Nuveen Exchange-Traded Portfolios
Providing tax-free income to help
you live your dreams.
SELECT TAX-FREE (NXP)
SELECT TAX-FREE 2 (NXQ)
SELECT TAX-FREE 3 (NXR)
INSURED CALIFORNIA
SELECT TAX-FREE (NXC)
INSURED NEW YORK
SELECT TAX-FREE (NXN)
SEMIANNUAL REPORT/SEPTEMBER 30, 1996
Photographic image of couple walking on beach.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
10 Fund performance
13 Commonly used terms
15 Portfolio of investments
40 Statement of net assets
42 Statement of operations
44 Statement of changes in net assets
47 Notes to financial statements
56 Financial highlights
<PAGE>
Dear shareholder
"Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors."
Photographic image of Anthony T. Dean, Chairman of the Board.
As I begin my duties as the new president and chief operating officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen
exchange-traded portfolios, I am pleased to have this opportunity to report to
you on the performance of your portfolios. My experience at Nuveen over the
past 20 years has shaped my commitment to maintaining Nuveen's tradition of
value investing and prudent management. We continue to focus on building
shareholder value, providing research-oriented management, and delivering
dependable performance, in the belief that this focus will contribute to many
more years of investment success for our shareholders.
The performance of the exchange-traded portfolios covered in this report
demonstrates the ability of quality investments to provide a steady and
attractive level of tax-free income while protecting principal over the long
term. As of September 30, 1996, the current annual yield on share price for
these portfolios ranged from 5.74% to 6.22%. To match these yields, an
investor in the 36% federal income tax bracket would have had to earn at least
8.97% on taxable alternatives. Without question, taxable yields at this level
on investments of comparable quality can be difficult to obtain in today's
markets. The exemp tion from state taxes further enhances the advantages of
the California and New York portfolios.
<PAGE>
Total returns, representing changes in net asset value and reinvestment of
all dividends and capital gains, if any, ranged from 6.66% to 7.42%,
equivalent to taxable investments with total returns of 10.48% to 11.59%. As
concerns about the effects of a potential flat tax evaporated and the Federal
Reserve continued to stand firm on interest rates, confidence in the bond
market enjoyed a resurgence, and the share prices rose. This, added to
attractive returns and solid yields, further improved investors' overall
experience for the year ended September 30, 1996.
I would like to take this opportunity to share with you the news of some
recent developments that will give Nuveen the flexibility to meet expanded
investor needs for capital preservation, current income, and future growth.
In November, we are introducing the Nuveen Growth and Income Stock Fund, the
first of three equity-based mutual funds designed to provide a high-quality
complement to our current municipal bond funds. These new funds will be
offered in affiliation with Institutional Capital Corporation (ICAP), an
institutional equity management firm located in Chicago that shares Nuveen's
values and investment management style. Tailor-made to address the needs of
the Nuveen investor, these funds can play a critical role in achieving a
balanced strategy for investors who expect their investments to provide a core
element of their financial security.
In a move designed to complement the ICAP alliance, Nuveen is acquiring
Flagship Resources, Inc., a fixed income mutual fund specialist based in
Dayton, Ohio. Flagship is a firm that shares our views on the importance of
research and emphasizes a conservative, value-oriented approach to portfolio
management. In January 1997, the tax-exempt mutual fund activities of Flagship
and Nuveen will be merged, resulting in more than 40 municipal funds, the
broadest selection available in the U.S.
We are excited about these recent developments, and we are pleased to be
bringing Nuveen investors expanded options for achieving wealth preservation,
dependable income, and long-term asset growth. We thank you for your continued
confidence in Nuveen.
Sincerely,
/s/ Anthony T. Dean
Anthony T. Dean
Chairman of the Board
November 15, 1996
<PAGE>
Answering your
questions
Ron Toupin, manager of Nuveen's Select Portfolios, discusses the investment
environment and recent factors affecting the municipal market.
How has the investment climate affected the bond market over the past year?
This year's bond market has not been easy to categorize. While 1994
represented the worst period in recent bond market history and 1993 the best
in a decade, 1996 has seen a stream of mixed reports on the state of the
economy that have alternately caused investors to view the markets with
enthusiasm, then uncertainty. Despite this climate, the municipal bond market
has rewarded investors with solid returns, dependable income, and
opportunities to purchase bonds with strong credit quality. In recent months,
municipal bonds have once again begun to outperform Treasuries, an indication
of the strength and resilience of this market segment.
A look at the current economy shows a combination of factors that
historically bode well for the bond market. Inflation is maintaining the same
modest pace that it has demonstrated over the past five years and gives every
indication of being well under control. At the same time, the economy
continues to moderate, as evidenced by the lack of price pressure at the
consumer and producer levels, steady employment statistics, low labor costs,
and a stable money supply.
<PAGE>
photographic image of Ron Toupin.
Ron Toupin, answers investers' questions on developments in the
municipal market.
How have the Select Portfolios performed in this environment?
The Select Portfolios are structured to seek stable tax-free
income within a scheduled maturity. They provide the income and maturity
patterns of individual bonds, while offering the benefits of active management
and ongoing credit surveillance. To help ensure a dependable income stream,
all of the portfolios hold long-term bonds with call protection averaging 6 to
7 years. Over the past year, portfolio management has continued to focus on
enhancing income, replacing called bonds, and improving credit quality. With
minimal dividend adjustments and no adverse credit problems, these portfolios
have worked exactly as designed, providing shareholders with the stable
dividends they seek. An additional benefit has been their comparatively low
expenses and management fees.
<PAGE>
What has been Nuveen's investment approach during this time?
Nuveen continues to pursue its value investing strategy, a
disciplined approach to security selection and portfolio construction designed
to deliver above-market performance by identifying individual bonds with
current yields, prices, credit quality, and future prospects that are
exceptionally attractive relative to other bonds in the market. This approach
was rewarded over the past year, as many of our portfolio holdings were
upgraded by the national rating agencies, indicating that our Research
Department's judgments about credit quality were on target.
Because the Select Portfolios are actively managed, Nuveen portfolio
managers over time are able to take advantage of opportunities to enhance
income, increase credit quality, and extend call protection.
<PAGE>
Share prices of the portfolios sometimes vary
from NAV. Why?
Each share has two prices: the net asset value (NAV), which represents the
underlying value of the bonds, and the share price, which is the portfolio's
price on the stock exchange. As with other securities, share prices for
municipal bond portfolios change frequently, driven by investors' demand for
shares and the available supply. When a portfolio's NAV is higher than its
share price, we say that the shares can be purchased at a discount.
In 1995, the recovery of the bond market meant that the net asset values for
some portfolios appreciated more quickly than their share prices, widening
discounts for a while. This is not unusual, as the market often takes time to
reflect underlying value balanced against the various factors that affect
individual investor decisions, such as the outlook for the direction of
interest rates, inflation forecasts, the relative strength of the stock
market, and legislative and tax outlooks.
As investor worries about tax reform--and the potential effect of a flat tax
proposal on tax-free investments--waned over the first half of 1996, the
demand for tax-free products grew. Adding to the positive outlook for the bond
market was the Federal Reserve's decision to hold the line on interest rates,
indicating that it believes inflation is under control. The combination of
higher yields, concerns about the endurance of the stock market's bullish
performance, and broker recommendations also prompted greater demand for
municipal bonds and bond portfolios.
In addition, shareholders have found that municipal bond portfolios provide
an important level of diversification in a well-structured portfolio. Because
inflation and tax reform appear to present few problems at this point,
investors are taking advantage of the opportunity to lock in current rates.
With increased demand, share prices generally have risen, resulting in
narrower discounts.
<PAGE>
NUVEEN SELECT TAX-FREE
INCOME PORTFOLIO
NXP
Dividends of NXP have been consistently at an attractive level despite a
modest reduction in November 1995. This dividend had remained unchanged for 41
months.
<TABLE>
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/11/95 $0.0790
11/13/95 $0.0765
12/13/95 $0.0765
1/13/96 $0.0765
2/13/96 $0.0765
3/13/96 $0.0765
4/11/96 $0.0765
5/13/96 $0.0765
6/12/96 $0.0765
7/11/96 $0.0765
8/13/96 $0.0765
9/11/96 $0.0765
<CAPTION>
FUND HIGHLIGHTS 9/30/96
<S> <C>
Yield 6.22%
Taxable-equivalent yield 9.72%
Annual total return on NAV 7.30%
Taxable-equivalent total return 10.85%
Share price $14.75
NAV $15.14
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<TABLE>
NUVEEN SELECT TAX-FREE
INCOME PORTFOLIO 2
NXQ
Dividends of NXQ have been consistently at an attractive level despite a
modest reduction in July, following 47 months without a change. Dividends are
adjusted periodically to reflect the current earnings of the portfolio.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/11/95 $0.0756
11/13/95 $0.0756
12/13/95 $0.0756
1/13/96 $0.0756
2/13/96 $0.0756
3/13/96 $0.0756
4/11/96 $0.0756
5/13/96 $0.0756
6/12/96 $0.0756
7/11/96 $0.0740
8/13/96 $0.0740
9/11/96 $0.0740
<CAPTION>
FUND HIGHLIGHTS 9/30/96
<S> <C>
Yield 6.18%
Taxable-equivalent yield 9.66%
Annual total return on NAV 7.11%
Taxable-equivalent total return 10.63%
Share price $14.375
NAV $14.96
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
Dividends of NXR have been consistently at an attractive level. Prior to a
modest reduction in July, dividends were unchanged for 37 months. Dividends are
adjusted periodically to reflect the current earnings of the portfolio.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/11/95 $0.0700
11/13/95 $0.0700
12/13/95 $0.0700
1/13/96 $0.0700
2/13/96 $0.0700
3/13/96 $0.0700
4/11/96 $0.0700
5/13/96 $0.0700
6/12/96 $0.0700
7/11/96 $0.0690
8/13/96 $0.0690
9/11/96 $0.0690
<CAPTION>
FUND HIGHLIGHTS 9/30/96
<S> <C>
Yield 6.13%
Taxable-equivalent yield 9.58%
Annual total return on NAV 7.29%
Taxable-equivalent total return 10.71%
Share price $13.50
NAV $14.31
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<TABLE>
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NXC
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 38 months of steady dividends prior to a modest
reduction in November 1995.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/11/95 $0.0681
11/13/95 $0.0670
12/13/95 $0.0670
1/13/96 $0.0670
2/13/96 $0.0670
3/13/96 $0.0670
4/11/96 $0.0670
5/13/96 $0.0670
6/12/96 $0.0670
7/11/96 $0.0670
8/13/96 $0.0670
9/11/96 $0.0670
<CAPTION>
FUND HIGHLIGHTS 9/30/96
<S> <C>
Yield 5.74%
Taxable-equivalent yield 9.90%
Annual total return on NAV 7.42%
Taxable-equivalent total return 11.59%
Share price $14.00
NAV $14.58
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 keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders have enjoyed 42 months of steady dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
10/11/95 $0.0650
11/13/95 $0.0650
12/13/95 $0.0650
1/13/96 $0.0650
2/13/96 $0.0650
3/13/96 $0.0650
4/11/96 $0.0650
5/13/96 $0.0650
6/12/96 $0.0650
7/11/96 $0.0650
8/13/96 $0.0650
9/11/96 $0.0650
<CAPTION>
FUND HIGHLIGHTS 9/30/96
<S> <C>
Yield 5.78%
Taxable-equivalent yield 9.71%
Annual total return on NAV 6.66%
Taxable-equivalent total return 10.48%
Share price $13.50
NAV $14.38
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, 1996) 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. This tax rate is assumed to be 36% for shareholders in
NXP, NXQ and NQR, 42% for NXC, and 40.5%for NXN, based on incomes of
$121,300-$263,750 for investors filing singly, and $147,700-$263,750 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 common shares outstanding.
Total return on NAV
The percentage change in a portfolio's NAV per share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
<PAGE>
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.
Each Portfolio intends to repurchase shares of its own common stock in the
future at such times and in such amounts as is deemed advisable. No shares were
repurchased during the six months ended September 30, 1996. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.2%
$ 535,000 Alabama Housing Finance Authority, Single Family
Mortgage Revenue Bonds (Collateralized Home
Mortgage Revenue Bond Program), 1994 Series
A-1 Bonds, 6.550%, 10/01/14 Aaa 4/04 at 102 $ 564,398
- -------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1%
2,500,000 Little Rock Health Facilities Board (Arkansas),
Refunding Revenue Bonds (Baptist Medical
Center/Parkway Village Project), Series 1992,
7.000%, 10/01/17 A 4/02 at 102 2,675,500
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.3%
4,750,000 California State Public Works Board, Lease Revenue
Bonds (California Community Colleges), 1994
Series B, 7.000%, 3/01/14 A 3/04 at 102 5,256,350
4,905,000 California Statewide Communities Development
Authority, Revenue Certificates of Participation
(Cedars-Sinai Medical Center), 6.500%, 8/01/15 A1 8/02 at 102 5,088,594
3,000,000 State Public Works Board of the State of California,
Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State Prison-Monterey
County (Soledad II)), 6.875%, 11/01/14 A 11/04 at 102 3,303,810
2,000,000 Los Angeles County Metropolitan Transportation
Authority (California), Proposition A, Sales Tax
Revenue Refunding Bonds, Series 1993-A,
5.625%, 7/01/18 Aaa 7/03 at 102 1,970,220
- -------------------------------------------------------------------------------------------------------------------
COLORADO - 7.6%
Colorado Housing Finance Authority, Single Family
Program Senior Revenue Bonds, Series 1992A-1:
4,425,000 6.800%, 11/01/12 AA 5/02 at 102 4,676,517
1,245,000 6.875%, 11/01/16 AA 5/02 at 102 1,312,081
10,750,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991 D,
7.750%, 11/15/13 (Alternative Minimum Tax) Baa No Opt. Call 12,751,435
- -------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
1,000,000 District of Columbia, Hospital Revenue and
Refunding Bonds (Medlantic Healthcare Group,
Inc. Issue), Series 1996A, 5.750%, 8/15/16 Aaa 8/06 at 102 986,530
- -------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.9%
7,000,000 State Board of Education of Florida, Public
Education Capital Outlay Bonds, Series 1991-C,
6.625%, 6/01/22 (Pre-refunded to 6/01/02) Aaa 6/02 at 101 7,731,780
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$ 2,000,000 Escambia County, Florida, Pollution Control Revenue
Bonds (Champion International Project), Series
1993, 5.875%, 6/01/22 (Alternative Minimum Tax) Baa1 12/03 at 102 $ 1,906,980
- -------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.9%
1,260,000 Illinois Educational Facilities Authority, Revenue
Refunding Bonds, Loyola University of Chicago,
Series 1991-A, 7.125%, 7/01/11 A1 7/01 at 102 1,379,750
3,000,000 Illinois Educational Facilities Authority, Revenue
Refunding Bonds (Loyola University of Chicago),
Series 1989-A, 6.100%, 7/01/15 A1 7/03 at 102 3,072,150
2,365,000 Illinois Health Facilities Authority, Revenue Bonds
and Revenue Refunding Bonds, Series 1992B
(Evangelical Hospitals Corporation),
6.500%, 4/15/09 AA- 4/02 at 102 2,475,919
3,850,000 Illinois Health Facilities Authority, Revenue Bonds
(Sarah Bush Lincoln Health Center), Series 1992,
7.250%, 5/15/22 BBB+ 5/02 at 102 4,008,851
2,000,000 State of Illinois General Obligation Bonds, Series of
August 1994, 5.875%, 8/01/14 AA- 8/04 at 102 2,025,900
City of Chicago Heights, Illinois, General Obligation
Bonds, Series 1993 (Corporate Purpose Bonds):
3,820,000 5.650%, 12/01/15 Aaa 12/04 at 100 3,777,827
2,600,000 5.650%, 12/01/17 Aaa 12/08 at 100 2,569,736
7,000,000 The County of Cook, Illinois, General Obligation
Bonds, Series 1992A, 6.600%, 11/15/22 Aaa 11/02 at 102 7,554,540
2,500,000 Regional Transportation Authority (Cook, DuPage,
Kane, Lake, McHenry and Will Counties in Illinois),
General Obligation Bonds, Series 1993A,
5.800%, 6/01/13 Aaa 6/03 at 102 2,525,025
- -------------------------------------------------------------------------------------------------------------------
INDIANA - 2.7%
3,000,000 Indiana Bond Bank, Special Hospital Program
(Hendricks Community Hospital Financing
Program), Series 1992A, 7.125%, 4/01/13 A 4/02 at 102 3,266,580
Indiana Bond Bank, Special Program Bonds, Series
1992 A:
1,000,000 7.000%, 8/01/12 A 2/02 at 102 1,068,320
2,250,000 7.000%, 8/01/18 A 2/02 at 102 2,387,858
- -------------------------------------------------------------------------------------------------------------------
IOWA - 1.1%
2,565,000 Woodbury County, Iowa, Hospital Facility Revenue
Bonds (St. Luke's Regional Medical Center Project),
Series 1991A, 6.750%, 3/01/21 (Pre-refunded
to 3/01/01) Aaa 3/01 at 102 2,818,089
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
KANSAS - 3.9%
$ 9,000,000 City of Wichita, Kansas, Revenue Bonds (CSJ Health
System of Wichita, Inc.), Series 1985 XXV
(Remarketed), 7.200%, 10/01/15 A 11/01 at 102 $ 9,654,120
- -------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.4%
3,230,000 Lexington-Fayette Urban County Government
(Kentucky), Governmental Project Revenue Bonds,
Series 1994 (University of Kentucky Alumni
Association, Inc. Commonwealth Library Project),
6.750%, 11/01/15 Aaa 11/04 at 102 3,593,860
- -------------------------------------------------------------------------------------------------------------------
MAINE - 2.6%
Maine Educational Loan Authority, Educational Loan
Revenue Bonds, Series 1992A-1 (Supplemental
Educational Loan Program):
2,185,000 6.800%, 12/01/07 (Alternative Minimum Tax) Aaa 12/02 at 102 2,333,908
2,470,000 7.000%, 12/01/16 (Alternative Minimum Tax) Aaa 12/02 at 102 2,637,096
1,360,000 Maine Educational Loan Authority, Educational Loan
Revenue Bonds, Series 1992A-2 (Supplemental
Educational Loan Program), 7.150%, 12/01/16
(Alternative Minimum Tax) A 12/02 at 102 1,457,294
- -------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
2,000,000 Plymouth County (Massachusetts), Certificates of
Participation (Plymouth County Correctional
Facility), Series A, 7.000%, 4/01/22 A- 10/02 at 102 2,219,000
- -------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.5%
3,600,000 Calhoun County (Mississippi), Solid Waste Disposal
Revenue Bonds (Weyerhauser Company Project),
Series 1992, 6.875%, 4/01/16 (Alternative
Minimum Tax) A 4/07 at 103 3,794,760
- -------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 4.2%
10,000,000 New Hampshire Housing Finance Authority,
Multi-Family Housing Revenue Refunding Bonds,
1991 Series 1, 7.050%, 7/01/11 A1 7/01 at 102 10,512,500
- -------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.9%
2,090,000 New York Local Government Assistance Corporation,
New York, Series 1991B, 7.000%, 4/01/21
(Pre-refunded to 4/01/01) Aaa 4/01 at 100 2,294,151
1,365,000 New York Local Government Assistance Corporation
(A Public Benefit Corporation of the State of New
York), Series 1991D Bonds, 7.000%, 4/01/18
(Pre-refunded to 4/01/02) Aaa 4/02 at 102 1,540,020
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 4,465,000 New York State Dormitory Authority, State
University Educational Facilities Revenue Bonds,
Series 1991A, 7.250%, 5/15/18 (Pre-refunded
to 5/15/02) Aaa 5/02 at 102 $ 5,101,218
2,865,000 New York State Medical Care Facilities Finance
Agency, Mental Health Services Facilities
Improvement Revenue Bonds, 1991 Series D,
7.400%, 2/15/18 Baa1 2/02 at 102 3,171,326
1,080,000 New York State Medical Care Facilities Finance
Agency, Mental Health Services Facilities,
Improvement Revenue Bonds, 1991 Series A,
7.500%, 2/15/21 Baa1 2/01 at 102 1,200,658
7,250,000 Metropolitan Transportation Authority (New York),
Commuter Facilities 1987 Service Contract Bonds,
Series 5, 7.000%, 7/01/12 Baa1 7/01 at 102 7,809,048
3,000,000 Metropolitan Transportation Authority (New York),
Transit Facilities Service Contract Bonds, Series N,
6.000%, 7/01/11 Baa1 7/02 at 100 2,972,190
5,170,000 The City of New York, New York, General Obligation
Bonds, Fiscal 1995 Series A, 6.250%, 8/01/10 Baa1 8/04 at 101 1/2 5,218,598
- --------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.0%
2,500,000 Pennsylvania Higher Educational Facilities
Authority Revenue Bonds (Thomas Jefferson
University), 1992 Series A, 6.625%, 8/15/09 Aa 8/02 at 102 2,715,825
2,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1992-33,
6.900%, 4/01/17 AA+ 4/02 at 102 2,108,700
7,235,000 Delaware County Authority (Pennsylvania), First
Mortgage Revenue Bonds (The Dunwoody Project),
Series 1992, 8.125%, 4/01/17 N/R 4/02 at 102 7,694,784
- --------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.0%
5,000,000 South Carolina Housing Finance and Development
Authority, Multifamily Housing Revenue Bonds,
1992 Series A, 6.875%, 11/15/23 Aaa 5/02 at 102 5,205,200
4,060,000 York County (South Carolina), Public Facilities
Corporation, Certificates of Participation (York
County Justice Center Project), Series 1991,
7.500%, 6/01/11 (Pre-refunded to 6/01/01) Aaa 6/01 at 102 4,612,241
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE - 2.3%
$ 5,750,000 Memphis-Shelby County Airport Authority
(Tennessee), Airport Special Facilities and Project
Revenue Bonds (Federal Express Corporation),
Series 1993, 6.200%, 7/01/14 (Alternative
Minimum Tax) BBB 7/03 at 102 $ 5,763,570
- ---------------------------------------------------------------------------------------------------------------------
TEXAS - 9.5%
9,825,000 Harris County Health Facilities Development
Corporation (Texas), Hospital Revenue Bonds
(Memorial Hospital System Project), Series 1992,
7.125%, 6/01/15 A 6/02 at 102 10,584,865
4,000,000 Port of Corpus Christi Authority of Nueces County
(Texas), Pollution Control Revenue Bonds (Hoechst
Celanese Corporation), Series 1992, 6.875%, 4/01/17
(Alternative Minimum Tax) A+ 4/02 at 102 4,264,360
3,500,000 Red River Authority (Texas), Pollution Control
Revenue Bonds (Hoechst Celanese Corporation),
Series 1992, 6.875%, 4/01/17 (Alternative
Minimum Tax) A+ 4/02 at 102 3,742,445
5,000,000 City of San Antonio, Texas, Water System Revenue
Refunding Bonds, Series 1992, 6.000%, 5/15/16 Aaa 5/02 at 100 5,067,350
- ---------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.2%
5,070,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series A,
7.100%, 1/01/17 Aa1 1/02 at 102 5,375,112
- ---------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.2%
2,750,000 Washington Health Care Facilities Authority,
Revenue Bonds, Series 1992 (Sacred Heart Medical
Center, Spokane), 6.875%, 2/15/12 AA- 2/02 at 102 2,919,180
10,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1991A, 6.875%, 7/01/17 Aa1 7/01 at 102 10,684,800
2,500,000 Public Utility District No. 1 of Snohomish County,
Washington, Electric System Refunding Revenue
Bonds, Series 1991 A, 7.000%, 1/01/16 A1 1/01 at 102 2,665,650
5,700,000 Public Utility District No. 1 of Snohomish County,
Washington, Generation System Revenue Bonds,
Series 1989, 6.750%, 1/01/12 Aaa No Opt. Call 6,381,377
- ----------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2%
1,000,000 West Virginia Housing Development Fund, Housing
Finance Bonds, 1992 Series A, 7.000%, 5/01/24 Aa1 5/02 at 103 1,054,610
1,885,000 Marshall County, West Virginia, Special Obligation
Refunding Bonds, Series 1992, 6.500%, 5/15/10 AAA No Opt. Call 2,044,490
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WISCONSIN - 2.1%
$ 5,000,000 Wisconsin Housing and Economic Development
Authority, Multi-Family Housing Revenue Bonds,
1992 Series B, 7.050%, 11/01/22 A1 4/02 at 102 $ 5,277,950
- ----------------------------------------------------------------------------------------------------------------------
WYOMING - 1.3%
3,000,000 Wyoming Community Development Authority,
Single Family Mortgage Revenue Bonds (Federally
Insured or Guaranteed Mortgage Loans),
Series 1988-G, 7.200%, 6/01/10 (Alternative
Minimum Tax) Aa 11/01 at 103 3,158,070
- ----------------------------------------------------------------------------------------------------------------------
$228,225,000 Total Investments - (cost $223,874,308) - 98.4% 243,985,066
=================-----------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 100,000 New York Job Development Authority, Series B,
=========
Variable Rate Demand Bonds, 4.100%, 3/01/05+
(Alternative Minimum Tax) VMIG-1 100,000
- ----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 3,850,284
- ----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $247,935,350
======================================================================================================================
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 20 $ 71,309,056 29%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 11 38,506,714 16
PORTFOLIO OF A+ A1 8 36,003,399 15
INVESTMENTS A, A- A, A2, A3 11 45,668,457 19
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 9 44,802,656 18
TEMPORARY Non-rated Non-rated 1 7,694,784 3
INVESTMENTS):
- ------------------------------------------------------------------------------------------------------------------
TOTAL 60 $243,985,066 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** 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.
+ 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.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<CAPTION>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA - 4.6%
$ 3,250,000 California State Public Works Board, Lease Revenue
Bonds (California Community Colleges), 1994
Series B, 7.000%, 3/01/14 A 3/04 at 102 $ 3,596,450
2,000,000 State Public Works Board of the State of California,
Lease Revenue Refunding Bonds (The Regents of
the University of California), 1993 Series A (Various
University of California Projects), 5.500%, 6/01/14 A No Opt. Call 1,956,740
5,000,000 State Public Works Board of the State of California,
Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State Prison-Monterey
County (Soledad II)), 6.875%, 11/01/14 A 11/04 at 102 5,506,350
1,000,000 City of Fresno, California, Health Facility Revenue
Refunding Bonds, Series 1993A (Holy Cross Health
System Corporation), 5.625%, 12/01/15 Aaa 12/03 at 102 984,930
- ------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.4%
4,480,000 Colorado Housing Finance Authority, Single Family
Program Senior Bonds, Series 1992A-3,
7.000%, 11/01/24 (Alternative Minimum Tax) AA 5/02 at 102 4,652,838
11,465,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1992B,
7.250%, 11/15/12 (Alternative Minimum Tax) Baa 11/02 at 102 12,204,378
- ------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.9%
7,500,000 District of Columbia (Washington, D.C.), General
Obligation Bonds, Series 1992B, 6.300%, 6/01/12 Aaa 6/02 at 102 7,719,450
4,600,000 District of Columbia Hospital Revenue Refunding
Bonds (Washington Hospital Center), Series
1992-A, 7.125%, 8/15/19 Baa1 8/02 at 102 4,769,694
500,000 District of Columbia, Hospital Revenue and
Refunding Bonds (Medlantic Healthcare Group,
Inc. Issue), Series 1996A, 5.750%, 8/15/16 Aaa 8/06 at 102 493,265
- ------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.3%
8,180,000 Hillsborough County (Florida), Environmentally
Sensitive Land Acquisition and Protection Program
Bonds, Series 1992, 6.375%, 7/01/11 A 7/02 at 102 8,581,229
- ------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.9%
3,750,000 Illinois Educational Facilities Authority, Revenue
Refunding Bonds (Columbia College), Series 1992,
6.875%, 12/01/17 BBB 12/04 at 100 3,862,725
2,500,000 Illinois Educational Facilities Authority, Revenue
Bonds, Series 1993 (Columbia College),
6.125%, 12/01/18 BBB 12/03 at 102 2,386,200
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 8,500,000 Chicago Metropolitan Housing Development
Corporation (Illinois), Housing Development
Revenue Refunding Bonds (FHA-Insured Mortgage
Loans-Section 8 Assisted Projects), Series 1992A,
6.800%, 7/01/17 AA 7/02 at 102 $ 8,798,520
8,070,000 The County of Cook, Illinois, General Obligation
Bonds, Series 1992A, 6.600%, 11/15/22 Aaa 11/02 at 102 8,709,305
2,250,000 Metropolitan Pier and Exposition Authority (Illinois),
McCormick Place Expansion Project Bonds, Series
1992A, 6.500%, 6/15/22 A+ 6/03 at 102 2,475,158
5,000,000 Regional Transportation Authority (Cook, DuPage,
Kane, Lake, McHenry and Will Counties in
Illinois), General Obligation Bonds, Series 1993A,
5.800%, 6/01/13 Aaa 6/03 at 102 5,050,050
- ------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.9%
10,000,000 Indiana Educational Facilities Authority, Educational
Facilities Refunding Revenue Bonds (Butler
University Project), Series 1992A, 6.600%, 1/01/18 Aaa 1/02 at 102 10,795,200
2,005,000 Howard County Jail and Juvenile Detention Center
Corporation (Indiana), First Mortgage Revenue
Bonds, Series 1992, 6.850%, 1/01/12 (Pre-refunded
to 1/01/02) A1 1/02 at 102 2,225,390
2,400,000 Westfield-Washington South School Building
Corporation (Indiana), First Mortgage Revenue
Bonds (Series 1992), 6.500%, 7/15/13
(Pre-refunded to 7/15/02) A 7/02 at 102 2,634,672
- ------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.7%
Kentucky Housing Corporation, Housing Revenue
Bonds (Federally Insured or Guaranteed Mortgage
Loans), Series 1992A:
4,455,000 6.600%, 7/01/11 Aaa 7/02 at 102 4,663,182
2,435,000 6.700%, 7/01/17 Aaa 7/02 at 102 2,540,679
- ------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.7%
Louisiana Public Facilities Authority, Revenue Bonds,
1992 Series, Tulane University of Louisiana:
2,590,000 6.625%, 11/15/21 (Pre-refunded to 11/15/02) A1 11/02 at 102 2,878,293
8,835,000 6.625%, 11/15/21 A1 11/02 at 102 9,479,160
- ------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.7%
3,000,000 Massachusetts Health and Educational Facilities
Revenue Bonds (Jordan Memorial Hospital Issue),
Series 1992C, 6.875%, 10/01/22 A- 10/02 at 102 3,140,670
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 3,630,000 The Commonwealth of Massachusetts, General
Obligation Refunding Bonds of 1991, Series B.,
6.500%, 8/01/11 A1 8/01 at 102 $ 3,845,840
- -------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
4,000,000 City of Royal Oak (Michigan), Hospital Finance
Authority, Revenue Bonds (Beaumont Properties,
Inc.), Series 1992E, 6.625%, 1/01/19 Aa 1/02 at 102 4,244,880
- -------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.8%
2,065,000 City of Billings, Montana, Tax Increment Urban
Renewal Bonds, Refunding Series 1992,
7.100%, 3/01/08 Baa 3/02 at 101 2,201,848
- -------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.9%
2,695,000 Dormitory Authority of the State of New York, State
University Educational Facilities, Revenue Bonds,
Series 1989B, 7.250%, 5/15/15 (Pre-refunded
to 5/15/00) Aaa 5/00 at 102 2,988,432
4,000,000 New York State Medical Care Facilities Finance
Agency, New York Hospital FHA-Insured Mortgage
Revenue Bonds, 1994 Series A (AMBAC Insured
Series), 6.750%, 8/15/14 Aaa 2/05 at 102 4,381,000
3,850,000 Metropolitan Transportation Authority (New York),
Transit Facilities Service Contract Bonds, Series N,
6.000%, 7/01/11 Baa1 7/02 at 100 3,814,311
The City of New York (New York), General
Obligation Bonds, Fiscal 1992 Series H:
8,000,000 7.100%, 2/01/11 Baa1 2/02 at 101 1/2 8,545,760
3,150,000 7.100%, 2/01/12 Baa1 2/02 at 101 1/2 3,364,893
5,000,000 Triborough Bridge and Tunnel Authority (New York),
Convention Center Project Bonds, Series E,
7.250%, 1/01/10 Baa1 No Opt. Call 5,656,000
- -------------------------------------------------------------------------------------------------------------------------
OHIO - 2.3%
2,800,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds
(Meridia Health System), Series 1995,
6.250%, 8/15/14 A1 8/05 at 102 2,858,436
3,000,000 County of Erie, Ohio Hospital Improvement and
Refunding Revenue Bonds, Series 1992 (Firelands
Community Hospital Project), 6.750%, 1/01/15 A 1/02 at 102 3,161,910
- -------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.4%
6,000,000 Water and Sewer System Revenue Bonds, Series
1992A, Oklahoma City Water Utilities Trust,
Oklahoma City, Oklahoma, 6.400%, 7/01/17 Aaa 7/02 at 100 6,246,120
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA - 2.6%
$ 6,295,000 Pennsylvania Intergovernmental Cooperation
Authority, Special Tax Revenue Bonds (City of
Philadelphia Funding Program), Series of 1992,
6.800%, 6/15/22 (Pre-refunded to 6/15/02) Aaa 6/02 at 100 $ 6,954,527
- --------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.3%
5,500,000 Rhode Island Depositors Economic Corporation,
Special Obligation Bonds, 1992 Series A,
6.900%, 8/01/13 (Pre-refunded to 8/01/02) AAA 8/02 at 102 6,166,270
- --------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.8%
7,000,000 Richland County (South Carolina), Solid Waste
Disposal Facilities Revenue Bonds (Union Camp
Corporation Project), Series 1992-A,
6.750%, 5/01/22 (Alternative Minimum Tax) A1 5/02 at 102 7,398,580
- --------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 5.5%
8,895,000 Tennessee Housing Development Agency,
Homeownership Program Bonds, Issue WR, Series
1992, 6.800%, 7/01/17 Aa 7/02 at 102 9,285,135
4,500,000 Memphis-Shelby County Airport Authority
(Tennessee), Special Facilities Revenue Bonds,
Series 1984 (Federal Express Corporation),
7.875%, 9/01/09 BBB 9/01 at 103 5,019,930
- --------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.9%
3,275,000 Bexar County (Texas), Health Facilities Development
Corporation, Hospital Revenue Bonds (Baptist
Memorial Hospital System Project), Series 1994,
6.900%, 2/15/14 Aaa 8/04 at 102 3,637,346
4,835,000 Cleveland Housing Corporation (Texas), Mortgage
Revenue Refunding Bonds, Series 1992-C (FHA
Insured-Section 8), 7.375%, 7/01/24 Aaa 1/01 at 102 5,140,862
2,500,000 Harris County Health Facilities Development
Corporation, Texas Children's Hospital Project,
Series 1995, 5.500%, 10/01/16 Aaa 10/05 at 102 2,424,825
7,600,000 Port of Corpus Christi Authority of Nueces County
(Texas), Pollution Control Revenue Bonds (Hoechst
Celanese Corporation), Series 1992,
6.875%, 4/01/17 (Alternative Minimum Tax) A+ 4/02 at 102 8,102,284
1,460,000 Red River Authority (Texas), Pollution Control
Revenue Bonds (Hoechst Celanese Corporation),
Series 1992, 6.875%, 4/01/17 (Alternative
Minimum Tax) A+ 4/02 at 102 1,561,134
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
UTAH - 1.4%
$ 1,800,000 Utah Housing Finance Agency, Single Family
Mortgage Purchase Refunding Senior Bonds,
Series 1992, 6.800%, 1/01/12 Aaa 7/02 at 102 $ 1,899,414
1,655,000 Municipal Building Authority of Ogden City School
District, Weber County, Utah, Lease Revenue
Bonds (Central Middle School Project), Series
1992, 6.700%, 1/01/12 Baa1 1/02 at 101 1,729,475
- ----------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.5%
3,600,000 Vermont Industrial Development Authority, Industrial
Development Refunding Revenue Bonds (Stanley
Works Project), Series 1992, 6.750%, 9/01/10 A 9/02 at 102 3,788,820
- ----------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8%
2,000,000 Industrial Development Authority of Covington-
Alleghany County, Virginia, Hospital Facility
Revenue Bonds (Alleghany Regional Hospital),
Series 1992, 6.625%, 4/01/12 (Pre-refunded
to 4/01/02) A- 4/02 at 102 2,207,540
- ----------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.8%
Washington Public Power Supply System, Nuclear
Project No. 3, Refunding Revenue Bonds,
Series 1991A:
3,600,000 6.750%, 7/01/11 Aa1 7/01 at 102 3,771,036
6,160,000 6.500%, 7/01/18 Aa1 7/01 at 102 6,319,666
- ----------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
1,750,000 West Virginia School Building Authority, Capital
Improvement Revenue Bonds, Series 1992-A,
6.625%, 7/01/22 A 7/02 at 102 1,812,964
- ----------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0%
10,000,000 Wisconsin Housing and Economic Development
Authority, Multi-Family Housing Revenue Bonds,
1992 Series D, 7.200%, 11/01/13 (Alternative
Minimum Tax) A1 4/02 at 102 10,574,300
- ----------------------------------------------------------------------------------------------------------------------------
$244,380,000 Total Investments - (cost $241,888,214) - 98.4% 259,208,066
===================---------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 4,260,070
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $263,468,136
============================================================================================================================
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 17 $ 80,794,857 31%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 6 37,072,075 14
PORTFOLIO OF A+ A1 10 51,398,575 20
INVESTMENTS: A, A- A, A2, A3 10 36,387,345 14
BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 11 53,555,214 21
- ------------------------------------------------------------------------------------------------------------------
TOTAL 54 $259,208,066 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** 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.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA - 2.9%
$ 3,000,000 State Public Works Board of the State of California
Lease Revenue Bonds (Department of Corrections),
1994 Series A, California State Prison-Monterey
County (Soledad II), 6.875%, 11/01/14 A 11/04 at 102 $ 3,303,810
500,000 City of Fresno, California, Health Facility Revenue
Refunding Bonds (Holy Cross Health System
Corporation), 5.625%, 12/01/18 Aaa 12/03 at 102 485,175
1,570,000 City of Torrance, California, Hospital Revenue Bonds
Little Company of Mary Hospital Project),
Series 1992, 6.875%, 7/01/15 A 7/02 at 102 1,668,470
- ------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.9%
2,500,000 City of Colorado Springs, Colorado, Utilities System
Refunding Revenue Bonds, Series 1992A, 6.125%
11/15/20 Aa 11/02 at 100 2,550,850
1,500,000 City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1991D, 7.750%, 11/15/13
(Alternative Minimum Tax) Baa No Opt. Call 1,779,270
4,000,000 City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1992B, 7.250%, 11/15/23
(Alternative Minimum Tax) Baa 11/02 at 102 4,257,960
4,000,000 City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1992C, 6.750%, 11/15/13
(Alternative Minimum Tax) Baa 11/02 at 102 4,144,840
- -----------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250,000 Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Series 1992-A, Bridgeport
Hospital Issue, 6.625%, 7/01/18 Aaa 7/02 at 102 268,560
- -----------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.4%
4,245,000 District of Columbia (Washington, D.C.), General
Obligation Bonds, Series 1993 E, 6.000%, 6/01/13 Aaa 6/03 at 102 4,293,138
2,000,000 District of Columbia, Hospital Revenue Refunding
Bonds (Washington Hospital Center), Series 1992-A,
7.125%, 8/15/19 Baa1 8/02 at 102 2,073,780
- -----------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.3%
4,000,000 City of Tampa, Florida, Water and Sewer Systems
Revenue Bonds, Series 1995, 7.550% 5/01/12 N/R 5/02 at 102 4,254,680
- -----------------------------------------------------------------------------------------------------------------------
GEORGIA- 2.3%
Fulco Hospital Authority, Refunding Revenue Anticipation
Certificates (Georgia Baptist Health Care System Project),
Series 1992B:
2,250,000 6.250%, 9/01/13 Baa1 9/02 at 102 2,202,323
2,000,000 6.375%, 9/01/22 Baa1 9/02 at 102 1,967,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - 14.2%
$ 1,500,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1992C (Evangelical Hospitals Corporation),
6.250% 4/15/22 AA- 4/02 at 102 $ 1,511,130
4,000,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1992B (Franciscan Sisters Health Care
Corporation Project), 6.625%, 9/01/13 Aaa 9/02 at 102 4,327,960
1,000,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1992 (Mercy Center for Health Care Services),
6.650%, 10/01/22 Baa1 10/02 at 102 1,007,010
7,750,000 The Illinois State Toll Highway Authority, Toll
Highway Priority Revenue Bonds, 1992 Series A,
6.375%, 1/01/15 A1 1/03 at 102 8,015,050
3,000,000 Village of Bryant, Illinois, Pollution Control
Revenue Refunding Bonds (Central Illinois Light
Company Project), Series 1992, 6.500%, 2/01/18 Aa2 2/02 at 102 3,115,020
2,500,000 Chicago Metropolitan Housing Development
Corporation (Illinois), Housing Development
Revenue Refunding Bonds (FHA-Insured Mortgage
Loans-Section 8 Assisted Projects), Series 1992A,
6.850%, 7/01/22 AA 7/02 at 102 2,593,850
2,550,000 City of Chicago, Illinois Mortgage Revenue Bonds,
Series 1992 (FHA Insured Mortgage Loan-
Lakeview Towers Project), 6.600%, 12/01/20 AAA 12/02 at 102 2,630,045
1,700,000 City of Chicago, Chicago-O'Hare International
Airport, General Airport Second Lien Revenue
Refunding Bonds, 5.600%, 1/01/18 (Alternative
Minimum Tax) Aaa 1/03 at 102 1,627,597
1,360,000 Board of Regents of Sangamon State University
(Illinois), Auxiliary Facilities System, Revenue
Bonds, Series 1992, 6.375%, 10/01/17 Aaa 10/02 at 102 1,446,605
- -----------------------------------------------------------------------------------------------------------------------
INDIANA - 5.5%
4,000,000 Indiana State Office Building Commission,
Correctional Facilities Program, Revenue Bonds,
Series 1991, 6.375%, 7/01/16 A1 12/01 at 102 4,146,000
1,205,000 Allen County, Indiana, Refunding Certificates of
Participation Series 1991, 6.500%, 11/01/17 Aa 5/02 at 101 1,280,361
2,000,000 School Building Corporation of Warren Township
Marion County, Indiana), First Mortgage Bonds
Series 1992A, 6.000%, 7/15/12 A 7/02 at 102 2,064,400
2,725,000 Warrick County, Indiana, Adjustable Rate
Environmental Improvement Revenue Bonds,
1993 Series B (Southern Indiana Gas and Electric
Company Project), 6.000%, 5/01/23 (Alternative
Minimum Tax) AA 5/03 at 102 2,740,614
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY - 2.6%
$ 500,000 County of Trimble, Kentucky, Pollution Control
Revenue Bonds, 1990 Series B (Louisville Gas and
Electric Company Project), 6.550%, 11/01/20
(Alternative Minimum Tax) (Pre-refunded to
9/16/02) AA 9/02 at 102 $ 547,045
4,080,000 Trimble County, Kentucky, Pollution Control
Revenue Bonds (Louisville Gas and Electric
Company Project), Series 1990-B, 6.550%, 11/01/20
(Alternative Minimum Tax) AA 9/02 at 102 4,287,509
- -----------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.3%
4,000,000 Louisiana Public Facilities Authority, Revenue Bonds,
Series 1992, Baton Rouge Water Works Company
Project, 6.400%, 2/01/10 (Alternative Minimum Tax) AA- 2/03 at 101 4,230,600
- -----------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.8%
1,395,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, Metrowest Health, Inc.
Issue, Series C, 6.500%, 11/15/18 (Pre-refunded
to 11/15/02) Aaa 11/02 at 102 1,547,013
- -----------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.8%
4,000,000 Michigan Housing Development Authority, Single
Family Mortgage, Revenue Series 1996-C,
5.950%, 12/01/17 AA+ 6/06 at 102 3,994,840
8,240,000 Michigan Housing Development Authority, Limited
Obligation Revenue Bonds (Greenwood Villa
Project), Series 1992, 6.625%, 9/15/17 Aaa 9/02 at 103 8,569,435
- -----------------------------------------------------------------------------------------------------------------------
NEVADA - 1.6%
Clark County, Nevada, Las Vegas-McCarran
International Airport, Passenger Facility Charge
Revenue Bonds, Series 1992B:
1,955,000 6.500%, 7/01/12 (Alternative Minimum Tax) A 7/02 at 102 2,006,749
1,000,000 6.250%, 7/01/22 (Alternative Minimum Tax) A 7/02 at 102 1,000,180
- -----------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.4%
2,130,000 Dormitory Authority of the State of New York, City
University System Consolidated, Second General
Resolution Revenue Bonds, Series 1990C,
7.500%, 7/01/10 Baa1 No Opt. Call 2,453,164
2,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home FHA-Insured
Mortgage Revenue Bonds, 1992 Series C (Mount
Sinai Hospital), 6.250%, 8/15/12 AAA 8/02 at 102 2,064,380
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEWYORK (CONTINUED)
$ 2,000,000 The City of New York, New York, General Obligation
Bonds, Fiscal 1992 Series H, 7.100%, 2/01/11 Baa1 2/02 at 101 1/2 $ 2,136,440
1,000,000 The City of New York, New York, General Obligation
Bonds, Fiscal 1991 Series B, 7.000%, 6/01/12 Baa1 6/01 at 101 1/2 1,052,510
1,750,000 The City of New York, General Obligation Bonds,
Fiscal 1992 Series C-1, 7.000%, 8/01/17 Baa1 8/02 at 101 1/2 1,859,270
1,060,000 The City of New York, New York, General Obligation
Bonds, Fiscal 1992 Series B, 7.000%, 2/01/18 Baa1 2/02 at 101 1/2 1,122,508
1,500,000 The City of New York, General Obligation Bonds,
Fiscal 1992 Series D, 7.500%, 2/01/18 Baa1 2/02 at 101 1/2 1,655,625
4,000,000 New York City Municipal Water Finance Authority,
Water and Sewer Revenue Bonds, Fiscal 1993
Series A, 6.000%, 6/15/17 A 6/02 at 101 1/2 4,000,800
2,785,000 New York City Municipal Water Finance Authority,
New York, Water and Sewer System Revenue Bonds,
Fixed Rate Fiscal 1993 Series B Bonds,
6.375%, 6/15/22 A 6/02 at 101 2,882,364
- --------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.2%
2,000,000 Pennsylvania Higher Educational Facilities Authority,
Revenue Bonds (Drexel University), Series 1993,
6.375%, 5/01/17 BBB+ 5/03 at 102 2,027,540
4,000,000 Pennsylvania Housing Finance Agency, Rental
Housing Refunding Bonds, Issue of 1992 (FNMA
Insured Mortgage Loans), 6.500%, 7/01/23 Aaa 7/02 at 102 4,142,120
2,500,000 Cambria County Hospital Development Authority,
Pennsylvania, Hospital Revenue Refunding and
Improvement Bonds, Series B of 1992 (Conemaugh
Valley Memorial Hospital Project), 6.375%, 7/01/18 AAA 7/02 at 102 2,625,850
2,435,000 Dauphin County, Pennsylvania, Industrial
Development Authority, Water Development
Refunding Revenue Bonds, Series 1992B (Dauphin
Consolidated Water Supply Company),
6.700%, 6/01/17 A No Opt. Call 2,727,297
- --------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.1%
4,000,000 South Carolina Public Service Authority Revenue
Bonds, 1992 Refunding Series A, 6.375%, 7/01/11 Aa 7/02 at 102 4,178,320
1,600,000 City of Spartanburg, South Carolina, Water System
Improvement Refunding Revenue Bonds, Series
1992, 6.250%, 6/01/17 AA- 6/02 at 101 1,652,400
- --------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.2%
4,000,000 South Dakota Health and Educational Facilities
Authority, Revenue Bonds, Series 1992 (Rapid City
Regional Hospital Issue), 6.150%, 9/01/18 Aaa 9/02 at 102 4,066,080
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE - 2.5%
$ 4,420,000 Memphis-Shelby County Airport Authority,
Tennessee, Special Facilities Revenue Refunding
Bonds, Series 1992 (Federal Express Corporation),
6.750%, 9/01/12 BBB 9/02 at 102 $ 4,636,757
- ------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.1%
3,755,000 Grand Prairie Industrial Development Authority,
Industrial Development Revenue Refunding Bonds,
Series 1992 (Baxter International Inc. Project),
6.550%, 12/01/12 A- 12/02 at 102 3,899,943
2,500,000 Harris County Health Facilities, Texas, Development
Corporation Hospital Revenue Bonds (Hermann
Hospital), Series 1994, 6.375%, 10/01/17 Aaa 10/04 at 101 2,645,475
5,000,000 North Central Texas Health Facilities Development
Corporation, Hospital Revenue Refunding Bonds,
Series 1995 (Baylor Health Care System),
5.250%, 5/15/16 Aa 5/06 at 102 4,744,400
- ------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.3%
4,000,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series A,
7.100%, 1/01/22 Aa1 1/02 at 102 4,247,960
- ------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.8%
5,840,000 State of Washington, Certificates of Participation,
Series 1991-A, State Office Building Project,
6.000%, 4/01/12 A1 4/01 at 102 5,850,862
4,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1991A, 6.875%, 7/01/17 Aa1 7/01 at 102 4,273,920
4,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1992A, 6.500%, 7/01/15 Aa1 7/02 at 102 4,140,840
4,000,000 Port of Seattle, Washington, Revenue Bonds, Series
1992B, 6.000%, 11/01/17 (Alternative Minimum Tax) AA- 11/02 at 100 3,950,320
- ------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 4.3%
2,250,000 West Virginia School Building Authority, Capital
Improvement Revenue Bonds, Series 1992-A,
6.500%, 7/01/12 A 7/02 at 102 2,351,970
2,500,000 Berkeley County Building Commission, West
Virginia, Hospital Revenue Bonds (City Hospital
Project), Series 1992, 6.500%, 11/01/09 BBB+ 11/02 at 102 2,605,474
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WEST VIRGINIA (CONTINUED)
$ 3,000,000 Mason County, West Virginia, Pollution Control
Revenue Bonds (Appalachian Power Company
Project), Series 1992J, 6.600%, 10/01/22 A3 10/02 at 102 $ 3,091,380
- ------------------------------------------------------------------------------------------------------------------------
$176,300,000 Total Investments - (cost $175,156,756) - 98.6% 183,024,838
===================-----------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 200,000 Stevenson Industrial Development Board,
=========
Environmental Improvement (Mead Corporation
Project), Variable Rate Demand Bonds,
3.900%, 11/01/16+ A-1+ 200,000
- ------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 2,321,789
- ------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $185,546,627
========================================================================================================================
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 14 $ 40,739,433 22%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 17 54,039,979 30
PORTFOLIO OF A+ A1 3 18,011,912 10
INVESTMENTS A, A- A, A2, A3 11 28,997,363 16
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 16 36,981,471 20
TEMPORARY Non-rated Non-rated 1 4,254,680 2
INVESTMENTS):
- ------------------------------------------------------------------------------------------------------------------
TOTAL 62 $183,024,838 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** 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.
+ 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.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,050,000 California Educational Facilities Authority,
Refunding Revenue Bonds, Series 1992 (Loyola
Marymount University), 6.000%, 10/01/14 Aaa 10/01 at 100 $ 2,065,375
1,000,000 California Health Facilities Financing Authority,
Insured Hospital Revenue Bonds (Adventist Health
System/West), 1991 Series B, 6.500%, 3/01/11 Aaa 3/01 at 102 1,067,240
2,500,000 California Health Facilities Financing Authority,
Insured Hospital Revenue Bonds (Scripps Memorial
Hospitals), Series 1992A, 6.400%, 10/01/12 Aaa 10/02 at 102 2,648,225
4,000,000 California Health Facilities Financing Authority,
Insured Hospital Revenue Bonds (San Diego
Hospital Association), Series 1992B,
6.125%, 8/01/11 Aaa 8/02 at 102 4,184,240
500,000 California Statewide Communities Development
Authority, Certificates of Participation (Sutter Health
Obligated Group), Series 1993, 5.500%, 8/15/23 Aaa 8/03 at 102 478,680
3,500,000 State Public Works Board of the State of California,
Lease Revenue Bonds (Department of Corrections),
1991 Series A (State Prisons-Imperial County),
6.500%, 9/01/17 Aaa No Opt. Call 3,901,310
2,320,000 Brea Public Financing Authority (Orange County,
California), 1991 Lease Revenue Bonds, Series A,
6.250%, 7/01/21 Aaa 7/00 at 102 2,394,774
4,000,000 Eastern Municipal Water District (Riverside County,
California), Water and Sewer Revenue Refunding
Certificates of Participation, Series 1991A,
6.300%, 7/01/20 Aaa 7/01 at 101 4,150,000
1,250,000 Fairfield-Suisun Sewer District (Solano County,
California), Sewer Revenue Refunding Bonds,
Series 1991A, 6.250%, 5/01/16 Aaa 5/01 at 102 1,302,188
4,000,000 The Community Redevelopment Agency of the
City of Los Angeles, California, Hollywood
Redevelopment Project, Tax Allocation Bonds,
Series B, 6.100%, 7/01/22 Aaa 7/02 at 102 4,069,920
4,000,000 City of Los Angeles, California, Wastewater System
Revenue Bonds, Series 1992-B, 6.250%, 6/01/12 Aaa 6/02 at 102 4,194,200
2,430,000 County of Los Angeles, Certificates of Participation
(Edmund D. Edelman Children's Court and Petersen
Museum Projects), 6.000%, 4/01/12 Aaa 4/02 at 102 2,488,126
1,500,000 Los Angeles County Metropolitan Transportation
Authority (California), Proposition A, Sales Tax
Revenue Refunding Bonds, Series 1993-A,
5.625%, 7/01/18 Aaa 7/03 at 102 1,477,665
3,450,000 M-S-R Public Power Agency (California), San Juan
Project Revenue Bonds, Series 1991E,
6.000%, 7/01/22 Aaa 7/01 at 100 3,475,806
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,430,000 Modesto Irrigation District, California, Certificates
of Participation (Refunding and Capital
Improvements Project), Series 1991A,
6.000%, 10/01/21 Aaa 10/01 at 100 $ 2,448,225
1,500,000 Modesto Irrigation District Financing Authority,
Domestic Water Project Revenue Bonds, Series
1992A, 6.125%, 9/01/19 Aaa 9/02 at 102 1,528,140
3,000,000 Northern California Power Agency, Hydroelectric
Project Number One, Revenue Bonds, 1992
Refunding Series A, 6.250%, 7/01/12 Aaa 7/02 at 102 3,146,910
4,000,000 City of Oakland, Alameda County, California,
General Obligation Bonds, Series 1992,
6.000%, 6/15/17 Aaa 6/02 at 102 4,069,880
3,675,000 Palm Springs Financing Authority, Palm Springs
Regional Airport, Revenue Bonds, Series 1992,
6.000%, 1/01/12 (Alternative Minimum Tax) Aaa 1/02 at 102 3,730,640
3,750,000 Port of Oakland (California), Revenue Bonds,
Series 1992-E, 6.500%, 11/01/16 (Alternative
Minimum Tax) Aaa 11/02 at 102 3,970,575
3,310,000 Rio Linda Union School District (California), General
Obligation Bonds, Series 1992-A, 6.375%, 8/01/17 Aaa 8/02 at 102 3,480,233
500,000 Rio Linda Union School District, General Obligation
Bonds, Series 1992-A, 6.250%, 8/01/15 Aaa 8/02 at 102 521,790
3,800,000 Sacramento Municipal Utility District (California),
Electric Revenue Bonds, 1992 Series B,
6.375%, 8/15/22 Aaa 8/02 at 102 4,003,718
4,000,000 San Bernardino County, California, Certificates of
Participation (1992 West Valley Detention Center
Refinancing Project), 6.000%, 11/01/18 Aaa 11/02 at 102 4,052,120
4,000,000 County of San Diego (California), Certificates of
Participation (1994 Inmate Reception Center and
Cooling Plant Financing), 6.750%, 8/01/14 Aaa 8/04 at 102 4,411,200
3,500,000 San Francisco Airports Commission, San Francisco
International Airport, Second Series Refunding
Revenue Bonds, Issue 1, 6.300%, 5/01/11 Aaa 5/02 at 102 3,690,400
2,150,000 Airports Commission, City and County of San
Francisco, California, San Francisco International
Airport, Second Series Refunding Revenue Bonds,
Issue 3 Bonds, 6.200%, 5/01/20 (Alternative
Minimum Tax) Aaa 5/03 at 102 2,205,191
1,000,000 Tulare County, California, Certificates of Participation
(1992 Financing Project), Series A,
6.125%, 11/15/12 Aaa 11/02 at 102 1,044,000
1,225,000 Turlock Irrigation District (California), Revenue
Refunding Bonds, Series 1992-A, 6.250%, 1/01/12 Aaa No Opt. Call 1,323,515
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 4,000,000 Walnut Public Financing Authority (Los Angeles
County, California), 1992 Tax Allocation Revenue
Bonds (Walnut Improvement Project),
6.500%, 9/01/22 Aaa 9/02 at 102 $ 4,302,800
4,000,000 Walnut Valley Water District (California), Certificates
of Participation (Badillo/Grand Transmission
Project), Series 1992, 6.125%, 2/01/18 Aaa 2/01 at 102 4,066,678
- -----------------------------------------------------------------------------------------------------------------------
$86,340,000 Total Investments - (cost $85,622,943) - 98.5% 89,893,764
===================----------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 300,000 Orange County Water District, Variable Rate
==========
Demand Bonds, 3.750%, 8/15/15+ A-1+ 300,000
- -----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 1,040,262
- -----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $91,234,026
=======================================================================================================================
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 31 $89,893,764 100%
RATINGS*
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 31 $89,893,764 100%
<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, any of which ensure the timely payment of principal and
interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** 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.
+ 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.
</FN>
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO (NXN)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 1,560,000 Dormitory Authority of the State of New York
Judicial Facilities Lease Revenue Bonds (Suffolk
County Issue), Series 1986, 7.375%, 7/01/16 Aaa No Opt. Call $ 1,829,568
1,100,000 Dormitory Authority of the State of New York,
Mount Sinai School of Medicine, Insured Revenue
Bonds, Series 1991, 6.750%, 7/01/15 Aaa 7/01 at 102 1,202,476
2,400,000 Dormitory Authority of the State of New York,
Hamilton College, Insured Revenue Bonds,
Series 1991, 6.500%, 7/01/21 Aaa 7/01 at 102 2,505,432
570,000 Dormitory Authority of the State of New York, City
University SystemConsolidated, Second General
Resolution Revenue Bonds, Series 1990C,
7.500%, 7/01/10 Aaa No Opt. Call 685,379
2,050,000 Dormitory Authority of the State of New York,
Ithaca College Insured Revenue Bonds, Series 1991,
6.500%, 7/01/10 Aaa 7/01 at 102 2,200,491
1,370,000 Dormitory Authority of the State of New York,
Siena College, Insured Revenue Bonds, Series 1992,
6.000%, 7/01/11 Aaa 7/02 at 102 1,402,209
2,250,000 Dormitory Authority of the State of New York,
New York University Insured Revenue Bonds,
Series 1991, 6.250%, 7/01/09 Aaa 7/01 at 102 2,386,823
2,500,000 Dormitory Authority of the State of New York,
Marist College, Insured Revenue Bonds,
Series 1992, 6.000%, 7/01/12 Aaa 7/02 at 102 2,565,900
1,245,000 New York State Housing Finance Agency, Insured
Multi-Family Housing Mortgage Revenue Bonds,
Series 1992C (FHA Insured), 6.450%, 8/15/14 Aaa 8/02 at 102 1,288,326
2,105,000 New York State Medical Care Facilities Finance
Agency, Mental Health Services Facilities
Improvement Revenue Bonds, 1992 Series B,
6.250%, 8/15/18 Aaa 2/02 at 102 2,191,095
250,000 New York State Medical Care Facilities Finance
Agency, Mental Health Services Facilities
Improvement Revenue Bonds, 1992 Series D,
6.100%, 8/15/13 Aaa 8/02 at 102 257,613
2,500,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home FHA-
Insured Mortgage Revenue Bonds, 1992 Series C
(Mount Sinai Hospital), 6.250%, 8/15/12 Aaa 8/02 at 102 2,622,400
2,500,000 New York State Medical Care Facilities Finance
Agency, New York Hospital FHA-Insured
Mortgage Revenue Bonds, 1994 Series A (AMBAC
Insured Series), 6.750%, 8/15/14 Aaa 2/05 at 102 2,738,125
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 1,945,000 New York State Power Authority, General Purpose
Bonds, Series 1992 AA, 6.250%, 1/01/23 Aaa 1/02 at 102 $ 2,021,069
1,500,000 New York State Thruway Authority, General Revenue
Bonds, Series 1992A, 5.500%, 1/01/23 Aaa 1/02 at 100 1,448,370
2,000,000 New York State Thruway Authority, Local Highway
and Bridge Service Contract Bonds, Series 1992,
6.000%, 4/01/10 Aaa 4/02 at 102 2,056,800
Town of Clarkstown Rickland County, New York,
Various Purposes Serial Bonds-1992:
505,000 5.600%, 6/15/10 Aaa No Opt. Call 515,878
525,000 5.600%, 6/15/11 Aaa No Opt. Call 534,182
525,000 5.600%, 6/15/12 Aaa No Opt. Call 531,809
3,500,000 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bonds, Series 1992 B,
6.250%, 7/01/17 Aaa 7/02 at 102 3,651,165
2,250,000 Metropolitan Transportation Authority, Transit
Facilities Revenue Bonds, Series J, 6.375%, 7/01/10 Aaa 7/02 at 102 2,403,405
1,435,000 New Hartford Housing Development Corporation,
Mortgage Revenue Refunding Bonds, Series 1992-A
(Village Point Project-FHA Insured Mortgage Loan-
Section 8 Assisted Project), 7.375%, 1/01/24 Aaa 7/02 at 100 1,523,181
255,000 The City of New York (New York), General
Obligation Bonds, Fiscal 1992 Series C,
6.250%, 8/01/11 Aaa 8/02 at 101 1/2 268,834
2,000,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series B, 6.950%, 8/15/12 Aaa 8/04 at 101 2,222,620
1,250,000 New York City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Fiscal
1992 Series A, 6.250%, 6/15/21 Aaa 6/01 at 100 1,283,875
1,000,000 New York City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Series
1992C, 6.200%, 6/15/21 Aaa 6/02 at 101 1/2 1,038,070
4,900,000 New York City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Fiscal
1993 Series A, 5.750%, 6/15/18 Aaa 6/02 at 101 1/2 4,901,029
1,000,000 New York City Industrial Development Agency,
Civic Facility Revenue Bonds (USTA National
Tennis Center Incorporated Project),
6.375%, 11/15/14 Aaa 11/04 at 102 1,065,160
2,500,000 Port of Authority of New York and New Jersey,
Consolidated Revenue Bonds, Ninety-Seventh
Series, 6.500%, 7/15/19 (Alternative
Minimum Tax) Aaa 1/05 at 101 2,664,024
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 485,000 Suffolk County Water Authority (New York),
Waterworks Revenue Bonds, Series 1986-V,
6.750%, 6/01/12 AAA No Opt. Call $ 513,342
2,250,000 Triborough Bridge and Tunnel Authority, Special
Obligation Refunding Bonds, Series 1991A,
6.625%, 1/01/17 Aaa 1/01 at 102 2,418,930
- ---------------------------------------------------------------------------------------------------------------------
$52,225,000 Total Investments - (cost $52,135,614) - 97.8% 54,937,580
===================--------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.2%
$ 700,000 New York Job Development Authority, Series B,
==========
Variable Rate Demand Bonds, 4.100%, 3/01/05+
(Alternative Minimum Tax) VMIG-1+ 700,000
- ---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 562,547
- ---------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $56,200,127
=====================================================================================================================
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 32 $54,937,580 100%
RATINGS*
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- --------------------------------------------------------------------------------------------------------------------
TOTAL 32 $54,937,580 100%
<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, any of which ensure the timely payment of principal and
interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** 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.
+ 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.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
(Unaudited)
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $243,985,066 $259,208,066 $183,024,838 $89,893,764
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 100,000 -- 200,000 300,000
Cash 32,399 234,798 175,727 67,303
Receivables:
Interest 5,223,516 4,737,887 3,161,674 1,456,251
Investments sold -- 756,749 -- --
Other assets 10,110 10,231 9,315 6,154
------------ ------------ ------------ -----------
Total assets 249,351,091 264,947,731 186,571,554 91,723,472
------------ ------------ ------------ -----------
LIABILITIES
Accrued expenses:
Surveillance and administration fees (note 6) 49,347 62,994 44,782 22,333
Other 113,470 113,678 85,621 47,889
Dividends payable 1,252,924 1,302,923 894,524 419,224
------------ ------------ ------------ -----------
Total liabilities 1,415,741 1,479,595 1,024,927 489,446
------------ ------------ ------------ -----------
Net assets (note 7) $247,935,350 $263,468,136 $185,546,627 $91,234,026
============ ============ ============ ===========
Shares outstanding 16,378,097 17,607,068 12,964,123 6,257,068
============ ============ ============ ===========
Net asset value per share outstanding (net assets
divided by shares outstanding) $ 15.14 $ 14.96 $ 14.31 $ 14.58
============ ============ ============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NXN
<S> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $54,937,580
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 700,000
Cash 59,613
Receivables:
Interest 800,951
Investments sold --
Other assets 5,746
-----------
Total assets 56,503,890
-----------
LIABILITIES
Accrued expenses:
Surveillance and administration fees (note 6) 13,750
Other 36,054
Dividends payable 253,959
-----------
Total liabilities 303,763
-----------
Net assets (note 7) $56,200,127
===========
Shares outstanding 3,907,068
===========
Net asset value per share outstanding (net assets
divided by shares outstanding) $ 14.38
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended September 30, 1996
(Unaudited)
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $7,875,416 $8,278,777 $5,723,317 $2,697,864
----------- ----------- ----------- -----------
Expenses:
Surveillance and administration fees (note 6) 300,263 383,792 272,218 135,477
Shareholders' servicing agent fees and expenses 30,132 28,066 23,351 7,622
Custodian's fees and expenses 27,120 27,835 24,159 19,215
Trustees' fees and expenses (note 6) 20,909 22,203 15,763 8,008
Professional fees 11,094 10,074 9,042 8,309
Shareholders' reports--printing and mailing expenses 63,305 54,509 41,475 13,060
Stock exchange listing fees 12,130 12,130 12,130 8,086
Investor relations expense 8,021 7,626 5,656 2,385
Other expenses 6,567 6,971 5,039 2,796
----------- ----------- ----------- -----------
Total expenses 479,541 553,206 408,833 204,958
----------- ----------- ----------- -----------
Net investment income 7,395,875 7,725,571 5,314,484 2,492,906
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (33,329) (50,270) (688,932) --
Net change in unrealized appreciation or depreciation
of investments 1,231,892 926,720 1,862,714 1,033,570
----------- ----------- ----------- -----------
Net gain from investments 1,198,563 876,450 1,173,782 1,033,570
----------- ----------- ----------- -----------
Net increase in net assets from operations $8,594,438 $8,602,021 $6,488,266 $3,526,476
=========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NXN
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $1,663,075
----------
Expenses:
Surveillance and administration fees (note 6) 83,504
Shareholders' servicing agent fees and expenses 5,203
Custodian's fees and expenses 17,547
Trustees' fees and expenses (note 6) 5,128
Professional fees 7,825
Shareholders' reports--printing and mailing expenses 11,221
Stock exchange listing fees 8,086
Investor relations expense 1,536
Other expenses 1,957
----------
Total expenses 142,007
----------
Net investment income 1,521,068
----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (628)
Net change in unrealized appreciation or depreciation
of investments 521,530
----------
Net gain from investments 520,902
----------
Net increase in net assets from operations $2,041,970
==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NXP NXQ
Six months ended Year ended Six months ended Year ended
9/30/96 3/31/96 9/30/96 3/31/96
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 7,395,875 $ 14,878,045 $ 7,725,571 $ 15,485,267
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 3) (33,329) (63,223) (50,270) 7,830
Net change in unrealized appreciation or
depreciation of investments 1,231,892 6,475,822 926,720 6,699,901
------------ ------------ ------------ ------------
Net increase in net assets from operations 8,594,438 21,290,644 8,602,021 22,192,998
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income (7,517,547) (15,321,715) (7,902,051) (15,973,130)
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders (7,517,547) (15,321,715) (7,902,051) (15,973,130)
------------ ------------ ------------ ------------
Net increase in net assets 1,076,891 5,968,929 699,970 6,219,868
Net assets at beginning of period 246,858,459 240,889,530 262,768,166 256,548,298
------------ ------------ ------------ ------------
Net assets at end of period $247,935,350 $246,858,459 $263,468,136 $262,768,166
============ ============ ============ ============
Balance of undistributed net investment income
at end of period $ 197,151 $ 318,823 $ 340,545 $ 517,025
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NXR NXC
Six months ended Year ended Six months ended Year ended
9/30/96 3/31/96 9/30/96 3/31/96
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 5,314,484 $ 10,708,241 $ 2,492,906 $ 4,999,789
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 3) (688,932) 21,932 -- 33,972
Net change in unrealized appreciation or
depreciation of investments 1,862,714 4,397,745 1,033,570 1,682,005
------------ ------------ ----------- -----------
Net increase in net assets from operations 6,488,266 15,127,918 3,526,476 6,715,766
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income (5,406,038) (10,889,864) (2,515,342) (5,078,863)
------------ ------------ ----------- -----------
Decrease in net assets from distributions to
shareholders (5,406,038) (10,889,864) (2,515,342) (5,078,863)
------------ ------------ ----------- -----------
Net increase in net assets 1,082,228 4,238,054 1,011,134 1,636,903
Net assets at beginning of period 184,464,399 180,226,345 90,222,892 88,585,989
------------ ------------ ----------- -----------
Net assets at end of period $185,546,627 $184,464,399 $91,234,026 $90,222,892
============ ============ =========== ===========
Balance of undistributed net investment
income at end of period $ 172,883 $ 264,437 $ 76,473 $ 98,909
============ ============ =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NXN
Six months ended Year ended
9/30/96 3/31/96
- -------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 1,521,068 $ 3,058,490
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 3) (628) 8,928
Net change in unrealized appreciation or
depreciation of investments 521,530 806,780
----------- -----------
Net increase in net assets from operations 2,041,970 3,874,198
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income (1,523,757) (3,047,517)
----------- -----------
Decrease in net assets from distributions
to shareholders (1,523,757) (3,047,517)
----------- -----------
Net increase in net assets 518,213 826,681
Net assets at beginning of period 55,681,914 54,855,233
----------- -----------
Net assets at end of period $56,200,127 $55,681,914
=========== ===========
Balance of undistributed net investment
income at end of period $ 87,053 $ 89,742
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL
STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At September 30, 1996, 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 an average
maturity of approximately 19-20 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 and
maintains ongoing surveillance of such investments
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 resulting from
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 net
assets in approximately 19-20 years 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.
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.
<PAGE>
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, 1996, 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 intend to comply with the requirements of
the Internal Revenue Code applicable to regulated
investment companies by distributing to shareholders
all of their tax-exempt net investment income, in
addition to any significant amounts of net realized
capital gains and/or market discount realized from
investment transactions. 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 net realized capital gains and market
discount. The Trusts intend to retain such minimal
amounts and, therefore, will record a provision for
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
net 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.
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.
<PAGE>
Dividends and Tax-exempt net investment income is declared as a
Ditributions to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Significant amounts of net realized capital gains
and/or market discount, if any, from investment
transactions are distributed to shareholders not
less frequently than annually. Furthermore, capital
gains are distributed only to the extent they exceed
available capital loss carryovers.
Distributions to shareholders of tax-exempt net
investment income, net realized capital gains and/or
market discount 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 occur and will be classified as
either distributions in excess of net investment
income, distributions in excess of net realized
gains and/or distributions in excess of ordinary
taxable income from investment transactions, where
applicable.
Insurance NXC and NXN invest in municipal securities which are
either covered by insurance or are backed by an escrow
or trust account containing sufficient U.S. Government
or U.S. Government agency securities, both of which
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 the municipal security covered by the
Portfolio Insurance policy at the time of its sale.
<PAGE>
Derivative Financial In October 1994, the Financial Accounting Standards
Instruments 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. The Trusts are not
authorized to invest in such financial instruments,
and therefore made no such purchases during the six
months ended September 30, 1996.
Use of Estimates The preparation of financial
statements in conformity with generally accepted
accounting principles requires management to make
estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the
financial statements and the reported amounts of
increases and decreases in net assets from operations
during the reporting period.
2. FUND SHARES
There were no share transactions during the six
months ended September 30, 1996, nor during the year
ended March 31, 1996, in any of the Trusts.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the six months ended
September 30, 1996, were as follows:
<TABLE>
<CAPTION>
NXP NXQ NXR NXC
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $ 967,400 $3,289,275 $8,620,700 $ --
Temporary municipal investments 1,980,000 900,000 875,000 1,100,000
SALES AND MATURITIES
Investments in municipal securities 1,109,090 3,912,020 8,743,585 --
Temporary municipal investments 1,880,000 1,300,000 875,000 1,100,000
========== ========== ========== ==========
<CAPTION>
NXN
- ---------------------------------------------------------------
<S> <C>
PURCHASES
Investments in municipal securities $ --
Temporary municipal investments 900,000
SALES AND MATURITIES
Investments in municipal securities 10,000
Temporary municipal investments $860,000
========
</TABLE>
At September 30, 1996, the identified cost of
investments owned for federal income tax purposes
was the same as the cost for financial reporting
purposes for each Trust.
<PAGE>
At March 31, 1996, the Trusts' last fiscal 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:
<TABLE>
<CAPTION>
NXP NXR NXC NXN
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
2001 $-- $200,114 $298,108 $618,333
2002 -- 15,243 -- 432
2003 13,520 -- -- 1,954
2004 116,258 170,137 -- 321,550
--------- --------- --------- ---------
Total $129,778 $385,494 $298,108 $942,269
========= ========= ========= =========
</TABLE>
4. DISTRIBUTIONS TO SHAREHOLDERS
On October 1, 1996, the Trusts declared dividend
distributions from their tax-exempt net investment
income which were paid November 1, 1996, to
shareholders of record on October 15, 1996, as
follows:
<TABLE>
<CAPTION>
NXP NXQ NXR NXC
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0765 $.0740 $.0690 $.0670
====== ====== ====== ======
NXN
- --------------------------------------------------------------
<CAPTION>
<S> <C>
Dividend per share $.0650
======
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at September 30, 1996,
were as follows:
<TABLE>
<CAPTION>
NXP NXQ NXR NXC
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $20,186,999 $17,352,455 $7,921,913 $4,270,821
Depreciation (76,241) (32,603) (53,831) --
------------ ------------ ---------- ----------
Net unrealized appreciation $20,110,758 $17,319,852 $7,868,082 $4,270,821
=========== =========== =========== ===========
NXN
- --------------------------------------------------------------
<CAPTION>
<S> <C>
Gross unrealized:
Appreciation $2,805,086
Depreciation (3,120)
-----------
Net unrealized appreciation $2,801,966
==========
</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:
<TABLE>
<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
</TABLE>
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.
<PAGE>
7. COMPOSITION OF NET ASSETS
At September 30, 1996, each Trust had an unlimited
number of $.01 par value shares of beneficial
interest authorized. Net assets consisted of:
<TABLE>
<CAPTION>
NXP NXQ NXR NXC
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid-in $ 163,781 $ 176,071 $ 129,641 $ 62,571
Paid-in surplus 227,626,767 245,670,608 178,450,447 87,122,269
Balance of undistributed net investment income 197,151 340,545 172,883 76,473
Accumulated net realized gain (loss) from
investment transactions (163,107) (38,940) (1,074,426) (298,108)
Net unrealized appreciation of investments 20,110,758 17,319,852 7,868,082 4,270,821
------------ ------------ ------------ -----------
Net assets $247,935,350 $263,468,136 $185,546,627 $91,234,026
============ ============ ============ ===========
NXN
- ----------------------------------------------------------------
<CAPTION>
<S> <C>
Capital paid-in $ 39,071
Paid-in surplus 54,215,786
Balance of undistributed net investment income 87,053
Accumulated net realized gain (loss) from
investment transactions (943,749)
Net unrealized appreciation of investments 2,801,966
-----------
Net assets $56,200,127
===========
</TABLE>
<PAGE>
8. INVESTMENT COMPOSITION
Each Trust invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At September 30, 1996, the revenue sources by
municipal purpose for these investments, expressed
as a percent of total investments, were as follows:
<TABLE>
<CAPTION>
NXP NXQ NXR NXC
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds:
Lease Rental Facilities 7% 7% 11% 25%
Educational Facilities 9 12 3 2
Housing Facilities 16 20 15 --
Health Care Facilities 20 10 18 9
Transportation 5 5 15 15
Electric Utilities 6 4 8 16
Pollution Control Facilities 8 10 14 --
Water / Sewer Facilities 2 2 6 13
Other 3 3 1 11
General Obligation Bonds 11 16 8 9
Escrowed Bonds 13 11 1 --
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
NXN
- --------------------------------------------------------------
<CAPTION>
<S> <C>
Revenue Bonds:
Lease Rental Facilities --%
Educational Facilities 24
Housing Facilities 15
Health Care Facilities --
Transportation 18
Electric Utilities 4
Pollution Control Facilities --
Water / Sewer Facilities 13
Other 6
General Obligation Bonds 16
Escrowed Bonds 4
-----
100%
=====
</TABLE>
<PAGE>
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 (25% for NXP, 32% for NXQ, 18% 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 SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
Operating performance
Net Dividends
realized & from Distribu-
Net unrealized tax-exempt tions
asset Net gain (loss) net from
value invest- from invest- net
beginning ment invest- ment capital
of period income ments++ income gains
NXP
<S> <C> <C> <C> <C> <C>
Six mos. ended
9/30/96 $15.070 $.452 $ .077 $(.459) $ --
Year ended 3/31,
1996 14.710 .909 .387 (.936) --
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>
Six mos. ended
9/30/96 14.920 .439 .050 (.449) --
Year ended 3/31,
1996 14.570 .879 .378 (.907) --
1995 14.550 .885 .042 (.907) --
1994 14.760 .881 (.184) (.907) --
5/21/92 to
3/31/93 14.150 .710 .702 (.605) --
<PAGE>
<CAPTION>
NXR
<S> <C> <C> <C> <C> <C>
Six mos. ended
9/30/96 14.230 .410 .087 (.417) --
Year ended 3/31,
1996 13.900 .826 .344 (.840) --
1995 13.830 .798 .112 (.840) --
1994 14.270 .820 (.419) (.841) --
7/24/92 to
3/31/93 14.150 .521 .280 (.424) --
<CAPTION>
Per
share
Organiza- market
Portfolio tion and Net asset value
structur- offering value end end of
ing fee costs of period period
NXP
<S> <C> <C> <C> <C>
Six mos. ended
9/30/96 $ -- $ -- $15.140 $14.750
Year ended 3/31,
1996 -- -- 15.070 15.000
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>
Six mos. ended
9/30/96 -- -- 14.960 14.375
Year ended 3/31,
1996 -- -- 14.920 14.875
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>
Six mos. ended
9/30/96 -- -- 14.310 13.500
Year ended 3/31,
1996 -- -- 14.230 13.625
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 Ratio of
invest- Ratio of net
ment Total expenses investment Port-
return return Net assets to income folio
on on end of average to aver- turn-
market net asset period (in net age net over
value** value** thousands) assets assets rate
NXP
<S> <C> <C> <C> <C> <C> <C>
Six mos. ended
9/30/96 1.41% 3.57% $247,935 .39%* 6.00%* --%
Year ended 3/31,
1996 9.14 8.97 246,858 .36 6.02 1
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 .27+ 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>
Six mos. ended
9/30/96 (.36) 3.33 263,468 .42* 5.89* 1
Year ended 3/31,
1996 13.02 8.79 262,768 .42 5.89 1
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>
Six mos. ended
9/30/96 2.13 3.57 185,547 .44* 5.78* 5
Year ended 3/31,
1996 11.41 8.56 184,464 .44 5.79 4
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
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
Operating performance
Net Dividends
realized & from Distribu-
Net unrealized tax-exempt tions
asset Net gain (loss) net from
value invest- from invest- net
beginning ment invest- ment capital
of period income ments++ income gains
NXC
<S> <C> <C> <C> <C> <C>
Six mos. ended
9/30/96 $14.420 $.398 $ .164 $(.402) $ --
Year ended 3/31,
1996 14.160 .799 .273 (.812) --
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>
Six mos. ended
9/30/96 14.250 .389 .131 (.390) --
Year ended 3/31,
1996 14.040 .783 .207 (.780) --
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
share
Organiza- market
Portfolio tion and Net asset value
structur- offering value end end of
ing fee costs of period period
NXC
<S> <C> <C> <C> <C>
Six mos. ended
9/30/96 $ -- $ -- $14.580 $14.000
Year ended 3/31,
1996 -- -- 14.420 14.250
1995 -- -- 14.160 13.750
1994 -- -- 13.920 14.000
6/19/92 to
3/31/93 (.135) (.084) 14.530 14.875
<PAGE>
<CAPTION>
NXN
<S> <C> <C> <C> <C>
Six mos. ended
9/30/96 -- -- 14.380 13.500
Year ended 3/31,
1996 -- -- 14.250 13.500
1995 -- -- 14.040 13.125
1994 -- -- 13.860 13.500
6/19/92 to
3/31/93 (.133) (.131) 14.370 14.625
<CAPTION>
Ratios/Supplemental data
Total Ratio of
invest- Ratio of net
ment Total expenses investment Port-
return return Net assets to income folio
on on end of average to aver- turn-
market net asset period (in net age net over
value** value** thousands) assets assets rate
NXC
<S> <C> <C> <C> <C> <C> <C>
Six mos. ended
9/30/96 1.08% 3.96% $91,234 .45%* 5.52%* --%
Year ended 3/31,
1996 9.80 7.67 90,223 .44 5.50 --
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>
Six mos. ended
9/30/96 2.90 3.71 56,200 .51* 5.46* --
Year ended 3/31,
1996 8.94 7.13 55,682 .48 5.44 --
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 value share.
+ Surveillance and Administration fees commenced October 1, 1992.
++ Net of taxes, if applicable (note 1).
</FN>
</TABLE>
<PAGE>
Your
investment
partner
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.
Photographic image of John Nuveen, Sr., founder of Nuveen
For nearly 100 years,
Nuveen has earned its reputation as a tax-free
income specialist
by focusing on
municipal bonds.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
PSA-2-9.96
