93* 6
<CAPTION>
NXR
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 5.15 4.79 183,320 .44* 5.86* --
Year ended 3/31,
1995 2.82 6.97 180,226 .51 6.09 7
1994 1.37 2.64 89,988 .48 5.60 8
7/24/92 to
3/31/93 (2.91) 3.82 92,845 .49* 5.65* 18
See notes on page 54.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
selected data for a common share outstanding throughout each period is as
follows:
<CAPTION>
Operating performance
Net asset Net realized & Dividends
value Net unrealized from net Distributions
beginning investment gain (loss) from investment from
of period income investmentstt income capital gains
NXC
<S> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 $14.160 $.400 $ .189 $(.409) $ --
Year ended 3/31,
1995 13.920 .795 .262 (.817) --
1994 14.530 .787 (.580) (.817) --
6/19/92 to
3/31/93 14.150 .558 .518 (.477) --
<CAPTION>
NXN
<S> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 14.040 .390 .190 (.390) --
Year ended 3/31,
1995 13.860 .768 .192 (.780) --
1994 14.370 .759 (.489) (.780) --
6/19/92 to
3/31/93 14.150 .520 .432 (.468) --
<PAGE>
<CAPTION>
Per
Common
share
market
Organiza- Net asset value
Portfolio tion and value end end of
structuring fee offering costs of period period
NXC
<S> <C> <C> <C> <C>
6 mos. ended
9/30/95 $ -- $ -- $14.340 $13.750
Year ended 3/31,
1995 -- -- 14.160 13.750
1994 -- -- 13.920 14.000
6/19/92 to
3/31/93 (.135) (.084) 14.530 14.875
<CAPTION>
NXN
<S> <C> <C> <C> <C>
6 mos. ended
9/30/95 -- -- 14.230 13.375
Year ended 3/31,
1995 -- -- 14.040 13.125
1994 -- -- 13.860 13.500
6/19/92 to
3/31/93 (.133) (.131) 14.370 14.625
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets net assets rate
NXC
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 2.98% 4.19% $89,702 .45%* 5.57%* --%
Year ended 3/31,
1995 4.47 7.97 88,586 .48 5.77 7
1994 (.51) 1.19 87,116 .47 5.27 --
6/19/92 to
3/31/93 2.39 6.21 90,898 .55* 5.29* 17
<CAPTION>
NXN
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
9/30/95 4.92 4.16 55,586 .50* 5.45* --
Year ended 3/31,
1995 3.43 7.28 54,855 .57 5.63 14
1994 (2.54) 1.68 54,159 .54 5.14 --
6/19/92 to
3/31/93 .74 5.01 56,144 .62* 5.00* 29
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
t Surveillance and administration fees commenced October 1, 1992.
tt Net of taxes, if applicable.
</TABLE>
<PAGE>
Your investment partner
Photographic image of John Nuveen
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and
in the future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF2-NOV 95
