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)
ANNUAL REPORT/MARCH 31, 1997
Photographic image of couple walking on beach.
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CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
11 Commonly used terms
12 Shareholder meeting report
13 Report of independent auditors
14 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>
Photographic image of headshot of Chairman and Chief Executive Officer
of Nuveen.
"Over the past year, the Select Portfolios have continued to meet their primary
goal of providing stable income."
It's a pleasure to have this opportunity to report to you on the annual
performance of the Nuveen Select Tax-Free Portfolios. These portfolios, with
their unique product structure, have a life cycle that is designed--and
managed--for exceptional income stability. Over the past year, the Select
Portfolios have continued to meet their primary goal of providing that stable
level of income, even during different market cycles. This stability is
demonstrated by the fact that the Select Portfolios maintained extended periods
without significant dividend changes, ranging from nine months to 48 months
without a change, as shown on pages 8-10 of this report.
As of March 31, 1997, shareholders in the Select Portfolios were receiving
annual tax-free yields on net asset value that ranged from 5.79% to 6.29%. To
match these attractive yields, investors in the 31% federal income tax bracket
would have had to earn at least 8.39% on taxable alternatives of comparable
quality. When state taxes for the California and New York portfolios are taken
into account, the tax-free advantage is even greater.
As the Select Portfolios met their goal of income stability, they also
maintained credit quality while moderating the effects of market volatility. The
net asset value per share of the average Select Portfolio has closely followed
the movement of the Lehman Municipal Bond Index over the past year. During this
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period, the portfolios generated total returns, including reinvested dividends
and capital gains (if any) and changes in net asset value, of 5.79% to 6.85%,
equivalent to taxable total returns of 9.61% to 10.23% for investors in the 31%
federal income tax bracket. This level of performance gains added significance
when viewed in the context of the 1996 bond market, which underwent a mid-year
decline followed by a post-election rally to end the year slightly lower than
where it began.
Over the past year, Nuveen has made meaningful expansions to the range of
investment options that we offer to our shareholders, as we continue to help
investors keep more of what they earn. As part of this effort, we have added a
new equity fund, which is designed to offer prudent investors superior market
performance with less risk than the overall stock market, as well as two
balanced mutual funds, each designed to give investors the combination of
performance potential and a measure of downside protection that comes from a
carefully assembled balance of stocks and bonds.
In addition, we have increased the range of investment solutions available to
our investors by acquiring Flagship Resources Inc., a highly regarded provider
of fixed-income mutual funds. The resulting selection of municipal bond funds
is the broadest available.
For more complete information regarding Nuveen investment products, including
charges and expenses, call Nuveen at 1-800-257-8787 or contact your investment
adviser for a prospectus. Please read the information carefully before
you invest.
In all our efforts, our focus continues to be on understanding the goals of
Nuveen investors and providing the investments you need to achieve wealth
preservation, dependable income, and long-term asset growth. We thank you for
your continued confidence in Nuveen and our family of investments, and we look
forward to continuing to serve your investment needs in the future.
Sincerely,
/s/ Anthony T. Dean
Anthony T. Dean
Chairman of the Board
May 15, 1997
<PAGE>
Answering your questions
Ron Toupin, manager of Nuveen's Select Portfolios, reviews the municipal bond
market and offers insights into the strategies Nuveen uses to manage the
portfolios
How would you summarize the bond market over the past 12 months?
Over the past year, a steady stream of mixed economic reports resulted in
conflicting interest rate and inflation forecasts, which caused investors to
view the markets with alternating enthusiasm and uncertainty. In the third
quarter of 1996, evidence of an economic slowdown, the strong U.S. dollar, and
lack of inflationary pressures combined to allay investor fears, sparking a
rally in bonds that continued through the post-election period. In early 1997,
talk of inflation re-emerged, and the markets have kept a close eye on the
Federal Reserve to see how seriously it regards such talk.
Throughout much of the year, euphoria in the equity market focused investors'
attention on stocks and brought record amounts of new money into equity-based
mutual funds, bypassing the bond market. Some investors, concerned about a
potential stock market correction, decided to take their profits, but adopted a
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wait-and-see attitude about investing capital gains, electing to go with
short-term vehicles until a clearer picture of market trends emerged. These
events affected demand for bond issues of all types during the past 12 months.
Even with relative stability, interest rates have continued to play a role in
bond market performance. The Federal Reserve altered interest rates only once in
1996, at the very beginning of the year, but anticipation of further moves has
kept the markets restless. With one rate increase approved already this year,
the concern about potential changes in monetary policy--and the effect of such
changes on the markets--continues in 1997.
What strategies did you use to add value during this market?
Our portfolio management strategy focuses on the principles of conservative
value investing, sound research and credit surveillance activities, and senior
management involvement. Investment decisions are based on a stringent set of
criteria, as described in each portfolio's prospectus. The Select Portfolios
were designed to be a source of steady tax-free income with a known maturity
schedule. They provide income and maturity similar to individual bonds, while
offering the benefits of active management and ongoing credit surveillance.
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Termination is expected in 2017, at which time proceeds of maturing or sold
bonds will be returned to investors. Accordingly, stability of tax-free income
is the foremost portfolio objective. We make changes only when we can improve
credit quality or earnings, or to reinvest proceeds of called bonds.
What role does research play in helping you manage the portfolio?
As an integral part of our portfolio management strategy, the Nuveen
Research department provides portfolio managers with objective appraisals of the
creditworthiness of new municipal issues, while maintaining surveillance of the
credit performance for all portfolio holdings. To track individual holdings,
each Nuveen Research analyst is responsible for a specific surveillance
portfolio, which is defined in terms of geography and sector (e.g., healthcare,
housing). Specialization by sector enables our Research teams to focus their
credit quality evaluation efforts and complement the vantage point of each
portfolio manager.
Photographic image of Ron Toupin.
Ron Toupin answers investors' questions on developments in the municipal market.
<PAGE>
<TABLE>
<CAPTION>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
NXP
In keeping with the Portfolio's goal of providing dependable tax-free income,
shareholders enjoyed 12 months of steady, attractive dividends. This dividend
has remained stable for the last 17 months.
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
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
10/10/96 $0.0765
11/13/96 $0.0765
12/11/96 $0.0765
1/13/97 $0.0765
2/12/97 $0.0765
3/12/97 $0.0765
<CAPTION>
FUND HIGHLIGHTS 3/31/97
<S> <C>
Yield 6.22%
Taxable-equivalent yield 9.72%
Annual total return on NAV 6.79%
Taxable-equivalent total return 10.32%
Share price $14.75
NAV $15.15
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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<TABLE>
<CAPTION>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
NXQ
While its yield remains attractive compared with those of other fixed-income
alternatives, the Portfolio adjusted its monthly tax-free dividend last July,
after more than 47 months at its previous rate, bringing it in line with the
Portfolio's current earnings rate.
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
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
10/10/96 $0.0740
11/13/96 $0.0740
12/11/96 $0.0740
1/13/97 $0.0740
2/12/97 $0.0740
3/12/97 $0.0740
<CAPTION>
FUND HIGHLIGHTS 3/31/97
<S> <C>
Yield 6.29%
Taxable-equivalent yield 9.83%
Annual total return on NAV 6.34%
Taxable-equivalent total return 9.80%
Share price $14.125
NAV $14.95
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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<TABLE>
<CAPTION>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
NXR
While its yield remains attractive compared with those of other fixed-income
alternatives, the Portfolio adjusted its monthly tax-free dividend last July,
after more than 37 months at its previous rate, bringing it in line with the
Portfolio's current earnings rate.
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
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
10/10/96 $0.0690
11/13/96 $0.0690
12/11/96 $0.0690
1/13/97 $0.0690
2/12/97 $0.0690
3/12/97 $0.0690
<CAPTION>
FUND HIGHLIGHTS 3/31/97
<S> <C>
Yield 6.25%
Taxable-equivalent yield 9.77%
Annual total return on NAV 6.85%
Taxable-equivalent total return 10.23%
Share price $13.25
NAV $14.35
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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<TABLE>
<CAPTION>
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NXC
In keeping with the Portfolio's goal of providing dependable tax-free income,
shareholders enjoyed 12 months of steady, attractive dividends. This dividend
has remained stable for the last 17 months.
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
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
10/10/96 $0.0670
11/13/96 $0.0670
12/11/96 $0.0670
1/13/97 $0.0670
2/12/97 $0.0670
3/12/97 $0.0670
<CAPTION>
FUND HIGHLIGHTS 3/31/97
<S> <C>
Yield 5.79%
Taxable-equivalent yield 9.98%
Annual total return on NAV 6.46%
Taxable-equivalent total return 10.60%
Share price $13.875
NAV $14.53
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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<TABLE>
<CAPTION>
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
NXN
In keeping with the Portfolio's goal of providing dependable tax-free income,
shareholders enjoyed 12 months of steady, attractive dividends. This dividend
has remained stable for the last 48 months.
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
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
10/10/96 $0.0650
11/13/96 $0.0650
12/11/96 $0.0650
1/13/97 $0.0650
2/12/97 $0.0650
3/12/97 $0.0650
<CAPTION>
FUND HIGHLIGHTS 3/31/97
<S> <C>
Yield 5.83%
Taxable-equivalent yield 9.80%
Annual total return on NAV 5.79%
Taxable-equivalent total return 9.61%
Share price $13.375
NAV $14.28
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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Commonly used terms
Yield
An exchange-traded portfolio's annualized monthly dividend on a given date
divided by its closing price per share on that date.
Taxable equivalent yield
The return an investor subject to a given state and federal income tax rate
would need to obtain from a fully taxable investment to equal the portfolio's
stated annualized yield on share price. In this report, these tax rates are
assumed to be 36% for NXP, NXQ and NXR, 42% for NXC, and 40.5% for NXN, based
on 1997 incomes of $124,650-$271,050 for investors filing singly,
$151,750-$271,050 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by a portfolio, minus
any liabilities. The NAV per share is the portfolio's net assets divided by the
total number of shares outstanding.
Total return on NAV
The percentage change in a portfolio's NAV per share, assuming reinvestment of
all dividends and capital gains distributions, if any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the
portfolio's stated total return on NAV.
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SHAREHOLDER MEETING REPORT
On July 18, 1996, the following Nuveen Exchange-Traded Portfolios held an
Annual Meeting of Shareholders. At the meeting, shareholders voted to elect
trustees of the Portfolios and to ratify the selection of Ernst & Young L.L.P
as the auditors for the Portfolios. The trustees elected at the meeting
include: James E. Bacon, Anthony T. Dean, William L. Kissick, Thomas E.
Leafstrand, Timothy R. Schwertfeger and Sheila W. Wellington.
NXP NXQ NXR NXC NXN
Common Common Common Common Common
Shares Shares Shares Shares Shares
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
APPROVAL OF THE TRUSTEES
WAS REACHED AS FOLLOWS:
James E. Bacon
For 14,448,751 15,735,836 11,665,282 5,654,203 3,506,404
Withhold 143,456 120,769 106,831 62,294 25,840
---------- ---------- ---------- ---------- ----------
Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244
========== ========== ========== ========== ==========
Anthony T. Dean
For 14,447,751 15,739,531 11,670,824 5,655,503 3,506,404
Withhold 144,456 117,074 101,289 60,994 25,840
---------- ---------- ---------- ---------- ----------
Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244
========== ========== ========== ========== ==========
William L. Kissick
For 14,449,251 15,740,031 11,671,192 5,653,886 3,506,104
Withhold 142,956 116,574 100,921 62,611 26,140
---------- ---------- ---------- ---------- ----------
Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244
========== ========== ========== ========== ==========
Thomas E. Leafstrand
For 14,447,801 15,736,310 11,667,482 5,657,803 3,502,354
Withhold 144,406 120,295 104,631 58,694 29,740
---------- ---------- ---------- ---------- ----------
Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,094
========== ========== ========== ========== ==========
Timothy R. Schwertfeger
For 14,441,768 15,737,631 11,669,192 5,656,803 3,497,204
Withhold 150,439 118,974 102,921 59,694 35,040
---------- ---------- ---------- ---------- ----------
Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244
========== ========== ========== ========== ==========
Sheila W. Wellington
For 14,437,175 15,734,223 11,671,167 5,657,103 3,506,404
Withhold 155,032 122,382 100,946 59,394 25,840
---------- ---------- ---------- ---------- ----------
Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244
========== ========== ========== ========== ==========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 14,366,323 15,640,735 11,633,384 5,628,137 3,502,611
Against 49,718 46,038 50,987 6,467 6,909
Abstain 176,166 169,832 92,742 81,893 22,729
---------- ---------- ---------- ---------- ----------
Total 14,592,207 15,856,605 11,777,113 5,716,497 3,532,249
========== ========== ========== ========== ==========
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REPORT OF INDEPENDENT AUDITORS
The Boards of Trustees and Shareholders
Nuveen Select Tax-Free Income Portfolio
Nuveen Select Tax-Free Income Portfolio 2
Nuveen Select Tax-Free Income Portfolio 3
Nuveen Insured California Select Tax-Free Income Portfolio
Nuveen Insured New York Select Tax-Free Income Portfolio
We have audited the accompanying statements of net
assets, including the portfolios of investments, of
Nuveen Select Tax-Free Income Portfolio, Nuveen Select
Tax-Free Income Portfolio 2, Nuveen Select Tax-Free
Income Portfolio 3, Nuveen Insured California Select
Tax-Free Income Portfolio, and Nuveen Insured New York
Select Tax-Free Income Portfolio as of March 31, 1997,
and the related statements of operations, changes in
net assets and the financial highlights for the
periods indicated therein. These financial statements
and financial highlights are the responsibility of the
Trusts' management. Our responsibility is to express
an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require
that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements and financial highlights are free of
material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our
procedures included confirmation of investments owned
as of March 31, 1997, by correspondence with the
custodian. An audit also includes assessing the
accounting principles used and significant estimates
made by management, as well as evaluating the overall
financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of Nuveen
Select Tax-Free Income Portfolio, Nuveen Select
Tax-Free Income Portfolio 2, Nuveen Select Tax-Free
Income Portfolio 3, Nuveen Insured California Select
Tax-Free Income Portfolio, and Nuveen Insured New York
Select Tax-Free Income Portfolio at March 31, 1997,
and the results of their operations, changes in their
net assets and financial highlights for the periods
indicated therein in conformity with generally
accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
May 9, 1997
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<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP)
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 $ 558,636
- ------------------------------------------------------------------------------------------------------------------
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 2,666,750
- ------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.7%
4,750,000 California State Public Works Board, Lease Revenue
Bonds (California Community Colleges),
1994 Series B, 7.000%, 3/01/14
(Pre-refunded to 3/01/04) Aaa 3/04 at 102 5,434,618
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 5,064,413
3,000,000 State Public Works Board of the State of California
Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State of Prison-Monterey
County (Soledad II), 6.875%, 11/01/14
(Pre-refunded to 11/01/04) Aaa 11/04 at 102 3,439,710
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 1,925,480
750,000 City of Walnut Creek, California, Certificates of
Participation, Refunding Series 1994
(John Muir Medical Center), 5.000%, 2/15/16 Aaa 2/04 at 102 674,123
- ------------------------------------------------------------------------------------------------------------------
COLORADO - 7.5%
Colorado Housing Finance Authority, Single Family
Program Senior Revenue Bonds, Series 1992A-1:
4,295,000 6.800%, 11/01/12 AA 5/02 at 102 4,518,426
1,205,000 6.875%, 11/01/16 AA 5/02 at 102 1,264,334
10,750,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991D, 7.750%,
11/15/13 (Alternative Minimum Tax) Baa No Opt. Call 12,704,350
- ------------------------------------------------------------------------------------------------------------------
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 102 977,660
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 $ 7,642,740
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 1,911,400
- ------------------------------------------------------------------------------------------------------------------
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 1,372,304
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 3,071,970
2,365,000 Illinois Health Facilities Authority, Revenue Bonds
and Revenue Refunding Bonds, Series 1992B
(Evangelical Hospitals Corporation),
6.500%, 4/15/09 AA- No Opt. Call 2,580,097
3,850,000 Illinois Health Facilities Authority, Revenue Bonds
(Sarah Bush Lincoln Health Center), Series 1992,
7.250%, 5/15/22 (Pre-refunded to 5/15/02) Aaa 5/02 at 102 4,321,818
2,000,000 State of Illinois General Obligation Bonds, Series of
August 1994, 5.875%, 8/01/14 AA- 8/04 at 102 2,010,500
City of Chicago Heights, Illinois, General Obligation
Bonds, Series 1993 (Corporate Purpose Bonds):
3,820,000 5.650%, 12/01/15 Aaa 12/08 at 100 3,728,473
2,600,000 5.650%, 12/01/17 Aaa 12/08 at 100 2,515,188
7,000,000 The County of Cook, Illinois, General Obligation
Bonds, Series 1992A, 6.600%, 11/15/22 Aaa 11/02 at 102 7,514,710
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 2,518,350
- ------------------------------------------------------------------------------------------------------------------
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 3,250,170
Indiana Bond Bank, Special Program Bonds,
Series 1992 A:
1,000,000 7.000%, 8/01/12 A 2/02 at 102 1,065,230
2,250,000 7.000%, 8/01/18 A 2/02 at 102 2,381,468
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 $ 2,792,310
- ------------------------------------------------------------------------------------------------------------------
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 9,624,870
- ------------------------------------------------------------------------------------------------------------------
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 3,546,637
- ------------------------------------------------------------------------------------------------------------------
MAINE - 2.4%
Maine Educational Loan Authority, Educational Loan Revenue
Bonds, Series 1992A-1 (Supplemental Educational Loan
Program) :
2,040,000 6.800%, 12/01/07 (Alternative Minimum Tax) Aaa 12/02 at 102 2,145,876
2,310,000 7.000%, 12/01/16 (Alternative Minimum Tax) Aaa 12/02 at 102 2,433,562
1,270,000 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 1,343,800
- ------------------------------------------------------------------------------------------------------------------
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 2,195,920
- ------------------------------------------------------------------------------------------------------------------
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 3,798,252
- ------------------------------------------------------------------------------------------------------------------
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 10,459,900
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK - 11.7%
$ 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 $ 2,270,179
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 1,522,835
1,395,000 New York Medical Care Facilities Finance Agency,
Mental Health Services Facilities Improvement
Revenue Bonds, 1991 Series D, 7.400%, 2/15/18
(Pre-refunded to 2/15/02) Baal 2/02 at 102 1,568,733
1,425,000 New York Medical Care Facilities Finance Agency,
Mental Health Services Facilities Improvement
Revenue Bonds, 1991 Series D, 7.400%, 2/15/18 Baal 2/02 at 102 1,551,839
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 5,038,217
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 1,185,916
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 7,767,215
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 2,950,380
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 5,246,051
- ------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.9%
2,500,000 Pennsylvania Higher Educational Facilities Authority
Revenue Bonds (Thomas Jefferson University),
1992 Series A, 6.625%, 8/15/09 Aa3 8/02 at 1021 2,690,050
1,650,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds,
Series 1992-33, 6.900%, 4/01/17 AA+ 4/02 at 102 1,730,421
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 7,689,575
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA - 3.9%
$ 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 $ 5,185,650
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 4,549,717
- ------------------------------------------------------------------------------------------------------------------
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 5,768,458
- ------------------------------------------------------------------------------------------------------------------
TEXAS - 9.7%
9,825,000 Harris County Health Facilities Development
Corporation (Texas), Hospital Revenue Bonds
(Memorial Hospital System Project), Series 1992,
7.125%, 6/01/15 (Pre-refunded to 6/01/02) A2 6/02 at 102 11,030,821
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 4,257,360
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 3,732,750
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 5,033,500
- ------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.1%
5,070,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series A,
7.100%, 1/01/17 Aa1 1/02 at 102 5,265,853
- ------------------------------------------------------------------------------------------------------------------
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 2,925,560
10,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 10,982,100
2,500,000 Public Utility District No. 1 of Snohomish County,
Washington, Electric System Refunding Revenue
Bonds, Series 1991A, 7.000%, 1/01/16 A1 1/01 at 102 2,657,700
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 5,700,000 Public Utility District No. 1 of Snohomish County,
Washington, Generation System Revenue Bonds,
Series 1989, 6.750%, 1/01/12 Aaa 1/02 at 102 $ 6,372,941
- ------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.3%
1,000,000 West Virginia Housing Development Fund, Housing
Finance Bonds, 1992 Series A, 7.000%, 5/01/24 Aaa 5/02 at 103 1,050,190
1,885,000 Marshall County, West Virginia, Special Obligation
Refunding Bonds, Series 1992, 6.500%, 5/15/10 AAA No Opt. Call 2,075,196
- ------------------------------------------------------------------------------------------------------------------
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 5,296,500
- ------------------------------------------------------------------------------------------------------------------
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 3,169,050
- ------------------------------------------------------------------------------------------------------------------
$228,015,000 Total Investments - (cost $223,621,178) - 98.3% 244,018,802
=================-------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 200,000 The Wake County Industrial Facilities and Pollution
================= Control Financing Authority, Pollution Control
Revenue Bonds (Carolina Power &Light Company
Project), Series 1987, Variable Rate Demand Bonds,
3.900%, 3/01/17+ (Alternative Minimum Tax) P-1 200,000
- ------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 3,872,868
- ------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $248,091,670
==================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 26 $ 96,250,416 39%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 9 26,154,291 11
PORTFOLIO OF A+ A1 8 35,912,897 15
INVESTMENTS A, A- A, A2, A3 9 37,357,281 15
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 9 40,654,342 17
TEMPORARY Non-rated Non-rated 1 7,689,575 3
INVESTMENTS):
- --------------------------------------------------------------------------------------------------------------
TOTAL 62 $244,018,802 100%
==============================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
** Optional Call Provisions (not covered by the report of independent auditors):
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.
N/R - Investment is not rated.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA - 4.7%
$ 3,250,000 California State Public Works Board, Lease Revenue
Bonds (California Community Colleges), 1994
Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04) Aaa 3/04 at 102 $ 3,718,423
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 A1 No Opt. Call 1,945,720
5,000,000 State Public Works Board of the State of California
Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State of Prison-Monterey
County (Soledad II)), 6.875%, 11/01/14
(Pre-refunded to 11/01/04) Aaa 11/04 at 102 5,732,850
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 102 973,450
- ------------------------------------------------------------------------------------------------------------------
COLORADO - 6.4%
4,350,000 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 4,516,518
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 12,398,022
- ------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.0%
7,500,000 District of Columbia (Washington, D.C.), General
Obligation Bonds, Series 1992B, 6.300%, 6/01/12 Aaa 6/02 at 102 7,721,925
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 4,817,856
500,000 District of Columbia, Hospital Revenue and
Refunding Bonds (Medlantic Healthcare Group,
Inc.), Series 1996A, 5.750%, 8/15/16 Aaa 8/06 at 102 488,830
- ------------------------------------------------------------------------------------------------------------------
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 8,592,354
- ------------------------------------------------------------------------------------------------------------------
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 3,866,475
2,500,000 Illinois Educational Facilities Authority, Revenue
Bonds, Series 1993 (Columbia College),
6.125%, 12/01/18 BBB 12/03 at 102 2,404,200
<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 $ 8,798,095
8,070,000 The County of Cook, Illinois, General Obligation
Bonds, Series 1992A, 6.600%, 11/15/22 Aaa 11/02 at 102 8,663,387
45,000 Metropolitan Pier and Exposition Authority (Illinois),
McCormick Place Expansion Project Bonds,
Series 1992A, 6.500%, 6/15/22 A+ 6/03 at 102 47,344
2,205,000 Metropolitan Pier and Exposition Authority (Illinois),
McCormick Place Expansion Project Bonds, Series
1922A, 6.500%, 6/15/22 (Pre-refunded to 6/15/03) Aaa 6/03 at 102 2,426,139
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 5,036,700
- ------------------------------------------------------------------------------------------------------------------
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 10,661,900
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 2,201,911
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 2,622,768
- ------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.6%
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 4,641,620
2,205,000 6.700%, 7/01/17 Aaa 7/02 at 102 2,290,466
- ------------------------------------------------------------------------------------------------------------------
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 2,849,207
8,835,000 6.625%, 11/15/21 A1 11/02 at 102 9,441,876
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 $ 3,170,580
Massachusetts State General Obligation Refunding
Bonds, Series 1991-B:
2,045,000 6.500%, 8/01/11 (Pre-refunded to 8/01/01) A1 8/01 at 102 2,211,443
1,585,000 6.500%, 8/01/11 A1 8/01 at 102 1,704,303
- ------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
3,565,000 City of Royal Oak (Michigan), Hospital Finance
Authority, Revenue Bonds (Beaumount Properties,
Inc.), Series 1992E, 6.625%, 1/01/19 Aa 1/02 at 102 3,772,768
435,000 Royal Oak Hospital Finance Authority Revenue
Bonds Series 1992-E (Beaumont Properties Inc),
6.625%, 1/01/19 (Pre-refunded to 1/01/02) Aa 1/02 at 102 474,685
- ------------------------------------------------------------------------------------------------------------------
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 2,210,748
- ------------------------------------------------------------------------------------------------------------------
NEVADA - 0.4%
1,000,000 Clark County, Nevada, General Obligation (Limited
Tax) Las Vegas Convention and Visitors Authority
Bonds, Series September 1, 1996, 5.500%, 7/01/17 Aaa 7/06 at 101 967,320
- ------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.8%
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 2,951,618
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 4,342,400
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 3,786,321
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 8,490,080
3,150,000 7.100%, 2/01/12 Baa1 2/02 at 101 1/2 3,342,969
5,000,000 Triborough Bridge and Tunnel Authority, Convention
Center Project Bonds, Series E, 7.250%, 1/01/10 Baa1 No Opt. Call 5,600,700
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 $ 2,856,476
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 3,128,940
- ------------------------------------------------------------------------------------------------------------------
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 6,241,320
- ------------------------------------------------------------------------------------------------------------------
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 6,869,796
- ------------------------------------------------------------------------------------------------------------------
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 6,124,140
- ------------------------------------------------------------------------------------------------------------------
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 7,360,640
- ------------------------------------------------------------------------------------------------------------------
TENNESSEE - 5.4%
8,895,000 Tennessee Housing Development Agency,
Homeownership Program Bonds, Issue WR,
Series 1992, 6.800%, 7/01/17 AA 7/02 at 102 9,249,021
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 4,988,025
- ------------------------------------------------------------------------------------------------------------------
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 3,598,701
4,825,000 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 5,101,521
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 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 $ 2,378,100
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 8,088,984
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 1,557,090
- ------------------------------------------------------------------------------------------------------------------
UTAH - 1.3%
1,560,000 Utah Housing Finance Agency, Single Family
Mortgage Purchase Refunding Senior Bonds,
Series 1992, 6.800%, 1/01/12 Aa 7/02 at 102 1,633,242
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 1,715,043
- ------------------------------------------------------------------------------------------------------------------
VERMONT - 1.4%
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 3,784,752
- ------------------------------------------------------------------------------------------------------------------
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 2,181,840
- ------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.9%
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 3,851,460
6,160,000 6.500%, 7/01/18 Aa1 7/01 at 102 6,394,080
- ------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
1,750,000 West Virginia School Building Authority Capital
Improvement Revenue Series 1992-A,
6.625%, 7/01/22 (Pre-refunded to 7/01/02) A 7/02 at 102 1,916,932
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 $ 10,508,900
- ------------------------------------------------------------------------------------------------------------------
$244,770,000 Total Investments - (cost $242,267,478) - 98.6% 259,412,974
=================-------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 400,000 New York State, Job Development Authority,
================= Series B, Variable Rate Demand Bonds,
4.000%, 3/01/05+ A1 400,000
- ------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 3,363,385
- ------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $263,176,359
==================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 20 $ 90,930,606 35%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 8 38,689,869 15
PORTFOLIO OF A+ A1 12 50,773,894 19
INVESTMENTS A, A- A, A2, A3 7 25,398,166 10
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 11 53,620,439 21
TEMPORARY
INVESTMENTS):
- -----------------------------------------------------------------------------------------------------------------
TOTAL 58 $259,412,974 100%
=================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
** Optional Call Provisions (not covered by the report of independent auditors):
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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA - 3.0%
$ 3,000,000 State Public Works Board of the State of California
Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State of Prison-Monterey
County (Soledad II), 6.875%, 11/01/14
(Pre-refunded to 11/01/04) Aaa 11/04 at 102 $ 3,439,710
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 102 475,930
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 1,661,421
- ------------------------------------------------------------------------------------------------------------------
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 2,529,350
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 1,772,700
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 4,283,720
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 4,172,320
- ------------------------------------------------------------------------------------------------------------------
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 102 266,585
- ------------------------------------------------------------------------------------------------------------------
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 4,285,455
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 2,094,720
- ------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.5%
4,000,000 City of Tampa, Florida, Revenue Bonds (The Florida
Aquarium Project), Series 1992, 7.550%, 5/01/12
(Pre-refunded to 5/01/02) N/R 5/02 at 102 4,549,600
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 $ 2,261,497
2,000,000 6.375%, 9/01/22 Baa1 9/02 at 102 2,019,000
- ------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.2%
1,500,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1992C (Evangelical Hospitals Corporation),
6.250%, 4/15/22 AA- No Opt. Call 1,637,670
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 4,292,080
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 1,022,160
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 8,041,245
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 3,121,410
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 2,594,900
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 2,625,837
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 1,586,338
1,360,000 Board of Regents of Sangamon State University
(Illinois), Auxiliary Facilities System, Revenue
Bonds, Series 1992, 6.375%, 10/01/17
(Pre-refunded to 10/01/02) Aaa 10/02 at 102 1,483,080
- ------------------------------------------------------------------------------------------------------------------
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 4,151,000
1,205,000 Allen County, Indiana, Refunding Certificates of
Participation, Series 1991, 6.500%, 11/01/17 Aa 5/02 at 101 1,275,938
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
INDIANA (CONTINUED)
$ 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 $ 2,038,160
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 2,742,495
- ------------------------------------------------------------------------------------------------------------------
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 102 546,330
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 4,285,918
- ------------------------------------------------------------------------------------------------------------------
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 4,217,520
- ------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.7%
1,270,000 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 1,394,320
- ------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.7%
4,000,000 Michigan Housing Development Authority, Single
Family Mortgage Revenue, Series 1996-C,
5.950%, 12/01/17 AA+ 6/06 at 102 3,980,800
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 8,566,304
- ------------------------------------------------------------------------------------------------------------------
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 1,986,886
1,000,000 6.250%, 7/01/22 (Alternative Minimum Tax) A 7/02 at 102 983,060
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK - 10.3%
$ 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 $ 2,428,370
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 2,053,800
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 2,122,520
1,000,000 The New York City (New York), General Obligation
Bonds, Fiscal 1991 Series B, 7.000%, 6/01/12 Baa1 6/01 at 101 1/2 1,055,760
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 1,120,537
New York City, General Obligation Bonds, Fiscal
1992 Series C-1:
60,000 7.000%, 8/01/17 (Pre-refunded to 8/01/02) Baa1 8/02 at 101 1/2 67,035
1,690,000 7.000%, 8/01/17 Baa1 8/02 at 101 1/2 1,792,820
New York City, General Obligation Bonds, Fiscal
1993 Series D:
180,000 7.500%, 2/01/18 (Pre-refunded to 2/01/02) Baa1 2/02 at 101 1/2 203,330
1,320,000 7.500%, 2/01/18 Baa1 2/02 at 101 1/2 1,450,231
4,000,000 New York City Municipal Water Finance Authority,
Water and Sewer Revenue Bonds, Fiscal 1993
Series A, 6.000%, 6/15/17 A2 6/02 at 101 1/2 4,014,640
2,785,000 New York City Municipal Water Finance Authority
(New York), Water and Sewer System Revenue
Bonds, Fixed Rate Fiscal 1993 Series BBonds,
6.375%, 6/15/22 A2 6/02 at 101 2,897,430
- ------------------------------------------------------------------------------------------------------------------
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 2,042,860
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 4,111,000
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 2,581,575
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 2,737,622
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 $ 4,210,200
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 1,644,880
- ------------------------------------------------------------------------------------------------------------------
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 4,026,920
- ------------------------------------------------------------------------------------------------------------------
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 4,684,935
- ------------------------------------------------------------------------------------------------------------------
TEXAS - 6.0%
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 3,898,704
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 2,620,575
5,000,000 North Central Texas Health Facilities Development
Corporation, Hospital Revenue Refunding Bonds,
1995 (Baylor Health Care System), 5.250%, 5/15/16 AA 5/06 at 102 4,676,200
- ------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.2%
4,000,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series A,
7.100%, 1/01/22 Aa1 1/02 at 102 4,148,760
- ------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.9%
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 5,769,044
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 4,159,760
4,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 4,392,840
4,000,000 Port of Seattle, Washington, Revenue Bonds, Series
1992B, 6.000%, 11/01/17 (Alternative Minimum Tax) AA- 11/02 at 100 4,013,840
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WEST VIRGINIA - 4.4%
$ 1,855,000 West Virginia School Building Authority, Capital
Improvement Revenue Series 1992-A,
6.500%, 7/01/12 (Pre-refunded to 7/01/02) A 7/02 at 102 $ 2,021,783
395,000 West Virginia School Building Authority, Capital
Improvement Revenue Bonds, Series 1992-A,
6.500%, 7/01/12 A 7/02 at 102 420,098
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 2,611,125
3,000,000 Mason County, West Virginia, Pollution Control
Revenue Bonds (Appalachian Power Company
Project), Series 1992J, 6.600%, 10/01/22 Baa1 10/02 at 102 3,089,580
- ------------------------------------------------------------------------------------------------------------------
$176,175,000 Total Investments - (cost $175,030,604) - 98.6% 183,454,233
=================-------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 200,000 Orange County Water District, Variable Rate
Demand Bonds, 3.650%, 8/15/15+ A-1+ 200,000
200,000 The Wake County Industrial Facilities and Pollution
Control Financing Authority, Pollution Control
Revenue Bonds (Carolina Power and Light
Company Project), Series 1987, Variable Rate
Demand Bonds, 3.900%, 3/01/17+ (Alternative
Minimum Tax) P-1 200,000
- ------------------------------------------------------------------------------------------------------------------
$ 400,000 Total Temporary Investment - 0.2% 400,000
=================-------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,210,363
- ------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $186,064,596
==================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 16 $ 48,202,349 26%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, A3 16 49,785,971 27
PORTFOLIO OF A+ A1 3 17,961,289 10
INVESTMENTS A, A- A, A2, A3 10 22,659,804 12
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 19 40,295,220 22
TEMPORARY Non-rated Non-rated 1 4,549,600 3
INVESTMENTS):
- ------------------------------------------------------------------------------------------------------------------
TOTAL 65 $183,454,233 100%
==================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
** Optional Call Provisions (not covered by the report of independent auditors):
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.
N/R - Investment is not rated.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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 $ 2,079,377
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 1,059,820
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 2,647,000
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 4,139,080
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 102 468,625
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 3,868,795
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 2,384,890
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 4,136,560
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 1,296,213
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 4,040,320
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 4,157,360
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 2,490,604
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 1,444,110
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 3,459,212
<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 $ 2,437,096
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 1,517,700
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 3,120,900
4,000,000 City of Oakland, Alameda County, California,
General Obligation Bonds, Series 1992,
6.000%, 6/15/17 Aaa 6/02 at 102 4,030,960
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 3,741,848
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 3,950,063
3,310,000 Rio Linda Union School District (California), General
Obligation Bonds, Series 1992-A, 6.375%, 8/01/17
(Pre-refunded to 8/01/02) Aaa 8/02 at 102 3,630,971
500,000 Rio Linda Union School District, General Obligation
Bonds, Series 1992-A, 6.250%, 8/01/15
(Pre-refunded to 8/01/02) Aaa 8/02 at 102 545,565
3,800,000 Sacramento Municipal Utility District (California),
Electric Revenue Bonds, 1992 Series B,
6.375%, 8/15/22 Aaa 8/02 at 102 3,993,116
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 4,020,280
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 4,383,560
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 3,684,240
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 2,180,530
1,000,000 Tulare County, California, Certificates of
Participation (1992 Financing Project),
Series A, 6.125%, 11/15/12 Aaa 11/02 at 102 1,041,210
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 1,225,000 Turlock Irrigation District (California), Revenue
Refunding Bonds, Series 1992-A, 6.250%, 1/01/12 Aaa No Opt. Call $ 1,321,393
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 4,268,840
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 4,044,480
- ------------------------------------------------------------------------------------------------------------------
$86,340,000 Total Investments - (cost $85,629,211) - 98.6% 89,584,718
=================-------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 300,000 Orange County Water District, Variable Rate
================= Demand Bonds, 3.650%, 8/15/15+ A-1+ 300,000
- ------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 1,009,634
- ------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $90,894,352
==================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 31 $89,584,718 100%
RATINGS*
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -----------------------------------------------------------------------------------------------------------------
TOTAL 31 $89,584,718 100%
=================================================================================================================
<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 (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
** Optional Call Provisions (not covered by the report of independent
auditors): 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO (NXN)
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 $ 1,865,308
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 1,187,307
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 2,482,320
570,000 Dormitory Authority of the State of New York, City
University System Consolidated, Second General
Resolution Revenue Bonds, Series 1990C,
7.500%, 7/01/10 Aaa No Opt. Call 678,283
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 2,191,717
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 1,404,606
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 2,365,290
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 2,568,400
200,000 New York State Thruway Authority Highway and
Bridge Trust Fund Bonds Series 1995B,
5.125%, 4/01/15 Aaa 4/05 at 102 185,822
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 1,291,364
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 2,162,088
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 102 256,233
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 2,585,425
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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 $ 2,714,000
1,945,000 New York State Power Authority, General Purpose
Bonds, Series 1992 AA, 6.250%, 1/01/23 Aaa 1/02 at 102 2,002,397
1,500,000 New York State Thruway Authority, General Revenue
Bonds, Series 1992A, 5.500%, 1/01/23 Aaa 1/02 at 100 1,410,525
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 2,053,080
Town of Clarkstown Rickland County, New York,
Various Purposes Serial Bonds-1992:
505,000 5.600%, 6/15/10 Aaa No Opt. Call 515,120
525,000 5.600%, 6/15/11 Aaa No Opt. Call 532,408
525,000 5.600%, 6/15/12 Aaa No Opt. Call 530,045
3,500,000 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bonds, Series 1992B,
6.250%, 7/01/17 Aaa 7/02 at 102 3,617,880
2,250,000 Metropolitan Transportation Authority, Transit
Facilities Revenue Bonds, Series J,
6.375%, 7/01/10 Aaa 7/02 at 102 2,388,938
1,430,000 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 1,509,351
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 1/2 265,687
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 2,203,020
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 1,284,413
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 1,030,650
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 4,808,320
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 1,055,830
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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 $ 2,642,674
485,000 Suffolk County Water Authority (New York),
Waterworks Revenue Bonds, Series 1986-V,
6.750%, 6/01/12 AAA No Opt. Call 514,861
2,250,000 Triborough Bridge and Tunnel Authority, Special
Obligation Refunding Bonds, Series 1991A,
6.625%, 1/01/17 Aaa 1/01 at 102 2,403,202
- ------------------------------------------------------------------------------------------------------------------
$52,420,000 Total Investments - (cost $52,318,267) - 98.1% 54,706,564
=================-------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.9%
$ 500,000 Babylon Industrial Development Agency (OFS
================= Equity Project), Variable Rate Demand Bonds,
3.800%, 12/01/24+ (Alternative Minimum Tax) A-1+ 500,000
- ------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 575,195
- ------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $55,781,759
==================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 32 $54,706,564 100%
RATINGS*
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 32 $54,706,564 100%
===================================================================================================================
<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 (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
** Optional Call Provisions (not covered by the report of independent auditors):
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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $244,018,802 $259,412,974 $183,454,233 $ 89,584,718
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 200,000 400,000 400,000 300,000
Cash 32,515 97,811 95,447 33,046
Receivables:
Interest 5,185,483 4,731,879 3,128,596 1,456,109
Investments sold 75,000 -- -- --
Other assets 19,612 19,624 19,371 12,983
------------ ------------ ------------ ------------
Total assets 249,531,412 264,662,288 187,097,647 91,386,856
------------ ------------ ------------ ------------
LIABILITIES
Accrued expenses:
Surveillance and administration fees (note 6) 51,700 65,837 47,056 23,400
Other 135,118 117,169 91,471 49,880
Dividends payable 1,252,924 1,302,923 894,524 419,224
------------ ------------ ------------ ------------
Total liabilities 1,439,742 1,485,929 1,033,051 492,504
------------ ------------ ------------ ------------
Net assets (note 7) $248,091,670 $263,176,359 $186,064,596 $ 90,894,352
============ ============ ============ ============
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) $ 15.15 $ 14.95 $ 14.35 $ 14.53
============ ============ ============ ============
See accompanying notes to financial statements.
<PAGE>
<CAPTION>
NXN
<S> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $54,706,564
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 500,000
Cash 66,311
Receivables:
Interest 805,225
Investments sold --
Other assets 12,873
-----------
Total assets 56,090,973
-----------
LIABILITIES
Accrued expenses:
Surveillance and administration fees (note 6) 14,363
Other 40,892
Dividends payable 253,959
-----------
Total liabilities 309,214
-----------
Net assets (note 7) $55,781,759
===========
Shares outstanding 3,907,068
===========
Net asset value per share outstanding (net assets
divided by shares outstanding) $ 14.28
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year ended March 31, 1997
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 15,742,252 $ 16,548,667 $ 11,445,681 $ 5,395,365
------------ ------------ ------------ ------------
Expenses:
Surveillance and administration fees (note 6) 603,972 770,955 548,430 273,269
Shareholders' servicing agent fees and expenses 56,722 52,886 41,296 14,483
Custodian's fees and expenses 53,093 54,568 47,011 37,354
Trustees' fees and expenses (note 6) 35,314 37,483 26,620 13,535
Professional fees 19,786 18,839 17,443 15,669
Shareholders' reports--printing and mailing expenses 129,125 111,708 83,716 29,422
Stock exchange listing fees 24,260 24,260 24,260 16,170
Investor relations expense 18,522 18,097 13,208 5,683
Other expenses 13,554 14,316 10,468 5,893
------------ ------------ ------------ ------------
Total expenses 954,348 1,103,112 812,452 411,478
------------ ------------ ------------ ------------
Net investment income 14,787,904 15,445,555 10,633,229 4,983,887
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 3) (38,357) (70,141) (678,107) --
Net change in unrealized appreciation or depreciation
of investments 1,518,759 752,365 2,418,261 718,256
------------ ------------ ------------ ------------
Net gain from investments 1,480,402 682,224 1,740,154 718,256
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 16,268,306 $ 16,127,779 $ 12,373,383 $ 5,702,143
============ ============ ============ ============
See accompanying notes to financial statements.
<PAGE>
<CAPTION>
NXN
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 3,326,348
-----------
Expenses:
Surveillance and administration fees (note 6) 168,103
Shareholders' servicing agent fees and expenses 9,851
Custodian's fees and expenses 33,969
Trustees' fees and expenses (note 6) 8,677
Professional fees 15,021
Shareholders' reports--printing and mailing expenses 26,293
Stock exchange listing fees 16,170
Investor relations expense 3,651
Other expenses 4,196
-----------
Total expenses 285,931
-----------
Net investment income 3,040,417
-----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 3) (918)
Net change in unrealized appreciation or depreciation
of investments 107,862
-----------
Net gain from investments 106,944
-----------
Net increase in net assets from operations $ 3,147,361
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
NXP NXQ
Year ended Year ended Year ended Year ended
3/31/97 3/31/96 3/31/97 3/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 14,787,904 $ 14,878,045 $ 15,445,555 $ 15,485,267
Net realized gain (loss) from investment transactions
(notes 1 and 3) (38,357) (63,223) (70,141) 7,830
Net change in unrealized appreciation or depreciation
of investments 1,518,759 6,475,822 752,365 6,699,901
------------- ------------- ------------- -------------
Net increase in net assets from operations 16,268,306 21,290,644 16,127,779 22,192,998
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM UNDISTRIBUTED NET INVESTMENT
INCOME (note 1) (15,035,095) (15,321,715) (15,719,586) (15,973,130)
------------- ------------- ------------- -------------
Net increase in net assets 1,233,211 5,968,929 408,193 6,219,868
Net assets at beginning of year 246,858,459 240,889,530 262,768,166 256,548,298
------------- ------------- ------------- -------------
Net assets at end of year $ 248,091,670 $ 246,858,459 $ 263,176,359 $ 262,768,166
============= ============= ============= =============
Balance of undistributed net investment income at
end of year $ 71,632 $ 318,823 $ 242,994 $ 517,025
============= ============= ============= =============
See accompanying notes to financial statements.
<PAGE>
<CAPTION>
NXR NXC
Year ended Year ended Year ended Year ended
3/31/97 3/31/96 3/31/97 3/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 10,633,229 $ 10,708,241 $ 4,983,887 $ 4,999,789
Net realized gain (loss) from investment transactions
(notes 1 and 3) (678,107) 21,932 -- 33,972
Net change in unrealized appreciation or depreciation
of investments 2,418,261 4,397,745 718,256 1,682,005
------------- ------------- ------------- -------------
Net increase in net assets from operations 12,373,383 15,127,918 5,702,143 6,715,766
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM UNDISTRIBUTED NET INVESTMENT
INCOME (note 1) (10,773,186) (10,889,864) (5,030,683) (5,078,863)
------------- ------------- ------------- -------------
Net increase in net assets 1,600,197 4,238,054 671,460 1,636,903
Net assets at beginning of year 184,464,399 180,226,345 90,222,892 88,585,989
------------- ------------- ------------- -------------
Net assets at end of year $ 186,064,596 $ 184,464,399 $ 90,894,352 $ 90,222,892
============= ============= ============= =============
Balance of undistributed net investment income at
end of year $ 124,480 $ 264,437 $ 52,113 $ 98,909
============= ============= ============= =============
See accompanying notes to financial statements.
<PAGE>
<CAPTION>
NXN
Year ended Year ended
3/31/97 3/31/96
<S> <C> <C>
OPERATIONS
Net investment income $ 3,040,417 $ 3,058,490
Net realized gain (loss) from investment transactions
(notes 1 and 3) (918) 8,928
Net change in unrealized appreciation or depreciation
of investments 107,862 806,780
------------ ------------
Net increase in net assets from operations 3,147,361 3,874,198
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM UNDISTRIBUTED NET INVESTMENT
INCOME (note 1) (3,047,516) (3,047,517)
------------ ------------
Net increase in net assets 99,845 826,681
Net assets at beginning of year 55,681,914 54,855,233
------------ ------------
Net assets at end of year $ 55,781,759 $ 55,681,914
============ ============
Balance of undistributed net investment income at
end of year $ 82,643 $ 89,742
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At March 31, 1997, 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 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 The prices of municipal bonds in each Fund's
investment portfolio are provided by a pricing service
approved and supervised by the Fund's Board of
Trustees. When price quotes are not readily available
(which is usually the case for municipal securities),
the pricing service establishes fair market value
based on yields or prices of municipal bonds of
comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities
dealers and general market conditions. 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 March
31, 1997, 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 and to distribute 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. 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
<PAGE>
distributed to shareholders. All income dividends
paid during the fiscal year ended March 31, 1997,
have been designated Exempt Interest Dividends which
are entirely exempt from federal income taxes.
Dividends and Tax-exempt net investment income is declared as a
Distribution to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Net realized capital gains and/or market discount
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 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 net
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 Trust.
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 The Trusts are not authorized to invest in
Instruments transactions in certain derivative financial
instruments including futures, forward, swap, and
option contracts, and other financial instruments with
similar characteristics, and therefore made no such
purchases during the fiscal year ended March 31, 1997.
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. TRUST SHARES
There were no share transactions during the fiscal
year ended March 31, 1997, nor during the fiscal 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 fiscal year ended
March 31, 1997, were as follows:
<TABLE>
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $3,126,335 $5,260,275 $9,359,825 $ --
Temporary municipal investments 3,680,000 2,500,000 1,680,000 1,700,000
SALES AND MATURITIES
Investments in municipal securities 3,540,455 5,483,770 9,616,148 --
Temporary municipal investments 3,480,000 2,500,000 1,480,000 1,700,000
========== ========== ========== ==========
<CAPTION>
NXN
<S> <C>
PURCHASES
Investments in municipal securities $ 190,934
Temporary municipal investments 1,600,000
SALES AND MATURITIES
Investments in municipal securities 15,000
Temporary municipal investments 1,760,000
==========
</TABLE>
<PAGE>
At March 31, 1997, the identified cost of investments
owned for federal income tax purposes was the same as
the cost for financial reporting purposes for each
Trust.
At March 31, 1997, 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 NXQ NXR NXC
<S> <C> <C> <C> <C>
Expiration year:
2001 $ -- $ -- $ 200,114 $298,108
2002 -- -- 15,243 --
2003 13,520 -- -- --
2004 116,258 -- 170,137 --
2005 31,707 46,057 674,505 --
-------- ------- ---------- --------
Total $161,485 $46,057 $1,059,999 $298,108
======== ======= ========== ========
<CAPTION>
NXN
<S> <C>
Expiration year:
2001 $618,333
2002 432
2003 1,954
2004 321,550
2005 1,480
--------
Total $943,749
========
</TABLE>
4. DISTRIBUTIONS TO SHAREHOLDERS
On April 1, 1997, the Trusts declared Common share
dividend distributions from their tax-exempt net
investment income which were paid May 1, 1997, to
shareholders of record on April 15, 1997, as follows:
<TABLE>
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
Dividends per share $.0765 $.0740 $.0690 $.0670
====== ====== ====== ======
<CAPTION>
NXN
<S> <C>
Dividends per share $.0650
======
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at March 31, 1997, were as
follows:
<TABLE>
<CAPTION>
NXP NXQ NXR NXC
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $20,476,650 $17,179,226 $8,532,630 $3,955,507
depreciation (79,026) (33,730) (109,001) --
----------- ------------ ---------- ----------
Net unrealized appreciation $20,397,624 $17,145,496 $8,423,629 $3,955,507
============ =========== =========== ===========
<CAPTION>
NXN
<S> <C>
Gross unrealized:
appreciation $2,395,241
depreciation (6,944)
----------
Net unrealized appreciation $2,388,297
===========
</TABLE>
6. SURVEILLANCE AND ADMINISTRATION FEES AND
OTHER TRANSACTIONS WITH AFFILIATES
Under the Trusts' investment management agreements
with the Adviser, each Trust pays 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 million .2500 of 1% .3000 of 1%
For the next $125 million .2375 of 1 .2875 of 1
For the next $250 million .2250 of 1 .2750 of 1
For the next $500 million .2125 of 1 .2625 of 1
For the next $1 billion .2000 of 1 .2500 of 1
For net assets over $2 billion .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 March 31, 1997, 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 227,626,768 245,681,942 178,450,447 87,122,269
Balance of undistributed net investment income 71,632 242,994 124,480 52,113
Accumulated net realized gain (loss) from
investment transactions (168,135) (70,144) (1,063,601) (298,108)
Net unrealized appreciation of investments 20,397,624 17,145,496 8,423,629 3,955,507
------------ ------------ ------------ -----------
Net assets $248,091,670 $263,176,359 $186,064,596 $90,894,352
============ ============ ============ ===========
<CAPTION>
NXN
<S> <C>
Capital paid-in $ 39,071
Paid-in surplus 54,215,789
Balance of undistributed net investment income 82,643
Accumulated net realized gain (loss) from
investment transactions (944,041)
Net unrealized appreciation of investments 2,388,297
-----------
Net assets $55,781,759
===========
</TABLE>
<PAGE>
8. INVESTMENT COMPOSITION
Each Trust invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At March 31, 1997, 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:
Educational Facilities 7% 11% 2% 2%
Housing Facilities 16 20 15 --
Lease Rental Facilities 5 4 5 20
Transportation 5 5 15 15
Health Care Facilities 10 10 17 9
Water / Sewer Facilities 2 2 5 17
Pollution Control Facilities 8 10 16 --
Electric Utilities 1 4 6 16
Other 3 3 1 11
General Obligation Bonds 10 15 7 5
Escrowed Bonds 33 16 11 5
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
<CAPTION>
NXN
<S> <C>
Revenue Bonds:
Educational Facilities 23%
Housing Facilities 15
Lease Rental Facilities --
Transportation 18
Health Care Facilities --
Water / Sewer Facilities 13
Pollution Control Facilities --
Electric Utilities 4
Other 7
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 (45% for NXP, 38% for NXQ, 26% 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.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<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
<S> <C> <C> <C> <C> <C>
NXP
Year ended 3/31,
1997 $15.070 $.903 $ .095 $(.918) $ --
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>
Year ended 3/31,
1997 14.920 .877 .046 (.893) --
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) --
<CAPTION>
NXR
<S> <C> <C> <C> <C> <C>
Year ended 3/31,
1997 14.230 .820 .131 (.831) --
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) --
<PAGE>
<CAPTION>
Per
share
Organiza- market
Portfolio tional and Net asset value
structur- offering value end end of
ing fee costs of period period
<S> <C> <C> <C> <C>
NXP
Year ended 3/31,
1997 $ -- $ -- $15.150 $14.750
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>
Year ended 3/31,
1997 -- -- 14.950 14.125
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>
Year ended 3/31,
1997 -- -- 14.350 13.250
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
invest- Ratio of Ratio of
ment Total expenses net
return return Net assets to investment
on on end of average income Portfolio
market net asset period (in net to average turnover
value** value** thousands) assets net assets rate
<S> <C> <C> <C> <C> <C> <C>
NXP
Year ended 3/31,
1997 4.58% 6.79% $248,092 .39% 5.97% 1%
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>
Year ended 3/31,
1997 .93 6.34 263,176 .42 5.86 2
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>
Year ended 3/31,
1997 3.30 6.85 186,065 .44 5.74 5
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
See notes on page 58.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<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>
Year ended 3/31,
1997 $14.420 $ .797 $ .117 $(.804) $--
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>
Year ended 3/31,
1997 14.250 .778 .032 (.780) --
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 tional and Net asset value
structur- offering value end end of
ing fee costs of period period
NXC
<S> <C> <C> <C> <C>
Year ended 3/31,
1997 $ -- $ -- $14.530 $13.875
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
<CAPTION>
NXN
<S> <C> <C> <C> <C>
Year ended 3/31,
1997 -- -- 14.280 13.375
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
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of Ratio of
ment Total expenses net
return return Net assets to investment
on on end of average income Portfolio
market net asset period (in net to average turnover
value** value** thousands) assets net assets rate
NXC
<S> <C> <C> <C> <C> <C> <C>
Year ended 3/31,
1997 3.06% 6.46% $90,894 .45% 5.47% --%
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>
Year ended 3/31,
1997 4.91 5.79 55,782 .51 5.42 --
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 share.
+ Surveillance and Administration fees commenced October 1, 1992.
</FN>
</TABLE>
<PAGE>
Serving investors for generations
Photographic image of John Nuveen Sr., founder of Nuveen.
Since our founding in 1898, John Nuveen & Co. Incorporated has been synonymous
with investments that withstand the test of time. Today, we offer a broad range
of investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
entrusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach--purchasing securities of strong companies and
communities that represent good long-term value--is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized municipal research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of taxable and tax-free investment
products--including equity and fixed-income mutual funds, unit trusts,
exchange-traded funds, individual managed account services, and cash
management products.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
PAN-1-3.97
