LOGO: NUVEEN
Exchange-Traded Funds
September 30, 1999
Semiannual Report
Dependable, tax-free income to help you keep more of what you earn.
NXP
NXQ
NXR
NXC
NXN
Select
Portfolios
Photo of: People sitting on stairs.
<PAGE>
Highlights
As of September 30, 1999
Credit Quality Performance Highlights
================================================================================
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP)
o ***** Five-star Morningstar RatingTM *
o Outperformed the one-year total return
performance of its Lipper Peer Group ** and
the applicable Lehman Brothers Municipal
Bond Index ***
o Ranked number 2 out of 21 funds in its
Lipper Peer Group for one-year period
Pie Chart:
AAA/U.S. Guaranteed 59%
AA 10%
A 19%
BBB/NR 12%
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ)
o ***** Five-star Morningstar RatingTM *
o Outperformed the one-year total return
performance of its Lipper Peer Group ** and
the applicable Lehman Brothers Municipal
Bond Index ***
o Ranked number 1 out of 21 funds in its
Lipper Peer Group for one-year period
Pie Chart:
AAA/U.S. Guaranteed 63%
AA 15%
A 10%
BBB/NR 12%
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR)
o ***** Five-star Morningstar RatingTM *
o Outperformed the one-year total return
performance of its Lipper Peer Group ** and
the applicable Lehman Brothers Municipal
Bond Index ***
o Ranked number 3 out of 21 funds in its
Lipper Peer Group for one-year period
Pie Chart:
AAA/U.S. Guaranteed 53%
AA 26%
A 9%
BBB/NR 12%
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC)
o **** Four-star Morningstar RatingTM *
o Outperformed the one-year total return
performance of its Lipper Peer Group ** and
the applicable Lehman Brothers Municipal
Bond Index ***
o Ranked number 1 out of 11 funds in its
Lipper Peer Group for one-year period
Pie Chart:
Insured 67%
Insured and U.S. Guaranteed 33%
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO (NXN)
o **** Four-star Morningstar RatingTM *
o Outperformed the one-year total return
performance of its Lipper Peer Group ** and
the applicable Lehman Brothers Municipal
Bond Index ***
o Ranked number 1 out of 9 funds in its
Lipper Peer Group for one-year period
Pie Chart:
Insured 57%
Insured and U.S. Guaranteed 39%
U.S. Guaranteed 4%
* Morningstar proprietary ratings reflect historical risk-adjusted
performance as of September 30, 1999. The ratings are subject to change
every month. Past performance is no guarantee of future results.
Morningstar ratings are calculated from the fund's three-, five-, and
10-year average annual returns (if applicable) in excess of 90-day Treasury
bill returns with appropriate fee adjustments, and a risk factor that
reflects fund performance below 90-day T-bill returns. NXP, NXQ, and NXR
received 5 stars for the three-year period and five-year period. NXC and
NXN received 5 stars for the three-year period and 4 stars for the
five-year period. The top 10% of the funds in a broad asset class receive 5
stars, the next 22.5% receive 4 stars and the next 35% receive 3 stars. The
funds were rated among 193 funds for the three-year period, 192 funds for
the five-year period, and 30 funds for the 10-year period.
** The Lipper Peer Group return represents the average annualized return of
the funds in the appropriate Lipper Municipal Debt category. The Lipper
total return assumes reinvestment of dividends and does not reflect any
applicable sales charges.
*** The Lehman Brothers Municipal Bond Index is an unleveraged index covering a
broad range of investment grade municipal bonds. The return for the index
does not reflect any initial or ongoing expenses.
CONTENTS
1 Dear Shareholder
3 Portfolio Manager's Comments
6 NXP Performance Overview
7 NXQ Performance Overview
8 NXR Performance Overview
9 NXC Performance Overview
10 NXN Performance Overview
11 Shareholder Meeting Reports
12 Portfolio of Investments
28 Statement of Net Assets
28 Statement of Operations
29 Statement of Changes in Net Assets
30 Notes to Financial Statements
34 Financial Highlights
36 Build Your Wealth Automatically
37 Fund Information
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
DEAR SHAREHOLDER
I am pleased to report to you on the annual performance of your Nuveen
Exchange-Traded Portfolio. Providing an attractive tax-free dividend is the
Portfolio's main objective, and over the past year, your fund continued to
achieve this goal. During the period covered by this report, we have seen some
shifts in U.S. economic trends and the fixed-income environment in which your
Nuveen Exchange-Traded Portfolio operates. I appreciate the opportunity to
discuss these changes with you, as does your portfolio manager, who reviews fund
performance later in this report.
A CHALLENGING INVESTMENT ENVIRONMENT
Over the past 12 months, the U.S. economy continued to be characterized by
surprisingly robust growth, benign inflation, and unemployment levels that
remained among the lowest in three decades. However, concerns about the
persistent pace of the economy's expansion continued to test the new paradigm,
which holds that the improvements in productivity achieved through technology
enable us to have both economic growth and low inflation at the same time. With
investors and the various markets watching and reacting to each announcement
concerning economic statistics, volatility increased, especially in the equity
markets, and the spectre of inflation seemed to lurk behind every report.
In an effort to pre-empt this threat of inflation, the Federal Reserve moved to
raise interest rates by a quarter-point three times during the year: at the end
of June, in late August, and again in November. This brought the federal funds
rate - which represents the amount banks charge one another on overnight loans,
establishing the standard for other short-term rates - from 4.75% to 5.5%,
thereby erasing the three rate cuts made by the Fed in the fall of 1998. Unlike
their meeting in October, when the Fed hinted at future rate hikes, the Fed took
a neutral stance after this latest interest rate increase.
MUNICIPAL BOND PERFORMANCE
Over the past year, our exchange-traded municipal bond funds continued to offer
attractive, stable income in a market that places a high premium on yield. At
the end of September 1999, the ratio between long-term municipal yields and
30-year Treasury yields stood at 98.5%, compared with the historical average of
86% for the period 1986-1999. For investors, this meant that quality long-term
municipal bonds offered yields comparable to those of long Treasury bonds - even
before the tax advantages of municipals were taken into account. On an after-tax
basis, municipal bonds continued to present an exceptionally attractive
investment option relative to Treasuries.
For the remainder of 1999, we expect new municipal supply to remain good,
although total volume continues to lag the near-record levels of 1998. This is
partially due to the dramatic decrease in refundings, as interest rates moved
above last year's levels and removed much of
<PAGE>
the incentive for issuers to refund existing bonds. To date, municipal supply
has declined by approximately 20% from the levels of a year ago. This, in turn,
has enhanced the attractiveness of the municipal bonds that are brought to
market, as demand - especially from individual investors - remains strong. We
anticipate that this demand will continue to strengthen as investors
increasingly look at rebalancing their portfolios. With the outlook for tighter
supply and continued demand in the months ahead, Nuveen's established market
position as the leading sponsor of exchange-traded municipal bond funds enables
us to have excellent access to the bond offerings that have the potential to add
value for our shareholders.
A BALANCED PORTFOLIO:
ENHANCED GROWTH WITH REDUCED RISK
If you are like most investors in the marketplace today, your goals for tax-free
investing probably include capturing high after-tax total returns while
moderating risk. To demonstrate the role that municipal bonds can play in
achieving this goal, Nuveen tracked a balanced portfolio consisting of equities
and municipal bonds and compared its hypothetical investment performance - based
on appropriate market indexes and tax rates - with that of a balanced portfolio
composed of equities and taxable bonds.
Our research showed that, over the past 20 years, the pairing of equities with
municipal bonds had provided both superior after-tax total returns and lower
levels of risk than the combination of equities and taxable bonds. Incorporating
even a 20% allocation of municipal bonds into an all-equity portfolio cut risk
substantially, with only a small reduction in after-tax total return. Purchasing
shares of a Nuveen Exchange-Traded Municipal Bond Portfolio provides an easy way
to incorporate the benefits of municipal bonds into a balanced portfolio.
NUVEEN FUNDS:
AN ANSWER TO YOUR INVESTMENT NEEDS
In light of the recent shifts in the economic environment, your financial
adviser can serve as a valuable resource in helping you determine if adjustments
are needed in your current asset allocation plan by suggesting investments that
can accomplish this goal. By investing in other Nuveen funds, you can bring
balance to your portfolio and provide proper exposure to the different types of
investments needed to enhance your potential for success. In addition, if you
are satisfied with the performance of your Nuveen Exchange-Traded Fund, your
adviser can set up a reinvestment plan designed to purchase additional shares of
that fund. For more information on all of Nuveen's funds, contact your financial
adviser for a prospectus detailing all charges and expenses, or call Nuveen at
(800) 621-7227. Please read the prospectus carefully before you invest or send
money.
Since 1898, Nuveen has been synonymous with investments that stand the test of
time. As we look ahead to the new millen-nium, we are committed to maintaining
that reputation and finding the best ways to serve your evolving investment
needs. Thank you for your continued confidence.
Sincerely,
/s/Timothy R. Schwertfeger
TIMOTHY R. SCHWERTFEGER
CHAIRMAN OF THE BOARD
November 15, 1999
sidebar text: "Purchasing shares of a Nuveen Exchange-Traded Municipal Bond
Portfolio provides an easy way to incorporate the benefits of municipal bonds
into a balanced portfolio."
<PAGE>
NUVEEN SELECT PORTFOLIOS
PORTFOLIO MANAGER'S COMMENTS
PORTFOLIO MANAGER TOM SPALDING DISCUSSES THE MUNICIPAL MARKET, RECENT PORTFOLIO
PERFORMANCE, AND THE OUTLOOK FOR THE NUVEEN SELECT PORTFOLIOS. TOM, WHO HAS MORE
THAN 23 YEARS OF EXPERIENCE AS AN INVESTMENT PROFESSIONAL AT NUVEEN, ASSUMED
PORTFOLIO MANAGEMENT RESPONSIBILITY FOR THE NATIONAL SELECT PORTFOLIOS IN
FEBRUARY 1999 AND ADDED THE CALIFORNIA AND NEW YORK SELECT PORTFOLIOS IN JULY OF
THIS YEAR.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE MUNICIPAL MARKET DURING THE
PAST 12 MONTHS?
Over the past year, the U.S. economy continued to forge ahead with few signs of
slowing. Among the statistics showing surprising strength in recent months were
retail sales, industrial production, and housing starts, three of the broadest
measures of economic activity. Labor markets remained among the tightest in 30
years, with a national unemployment average of 4.2% for September 1999, down
from 4.5% in September 1998. At the same time, inflation continued to maintain a
low profile, as the Consumer Price Index through September 1999 showed an
annualized increase of 2.8%. Concerned about the potential for an overheated
economy, the Federal Reserve moved to raise short-term interest rates twice
during the summer of 1999. According to the theory behind the Fed's decision,
the impact of these rate increases on the stock market should cause consumer
confidence to fall and consumer spending to slow, thereby pre-empting any
reemergence of inflation. All of this, in turn, had a negative impact on the
fixed-income markets, including the municipal bond market.
HOW DID THIS IMPACT SUPPLY AND DEMAND IN THE MUNICIPAL MARKET?
For the first nine months of 1999, municipal supply across the nation fell 21%
from the levels recorded during the same period in 1998. Some of this decline
can be attributed to the rise in interest rates, which has deterred
municipalities from issuing long-term debt at higher interest costs. In
addition, the refunding activity involving older debt typically declines in a
rising interest rate environment. We expect to see good municipal supply for the
remainder of the year, although the effects of Y2K concerns on the new issuance
calendar are still unclear. Municipal bond issuers may actually accelerate
issuance to avoid year end troubles, or they may delay issues until next year to
sidestep any potential problems regarding the transition to the year 2000.
Over recent months, demand from institutional buyers has been weakened by
several events outside the municipal market that have limited the cashflow
available for purchasing municipal bonds. Insurance companies, which have
historically been major buyers of municipal bonds, have been hit hard by natural
disasters this year. They have been further hampered by price cutting on
insurance premiums in the property casualty sector, which has hurt earnings. At
the same time, mutual fund redemptions have limited the demand from that
important sector. Demand from individual investors, on the other hand, has been
a bright spot for municipal bonds, as investors have been actively rebalancing
their portfolios by redirecting assets from equity investments into the
fixed-income market. In 1998, individual investors held more than 30% of
outstanding municipal debt, making them the largest owner class, and figures
indicate that municipal bond sales to retail investors in 1999 are on track to
beat 1998's record levels.
HOW DID THE NUVEEN SELECT PORTFOLIOS PERFORM IN THIS ENVIRONMENT?
The Nuveen Select Portfolios, which were established in 1992, are a uniquely
structured group of investments designed to provide income stability over a
defined term, with a liquidation date of 2017. Over the past year, the
portfolios have performed exactly as they were designed to, and the fact that
they produced positive total returns on net asset value (NAV) in the current
bond market illustrates just how well they were constructed seven years ago.
For the 12 months ended September 30, 1999, the Nuveen Select Portfolios
produced total returns on NAV ranging from 0.71% to 2.09%, providing
taxable-equivalent total returns1 between 3.87% and 4.67%, as shown in the table
on page four. The Portfolios outperformed the annual total returns for their
benchmarks - the Lehman Brothers Municipal Bond Index, the Lehman California
Insured Tax-Exempt Bond Index, and the Lehman New York Insured Tax-Exempt Bond
Index2 - as well as the average returns for the appropriate Lipper Peer Group
categories3. In addition, NXQ, NXP, and NXR ranked as the top three funds in
their Lipper Peer Group for the past year, while NXC and NXN were the top
performers in their California
1 The taxable-equivalent total return represents the total return that must be
earned on a taxable investment in order to equal the total return of the
Nuveen portfolio on an after-tax basis. The taxable-equivalent total returns
are based on the portfolio's annualized total return and the 31% federal tax
rate plus appropriate state tax rate, if applicable.
2 NXP, NXQ, and NXR are compared with the Lehman Brothers Municipal Bond Index,
an unleveraged index comprising a broad range of investment-grade municipal
bonds. NXC and NXN are compared with the Lehman Insured Tax-Exempt Bond
indexes for California and New York, respectively. These are unleveraged
indexes covering a broad range of insured municipal bonds within each of those
states. Returns for the Lehman indexes do not reflect any initial or ongoing
expenses.
3 The total returns for the three national portfolios are compared with the
average annualized total return of the 21 funds in the Lipper General and
Insured Unleveraged Municipal Debt Funds category. NXC is compared with the
average total return of the 11 funds in the Lipper California Insured
Municipal Debt Funds category, while the comparison for NXN is based on the
nine funds in the Lipper New York Insured Peer Group. Lipper total returns
assume reinvestment of dividends and do not reflect any applicable sales
charges.
<PAGE>
and New York Lipper Peer Groups, respectively. In recognition of their
risk-adjusted performance, the three national Select Portfolios were awarded
Morningstar4 ratings of five stars, and NXC and NXN each received four stars,
representing their overall ratings as of September 30, 1999.
LEHMAN LIPPER
TOTAL RETURN ON NAV TOTAL RETURN(2) AVERAGE(3) MORNINGSTAR(4)
-------------------------- ------------ ------------ -------------
1-YEAR ENDED TAXABLE- 1-YEAR ENDED 1-YEAR ENDED OVERALL
9/30/99 EQUIVALENT(1) 9/30/99 9/30/99 RATING
- -------------------------------------------------------------------------
NXP 1.87% 4.51% -0.70% -1.99% 5
- -------------------------------------------------------------------------
NXQ 2.09% 4.67% -0.70% -1.99% 5
- -------------------------------------------------------------------------
NXR 1.44% 3.93% -0.70% -1.99% 5
- -------------------------------------------------------------------------
NXC 0.71% 3.87% -1.79% -5.82% 4
- -------------------------------------------------------------------------
NXN 1.20% 4.11% -1.69% -4.26% 4
- -------------------------------------------------------------------------
For additional information on your portfolio, see the individual Performance
Overviews in this report.
The outperformance of the Portfolios' total returns on NAV relative to their
Lehman benchmarks can be attributed to their durations. As of September 30,
1999, the average durations for all of the Nuveen Select Portfolios were shorter
than those of their respective Lehman indexes. The national portfolios had
average durations ranging from 3.07 to 3.71, compared with 7.46 for the Lehman
Municipal Bond Index. NXC's average duration was 3.95, versus 9.27 for the
Lehman California Insured Index, and NXN's average duration was 3.42, compared
with the Lehman New York Insured Index's 8.46.
Duration measures a bond fund's price volatility, or reaction to interest rate
movements. The shorter the duration, the less sensitive the fund's NAV is to
changes in interest rates. During a period of falling interest rates, shorter
duration can limit the ability of a fund's NAV to participate fully in market
gains. However, when interest rates rise, shorter duration can make the fund's
NAV less vulnerable to price declines. Between October 1, 1998, and September
30, 1999, the yield on the Bond Buyer Revenue Bond Index5 rose from 5.09% to
5.96%. This meant that funds with shorter durations, like the Nuveen Select
Portfolios, were more likely to outperform the market, as represented by the
unleveraged Lehman indexes.
Over the past year, rising interest rates and the uncertainty surrounding the
Federal Reserve's intentions have created a relatively negative environment in
the fixed-income market. In addition, concerns about the impact of the
transition to the year 2000 have precipitated an early start to tax-swap season,
as investors attempt to offset profits in the equity markets by selling
fixed-income investments at a loss. Both of these factors have negatively
impacted the market demand for exchange-traded funds such as the Nuveen Select
Portfolios, especially since these portfolios were trading at premiums to their
NAVs during much of this period. This situation resulted in declines in share
price across the board. At the same time, the prevailing interest rate
environment, which was higher than that of September 1998, led to a decline in
the NAV of each portfolio. As a result of these factors, all of the Nuveen
Select Portfolios saw their premiums (share price above NAV) move to discounts
(share price below NAV) over the past 12 months.
PREMIUM/ TOTAL RETURN
MARKET YIELD DISCOUNT(6) ON SHARE PRICE
------------------ ----------------- ---------------------------
TAXABLE- 1-YEAR ENDED TAXABLE-
9/30/99 EQUIVALENT(1) 9/30/98 9/30/99 9/30/99 EQUIVALENT(1)
- --------------------------------------------------------------------------
NXP 6.23% 9.03% 4.83% -4.58% -7.42% -4.90%
- --------------------------------------------------------------------------
NXQ 6.21% 9.00% 4.50% -6.67% -8.87% -6.40%
- --------------------------------------------------------------------------
NXR 6.25% 9.06% 4.17% -10.04% -12.34% -9.95%
- --------------------------------------------------------------------------
NXC 5.58% 8.93% 2.68% -3.62% -5.58% -2.50%
- --------------------------------------------------------------------------
NXN 5.72% 8.87% 0.30% -5.90% -5.06% -2.15%
- --------------------------------------------------------------------------
HOW WERE THE PORTFOLIOS' DIVIDENDS AFFECTED?
During the past 12 months, good call protection helped support the dividends of
NXP, NXQ, NXC, and NXN and shield the income of these portfolios from erosion.
As of September 30, 1999, these four portfolios had provided shareholders with
steady dividends for periods ranging from 19 to 78 consecutive months. For NXR,
however, the need to reinvest the proceeds from prepaid high-yield bonds during
the relatively lower interest rate environment that prevailed during 1998 led to
a modest
1 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the yield/total
return of the Nuveen portfolio on an after-tax basis. For the national Select
Portfolios, the taxable-equivalent yield is based on the portfolio's current
market yield and a federal tax rate of 31%, while the taxable-equivalent
yields for the California and New York portfolios are based on their current
market yields and a combined federal and state income tax rate of 37.5% and
35.5%, respectively. The taxable-equivalent total returns are based on the
portfolio's annualized total return and the 31% federal income tax rate plus
appropriate state income tax rate, if applicable.
4 Morningstar proprietary ratings reflect historical risk-adjusted performance
as of September 30, 1999. The ratings are subject to change every month. Past
performance is no guarantee of future results. Morningstar ratings are
calculated from the fund's three-, five-, and 10-year average annual returns
(if applicable) in excess of 90-day Treasury bill returns with appropriate fee
adjustments, and a risk factor that reflects fund performance below 90-day
T-bill returns. NXP, NXQ, and NXR received 5 stars for the three-year period
and five-year period. NXC and NXN received 5 stars for the three-year period
and 4 stars for the five-year period. The top 10% of the funds in a broad
asset class receive 5 stars, the next 22.5% receive 4 stars and the next 35%
receive 3 stars. The funds were rated among 193 funds for the three-year
period, 192 funds for the five-year period, and 30 funds for the 10-year
period.
5 The Bond Buyer Revenue Bond Index is an unmanaged index of long-term
municipal revenue bonds.
6 A portfolio's premium or discount represents the percentage difference
between the portfolio's share price and its NAV.
<PAGE>
dividend reduction in November 1998. Following this single dividend adjustment,
NXR continued to provide an attractive market yield over the past 11 months.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE
PAST 12 MONTHS?
The Nuveen Select Portfolios offer a stable portfolio structure, defined life
cycle, and emphasis on income stability that make them a potentially ideal
choice for investors who want the income and maturity of individual bonds
enhanced by the ongoing surveillance and diversification provided by Nuveen.
Because the Portfolios are passively managed, trading activity takes place only
when opportunities to enhance portfolio structure arise, when the proceeds from
called bonds must be reinvested, or when a credit problem occurs. To date, the
Nuveen Select Portfolios have experienced no bond sales due to credit problems,
further proof of the excellence of Nuveen's bond selection process.
The three national Nuveen Select Portfolios currently offer excellent credit
quality, with the portion of the Portfolios' assets invested in bonds rated
AAA/U.S. guaranteed and AA ranging from 69% to 79% at the end of September 1999.
This represented an overall increase in the allocation of AAA bonds over
September 1998 levels due to a number of advance refundings in 1998. (Credit
quality is not a concern in NXC and NXN, which are 100% invested in insured or
U.S. guaranteed bonds.) Each of the three national portfolios also had a 12%
allocation of BBB and non-rated investment-grade bonds. These lower-rated bonds
generally provided enhanced levels of yield, especially as credit spreads (or
the difference between higher credit quality securities and those of lower
credit quality) widened in recent months.
In the area of bond calls, all five of the Nuveen Select Portfolios, which were
assembled in 1992, currently offer excellent levels of call protection. The
national portfolios have virtually no scheduled bond calls between now and 2001,
while less than 3% of NXC and nothing in NXN is subject to calls during this
time. This should provide additional protection and stability for the
Portfolios' dividends over this period. However, as these portfolios approach
the 10-year mark, they will enter the normal part of the bond market cycle when
bond calls are more likely to occur. In 2002, each of these funds will face
scheduled bond calls affecting a significant portion of their portfolios.
To minimize the effect of calls, we are at work on strategies for managing
through this period. Currently, the majority of the bonds held by these
portfolios are providing very high levels of yield, and we plan to hold these
bonds for as long as possible to maximize income. We refer to these bonds as
"museum pieces" based on their high yields and good quality, which place them at
a premium in today's market. Approximately six months before their call dates,
we will look for suitable replacements, i.e., undervalued bonds that have the
potential to support the Portfolios' dividends and enhance portfolio structure.
This should enable us to continue providing the highest possible level of
dividends for our shareholders.
WHAT IS NUVEEN'S OUTLOOK FOR THE NUVEEN SELECT PORTFOLIOS?
Given the Portfolios' recent performance plus their excellent credit quality, we
anticipate making few changes over the next 12 months. Our focus will remain on
income and stable credit quality, and we expect that the Nuveen Select
Portfolios should continue to achieve their overall objective of providing
dependable tax-free income over their defined term. To this end, we will
continue to work on strategies designed to minimize the impact of any upcoming
bond calls.
Implementing the strategies that have the potential to benefit the Portfolios
demonstrates the value that can be added by an experienced bond manager such as
Nuveen. Using our in-depth knowledge of the unique aspects of the municipal
market, we are in the marketplace every day, monitoring market dynamics, looking
for opportunities, and trying to capitalize on them for the benefit of
shareholders.
<PAGE>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
PERFORMANCE OVERVIEW
As of September 30, 1999
NXP
PORTFOLIO STATISTICS
Inception Date 3/92
- --------------------------------------------------
Share Price $14 7/16
- --------------------------------------------------
Net Asset Value $15.13
- --------------------------------------------------
Market Yield 6.23%
- --------------------------------------------------
Taxable-Equivalent Yield(1) 9.03%
- --------------------------------------------------
Fund Net Assets ($000) $247,743
- --------------------------------------------------
Average Effective Maturity (Years) 10.59
- --------------------------------------------------
Average Duration 3.37
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -7.42% 1.87%
- --------------------------------------------------
5-Year 7.68% 7.32%
- --------------------------------------------------
Since Inception 5.60% 7.03%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -4.90% 4.51%
- --------------------------------------------------
5-Year 10.52% 10.11%
- --------------------------------------------------
Since Inception 8.38% 9.79%
- --------------------------------------------------
DIVERSIFICATION (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 47%
- --------------------------------------------------
Healthcare 9%
- --------------------------------------------------
Tax Obligation/Limited 9%
- --------------------------------------------------
Housing/Multifamily 9%
- --------------------------------------------------
Transportation 8%
- --------------------------------------------------
Bar Chart:
1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE
10/98 0.075
11/98 0.075
12/98 0.075
1/99 0.075
2/99 0.075
3/99 0.075
4/99 0.075
5/99 0.075
6/99 0.075
7/99 0.075
8/99 0.075
9/99 0.075
Line Chart:
SHARE PRICE PERFORMANCE
10/2/98 16.875
16.563
16.563
16.31
17
16.38
16.5
16.63
16.81
16.81
16.75
16.69
16.44
15.63
15.75
15.81
16.25
16.31
16.44
16.38
16.44
16.31
16.25
16.5
16.56
16.5
16.31
16.38
16.19
16
15.75
15.44
15.44
14.94
15.56
15.06
15.44
15.69
15.5
15.5
15.13
15.13
14.88
14.94
15.06
14.88
14.5
14.25
9/30/99 14.4375
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. It is
based on the current market yield and a federal income tax rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
<PAGE>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
PERFORMANCE OVERVIEW
As of September 30, 1999
NXQ
PORTFOLIO STATISTICS
Inception Date 5/92
- --------------------------------------------------
Share Price $14
- --------------------------------------------------
Net Asset Value $15.00
- --------------------------------------------------
Market Yield 6.21%
- --------------------------------------------------
Taxable-Equivalent Yield(1) 9.00%
- --------------------------------------------------
Fund Net Assets ($000) $264,108
- --------------------------------------------------
Average Effective Maturity (Years) 9.87
- --------------------------------------------------
Average Duration 3.07
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -8.87% 2.09%
- --------------------------------------------------
5-Year 7.93% 7.17%
- --------------------------------------------------
Since Inception 5.05% 6.82%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -6.40% 4.67%
- --------------------------------------------------
5-Year 10.75% 9.91%
- --------------------------------------------------
Since Inception 7.79% 9.51%
- --------------------------------------------------
DIVERSIFICATION (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 48%
- --------------------------------------------------
Housing/Multifamily 9%
- --------------------------------------------------
Healthcare 8%
- --------------------------------------------------
Tax Obligation/Limited 7%
- --------------------------------------------------
Housing/Single Family 7%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. It is
based on the current market yield and a federal income tax rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE
10/98 0.0725
11/98 0.0725
12/98 0.0725
1/99 0.0725
2/99 0.0725
3/99 0.0725
4/99 0.0725
5/99 0.0725
6/99 0.0725
7/99 0.0725
8/99 0.0725
9/99 0.0725
SHARE PRICE PERFORMANCE
10/2/98 16.563
16.25
16.125
16.06
16.13
16.06
16.31
15.94
16.06
16.13
16.38
16.38
16
15.38
15.13
15.25
15.88
15.88
15.88
16.06
16.06
15.88
15.69
15.88
15.81
15.63
15.5
15.5
15.75
14.63
14.75
14.63
14.69
14.63
15
14.81
15.25
15.38
15.06
15.13
15.06
14.81
14.38
14.31
14.56
14.5
14.25
14
9/30/99 14
Weekly Closing Price Past performance is not predictive of future results.
<PAGE>
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
PERFORMANCE OVERVIEW
As of September 30, 1999
NXR
PORTFOLIO STATISTICS
Inception Date 7/92
- --------------------------------------------------
Share Price $13 1/16
- --------------------------------------------------
Net Asset Value $14.52
- --------------------------------------------------
Market Yield 6.25%
- --------------------------------------------------
Taxable-Equivalent Yield(1) 9.06%
- --------------------------------------------------
Fund Net Assets ($000) $188,293
- --------------------------------------------------
Average Effective Maturity (Years) 11.69
- --------------------------------------------------
Average Duration 3.71
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -12.34% 1.44%
- --------------------------------------------------
5-Year 6.79% 7.44%
- --------------------------------------------------
Since Inception 3.93% 6.17%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -9.95% 3.93%
- --------------------------------------------------
5-Year 9.57% 10.11%
- --------------------------------------------------
Since Inception 6.59% 8.77%
- --------------------------------------------------
DIVERSIFICATION (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 40%
- --------------------------------------------------
Transportation 11%
- --------------------------------------------------
Utilities 11%
- --------------------------------------------------
Housing/Multifamily 10%
- --------------------------------------------------
Healthcare 8%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. It is
based on the current market yield and a federal income tax rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE
10/98 0.069
11/98 0.068
12/98 0.068
1/99 0.068
2/99 0.068
3/99 0.068
4/99 0.068
5/99 0.068
6/99 0.068
7/99 0.068
8/99 0.068
9/99 0.068
SHARE PRICE PERFORMANCE
10/2/98 16
15.375
15.563
15.56
15.63
15.63
15.63
15.25
15.31
15.44
15.5
15.56
15.19
14.69
14.75
14.81
15.38
15.31
15.19
15.25
15.56
15.44
15.06
15.13
15.19
15.06
14.94
15.06
14.88
14.25
14.06
14.13
14
13.94
14.69
14.25
14.31
14.38
14.19
14
14
13.94
13.69
13.63
13.94
13.88
13.44
13.19
9/30/99 13.0625
Weekly Closing Price Past performance is not predictive of future results.
<PAGE>
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
PERFORMANCE OVERVIEW
As of September 30, 1999
NXC
PORTFOLIO STATISTICS
Inception Date 6/92
- --------------------------------------------------
Share Price $14 3/16
- --------------------------------------------------
Net Asset Value $14.72
- --------------------------------------------------
Market Yield 5.58%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.09%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 8.93%
- --------------------------------------------------
Fund Net Assets ($000) $92,122
- --------------------------------------------------
Average Effective Maturity (Years) 12.34
- --------------------------------------------------
Average Duration 3.95
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -5.58% 0.71%
- --------------------------------------------------
5-Year 7.13% 6.99%
- --------------------------------------------------
Since Inception 4.74% 6.07%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -2.50% 3.87%
- --------------------------------------------------
5-Year 10.60% 10.38%
- --------------------------------------------------
Since Inception 8.07% 9.37%
- --------------------------------------------------
DIVERSIFICATION (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 33%
- --------------------------------------------------
Tax Obligation/Limited 17%
- --------------------------------------------------
Transportation 12%
- --------------------------------------------------
Utilities 12%
- --------------------------------------------------
Tax Obligation/General 10%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 37.5%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 37.5%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE
10/98 0.066
11/98 0.066
12/98 0.066
1/99 0.066
2/99 0.066
3/99 0.066
4/99 0.066
5/99 0.066
6/99 0.066
7/99 0.066
8/99 0.066
9/99 0.066
SHARE PRICE PERFORMANCE
10/2/98 15.938
15.813
16.063
15.75
15.81
15.63
15.94
15.88
15.88
15.88
16
15.94
15.69
15.25
15.13
15.19
15.38
15.5
15.44
15.5
15.75
15.81
15.69
15.75
15.75
15.69
15.81
15.94
15.75
15.5
15.25
15.31
15.31
15.19
15.5
15.38
15.56
15.56
15.5
15.56
15.31
15.31
15
15.06
15.06
14.94
14.75
14.25
9/30/99 14.1875
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
PERFORMANCE OVERVIEW
As of September 30, 1999
NXN
PORTFOLIO STATISTICS
Inception Date 6/92
- --------------------------------------------------
Share Price $13 5/8
- --------------------------------------------------
Net Asset Value $14.48
- --------------------------------------------------
Market Yield 5.72%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.29%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 8.87%
- --------------------------------------------------
Fund Net Assets ($000) $56,583
- --------------------------------------------------
Average Effective Maturity (Years) 10.84
- --------------------------------------------------
Average Duration 3.42
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -5.06% 1.20%
- --------------------------------------------------
5-Year 8.19% 6.81%
- --------------------------------------------------
Since Inception 4.17% 5.73%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -2.15% 4.11%
- --------------------------------------------------
5-Year 11.40% 9.86%
- --------------------------------------------------
Since Inception 7.23% 8.70%
- --------------------------------------------------
DIVERSIFICATION (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 43%
- --------------------------------------------------
Education and Civic Organizations 21%
- --------------------------------------------------
Water and Sewer 10%
- --------------------------------------------------
Housing/Multifamily 5%
- --------------------------------------------------
Tax Obligation/Limited 5%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 35.5%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 35.5%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE
10/98 0.065
11/98 0.065
12/98 0.065
1/99 0.065
2/99 0.065
3/99 0.065
4/99 0.065
5/99 0.065
6/99 0.065
7/99 0.065
8/99 0.065
9/99 0.065
SHARE PRICE PERFORMANCE
10/2/98 15.75
15.5
15.875
15.56
15.56
15.19
15.13
15.25
15.44
15.38
15.56
15.63
15.13
14.88
14.94
14.69
15.13
15.13
15.19
15
15.06
15.06
14.88
14.94
14.94
14.81
14.81
14.63
14.38
14.31
14.19
14.06
13.94
13.81
13.81
13.94
14.19
14.38
14.94
14.88
14.94
14.88
14.5
14.44
14.38
14.38
13.88
13.44
9/30/99 13.625
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
<TABLE>
<CAPTION>
SHAREHOLDER MEETING REPORT
NXP NXQ NXR NXC NXN
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Common Common Common Common Common
Shares Shares Shares Shares Shares
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
James E. Bacon
For 14,262,909 15,549,604 11,254,586 5,105,272 3,482,879
Withhold 146,903 131,001 108,794 31,670 32,107
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,409,812 15,680,605 11,363,380 5,136,942 3,514,986
====================================================================================================================================
Jack B. Evans
For 14,280,110 15,561,165 11,258,200 5,109,196 3,483,579
Withhold 129,702 119,440 105,180 27,746 31,407
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,409,812 15,680,605 11,363,380 5,136,942 3,514,986
====================================================================================================================================
William T. Kissick
For 14,287,113 15,573,045 11,265,780 5,111,156 3,486,579
Withhold 122,699 107,560 97,600 25,786 28,407
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,409,812 15,680,605 11,363,380 5,136,942 3,514,986
====================================================================================================================================
Thomas E. Leafstrand
For 14,289,904 15,578,674 11,272,380 5,113,106 3,486,579
Withhold 119,908 101,931 91,000 23,836 28,407
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,409,812 15,680,605 11,363,380 5,136,942 3,514,986
====================================================================================================================================
Timothy R. Schwertfeger
For 14,294,924 15,579,374 11,274,880 5,113,702 3,487,979
Withhold 114,888 101,231 88,500 23,240 27,007
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,409,812 15,680,605 11,363,380 5,136,942 3,514,986
====================================================================================================================================
Sheila W. Wellington
For 14,298,274 15,582,911 11,285,559 5,113,702 3,487,979
Withhold 111,538 97,694 77,821 23,240 27,007
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,409,812 15,680,605 11,363,380 5,136,942 3,514,986
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 14,241,673 15,518,959 11,248,552 5,065,755 3,495,989
Against 50,308 46,128 47,964 5,279 4,277
Abstain 117,831 115,518 66,864 65,908 14,720
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,409,812 15,680,605 11,363,380 5,136,942 3,514,986
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP)
September 30, 1999
(Unaudited)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 0.2%
$ 515,000 Alabama Housing Finance Authority, Single Family Mortgage Revenue 4/04 at 102 Aaa $ 536,918
Bonds (Collateralized Home Mortgage Revenue Bond Program),
1994 Series A-1, 6.550%, 10/01/14
- -----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1%
2,500,000 Little Rock Health Facilities Board (Arkansas), Refunding Revenue 4/02 at 102 A 2,629,325
Bonds (Baptist Medical Center/Parkway Village Project),
Series 1992, 7.000%, 10/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.5%
4,750,000 State Public Works Board of the State of California, Lease Revenue 3/04 at 102 Aaa 5,362,703
Bonds (California Community Colleges-Various Community College
Projects), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04)
3,000,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa 3,412,200
Revenue Bonds (Department of Corrections-California State
Prison - Monterey County (Soledad II)), 1994 Series A 6.875%,
11/01/14 (Pre-refunded to 11/01/04)
4,905,000 California Statewide Communities Development Authority, 8/02 at 102 A2 5,246,143
Revenue Certificates of Participation (Cedars-Sinai Medical Center),
6.500%, 8/01/15
2,000,000 Los Angeles County Metropolitan Transportation Authority 7/03 at 102 AAA 2,003,700
(California), Proposition A, Sales Tax Revenue Refunding Bonds,
Series 1993-A, 5.625%, 7/01/18
- -----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.7%
Colorado Housing Finance Authority, Single Family Program Senior
Revenue Bonds, Series 1992A-1:
2,960,000 6.800%, 11/01/12 5/02 at 102 AA+ 3,070,290
830,000 6.875%, 11/01/16 5/02 at 102 AA+ 860,029
10,750,000 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call BBB+ 12,767,560
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
1,000,000 District of Columbia, Hospital Revenue and Refunding Bonds 8/06 at 102 AAA 1,020,500
(Medlantic Healthcare Group, Inc. Issue), Series 1996A,
5.750%, 8/15/16
- -----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.1%
250,000 Escambia County, Florida, Pollution Control Revenue Bonds 12/03 at 102 Baa1 237,388
(Champion International Project), Series 1993, 5.875%, 6/01/22
(Alternative Minimum Tax)
7,000,000 State Board of Education of Florida, Public Education Capital Outlay 6/02 at 101 Aaa 7,480,130
Bonds, Series 1991-C, 6.625%, 6/01/22 (Pre-refunded to 6/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5%
1,330,000 State of Hawaii, Certificates of Participation (Kapolei State Office 11/08 at 101 AAA 1,192,638
Building), 1998 Series A, 5.000%, 5/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.0%
City of Chicago Heights, Illinois, General Obligation Bonds, Series 1993
(Corporate Purpose Bonds):
3,820,000 5.650%, 12/01/15 12/08 at 100 AAA 3,826,418
2,600,000 5.650%, 12/01/17 12/08 at 100 AAA 2,572,726
7,000,000 The County of Cook, Illinois, General Obligation Bonds, 11/02 at 102 AAA 7,589,960
Series 1992A, 6.600%, 11/15/22 (Pre-refunded to 11/15/02)
1,260,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds, 7/01 at 102 A1*** 1,345,302
Loyola University of Chicago, Series 1991-A, 7.125%, 7/01/11
(Pre-refunded to 7/01/01)
3,000,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds, 7/03 at 102 A+*** 3,216,180
Loyola University of Chicago, Series 1989-A, 6.100%, 7/01/15
(Pre-refunded to 7/01/03)
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP)(continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 2,365,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R*** $ 2,553,561
Series 1992-B (Evangelical Hospitals Corporation),
6.500%, 4/15/09
3,850,000 Illinois Health Facilities Authority, Revenue Bonds (Sarah Bush 5/02 at 102 Aaa 4,196,192
Lincoln Health Center), Series 1992, 7.250%, 5/15/22
(Pre-refunded to 5/15/02)
2,000,000 State of Illinois, General Obligation Bonds, Series 1994, 5.875%, 8/01/148/04 at 102 AA 2,035,820
2,500,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, 6/03 at 102 AAA 2,659,425
McHenry and Will Counties, Illinois), General Obligation Bonds,
Series 1993A, 5.800%, 6/01/13
- -----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.7%
3,000,000 Indiana Bond Bank, Special Hospital Program (Hendricks 4/02 at 102 A+ 3,184,830
Community Hospital Financing Program), Series 1992A,
7.125%, 4/01/13
Indiana Bond Bank, Special Program Bonds, Series 1992A:
1,000,000 7.000%, 8/01/12 2/02 at 102 A+ 1,061,200
2,250,000 7.000%, 8/01/18 2/02 at 102 A+ 2,377,463
- -----------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.1%
2,565,000 Woodbury County, Iowa, Hospital Facility Revenue Bonds 3/01 at 102 AAA 2,704,844
(St. Luke's Regional Medical Center Project), Series 1991A,
6.750%, 3/01/21 (Pre-refunded to 3/01/01)
- -----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.9%
9,000,000 City of Wichita, Kansas, Revenue Bonds (CSJ Health System 11/01 at 102 A+*** 9,726,840
of Wichita, Inc.), Series 1985 XXV (Remarketed), 7.200%, 10/01/15
- -----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.9%
1,100,000 County of Jefferson, Kentucky, Health System Revenue Bonds, 10/08 at 101 AAA 999,273
Series 1998 (Alliant Health System, Inc.), 5.125%, 10/01/18
3,230,000 Lexington-Fayette Urban County Government, Kentucky, 11/04 at 102 AAA 3,609,719
Governmental Project Revenue Bonds, Series 1994 (University of
Kentucky Alumni Association, Inc., Commonwealth Library Project),
6.750%, 11/01/15 (Pre-refunded to 11/01/04)
- -----------------------------------------------------------------------------------------------------------------------------------
MAINE - 2.0%
1,080,000 Maine Educational Loan Authority, Educational Loan Revenue Bonds, 12/02 at 102 A 1,121,569
Series 1992A-2 (Supplemental Educational Loan Program),
7.150%, 12/01/16 (Alternative Minimum Tax)
Maine Educational Loan Authority, Educational Loan Revenue
Bonds, Series 1992A-1 (Supplemental Educational Loan Program):
1,725,000 6.800%, 12/01/07 (Alternative Minimum Tax) 12/02 at 102 Aaa 1,815,459
1,955,000 7.000%, 12/01/16 (Alternative Minimum Tax) 12/02 at 102 Aaa 2,032,809
- -----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
2,000,000 Plymouth County (Massachusetts), Certificates of Participation 10/02 at 102 Aaa 2,186,400
(Plymouth County Correctional Facility), Series A,
7.000%, 4/01/22 (Pre-refunded to 10/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
3,600,000 Calhoun County (Mississippi), Solid Waste Disposal Revenue 4/07 at 103 A 3,882,996
Bonds (Weyerhauser Company Project), Series 1992,
6.875%, 4/01/16 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 4.2%
10,000,000 New Hampshire Housing Finance Authority, Multifamily 7/01 at 102 A1 10,398,800
Housing Revenue Refunding Bonds, 1991 Series 1, 7.050%, 7/01/11
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.7%
7,250,000 Metropolitan Transportation Authority (New York), Commuter 7/01 at 102 BBB+ 7,652,810
Facilities, 1987 Service Contract Bonds, Series 5, 7.000%, 7/01/12
3,000,000 Metropolitan Transportation Authority (New York), Transit 7/02 at 100 BBB+ 3,089,190
Facilities, Service Contract Bonds, Series N, 6.000%, 7/01/11
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP)(continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (continued)
The City of New York, New York, General Obligation Bonds, Fiscal
1995 Series A:
$ 300,000 6.250%, 8/01/10 (Pre-refunded to 8/01/04) 8/04 at 101 1/2 A-*** $ 326,238
4,870,000 6.250%, 8/01/10 8/04 at 101 1/2 A- 5,222,685
4,465,000 New York State Dormitory Authority, State University Educational 5/02 at 102 Aaa 4,876,986
Facilities Revenue Bonds, Series 1991A, 7.250%, 5/15/18
(Pre-refunded to 5/15/02)
2,090,000 New York Local Government Assistance Corporation, New York, 4/01 at 100 AAA 2,178,240
Series 1991B, 7.000%, 4/01/21 (Pre-refunded to 4/01/01)
1,365,000 New York Local Government Assistance Corporation, 4/02 at 102 AAA 1,478,664
Series 1991D, 7.000%, 4/01/18 (Pre-refunded to 4/01/02)
New York State Medical Care Facilities Finance Agency,
Mental Health Services Facilities Improvement Revenue Bonds,
1991 Series A:
180,000 7.500%, 2/15/21 (Pre-refunded to 2/15/01) 2/01 at 102 Aaa 191,518
900,000 7.500%, 2/15/21 2/01 at 102 A3 950,724
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1991
Series D:
1,395,000 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A-*** 1,517,760
1,425,000 7.400%, 2/15/18 2/02 at 102 A- 1,529,752
- -----------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.1%
2,790,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/07 at 102 AAA 2,843,987
Bonds, Series 1997A, 6.050%, 9/01/17 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.8%
7,235,000 Delaware County Authority (Pennsylvania), First Mortgage 4/02 at 102 N/R*** 7,984,691
Revenue Bonds (The Dunwoody Project), Series 1992,
8.125%, 4/01/17 (Pre-refunded to 4/01/02)
1,130,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 1,170,963
Revenue Bonds, Series 1992-33, 6.900%, 4/01/17
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds (Thomas Jefferson University), 1992 Series A:
1,750,000 6.625%, 8/15/09 (Pre-refunded to 8/15/02) 8/02 at 102 A2*** 1,887,970
750,000 6.625%, 8/15/09 8/02 at 102 AAA 804,630
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.9%
5,000,000 South Carolina Housing Finance and Development Authority, 5/02 at 102 Aaa 5,228,450
Multifamily Housing Revenue Bonds, 1992 Series A, 6.875%, 11/15/23
4,060,000 York County (South Carolina), Public Facilities Corporation, 6/01 at 102 Aaa 4,355,771
Certificates of Participation (York County Justice Center Project),
Series 1991, 7.500%, 6/01/11 (Pre-refunded to 6/01/01)
- -----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.4%
5,750,000 Memphis-Shelby County Airport Authority (Tennessee), Airport 7/03 at 102 BBB 5,828,258
Special Facilities and Project Revenue Bonds (Federal Express
Corporation), Series 1993, 6.200%, 7/01/14 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.6%
9,825,000 Harris County Health Facilities Development Corporation (Texas), 6/02 at 102 A3*** 10,702,078
Hospital Revenue Bonds (Memorial Hospital System Project),
Series 1992, 7.125%, 6/01/15 (Pre-refunded to 6/01/02)
4,000,000 Port of Corpus Christi Authority of Nueces County (Texas), 4/02 at 102 A+ 4,231,000
Pollution Control Revenue Bonds (Hoechst Celanese Corporation),
Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax)
3,500,000 Red River Authority (Texas), Pollution Control Revenue Bonds 4/02 at 102 A+ 3,702,125
(Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17
(Alternative Minimum Tax)
City of San Antonio, Texas, Water System Revenue Refunding Bonds,
Series 1992:
465,000 6.000%, 5/15/16 No Opt. Call AAA 489,310
1,450,000 6.000%, 5/15/16 (Pre-refunded to 5/15/02) 5/02 at 100 AAA 1,511,408
3,085,000 6.000%, 5/15/16 5/02 at 100 AAA 3,180,080
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP)(continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA - 2.1%
$ 5,070,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ $5,237,614
Bonds, 1992 Series A, 7.100%, 1/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.1%
2,500,000 Public Utility District No. 1 of Snohomish County, Washington, 1/01 at 102 A+*** 2,633,550
Electric System Refunding Revenue Bonds, Series 1991A,
7.000%, 1/01/16 (Pre-refunded to 1/01/01)
5,700,000 Public Utility District No. 1 of Snohomish County, Washington, 1/02 at 102 Aaa 6,404,919
Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12
2,750,000 Washington Health Care Facilities Authority, Revenue Bonds, 2/02 at 102 AA- 2,953,910
Series 1992 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12
10,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/01 at 102 Aaa 10,637,000
Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17
(Pre-refunded to 7/01/01)
- -----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.3%
1,885,000 Marshall County, West Virginia, Special Obligation Refunding Bonds, No Opt. Call AAA 2,075,250
Series 1992, 6.500%, 5/15/10
1,000,000 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 103 AAA 1,056,720
1992 Series A, 7.000%, 5/01/24
- -----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1%
5,000,000 Wisconsin Housing and Economic Development Authority, 4/02 at 102 AA- 5,320,600
Multifamily Housing Revenue Bonds, 1992 Series B, 7.050%, 11/01/22
- -----------------------------------------------------------------------------------------------------------------------------------
WYOMING - 1.3%
3,000,000 Wyoming Community Development Authority, Single Family 11/01 at 103 AA 3,134,340
Mortgage Revenue Bonds (Federally Insured or Guaranteed
Mortgage Loans), Series 1988-G, 7.200%, 6/01/10 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 227,625,000 Total Investments - (cost $223,435,119) - 98.2% 243,306,501
============= -------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 4,436,190
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $247,742,691
===================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ)
September 30, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA - 5.2%
$ 3,250,000 State Public Works Board of the State of California, Lease Revenue 3/04 at 102 Aaa $3,669,218
Bonds (California Community Colleges - Various Community College
Projects), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04)
2,000,000 State Public Works Board of the State of California, Lease Revenue No Opt. Call Aa3 2,041,300
Refunding Bonds (The Regents of the University of California -
Various University of California Projects), 1993 Series A,
5.500%, 6/01/14
5,000,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa 5,687,000
Revenue Bonds (Department of Corrections-California State
Prison-Monterey County (Soledad II)), 1994 Series A,
6.875%, 11/01/14 (Pre-refunded to 11/01/04)
500,000 State Public Works Board of the State of California, 12/08 at 101 A+ 482,150
Lease Revenue Refunding Bonds (California Community Colleges -
Various Community College Projects), 1998 Series A, 5.250%, 12/01/16
500,000 City of Contra Costa, Water District of California, Water Revenue 10/07 at 100 AA- 466,515
Bonds, Refunding Series 1997 H, 5.000%, 10/01/17
500,000 County of Contra Costa, California, Certificates of Participation 11/07 at 102 AAA 486,450
(Merrithew Memorial Hospital Replacement Project),
Refunding Series of 1997, 5.375%, 11/01/17
1,000,000 City of Fresno, California, Health Facility Revenue Bonds, 12/03 at 102 AAA 1,005,080
Series 1993B (Holy Cross Health System Corporation),
5.625%, 12/01/15
- -----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.9%
3,010,000 Colorado Housing Finance Authority, Single Family Program Senior 5/02 at 102 AA+ 3,153,216
Bonds, Series 1992A-3, 7.000%, 11/01/24 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
2,335,000 7.250%, 11/15/12 (Pre-refunded to 11/15/02) (Alternative Minimum Tax) 11/02 at 102 Aaa 2,573,544
9,130,000 7.250%, 11/15/12 (Alternative Minimum Tax) 11/02 at 102 BBB+ 9,786,721
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.1%
4,600,000 District of Columbia Hospital Revenue Refunding Bonds (Washington 8/02 at 102 A3*** 5,012,390
Hospital Center), Series 1992-A, 7.125%, 8/15/19
(Pre-refunded to 8/15/02)
500,000 District of Columbia, Hospital Revenue and Refunding Bonds 8/06 at 102 AAA 510,250
(Medlantic Healthcare Group, Inc. Issue), Series 1996A,
5.750%, 8/15/16
7,500,000 District of Columbia (Washington, D.C.), General Obligation Bonds, 6/02 at 102 AAA 7,997,023
Series 1992B, 6.300%, 6/01/12 (Pre-refunded to 6/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.3%
8,180,000 Hillsborough County (Florida), Environmentally Sensitive Land 7/02 at 102 Aa3*** 8,768,796
Acquisition and Protection Program Bonds, Series 1992,
6.375%, 7/01/11 (Pre-refunded to 7/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4%
1,100,000 State of Hawaii, Certificates of Participation (Kapolei State 11/08 at 101 AAA 986,392
Office Building), 1998 Series A, 5.000%, 5/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.0%
8,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), 7/02 at 102 AA 8,959,935
Housing Development Revenue Refunding Bonds (FHA-Insured
Mortgage Loans - Section 8 Assisted Projects), Series 1992A,
6.800%, 7/01/17
8,070,000 The County of Cook, Illinois, General Obligation Bonds, 11/02 at 102 AAA 8,750,140
Series 1992A, 6.600%, 11/15/22 (Pre-refunded to 11/15/02)
2,500,000 Illinois Educational Facilities Authority, Revenue Bonds, Columbia 12/03 at 102 BBB 2,441,925
College, Series 1993, 6.125%, 12/01/18
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ)(continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
Illinois Educational Facilities Authority, Revenue Refunding Bonds,
Columbia College, Series 1992:
$ 2,610,000 6.875%, 12/01/17 (Pre-refunded to 12/01/04) 12/04 at 100 N/R*** $2,877,316
1,140,000 6.875%, 12/01/17 12/04 at 100 BBB 1,199,394
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Bonds, Series 1992A:
2,205,000 6.500%, 6/15/22 (Pre-refunded to 6/15/03) 6/03 at 102 Aaa 2,398,797
45,000 6.500%, 6/15/22 6/03 at 102 AA- 47,619
5,000,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, 6/03 at 102 AAA 5,318,850
McHenry and Will Counties, Illinois), General Obligation Bonds,
Series 1993A, 5.800%, 6/01/13
- -----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.8%
2,005,000 Howard County Jail and Juvenile Detention Center Corporation 1/02 at 102 A1*** 2,149,240
(Indiana), First Mortgage Revenue Bonds, Series 1992,
6.850%, 1/01/12 (Pre-refunded to 1/01/02)
10,000,000 Indiana Educational Facilities Authority, Educational Facilities 1/02 at 102 AAA 10,554,000
Refunding Revenue Bonds (Butler University Project), Series 1992A,
6.600%, 1/01/18
2,400,000 Westfield-Washington South School Building Corporation (Indiana), 7/02 at 102 A*** 2,578,872
First Mortgage Revenue Bonds, Series 1992, 6.500%, 7/15/13
(Pre-refunded to 7/15/02)
- -----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.7%
4,415,000 Kentucky Housing Corporation, Housing Revenue Bonds (Federally 7/02 at 102 AAA 4,548,333
Insured or Guaranteed Mortgage Loans), Series 1992A,
6.600%, 7/01/11
- -----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.7%
11,425,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane University 11/02 at 102 A+*** 12,375,103
of Louisiana, 1992 Series, 6.625%, 11/15/21 (Pre-refunded to 11/15/02)
- -----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.7%
Massachusetts State, General Obligation Refunding Bonds, Series 1991-B:
2,045,000 6.500%, 8/01/11 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 2,168,784
1,585,000 6.500%, 8/01/11 8/01 at 102 AA- 1,673,047
3,000,000 Massachusetts Health and Educational Facilities Authority, Revenue 10/02 at 102 BBB+*** 3,257,610
Bonds (Jordan Memorial Hospital Issue), Series 1992C,
6.875%, 10/01/22 (Pre-refunded to 10/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
City of Royal Oak (Michigan), Hospital Finance Authority,
Revenue Bonds (Beaumont Properties, Inc.), Series 1992E:
435,000 6.625%, 1/01/19 (Pre-refunded to 1/01/02) 1/02 at 102 AAA 464,606
3,565,000 6.625%, 1/01/19 1/02 at 102 AA 3,742,074
- -----------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.8%
2,065,000 City of Billings, Montana, Tax Increment Urban Renewal Bonds, 3/02 at 101 Baa3 2,167,631
Refunding Series 1992, 7.100%, 3/01/08
- -----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.2%
500,000 Clark County, Nevada, General Obligation (Limited Tax) Las Vegas 7/06 at 101 AAA 487,515
Convention and Visitors Authority, Series September 1, 1996,
5.500%, 7/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.9%
3,850,000 Metropolitan Transportation Authority (New York), Transit Facilities 7/02 at 100 BBB+ 3,964,461
Service Contract Bonds, Series N, 6.000%, 7/01/11
The City of New York, General Obligation Bonds, Fiscal 1992 Series H:
7,355,000 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A-*** 7,918,467
645,000 7.100%, 2/01/11 2/02 at 101 1/2 A- 689,021
2,865,000 7.100%, 2/01/12 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A-*** 3,084,488
285,000 7.100%, 2/01/12 2/02 at 101 1/2 A- 303,876
2,695,000 Dormitory Authority of the State of New York, State University 5/00 at 102 Aaa 2,807,031
Educational Facilities Revenue Bonds, Series 1989B,
7.250%, 5/15/15 (Pre-refunded to 5/15/00)
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ) (continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (continued)
$ 4,000,000 New York State Medical Care Facilities Finance Agency, New York 2/05 at 102 AAA $4,468,840
Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A,
6.750%, 8/15/14 (Pre-refunded to 2/15/05)
5,000,000 Triborough Bridge and Tunnel Authority (New York), Convention No Opt. Call BBB+ 5,624,700
Center Project Bonds, Series E, 1/01/10
- -----------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.4%
2,800,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia Health 8/05 at 102 AAA 3,077,424
System), Series 1995, 6.250%, 8/15/14 (Pre-refunded to 8/15/05)
3,000,000 County of Erie, Ohio, Hospital Improvement and Refunding Revenue 1/02 at 102 A 3,143,250
Bonds, Series 1992 (Firelands Community Hospital Project),
6.750%, 1/01/15
- -----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.4%
6,000,000 Oklahoma City (Oklahoma), Water Utilities Trust, Water and Sewer 7/02 at 100 AAA 6,246,600
Revenue Bonds, 6.400%, 7/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.9%
1,000,000 Dauphin County General Authority (Pennsylvania), Health System 2/09 at 101 AAA 912,460
Revenue Bonds, Series of 1999 (Pinnacle Health System Project),
5.125%, 8/15/17
6,295,000 Pennsylvania Intergovernmental Cooperation Authority, Special 6/02 at 100 Aaa 6,696,936
Tax Revenue Bonds (City of Philadelphia Funding Program),
Series of 1992, 6.800%, 6/15/22 (Pre-refunded to 6/15/02)
- -----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.3%
5,500,000 Rhode Island Depositors Economic Corporation, Special Obligation 8/02 at 102 AAA 5,980,150
Bonds, 1992 Series A, 6.900%, 8/01/13 (Pre-refunded to 8/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.8%
7,000,000 Richland County (South Carolina), Solid Waste Disposal Facilities 5/02 at 102 A1 7,427,980
Revenue Bonds (Union Camp Corporation Project), Series 1992-A,
6.750%, 5/01/22 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 5.3%
4,500,000 Memphis-Shelby County Airport Authority (Tennessee), Special 9/01 at 103 BBB 4,840,965
Facilities Revenue Bonds, Series 1984 (Federal Express Corporation),
7.875%, 9/01/09
8,775,000 Tennessee Housing Development Agency, Homeownership Program 7/02 at 102 AA 9,056,853
Bonds, Issue WR, 6.800%, 7/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.8%
3,275,000 Bexar County (Texas), Health Facilities Development Corporation, 8/04 at 102 AAA 3,660,959
Hospital Revenue Bonds (Baptist Memorial Hospital System Project),
Series 1994, 6.900%, 2/15/14 (Pre-refunded to 8/15/04)
4,740,000 Cleveland Housing Corporation (Texas), Mortgage Revenue 1/01 at 102 AAA 4,899,122
Refunding Bonds, Series 1992-C (FHA-Insured - Section 8),
7.375%, 7/01/24
2,500,000 Harris County Health Facilities Development Corporation, 10/05 at 102 AAA 2,463,375
Texas Children's Hospital Project, Series 1995, 5.500%, 10/01/16
7,600,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution 4/02 at 102 A+ 8,038,900
Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992,
6.875%, 4/01/17 (Alternative Minimum Tax)
1,460,000 Red River Authority (Texas), Pollution Control Revenue Bonds 4/02 at 102 A+ 1,544,315
(Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
1,655,000 Municipal Building Authority of Ogden City School District, Weber 1/02 at 101 A3*** 1,770,105
County, Utah, Lease Revenue Bonds (Central Middle School Project),
Series 1992, 6.700%, 1/01/12 (Pre-refunded to 1/01/02)
520,000 Utah Housing Finance Agency, Single Family Mortgage Purchase 7/02 at 102 Aaa 536,916
Refunding Senior Bonds, Series 1992, 6.800%, 1/01/12
- -----------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.4%
3,600,000 Vermont Industrial Development Authority, Industrial Development 9/02 at 102 A 3,798,576
Refunding Revenue Bonds (Stanley Works Project), Series 1992,
6.750%, 9/01/10
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ) (continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA - 0.8%
$ 2,000,000 Industrial Development Authority of Covington-Alleghany County, 4/02 at 102 N/R*** $2,141,980
Virginia, Hospital Facility Revenue Bonds (Alleghany Regional
Hospital), Series 1992, 6.625%, 4/01/12 (Pre-refunded to 4/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
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 (Pre-refunded to 7/01/01) 7/01 at 102 Aa1*** 3,823,668
6,160,000 6.500%, 7/01/18 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 6,516,972
- -----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
1,750,000 West Virginia School Building Authority, Capital Improvement 7/02 at 102 A*** 1,883,890
Revenue Bonds, Series 1992-A, 6.625%, 7/01/22 (Pre-refunded to 7/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0%
10,000,000 Wisconsin Housing and Economic Development Authority, Multifamily 4/02 at 102 AA- 10,639,600
Housing Revenue Bonds, 1992 Series D, 7.200%, 11/01/13
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 243,040,000 Total Investments - (cost $240,535,097) - 97.9% 258,748,716
============= --------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6%
500,000 City of Valdez, Alaska, Marine Terminal Revenue Refunding Bonds VMIG-1 500,000
(Exxon Pipeline Company Project), 1993 Series B, Variable Rate
Demand Bonds, 3.750%, 12/01/33+
1,000,000 Allegheny County Industrial Development Authority (Longwood VMIG-1 1,000,000
at Oakmont, Inc. Project), 1997 Series B, Variable Rate Demand
Revenue Bonds, 3.950%, 7/01/27+
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,500,000 Total Short-Term Investments - (cost $1,500,000) 1,500,000
============= -------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 3,858,920
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $264,107,636
===================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR)
September 30, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA - 2.9%
$ 3,000,000 State Public Works Board of the State of California, Lease Revenue 11/04 at 102 Aaa $3,412,200
Bonds (Department of Corrections - California State Prison-Monterey
County (Soledad II)), 1994 Series A, 6.875%, 11/01/14
(Pre-refunded to 11/01/04)
500,000 City of Fresno, California, Health Facility Revenue Refunding 12/03 at 102 AAA 497,060
Bonds (Holy Cross Health System Corporation), 5.625%, 12/01/18
1,445,000 City of Torrance (California), Hospital Revenue Bonds 7/02 at 102 A 1,572,319
(Little Company of Mary Hospital Project), Series 1992,
6.875%, 7/01/15
- -----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.8%
2,500,000 City of Colorado Springs, Colorado, Utilities System Refunding 11/02 at 100 AA 2,543,025
Revenue Bonds, Series 1992A, 6.125%, 11/15/20
1,500,000 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call BBB+ 1,781,520
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
815,000 7.250%, 11/15/23 (Pre-refunded to 11/15/02) (Alternative Minimum Tax) 11/02 at 102 Aaa 898,260
3,185,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 BBB+ 3,414,097
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
470,000 6.750%, 11/15/13 (Pre-refunded to 11/15/02) (Alternative Minimum Tax) 11/02 at 102 Aaa 511,219
3,530,000 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 BBB+ 3,701,417
- -----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250,000 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 265,618
Revenue Bonds, Bridgeport Hospital Issue, Series A, 6.625%, 7/01/18
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.5%
2,000,000 District of Columbia, Hospital Revenue Refunding Bonds 8/02 at 102 A3*** 2,179,300
(Washington Hospital Center), Series 1992-A, 7.125%, 8/15/19
(Pre-refunded to 8/15/02)
District of Columbia (Washington D.C.), General Obligation Bonds,
Series 1993E:
165,000 6.000%, 6/01/13 (Pre-refunded to 6/01/03) 6/03 at 102 AAA 176,395
4,080,000 6.000%, 6/01/13 6/03 at 102 AAA 4,251,360
- -----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.0%
3,525,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium 5/02 at 102 N/R*** 3,856,879
Project), Series 1992, 7.550%, 5/01/12 (Pre-refunded to 5/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
Fulco Hospital Authority, Refunding Revenue Anticipation
Certificates (Georgia Baptist Health Care System Project),
Series 1992B:
2,250,000 6.250%, 9/01/13 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,404,463
2,000,000 6.375%, 9/01/22 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,144,080
- -----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.4%
3,000,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding 2/02 at 102 Aa2 3,069,390
Bonds (Central Illinois Light Company Project), Series 1992,
6.500%, 2/01/18
2,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), 7/02 at 102 AA 2,638,425
Housing Development Revenue Refunding Bonds (FHA-Insured
Mortgage Loans - Section 8 Assisted Projects), Series 1992A,
6.850%, 7/01/22
2,550,000 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 6/02 at 102 AAA 2,642,667
(FHA-Insured Mortgage Loan - Lakeview Towers Project),
6.600%, 12/01/20
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR) (continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 1,700,000 City of Chicago, Chicago-O'Hare International Airport, General 1/03 at 102 AAA $1,642,013
Airport Second Lien Revenue Refunding Bonds, 5.600%, 1/01/18
(Alternative Minimum Tax)
1,500,000 Illinois Health Facilities Authority, Revenue Bonds, No Opt. Call N/R*** 1,576,875
Series 1992C (Evangelical Hospitals Corporation), 6.250%, 4/15/22
4,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992B 9/06 at 100 AAA 4,431,520
(Franciscan Sisters Health Care Corporation Project),
6.625%, 9/01/13 (Pre-refunded to 9/01/06)
1,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 10/02 at 102 Baa2*** 1,080,490
(Mercy Center for Health Care Services), 6.650%, 10/01/22
(Pre-refunded to 10/01/02)
7,750,000 The Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102 AA-*** 8,336,985
Revenue Bonds, 1992 Series A, 6.375%, 1/01/15
(Pre-refunded to 1/01/03)
1,360,000 Board of Regents of Sangamon State University (Illinois), 10/02 at 102 AAA 1,463,047
Auxiliary Facilities System Revenue Bonds, Series 1992,
6.375%, 10/01/17 (Pre-refunded to 10/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.5%
1,205,000 Allen County, Indiana, Refunding Certificates of Participation, 5/02 at 101 Aa3 1,260,514
Series 1991, 6.500%, 11/01/17
4,000,000 Indiana State Office Building Commission, Correctional Facilities 12/01 at 102 Aa3*** 4,253,120
Program Revenue Bonds, Series 1991, 6.375%, 7/01/16
(Pre-refunded to 12/01/01)
2,000,000 School Building Corporation of Warren Township (Marion County, 7/02 at 102 A+*** 2,123,040
Indiana), First Mortgage Bonds, Series 1992A, 6.000%, 7/15/12
(Pre-refunded to 7/15/02)
2,725,000 Warrick County, Indiana, Adjustable Rate Environmental Improvement 5/03 at 102 AA 2,744,729
Revenue Bonds, 1993 Series B (Southern Indiana Gas and Electric
Company Project), 6.000%, 5/01/23 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.5%
County of Trimble, Kentucky, Pollution Control Revenue Bonds
(Louisville Gas and Electric Company Project), 1990 Series B:
500,000 6.550%, 11/01/20 (Pre-refunded to 9/16/02) (Alternative Minimum Tax) 9/02 at 102 Aaa 539,495
4,080,000 6.550%, 11/01/20 (Alternative Minimum Tax) 9/02 at 102 Aa2 4,228,104
- -----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
4,000,000 Louisiana Public Facilities Authority, Revenue Bonds, Series 1992, 2/03 at 101 AA- 4,195,520
Baton Rouge Water Works Company Project, 6.400%, 2/01/10
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.7%
1,270,000 Massachusetts Health and Educational Facilities Authority, Revenue 11/02 at 102 Aaa 1,373,353
Bonds, MetroWest Health, Inc. Issue, Series C, 6.500%, 11/15/18
(Pre-refunded to 11/15/02)
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.7%
4,000,000 Michigan State Housing Development Authority, Single Family 6/06 at 102 AA+ 4,031,920
Mortgage Revenue Bonds, 1996 Series C, 5.950%, 12/01/17
8,240,000 Michigan Housing Development Authority, Limited Obligation 9/02 at 103 AAA 8,671,117
Revenue Bonds (Greenwood Villa Project), Series 1992,
6.625%, 9/15/17
- -----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.7%
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) 7/02 at 102 A 2,050,326
980,000 6.250%, 7/01/22 (Pre-refunded to 7/01/02) (Alternative Minimum Tax) 7/02 at 102 A*** 1,040,799
20,000 6.250%, 7/01/22 (Alternative Minimum Tax) 7/02 at 102 A 20,413
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.4%
1,750,000 The City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 Aaa 1,901,603
Fiscal 1992 Series C, Subseries C-1, 7.000%, 8/01/17
(Pre-refunded to 8/01/02)
1,480,000 The City of New York, New York, General Obligation Bonds, 2/02 at 101 1/2 Aaa 1,607,458
Fiscal 1992 Series D, 7.500%, 2/01/18 (Pre-refunded to 2/01/02)
20,000 The City of New York, New York, General Obligation Bonds, 2/02 at 101 1/2 A- 21,476
Fiscal 1991 Series D, 7.500%, 2/01/18
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR) (continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (continued)
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series B:
$ 990,000 7.000%, 6/01/12 (Pre-refunded to 6/01/01) 6/01 at 101 1/2 Aaa $1,050,083
10,000 7.000%, 6/01/12 6/01 at 101 1/2 A- 10,535
The City of New York, New York, General Obligation Bonds, Fiscal
1992 Series H:
1,845,000 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A-*** 1,986,345
155,000 7.100%, 2/01/11 2/02 at 101 1/2 A- 165,579
The City of New York, New York, General Obligation Bonds, Fiscal
1992 Series B:
205,000 7.000%, 2/01/18 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A-*** 220,254
855,000 7.000%, 2/01/18 2/02 at 101 1/2 A- 908,780
2,785,000 New York City Municipal Water Finance Authority (New York), 6/02 at 101 AAA 2,961,374
Water and Sewer System Revenue Bonds, Fixed Rate Fiscal
1993 Series B, 6.375%, 6/15/22 (Pre-refunded to 6/15/02)
4,000,000 New York City Municipal Water Finance Authority (New York), 6/02 at 101 1/2 A1 4,095,720
Water and Sewer System Revenue Bonds, Fiscal 1993 Series A,
6.000%, 6/15/17
2,130,000 Dormitory Authority of the State of New York, City University System No Opt. Call BBB+ 2,441,087
Consolidated, Second General Resolution Revenue Bonds,
Series 1990C, 7.500%, 7/01/10
2,000,000 New York State Medical Care Facilities Finance Agency, 8/02 at 102 AAA 2,094,420
Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12
- -----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.2%
2,500,000 Cambria County Hospital Development Authority (Pennsylvania), 7/02 at 102 AAA 2,675,225
Hospital Revenue Refunding and Improvement Bonds,
Series B of 1992 (Conemaugh Valley Memorial Hospital Project),
6.375%, 7/01/18 (Pre-refunded to 7/01/02)
2,435,000 Dauphin County, Pennsylvania, Industrial Development Authority, No Opt. Call A 2,696,470
Water Development Refunding Revenue Bonds, Series 1992B
(Dauphin Consolidated Water Supply Company), 6.700%, 6/01/17
4,000,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/02 at 102 AAA 4,193,440
Bonds, Issue of 1992 (FNMA Insured Mortgage Loans), 6.500%, 7/01/23
2,000,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/03 at 102 A- 2,076,740
Bonds (Drexel University), Series 1993, 6.375%, 5/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.1%
4,000,000 South Carolina Public Service Authority, Revenue Bonds, 7/02 at 102 Aa2 4,233,680
1992 Refunding Series A, 6.375%, 7/01/11
City of Spartanburg, South Carolina, Water System Improvement
Refunding Revenue Bonds, Series 1992:
1,290,000 6.250%, 6/01/17 (Pre-refunded to 6/01/02) 6/02 at 101 AAA 1,365,401
310,000 6.250%, 6/01/17 6/02 at 101 AA- 322,381
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.3%
4,000,000 South Dakota Health and Educational Facilities Authority, Revenue 9/02 at 102 AAA 4,270,560
Bonds, Series 1992 (Rapid City Regional Hospital Issue),
6.150%, 9/01/18 (Pre-refunded to 9/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.5%
4,420,000 Memphis-Shelby County Airport Authority (Tennessee), Special 9/02 at 102 BBB 4,679,189
Facilities Revenue Refunding Bonds, Series 1992 (Federal Express
Corporation), 6.750%, 9/01/12
- -----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.0%
3,755,000 Grand Prairie Industrial Development Authority, Industrial 12/02 at 102 A 3,915,902
Development Revenue Refunding Bonds, Series 1992
(Baxter International, Inc. Project), 6.550%, 12/01/12
2,500,000 Harris County Health Facilities (Texas), Development Corporation 10/04 at 101 AAA 2,722,050
Hospital Revenue Bonds (Hermann Hospital), Series 1994,
6.375%, 10/01/17 (Pre-refunded to 10/01/04)
5,000,000 North Central Texas Health Facilities Development Corporation, 5/06 at 102 AA 4,665,850
Hospital Revenue Refunding Bonds (Baylor Health Care System
Project), Series 1995, 5.250%, 5/15/16
- -----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.2%
4,000,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ 4,117,240
Bonds, 1992 Series A, 7.100%, 1/01/22
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR) (continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON - 10.0%
Port of Seattle, Washington, Revenue Bonds, Series 1992B:
$ 290,000 6.000%, 11/01/17 (Pre-refunded to 11/01/02) (Alternative Minimum Tax) 11/02 at 100 AA-*** $ 303,734
3,710,000 6.000%, 11/01/17 (Alternative Minimum Tax) 11/02 at 100 AA- 3,789,728
5,840,000 State of Washington, Certificates of Participation, Series 1991-A, 4/01 at 102 Aa2 6,037,567
State Office Building Project, 6.000%, 4/01/12
4,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/01 at 102 Aaa 4,254,800
Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17
(Pre-refunded to 7/01/01)
4,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/02 at 102 AAA 4,299,680
Refunding Revenue Bonds, Series 1992A, 6.500%, 7/01/15
(Pre-refunded to 7/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 4.3%
2,500,000 Berkeley County Building Commission (West Virginia), Hospital 11/02 at 102 BBB+ 2,592,650
Revenue Bonds (City Hospital Project), Series 1992, 6.500%, 11/01/09
3,000,000 Mason County, West Virginia, Pollution Control Revenue Bonds 10/02 at 102 BBB+ 3,107,520
(Appalachian Power Company Project), Series 1992J,
6.600%, 10/01/22
West Virginia School Building Authority, Capital Improvement Revenue
Bonds, Series 1992-A:
1,855,000 6.500%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 A*** 1,990,972
395,000 6.500%, 7/01/12 7/02 at 102 A 416,237
- -----------------------------------------------------------------------------------------------------------------------------------
$ 175,575,000 Total Investments - (cost $174,409,674) - 98.4% 185,214,804
============= -------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5%
$ 1,000,000 Illinois Health Facilities Authority, Variable Rate Demand Revenue VMIG-1 1,000,000
============= Bonds, Series 1998 (The University of Chicago Hospitals and
Health System), 3.950%, 8/01/26+
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,078,619
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $188,293,423
===================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC)
September 30, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 1.6%
$ 1,410,000 California Educational Facilities Authority, Refunding Revenue Bonds, 10/01 at 100 AAA $1,449,720
Series 1992 (Loyola Marymount University), 6.000%, 10/01/14
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 8.6%
2,500,000 California Health Facilities Financing Authority, Insured Hospital 10/02 at 102 AAA 2,661,075
Revenue Bonds (Scripps Memorial Hospitals), Series 1992A,
6.400%, 10/01/12
1,000,000 California Health Facilities Financing Authority, Insured Hospital 3/01 at 102 AAA 1,047,630
Revenue Bonds (Adventist Health System/West), 1991 Series B,
6.500%, 3/01/11
4,000,000 California Health Facilities Financing Authority, Insured Hospital 8/02 at 102 AAA 4,251,400
Revenue Bonds (San Diego Hospital Association), Series 1992B,
6.125%, 8/01/11
- -----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.8%
Golden West Schools Financing Authority (California), 1999
Revenue Bonds (School District General Obligation Refunding
Program), Series A:
4,650,000 0.000%, 8/01/16 No Opt. Call AAA 1,800,713
1,750,000 0.000%, 2/01/17 No Opt. Call AAA 653,328
2,375,000 0.000%, 8/01/17 No Opt. Call AAA 861,816
2,345,000 0.000%, 2/01/18 No Opt. Call AAA 819,742
Mountain View-Los Altos Union High School District (County of
Santa Clara, California), 1995 General Obligation Capital
Appreciation Bonds, Series C:
1,015,000 0.000%, 5/01/17 No Opt. Call AAA 376,149
1,080,000 0.000%, 5/01/18 No Opt. Call AAA 374,868
4,000,000 City of Oakland, Alameda County, California, General Obligation 6/02 at 102 AAA 4,144,400
Bonds, Series 1992, 6.000%, 6/15/17
- -----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.3%
3,500,000 State Public Works Board of the State of California, Lease No Opt. Call AAA 3,918,985
Revenue Bonds (Department of Corrections), Series 1991A
(State Prisons-Imperial County), 6.500%, 9/01/17
2,430,000 County of Los Angeles, Certificates of Participation 4/02 at 102 AAA 2,514,540
(Edmund D. Edelman Children's Court and Petersen Museum
Projects), 6.000%, 4/01/12
1,200,000 Los Angeles County Metropolitan Transportation Authority 7/03 at 102 AAA 1,202,220
(California), Proposition A, Sales Tax Revenue Refunding Bonds,
Series 1993-A, 5.625%, 7/01/18
4,000,000 San Bernardino County, California, Certificates of Participation 11/02 at 102 AAA 4,074,160
(1992 West Valley Detention Center Refinancing Project),
6.000%, 11/01/18
4,000,000 Walnut Public Financing Authority (Los Angeles County, California), 9/02 at 102 AAA 4,261,120
1992 Tax Allocation Revenue Bonds (Walnut Improvement Project),
6.500%, 9/01/22
- -----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.7%
3,675,000 Palm Springs Financing Authority, Palm Springs Regional Airport 1/02 at 102 AAA 3,789,072
Revenue Bonds, Series 1992, 6.000%, 1/01/12 (Alternative Minimum Tax)
3,750,000 Port of Oakland (California), Revenue Bonds, Series 1992-E, 11/02 at 102 AAA 3,969,338
6.500%, 11/01/16 (Alternative Minimum Tax)
2,095,000 Airports Commission of San Francisco City and County, California, 5/02 at 102 AAA 2,228,640
San Francisco International Airport, Second Series Refunding
Revenue Bonds, Issue 1, 6.300%, 5/01/11
820,000 Airports Commission of San Francisco City and County, California, 5/03 at 101 AAA 836,384
San Francisco International Airport, Second Series Refunding
Revenue Bonds, Issue 4, 6.200%, 5/01/20 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 32.3%
2,320,000 Brea Public Financing Authority (Orange County, California), 7/00 at 102 AAA 2,414,076
1991 Lease Revenue Bonds, Series A, 6.250%, 7/01/21
(Pre-refunded to 7/01/00)
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC) (continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 640,000 California Educational Facilities Authority, Refunding Revenue Bonds, 10/01 at 100 AAA $ 666,278
Series 1992 (Loyola Marymount University), 6.000%, 10/01/14
(Pre-refunded to 10/01/01)
4,000,000 The Community Redevelopment Agency of the City of Los Angeles, 7/02 at 102 AAA 4,289,960
California, Hollywood Redevelopment Project, Tax Allocation Bonds,
Series B, 6.100%, 7/01/22 (Pre-refunded to 7/01/02)
4,000,000 City of Los Angeles, California, Wastewater System Revenue Bonds, 6/02 at 102 AAA 4,299,000
Series 1992-B, 6.250%, 6/01/12 (Pre-refunded to 6/01/02)
1,500,000 Modesto Irrigation District Financing Authority, Domestic Water 9/02 at 102 AAA 1,612,905
Project Revenue Bonds, Series 1992A, 6.125%, 9/01/19
(Pre-refunded to 9/01/02)
Rio Linda Union School District (California), General Obligation Bonds,
Series 1992-A:
475,000 6.250%, 8/01/15 (Pre-refunded to 8/01/02) 8/02 at 102 AAA 512,022
3,310,000 6.375%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 102 AAA 3,578,938
3,500,000 Sacramento Municipal Utility District (California), Electric Revenue 8/02 at 102 AAA 3,787,210
Bonds, 1992 Series B, 6.375%, 8/15/22 (Pre-refunded to 8/15/02)
4,000,000 County of San Diego (California), Certificates of Participation 8/04 at 102 AAA 4,507,920
(1994 Inmate Reception Center and Cooling Plant Financing),
6.750%, 8/01/14 (Pre-refunded to 8/01/04)
1,405,000 Airports Commission of San Francisco City and County, California, 5/02 at 102 AAA 1,509,490
San Francisco International Airport, Second Series Refunding
Revenue Bonds, Issue 1, 6.300%, 5/01/11 (Pre-refunded to 5/01/02)
1,330,000 Airports Commission of San Francisco City and County, California, 5/03 at 102 AAA 1,443,117
San Francisco International Airport, Second Series Refunding
Revenue Bonds, Issue 4, 6.200%, 5/01/20 (Alternative Minimum Tax)
(Pre-refunded to 5/01/03)
1,000,000 Tulare County, California, Certificates of Participation 11/02 at 102 AAA 1,079,710
(1992 Financing Project), Series A, 6.125%, 11/15/12
(Pre-refunded to 11/15/02)
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5%
3,450,000 M-S-R Public Power Agency (California), San Juan Project Revenue 7/01 at 100 AAA 3,514,998
Bonds, Series 1991E, 6.000%, 7/01/22
2,430,000 Modesto Irrigation District, California, Certificates of Participation 10/01 at 100 AAA 2,528,342
(Refunding and Capital Improvements Project), Series 1991A,
6.000%, 10/01/21
3,000,000 Northern California Power Agency, Hydroelectric Project 7/02 at 102 AAA 3,179,700
Number One Revenue Bonds, 1992 Refunding Series A,
6.250%, 7/01/12
1,225,000 Turlock Irrigation District (California), Revenue Refunding Bonds, No Opt. Call AAA 1,353,846
Series 1992A, 6.250%, 1/01/12
- -----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.9%
4,000,000 Eastern Municipal Water District (Riverside County, California), 7/01 at 101 AAA 4,119,120
Water and Sewer Revenue Refunding Certificates of Participation,
Series 1991A, 6.300%, 7/01/20
1,250,000 Fairfield - Suisun Sewer District (Solano County, California), Sewer 5/01 at 102 AAA 1,299,021
Revenue Refunding Bonds, Series 1991A, 6.250%, 5/01/16
- -----------------------------------------------------------------------------------------------------------------------------------
$ 94,430,000 Total Investments - (cost $86,159,474) - 98.7% 90,930,953
============= -------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.9%
$ 800,000 California Statewide Communities Development Authority, Certificates VMIG-1 800,000
============= of Participation, St. Joseph Health System Obligated Group,
Variable Rate Demand Bonds, 3.500%, 7/01/24+
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.4% 391,516
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $92,122,469
===================================================================================================================
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.
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ Security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO (NXN)
September 30, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 20.3%
$ 1,000,000 New York City Industrial Development Agency, Civic Facility Revenue 11/04 at 102 AAA $1,071,780
Bonds (USTA National Tennis Center Incorporated Project),
6.375%, 11/15/14
570,000 Dormitory Authority of the State of New York, City University System No Opt. Call AAA 665,538
Consolidated, Second General Resolution Revenue Bonds,
Series 1990C, 7.500%, 7/01/10
1,370,000 Dormitory Authority of the State of New York, Siena College, 7/02 at 102 AAA 1,443,857
Insured Revenue Bonds, Series 1992, 6.000%, 7/01/11
2,050,000 Dormitory Authority of the State of New York, Ithaca College, 7/01 at 102 AAA 2,171,319
Revenue Bonds, 6.500%, 7/01/10
2,250,000 Dormitory Authority of the State of New York, New York University, 7/01 at 102 AAA 2,366,865
Insured Revenue Bonds, Series 1991, 6.250%, 7/01/09
1,100,000 Dormitory Authority of the State of New York, Mount Sinai School 7/01 at 102 AAA 1,162,282
of Medicine, Insured Revenue Bonds, Series 1991, 6.750%, 7/01/15
2,500,000 Dormitory Authority of the State of New York, Marist College, 7/02 at 102 AAA 2,589,950
Insured Revenue Bonds, Series 1992, 6.000%, 7/01/12
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 4.7%
2,500,000 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 2,642,850
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12
- -----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.8%
1,385,000 New Hartford Housing Development Corporation, Mortgage Revenue 7/02 at 100 AAA 1,443,156
Refunding Bonds, Series 1992-A (Village Point Project - FHA-Insured
Mortgage Loan, Section 8 Assisted Project), 7.375%, 1/01/24
1,245,000 New York State Housing Finance Agency, Insured Multifamily Housing 8/02 at 102 AAA 1,290,579
Mortgage Revenue Bonds, Series 1992C (FHA-Insured), 6.450%, 8/15/14
- -----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.9%
Town of Clarkstown, Rickland County, New York, Various Purposes Serial
Bonds of 1992:
505,000 5.600%, 6/15/10 No Opt. Call AAA 527,079
525,000 5.600%, 6/15/11 No Opt. Call AAA 545,769
525,000 5.600%, 6/15/12 No Opt. Call AAA 542,577
10,000 The City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 10,576
Fiscal 1992 Series C, 6.250%, 8/01/11
- -----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 4.8%
20,000 New York State Medical Care Facilities Finance Agency, 8/02 at 102 AAA 21,050
Mental Health Services Facilities Improvement Revenue Bonds,
1992 Series D, 6.100%, 8/15/13
140,000 New York State Medical Care Facilities Finance Agency, Mental 2/02 at 102 AAA 143,559
Health Services Facilities Improvement Revenue Bonds,
1992 Series B, 6.250%, 8/15/18
200,000 New York State Thruway Authority, Highway and Bridge Trust 4/05 at 102 AAA 190,360
Fund Bonds, Series 1995B, 5.125%, 4/01/15
2,250,000 Triborough Bridge and Tunnel Authority (New York), Special Obligation 1/01 at 102 AAA 2,351,790
Refunding Bonds, Series 1991A, 6.625%, 1/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.7%
2,500,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/05 at 101 AAA 2,657,350
Bonds, Ninety-Seventh Series, 6.500%, 7/15/19
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO (NXN) (continued)
September 30, 1999
(Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED - 42.5%
$ 3,500,000 Metropolitan Transportation Authority (New York), Commuter Facilities 7/02 at 102 AAA $3,744,475
Revenue Bonds, Series 1992B, 6.250%, 7/01/17
(Pre-refunded to 7/01/02)
2,250,000 Metropolitan Transportation Authority (New York), Transit Facilities 7/02 at 102 AAA 2,414,408
Revenue Bonds, Series J, 6.375%, 7/01/10 (Pre-refunded to 7/01/02)
245,000 The City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 261,364
Fiscal 1992 Series C, 6.250%, 8/01/11 (Pre-refunded to 8/01/02)
2,000,000 The City of New York, New York, General Obligation Bonds, 8/04 at 101 AAA 2,233,240
Fiscal 1994 Series B, 6.950%, 8/15/12 (Pre-refunded to 8/15/04)
1,000,000 New York City Municipal Water Finance Authority, Water and Sewer 6/02 at 101 1/2 AAA 1,063,360
System Revenue Bonds, Series 1992C, 6.200%, 6/15/21
(Pre-refunded to 6/15/02)
630,000 New York City Municipal Water Finance Authority, Water and 6/01 at 100 AAA 652,346
Sewer System Revenue Bonds, Fiscal 1992 Series A,
6.250%, 6/15/21 (Pre-refunded to 6/15/01)
1,560,000 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,860,144
Lease Revenue Bonds (Suffolk County Issue), Series 1986,
7.375%, 7/01/16
2,400,000 Dormitory Authority of the State of New York, Hamilton College, 7/01 at 102 AAA 2,542,032
Insured Revenue Bonds, Series 1991, 6.500%, 7/01/21
(Pre-refunded to 7/01/01)
1,965,000 New York State Medical Care Facilities Finance Agency, 2/02 at 102 AAA 2,088,795
Mental Health Services Facilities Improvement Revenue Bonds,
1992 Series B, 6.250%, 8/15/18 (Pre-refunded to 2/15/02)
2,500,000 New York State Medical Care Facilities Finance Agency, New York 2/05 at 102 AAA 2,793,025
Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A,
6.750%, 8/15/14 (Pre-refunded to 2/15/05)
230,000 New York State Medical Care Facilities Finance Agency, 8/02 at 102 AAA 245,419
Mental Health Services Facilities Improvement Revenue Bonds,
1992 Series D, 6.100%, 8/15/13 (Pre-refunded to 8/15/02)
1,500,000 New York State Thruway Authority, General Revenue Bonds, 1/02 at 100 AAA 1,541,550
Series A, 5.500%, 1/01/23 (Pre-refunded to 1/01/02)
2,000,000 New York State Thruway Authority, Local Highway and Bridge 4/02 at 102 AAA 2,101,480
Service Contract Bonds, Series 1992, 6.000%, 4/01/10
(Pre-refunded to 4/01/02)
485,000 Suffolk County Water Authority (New York), Waterworks Revenue No Opt. Call AAA 545,494
Bonds, Series 1986-V, 6.750%, 6/01/12
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.5%
1,945,000 New York State Power Authority, General Purpose Bonds, 1/02 at 102 AAA 1,993,158
Series 1992 AA, 6.250%, 1/01/23
- -----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.8%
4,900,000 New York City Municipal Water Finance Authority, Water and 6/02 at 101 1/2 AAA 4,908,526
Sewer System Revenue Bonds, Fiscal 1993 Series A,
5.750%, 6/15/18
620,000 New York City Municipal Water Finance Authority, Water and 6/01 at 100 AAA 635,462
Sewer System Revenue Bonds, Fiscal 1992 Series A, 6.250%, 6/15/21
- -----------------------------------------------------------------------------------------------------------------------------------
$ 52,375,000 Total Investments - (cost $52,255,369) - 98.0% 55,462,564
============= -------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 1,120,499
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $56,583,063
===================================================================================================================
All of the bonds in the portfolio 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.
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
September 30, 1999
(Unaudited)
<CAPTION>
INSURED CALIFORNIAINSURED NEW YORK
SELECT TAX-FREE SELECT TAX-FREE 2 SELECT TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in municipal securities,
at market value (note 1) $243,306,501 $258,748,716 $185,214,804 $90,930,953 $55,462,564
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) -- 1,500,000 1,000,000 800,000 --
Cash 514,688 598,837 -- -- 624,615
Receivables:
Interest 5,132,323 4,692,188 3,113,461 1,406,112 803,147
Investments sold 180,000 -- -- -- --
Other assets 22,592 24,614 19,272 11,315 8,802
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 249,156,104 265,564,355 189,347,537 93,148,380 56,899,128
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 35,697 532,871 --
Accrued expenses:
Surveillance and administration fees (note 6) 49,544 63,425 45,699 22,650 13,918
Other 135,512 116,784 91,157 57,423 48,187
Dividends payable 1,228,357 1,276,510 881,561 412,967 253,960
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,413,413 1,456,719 1,054,114 1,025,911 316,065
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $247,742,691 $264,107,636 $188,293,423 $92,122,469 $56,583,063
====================================================================================================================================
Shares outstanding 16,378,097 17,607,068 12,964,123 6,257,068 3,907,068
====================================================================================================================================
Net asset value per share outstanding
(net assets divided by shares outstanding) $ 15.13 $ 15.00 $ 14.52 $ 14.72 $ 14.48
====================================================================================================================================
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1999
(Unaudited)
<CAPTION>
INSURED CALIFORNIAINSURED NEW YORK
SELECT TAX-FREE SELECT TAX-FREE 2 SELECT TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income (note 1) $ 7,841,677 $ 8,213,368 $ 5,704,036 $ 2,686,914 $ 1,660,212
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Surveillance and administration fees (note 6) 305,664 391,056 282,593 140,459 86,044
Shareholders' servicing agent fees and expenses 24,408 23,443 18,177 6,553 4,425
Custodian's fees and expenses 27,922 27,878 25,761 19,548 19,946
Trustees' fees and expenses (note 6) 10,074 10,660 7,574 3,713 2,278
Professional fees 8,189 8,212 8,094 7,355 7,304
Shareholders' reports - printing and mailing expenses 47,310 47,789 35,140 15,207 11,891
Stock exchange listing fees 12,164 12,164 12,164 8,107 8,107
Investor relations expense 12,071 12,420 9,063 3,894 2,564
Other expenses 3,271 3,363 3,123 1,851 1,537
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 451,073 536,985 401,689 206,687 144,096
Custodian fee credit (note 1) (1,065) (485) (1,587) (1,482) (3,304)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 450,008 536,500 400,102 205,205 140,792
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,391,669 7,676,868 5,303,934 2,481,709 1,519,420
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss)
from investment
transactions (notes 1 and 4) (518) 162 (1,274) 332,845 (342)
Net change in unrealized appreciation
or depreciation of investments (6,912,987) (7,150,089) (5,884,559) (3,715,365) (1,714,990)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (6,913,505) (7,149,927) (5,885,833) (3,382,520) (1,715,332)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations $ 478,164 $ 526,941 $ (581,899) $ (900,811) $ (195,912)
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
SELECT TAX-FREE SELECT TAX-FREE 2 SELECT TAX-FREE 3
--------------------------------- ---------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
9/30/99 3/31/99 9/30/99 3/31/99 9/30/99 3/31/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 7,391,669 $ 14,802,566 $ 7,676,868 $ 15,377,663 $ 5,303,934 $ 10,608,937
Net realized gain (loss)
from investment
transactions (notes 1 and 4) (518) 50,661 162 1,568 (1,274) --
Net change in unrealized appreciation
or depreciation of investments (6,912,987) (1,343,004) (7,150,089) (572,900) (5,884,559) 325,764
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 478,164 13,510,223 526,941 14,806,331 (581,899) 10,934,701
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM UNDISTRIBUTED NET
INVESTMENT INCOME (NOTE 1) (7,370,148) (14,740,297) (7,659,077) (15,318,159) (5,289,362) (10,669,473)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets (6,891,984) (1,230,074) (7,132,136) (511,828) (5,871,261) 265,228
Net assets at the
beginning of period 254,634,675 255,864,749 271,239,772 271,751,600 194,164,684 193,899,456
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $247,742,691 $254,634,675 $264,107,636 $271,239,772 $188,293,423 $194,164,684
===================================================================================================================================
Balance of undistributed net
investment income at
the end of period $ 216,460 $ 194,939 $ 125,237 $ 107,446 $ 58,125 $ 43,553
===================================================================================================================================
<CAPTION>
INSURED CALIFORNIA SELECT TAX-FREE INSURED NEW YORK SELECT TAX-FREE
---------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
9/30/99 3/31/99 9/30/99 3/31/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,481,709 $ 4,968,932 $ 1,519,420 $ 3,036,887
Net realized gain (loss) from investment transactions
(notes 1 and 4) 332,845 102,624 (342) (639)
Net change in unrealized appreciation or
depreciation of investments (3,715,365) 220,687 (1,714,990) 63,716
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (900,811) 5,292,243 (195,912) 3,099,964
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM UNDISTRIBUTED NET
INVESTMENT INCOME (NOTE 1) (2,477,798) (4,955,598) (1,523,855) (3,047,515)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (3,378,609) 336,645 (1,719,767) 52,449
Net assets at the beginning of period 95,501,078 95,164,433 58,302,830 58,250,381
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $92,122,469 $95,501,078 $56,583,063 $58,302,830
===================================================================================================================================
Balance of undistributed net investment income at the end of period $ 26,744 $ 22,833 $ 67,058 $ 71,493
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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.
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 no 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.
Securities Valuation
The prices of municipal bonds in each investment portfolio are provided by a
pricing service approved by the Trust'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 valued at amortized
cost, which approximates market value.
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 have extended settlement periods. 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 the when-issued and delayed delivery purchase commitments. At
September 30, 1999, there were no such outstanding purchase commitments in any
of the Trusts.
Investment 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
Each Trust is a separate taxpayer for federal income tax purposes. Each Trust
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its 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 Insured California
Select Tax-Free and from New York state income taxes for Insured New York Select
Tax-Free, to retain such tax-exempt status when distributed to shareholders of
the Trusts.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount 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
Insured California Select Tax-Free and Insured New York Select Tax-Free 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.
Derivative Financial Instruments
The Trusts are not authorized to invest in derivative financial instruments.
Custodian Fee Credit
Each Trust has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Trust's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
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. Actual results may differ
from those estimates.
2. TRUST SHARES
There were no share transactions during the six months ended September 30, 1999,
nor during the fiscal year ended March 31, 1999, in any of the Trusts.
3. DISTRIBUTIONS TO SHAREHOLDERS
The Trusts declared dividend distributions from their tax-exempt net investment
income which were paid November 1, 1999, to shareholders of record on October
15, 1999, as follows:
<TABLE>
<CAPTION>
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dividend per share $.0750 $.0725 $.0680 $.0660 $.0650
=========================================================================================================
</TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the six months ended
September 30, 1999, were as follows:
<TABLE>
<CAPTION>
Insured Insured
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $ -- $ -- $ -- $2,702,084 $ --
Short-term municipal securities 3,500,000 7,100,000 4,000,000 6,200,000 4,000,000
Sales and maturities:
Long-term municipal securities 865,000 1,295,000 195,000 4,891,579 10,000
Short-term municipal securities 3,500,000 6,600,000 4,200,000 6,100,000 4,000,000
=========================================================================================================
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
At September 30, 1999, 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, 1999, the Trusts' last fiscal year end, the Trusts had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
<TABLE>
<CAPTION>
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Expiration year:
2001 $ -- $ -- $ 200,114 $193,438 $618,333
2002 -- -- 15,243 -- 432
2003 -- -- -- -- 1,954
2004 79,117 -- 170,137 -- 321,550
2005 31,707 44,455 674,505 -- 1,480
2006 24,357 44,578 3,603 -- 828
2007 -- -- -- -- 933
- ---------------------------------------------------------------------------------------------------------
Total $135,181 $89,033 $1,063,602 $193,438 $945,510
=========================================================================================================
</TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at September 30, 1999, were as follows:
<TABLE>
<CAPTION>
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gross unrealized:
appreciation $20,096,645 $18,451,174 $10,815,217 $5,371,404 $3,208,665
depreciation (225,263) (237,555) (10,087) (599,925) (1,470)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $19,871,382 $18,213,619 $10,805,130 $4,771,479 $3,207,195
=========================================================================================================
</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 assets of each
Trust as follows:
<TABLE>
<CAPTION>
SELECT TAX-FREE 2
SELECT TAX-FREE 3
INSURED CALIFORNIA SELECT TAX-FREE
AVERAGE DAILY NET ASSETS SELECT TAX-FREE INSURED NEW YORK SELECT TAX-FREE
- ----------------------------------------------------------------------------------------------
<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 of its 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 or its affiliates.
<PAGE>
7. COMPOSITION OF NET ASSETS
At September 30, 1999, each Trust had an unlimited number of $.01 par value
shares of beneficial interest authorized. Net assets consisted of:
<TABLE>
<CAPTION>
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Capital paid-in $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,071
Paid-in surplus 227,625,305 245,680,398 178,364,129 87,122,268 54,215,788
Balance of undistributed
net investment income 216,460 125,237 58,125 26,744 67,058
Accumulated net realized gain (loss)
from investment transactions (134,237) (87,689) (1,063,602) 139,407 (946,049)
Net unrealized appreciation
of investments 19,871,382 18,213,619 10,805,130 4,771,479 3,207,195
- ---------------------------------------------------------------------------------------------------------
Net assets $247,742,691 $264,107,636 $188,293,423 $92,122,469 $56,583,063
=========================================================================================================
</TABLE>
8. INVESTMENT COMPOSITION
At September 30, 1999, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<CAPTION>
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Basic Materials 2% 3% --% --% --%
Education and Civic Organizations 2 6 3 1 21
Health Care 9 8 8 9 5
Housing/Multifamily 9 9 10 -- 5
Housing/Single Family 7 7 4 -- --
Tax Obligation/General 6 1 3 10 3
Tax Obligation/Limited 9 7 4 17 5
Transportation 8 6 11 12 5
U.S. Guaranteed 47 48 40 33 43
Utilities -- -- 11 12 3
Water and Sewer 1 3 6 6 10
Other -- 2 -- -- --
- ---------------------------------------------------------------------------------------------------------
100% 100% 100% 100% 100%
=========================================================================================================
</TABLE>
Certain long-term and intermediate-term investments owned by the Trusts are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. government or U.S. government agency securities,
either of which ensure the timely payment of principal and interest in the event
of default (53% for Select Tax-Free, 61% for Select Tax-Free 2, 48% for Select
Tax-Free 3, 100% for Insured California Select Tax-Free, and 100% for Insured
New York Select Tax-Free). Such insurance or escrow, however, does not guarantee
the market value of the municipal securities or the value of any of the Trusts'
shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Trust.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected data for a share outstanding throughout each period:
<CAPTION>
INVESTMENT OPERATIONS
-----------------------------------------
NET
REALIZED/
BEGINNING NET UNREALIZED
NET ASSET INVESTMENT INVESTMENT
VALUE INCOME GAIN (LOSS) TOTAL
SELECT TAX-FREE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Year Ended 3/31:
2000(a) $15.55 $.45 $(.42) $ .03
1999 15.62 .90 (.07) .83
1998 15.15 .90 .47 1.37
1997 15.07 .90 .10 1.00
1996 14.71 .91 .39 1.30
1995 14.68 .91 .11 1.02
<CAPTION>
SELECT TAX-FREE 2
<S> <C> <C> <C> <C>
Year Ended 3/31:
2000(a) 15.41 .44 (.41) .03
1999 15.43 .87 (.02) .85
1998 14.95 .88 .49 1.37
1997 14.92 .88 .04 .92
1996 14.57 .88 .38 1.26
1995 14.55 .89 .04 .93
<CAPTION>
SELECT TAX-FREE 3
<S> <C> <C> <C> <C>
Year ended 3/31:
2000(a) 14.98 .41 (.46) (.05)
1999 14.96 .82 .02 .84
1998 14.35 .82 .62 1.44
1997 14.23 .82 .13 .95
1996 13.90 .83 .34 1.17
1995 13.83 .80 .11 .91
<CAPTION>
INSURED CALIFORNIA
SELECT TAX-FREE
<S> <C> <C> <C> <C>
Year ended 3/31:
2000(a) 15.26 .40 (.54) (.14)
1999 15.21 .79 .05 .84
1998 14.53 .79 .69 1.48
1997 14.42 .80 .11 .91
1996 14.16 .80 .27 1.07
1995 13.92 .80 .26 1.06
<CAPTION>
INSURED NEW YORK
SELECT TAX-FREE
<S> <C> <C> <C> <C>
YEAR ENDED 3/31:
2000(a) 14.92 .39 (.44) (.05)
1999 14.91 .78 .01 .79
1998 14.28 .78 .63 1.41
1997 14.25 .78 .03 .81
1996 14.04 .78 .21 .99
1995 13.86 .77 .19 .96
<PAGE>
<CAPTION>
LESS DISTRIBUTIONS TOTAL RETURNS
---------------------------------- ----------------------
ENDING ENDING
NET NET ENDING BASED ON NET
INVESTMENT CAPITAL ASSET MARKET MARKET ASSET
INCOME GAINS TOTAL VALUE VALUE VALUE** VALUE**
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
SELECT TAX-FREE
Year Ended 3/31:
2000(a) $(.45) $-- $(.45) $15.13 $14.4375 (9.22)% .20%
1999 (.90) -- (.90) 15.55 16.3750 9.02 5.43
1998 (.90) -- (.90) 15.62 15.8750 14.06 9.24
1997 (.92) -- (.92) 15.15 14.7500 4.58 6.79
1996 (.94) -- (.94) 15.07 15.0000 9.14 8.97
1995 (.95) (.04) (.99) 14.71 14.6250 9.14 7.38
<CAPTION>
SELECT TAX-FREE 2
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2000(a) (.44) -- (.44) 15.00 14.0000 (9.21) .17
1999 (.87) -- (.87) 15.41 15.8750 9.51 5.63
1998 (.89) -- (.89) 15.43 15.3125 14.92 9.34
1997 (.89) -- (.89) 14.95 14.1250 .93 6.34
1996 (.91) -- (.91) 14.92 14.8750 13.02 8.79
1995 (.91) -- (.91) 14.57 14.0000 8.84 6.74
<CAPTION>
SELECT TAX-FREE 3
<S> <C> <C> <C> <C> <C> <C> <C>
Year ended 3/31:
2000(a) (.41) -- (.41) 14.52 13.0625 (11.84) (.35)
1999 (.82) -- (.82) 14.98 15.2500 7.78 5.76
1998 (.83) -- (.83) 14.96 14.9375 19.38 10.24
1997 (.83) -- (.83) 14.35 13.2500 3.30 6.85
1996 (.84) -- (.84) 14.23 13.6250 11.41 8.56
1995 (.84) -- (.84) 13.90 13.0000 2.82 6.97
<CAPTION>
INSURED CALIFORNIA
SELECT TAX-FREE
<S> <C> <C> <C> <C> <C> <C> <C>
Year ended 3/31:
2000(a) (.40) -- (.40) 14.72 14.1875 (7.55) (.95)
1999 (.79) -- (.79) 15.26 15.7500 8.22 5.65
1998 (.80) -- (.80) 15.21 15.3125 16.52 10.41
1997 (.80) -- (.80) 14.53 13.8750 3.06 6.46
1996 (.81) -- (.81) 14.42 14.2500 9.80 7.67
1995 (.82) -- (.82) 14.16 13.7500 4.47 7.97
<CAPTION>
INSURED NEW YORK
SELECT TAX-FREE
<S> <C> <C> <C> <C> <C> <C> <C>
Year ended 3/31:
2000(a) (.39) -- (.39) 14.48 13.6250 (7.45) (.34)
1999 (.78) -- (.78) 14.92 15.1250 6.14 5.40
1998 (.78) -- (.78) 14.91 15.0000 18.31 10.07
1997 (.78) -- (.78) 14.28 13.3750 4.91 5.79
1996 (.78) -- (.78) 14.25 13.5000 8.94 7.13
1995 (.78) -- (.78) 14.04 13.1250 3.43 7.28
- --------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------
BEFORE CREDIT AFTER CREDIT***
------------------------------- --------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
NET EXPENSES TO INCOME TO EXPENSES TO INCOME TO PORTFOLIO
ASSETS AVERAGE AVERAGE AVERAGE AVERAGE TURNOVER
(000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SELECT TAX-FREE
Year Ended 3/31:
2000(a) $247,743 .35%* 5.80%* .35%* 5.80%* --%
1999 254,635 .36 5.78 .36 5.78 1
1998 255,865 .36 5.83 .36 5.83 1
1997 248,092 .39 5.97 .39 5.97 1
1996 246,858 .36 6.02 .36 6.02 1
1995 240,890 .37 6.32 .37 6.32 17
<CAPTION>
SELECT TAX-FREE 2
<S> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2000(a) 264,108 .40* 5.66* .40* 5.66* --
1999 271,240 .40 5.65 .40 5.65 1
1998 271,752 .40 5.72 .40 5.72 --
1997 263,176 .42 5.86 .42 5.86 2
1996 262,768 .42 5.89 .42 5.89 1
1995 256,548 .41 6.22 .41 6.22 12
<CAPTION>
SELECT TAX-FREE 3
<S> <C> <C> <C> <C> <C> <C>
Year ended 3/31:
2000(a) 188,293 .41* 5.47* .41* 5.47* --
1999 194,165 .42 5.45 .42 5.45 --
1998 193,899 .42 5.56 .42 5.56 --
1997 186,065 .44 5.74 .44 5.74 5
1996 184,464 .44 5.79 .44 5.79 4
1995 180,226 .51 6.09 .51 6.09 7
<CAPTION>
INSURED CALIFORNIA
SELECT TAX-FREE
<S> <C> <C> <C> <C> <C> <C>
Year ended 3/31:
2000(a) 92,122 .43* 5.22* .43* 5.22* 3
1999 95,501 .44 5.20 .44 5.20 1
1998 95,164 .44 5.31 .44 5.31 --
1997 90,894 .45 5.47 .45 5.47 --
1996 90,223 .44 5.50 .44 5.50 --
1995 88,586 .48 5.77 .48 5.77 7
<CAPTION>
INSURED NEW YORK
SELECT TAX-FREE
<S> <C> <C> <C> <C> <C> <C>
Year ended 3/31:
2000(a) 56,583 .49* 5.21* .48* 5.22* --
1999 58,303 .49 5.19 .49 5.19 --
1998 58,250 .49 5.30 .49 5.30 --
1997 55,782 .51 5.42 .51 5.42 --
1996 55,682 .48 5.44 .48 5.44 --
1995 54,855 .57 5.63 .57 5.63 14
- --------------------------------------------------------------------------------------------------------------------------------
* 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. Total
returns are not annualized.
*** After custodian fee credit, where applicable (note 1).
(a) For the six months ended September 30, 1999.
</TABLE>
<PAGE>
BUILD YOUR WEALTH AUTOMATICALLY
sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
Dollar-cost averaging does not ensure a profit, nor does it protect you against
a loss in a declining market. To be effective, dollar-cost averaging may require
you to invest over a long period of time.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
<PAGE>
FUND INFORMATION
BOARD OF TRUSTEES
James E. Bacon
Jack B. Evans
William T. Kissick
Thomas E. Leafstrand
Timothy R. Schwertfeger
Shelia W. Wellington
FUND MANAGER
Nuveen Institutional Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Custodian, Transfer Agent
and Shareholder Services
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
YEAR 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, we have updated or replaced our trading, fund
management, and pricing systems at Nuveen - systems that directly affect our
investors and their financial advisers - to address Year 2000 concerns.
We continue to work closely with our transfer agent, custodian, firms through
whom we buy and sell portfolio securities, and other service partners to monitor
the Year 2000 readiness of their systems, while addressing other remaining
systems issues.
In addition, the Funds hold securities of issuers whose business operations
leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's
Year 2000 readiness as part of our initial and ongoing research of these
issuers. This is only one of the many factors considered in determining whether
to buy, sell, or continue holding a particular security.
Our Year 2000 review, repair, and testing program has been substantially
completed. This program included industry-wide testing of critical systems and
receipt of satisfactory assurances from critical service providers, vendors, and
issuers regarding their Year 2000 readiness. We will continue more refined
testing of our systems and their relationships with other parties' systems and
will regularly discuss the results of this testing with those parties. We are
also making Year 2000 contingency plans to guide recovery efforts in the event
that, despite our remediation attempts, Year 2000 issues adversely affect the
Funds. Although we can never have complete assurance that the steps we take will
be sufficient to prevent any problems that would impact the Nuveen
Exchange-Traded Funds, we can assure you that we will take all reasonable steps
to prevent disruption of the services provided by your Fund.
FUND POLICIES
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund. The Fund was formerly not permitted to invest more than 5% of its
total assets in Municipal Leases that contain "non-appropriation" clauses. In
addition, your Fund was not permitted to invest more than 10% of its total
assets in Municipal Leases and securities that are unmarketable, illiquid or not
readily marketable. The Municipal Lease market has matured since the Fund's
inception, and non-appropriation leases have become more liquid and widely
accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions
noted above, replacing them with requirements that the Funds limit investments
in non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 6-month period ended September 30, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
SERVING INVESTORS FOR GENERATIONS
Photo of:John Nuveen, Sr.
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
LOGO:
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
PSA-1-9-99
