Semiannual Report September 30, 2000
[LOGO]
Nuveen Investments
Municipal Closed-End Exchange-Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
Select Portfolios
NXP
NXQ
NXR
NXC
NXN
[2 PHOTOS OF MAN AND CHILD]
Invest well. Look ahead. LEAVE YOUR MARK.(SM)
<PAGE>
Credit Quality
HIGHLIGHTS As of September 30, 2000
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 Shareholders Meeting Report
12 Portfolio of Investments
28 Statement of Net Assets
29 Statement of Operations
30 Statement of Changes in Net Assets
32 Notes to Financial Statements
37 Financial Highlights
40 Build Your Wealth Automatically
41 Fund Information
Nuveen Select Tax-Free Income Portfolio (NXP)
[PIE CHART HERE]
AAA/U.S. Guaranteed 60%
AA 8%
A 26%
BBB 6%
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
[PIE CHART HERE]
AAA/U.S. Guaranteed 61%
AA 16%
A 11%
BBB 12%
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
[PIE CHART HERE]
AAA/U.S. Guaranteed 53%
AA 25%
A 15%
BBB 7%
Nuveen Insured California Select Tax-Free Income Portfolio (NXC)
[PIE CHART HERE]
Insured 70%
Insured &
U.S. Guaranteed 30%
Nuveen Insured New York Select Tax-Free Income Portfolio (NXN)
[PIE CHART HERE]
Insured 57%
Insured &
U.S. Guaranteed 39%
U.S. Guaranteed 4%
--------------------------------------------------------------------------------
Compound Your Wealth - Automatically
All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital
gains directly into additional shares of your Fund. This is a great way to see
your investment grow through the power of compounding.
For more information about Dividend Reinvestment, see the last page of this
report or speak with your financial advisor.
--------------------------------------------------------------------------------
<PAGE>
[PHOTO OF TIMOTHY R. SCHWERTFEGER]
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text:
"Building and sustaining wealth requires sound, ongoing advice."
Dear
SHAREHOLDER
The primary objective of your Nuveen Select Tax-Free Income Portfolio is to
provide dependable, attractive dividends free from federal income taxes, and,
for the state Portfolios, from state income taxes as well. I am very happy to
report that your Portfolio continued to achieve this goal during the period
covered by this report. For more specifics on this performance, I encourage you
to read the Portfolio Manager's Comments and Performance Overview pages that
follow this letter.
We believe that your Nuveen Select Portfolio, as an income-oriented investment,
is well positioned to be a core element of your long-term investment program.
With the help of your financial advisor, all of us at Nuveen Investments are
dedicated to providing the services, products, perspectives, and solutions that
you need to help you meet your personal and family financial goals.
New Ways to Think About Wealth
Over the past few years, much attention has been directed toward the ways
investors are accumulating wealth. At Nuveen, we believe it is equally important
for investors to focus on preserving that wealth, on the responsibilities that
accompany wealth, and on the legacies we will leave for future generations.
This long-term perspective is key to understanding our portfolio management
strategies, our insistence on quality, and our determination to provide
investments that can withstand the test of time. It is a philosophy that we
think is well encapsulated in our brand theme: Invest Well. Look Ahead. Leave
Your Mark.
Invest Well
Building and sustaining the wealth that can result in lasting legacies requires
a well-developed plan, sound ongoing advice, and the discipline to remain
focused on long-term results. With today's abundance of investment products and
offers, it also increasingly requires an experienced and trusted advisor who can
guide you through the opportunities and the pitfalls. With so much potentially
at stake, Nuveen Investments is dedicated to delivering quality products like
your Nuveen Portfolio through the financial advisors who assist you in making
wise investment choices and help you manage your most important financial
assets.
<PAGE>
Sidebar text: "We believe your Nuveen Select Portfolio is well positioned to be
a core element of your long-term investment program."
Look Ahead
We urge all our investors to look ahead, not only toward their own goals and
futures, but those of future generations as well. We now stand on the threshold
of a new century, anticipating a time of change, discovery, and potential that
may one day make the year 2000 seem as archaic as the year 1900. While we cannot
know all that the future will bring, we do know that a well-diversified,
carefully monitored investment program that combines elements of growth, income,
and capital preservation forms a solid foundation that can help us meet whatever
opportunities and challenges the new century has to offer.
Leave Your Mark
With the enormous wealth creation of the past decade and the considerable
intergenerational transfer of wealth that is expected to occur over the next 20
years, investors today have a significant opportunity to shape the financial
future for themselves and their families. These opportunities may include
establishing trusts, endowments, or legacies that can directly affect our
families and communities for generations to come. We at Nuveen Investments are
committed to facilitating and raising the level of dialogue between investors
and their financial advisors in ways that help meet goals that extend far beyond
the boundaries of a single life span.
Since 1898, the name Nuveen has been synonymous with quality investments,
careful research and prudent management. Today, more than ever, the investments
and services we offer through financial advisors are designed to be well suited
to those who recognize and embrace the need for building and managing wealth. We
encourage you to speak with your financial advisor about how you can enhance
your investment program in ways that can help you Invest Well, Look Ahead, and
Leave Your Mark.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 16, 2000
<PAGE>
Nuveen Select Portfolios: NXP, NXQ, NXR, NXC, NXN
Portfolio Manager's COMMENTS
Portfolio manager Tom Spalding examines events in the U.S. economy, the impact
on the municipal market and recent portfolio performance, and the outlook for
the Nuveen Select Portfolios. With 24 years of experience as an investment
professional at Nuveen, Tom assumed portfolio management responsibility for the
Nuveen Select Portfolios in 1999.
WHAT FACTORS AFFECTED THE ECONOMY OVER THE PAST 12 MONTHS?
The U.S. is now well into its tenth year of uninterrupted economic expansion,
the longest continuous expansion in the nation's history. The rapid pace of this
growth remained of great concern to the Federal Reserve, which raised the fed
funds rate to 6.50% by May 2000 in an effort to restrain inflationary pressures.
The Fed has signaled its willingness to continue tightening as long as it
perceives an inflation risk. This has created some investor uncertainty, helped
make the equity markets increasingly volatile, and depressed bond prices which
pushed yields higher.
In recent months, however, economic reports have begun to suggest that the Fed's
tightening strategy may be having the desired effect of slowing the economy.
Although it is too soon to conclude that the risk of inflation is over, we see
signs that further Fed tightening may be on hold until at least late 2000 and
even may have reached its end.
Since two of our Select Portfolios are state-specific, we also should mention
that California and New York, which represent the two largest state economies in
the nation in terms of gross domestic product, continued to turn in solid
overall economic performance. Recently, however, we have seen some signs of
moderate slowing, particularly in California's technology sector and New York's
financial services industry. These slowdowns were reflected in lower employment
growth numbers in recent months. As of September 2000, the unemployment rates in
California and New York were 5.1% and 4.5%, respectively, compared with the
national average of 3.9%, which marked a 30-year low.
HOW HAVE THESE ECONOMIC CONDITIONS IMPACTED THE MUNICIPAL MARKET?
Over the past year, the Fed's tightening agenda dominated events in the
fixed-income markets, including the municipal market. As the Fed's series of
interest rate hikes pushed municipal yields higher, municipal bond prices
underwent a corresponding drop. In addition, the U.S. Treasury announced that,
for the first time in 70 years, it would buy back up to $30 billion of
government debt in 2000 and reduce additional new issuance of certain
maturities. While the possibility of decreased supply in the Treasury market
helped to support the prices of these securities, municipal bonds were
unaffected by the repurchase policy and felt the full effects of market forces.
More recently, the combination of encouraging economic reports, the Fed's
stand-pat approach to additional rate increases, tight municipal supply, and
generally favorable technicals prompted a shift in market outlook, rallying the
municipal market and boosting the prices of many bonds. Over the 12 months ended
September 2000, long-term municipal yields nationally fell approximately 10
basis points, while 30-year Treasury yields dropped almost 40 basis points. This
resulted in long-term municipal yields that were approximately 101% of 30-year
Treasury yields as of September 30, 2000, compared with the historical average
of 86% for the period 1986-1999.
During the first nine months of 2000, new municipal issuance nationwide totaled
$138 billion, down approximately 18% from 1999 levels. If national issuance
continues at this rate during the remainder of 2000, the supply of municipal
bonds could finish the year at its lowest level since 1995. California and New
York also saw declining issuance during this period, with
<PAGE>
California supply down 27% from 1999 and New York down 6%. The drop in both
state and national supply continued the trend begun last year, as rising
interest rates deterred municipalities from refinancing old debt. In addition,
increased tax revenues have enabled state and local governments to build reserve
levels and finance more projects using pay-as-you-go funding, rather than
issuing additional debt.
Nationally, the decline in supply helped to offset some of the negative impact
that higher interest rates and equity market activity had on the demand for
municipal bonds and, ultimately, on bond prices. Over the past six months,
demand from individual investors looking for diversification and income has
improved, with insured bonds and high-quality general obligation, essential
services revenue, and noncallable bonds in greatest demand. This provided
support for a municipal market experiencing a decline in demand from
institutional investors, particularly mutual and money market funds. In
California and New York, however, demand for in-state bonds remained strong, due
to increased individual wealth and the high level of state taxes.
Overall, the economic prosperity of the past decade benefited the balance sheets
of many states and municipalities, as credit upgrades continued to out-number
downgrades by a margin of four to one in the third quarter of 2000. In
September, Moody's and Standard & Poor's upgraded the credit rating for
California's general obligation debt to Aa2 and AA from Aa3 and AA-,
respectively. These two upgrades followed Fitch's February upgrade of the
state's General Obligation debt to AA from AA-. All three major rating agencies
also recently upgraded the credit quality rating for New York City's general
obligation debt to A2/A/A+ from A3/A-/A. The ratings for New York state-issued
bonds remained A2/A+/A+.
HOW DID THE NUVEEN SELECT PORTFOLIOS PERFORM OVER THE PAST YEAR?
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 of 25 years, with a liquidation date of 2017. Over the past year,
the Portfolios continued to meet the investment objectives established at their
inception.
For the 12 months ended September 30, 2000, the Nuveen Select Portfolios
produced total returns on net asset value (NAV) as shown in the accompanying
table. The annual returns for the appropriate Lehman Brothers bond indexes1 and
Lipper peer groups2 are also presented. Shareholders should note that
comparisons with Lipper averages should be viewed in the context of the fact
that Nuveen manages 14 (or 42%) of the 33 funds that make up the three peer
groups represented here. In addition, because of the Nuveen Select Portfolios'
unique structure, they tend to move as a group in terms of performance, making
comparisons between their returns and that of their Lipper peer groups less
meaningful.
TOTAL LEHMAN
RETURN TOTAL LIPPER
MARKET YIELD ON NAV RETURN1 AVERAGE2
-------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
9/30/00 EQUIVALENT3 9/30/00 9/30/00 9/30/00
-------------------------------------------------------------------------
NXP 6.21% 9.00% 4.53% 6.17% 5.28%
-------------------------------------------------------------------------
NXQ 6.24% 9.04% 4.22% 6.17% 5.28%
-------------------------------------------------------------------------
NXR 6.13% 8.88% 4.54% 6.17% 5.28%
-------------------------------------------------------------------------
NXC 5.49% 8.78% 5.10% 7.83% 8.02%
-------------------------------------------------------------------------
NXN 5.89% 9.13% 4.49% 6.56% 5.91%
-------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
In recent months, as inflation fears diminished and the Fed appeared to be
considering an end to its current tightening cycle, the municipal market began
to show signs of recovery. This is reflected in the total returns on NAV listed
above, which show substantial improvement over the performance results in the
Portfolios' annual report. However, the Nuveen Select Portfolios' ability to
participate fully in the recent market recovery was impacted by their unique
portfolio structure, including their holdings of relatively high-coupon bonds
with shorter durations. Duration is a measure of a portfolio's NAV volatility in
reaction to interest rate movements. Over the past 12 months, the durations of
all five Portfolios shortened, a natural byproduct of the aging of these
Portfolios as well as the passive approach we use in managing them. As of
September 30, 2000, the average durations of the national Portfolios ranged from
2.63 to 3.08, compared with the Lehman Brothers Municipal Bond Index's 7.47. The
average duration of NXC was 3.13, compared with the Lehman California Insured
Tax-Exempt Bond Index's 8.81, while NXN had a duration of 2.53, compared with
8.26 for the Lehman New York Insured Tax-Exempt Bond Index. In the recent,
1 The performance of NXP, NXQ, and NXR is compared with that of the
Lehman Brothers Municipal Bond Index, an unleveraged index comprising
a broad range of investment-grade municipal bonds. The performances of
NXC and NXN are compared with those of the Lehman Insured Tax-Exempt
Bond Indexes for California and New York, respectively. These
unleveraged indexes comprise a broad range of insured municipal bonds
within each of those states. Results for the Lehman indexes do not
reflect any expenses.
2 The total returns for the national Select Portfolios are compared with
the average annualized return of the 16 funds in the Lipper General
and Insured Unleveraged Municipal Debt Funds category. NXC's total
return is compared with the average total return of the 9 funds in the
Lipper California Insured Municipal Debt Funds category, while the
comparison for NXN is based on the 8 funds in the Lipper New York
Insured Municipal Debt Funds category. Portfolio and Lipper returns
assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned
on a taxable investment in order to equal the yield of the Nuveen
Select Portfolio on an after-tax basis. For the national Select
Portfolios, the taxable-equivalent yield is based on the Portfolio's
market yield on the indicated date and a federal income tax rate of
31%, while the taxable-equivalent yields for the California and New
York Portfolios are based on their market yields on the indicated date
and combined federal and state income tax rates of 37.5% and 35.5%,
respectively.
<PAGE>
relatively favorable interest rate environment, portfolios with shorter
durations, like the Nuveen Select Portfolios, were more likely to underperform
the market, as represented by the Lehman indexes.
WERE THE PORTFOLIOS' DIVIDENDS AFFECTED BY THE MARKET ENVIRONMENT?
During the past year, good call protection helped to support the dividends of
the Select Portfolios and shield their income from erosion, as the Portfolios
continued to meet their objective of providing income stability. As of the end
of September 2000, the national Portfolios had provided shareholders with stable
dividends for periods ranging from 23 to 41 consecutive months, while NXC had
offered 31 consecutive months of steady dividends. For NXN, the record of stable
dividends extended to 90 consecutive months.
WHAT ABOUT THE PORTFOLIOS' SHARE PRICE PERFORMANCE?
During late 1999 and the first half of 2000, uncertainties about inflation and
interest rates, coupled with investors' focus on equity market performance,
tended to dampen interest in most fixed-income products. This lack of demand put
pressure on the prices of many municipal bond investments, including the Nuveen
Select Portfolios. However, as the bond market began to recover and continued
stock market volatility spurred investors to look elsewhere, the share prices of
all five Portfolios improved, with NXP, NXR, and NXC surpassing their September
1999 price levels (see charts on the individual Performance Overview pages).
Because the recovery of the Portfolios' NAVs lagged the rebound in share price,
all of the Portfolios except NXN saw their discounts (share price below NAV)
narrow over the past 12 months. However, with the market prices of these
Portfolios still lower than the actual value of the bonds in their portfolios,
shareholders may want to consider taking advantage of this opportunity to add to
their holdings of the Nuveen Select Portfolios.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE
12 MONTHS ENDED SEPTEMBER 30, 2000?
In the challenging fixed-income environment of the past 12 months, the bonds
held by the Select Portfolios continued to meet the Portfolios' objectives.
Other than reinvesting a small amount of proceeds from a limited number of bond
calls, we found little need to make changes in the Portfolios' sector
allocations or credit quality composition.
Over the past fiscal year, the Portfolios encountered no credit problems that
required bond sales or other action on our part, a further example of just how
well they were assembled in 1992. The three national Portfolios continued to
offer excellent credit quality, with between 68% and 78% of their assets
invested in bonds rated AAA/U.S. guaranteed and AA as of September 30, 2000.
These Portfolios also had allocations of BBB bonds that ranged from 6% to 12%,
which generally provided higher yields over the past 18 months. The assets of
the insured NXC and NXN are 100% invested in U.S. guaranteed and/or insured
bonds, making credit quality extremely high.
WHAT IS YOUR OUTLOOK FOR THE NUVEEN SELECT PORTFOLIOS?
The Nuveen Select Portfolios offer low fees and a relatively stable portfolio
structure. This can make them a good choice for investors who want to see their
investment provide income and performance similar to that of an individual bond,
and at the same time benefit from the ongoing surveillance and diversification
provided by Nuveen. Our focus over the next 12 months will continue to be on
managing the Portfolios to achieve their objectives of solid credit quality and
stable dividends.
All of the Select Portfolios offer very good levels of call protection through
the end of 2000, with no scheduled calls. However, beginning in 2001, these five
Portfolios will begin to see significantly increasing potential for bond calls.
These calls are more likely to occur if then-current interest rates are more
favorable to the issuer than the rates that prevailed when the bonds were first
issued. In 2001, calls could affect 8%-23% of these Portfolios, and this will
increase to 48%-68% in 2002, the Portfolios' 10-year anniversary.
As we head into this bond call period, we will take actions designed to maintain
the quality of each Portfolio, and will seek to adjust dividends only as
necessary to reflect the changing structure of each Portfolio as higher coupon
bonds are replaced by current coupon bonds. We believe the Nuveen Select
Portfolios will remain well positioned to provide attractive income and a
measure of portfolio diversification that can be a valuable benefit to investors
now and in the years ahead.
<PAGE>
NXP
Nuveen Select Tax-Free Income Portfolio
Performance
OVERVIEW As of September 30, 2000
PORTFOLIO STATISTICS
----------------------------------------------------
Inception Date 3/92
----------------------------------------------------
Share Price $14 1/2
----------------------------------------------------
Net Asset Value $14.89
----------------------------------------------------
Market Yield 6.21%
----------------------------------------------------
Taxable-Equivalent Yield1 9.00%
----------------------------------------------------
Fund Net Assets ($000) $243,840
----------------------------------------------------
Average Effective Maturity (Years) 9.61
----------------------------------------------------
Average Duration 2.66
----------------------------------------------------
ANNUALIZED TOTAL RETURN
----------------------------------------------------
ON SHARE PRICE ON NAV
----------------------------------------------------
1-Year 7.05% 4.53%
----------------------------------------------------
5-Year 5.78% 5.94%
----------------------------------------------------
Since Inception 5.77% 6.73%
----------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
----------------------------------------------------
U.S.Guaranteed 47%
----------------------------------------------------
Healthcare 9%
----------------------------------------------------
Housing/Multifamily 9%
----------------------------------------------------
Tax Obligation/Limited 8%
----------------------------------------------------
Transportation 8%
----------------------------------------------------
1999-2000 Monthly Tax-Free Dividends Per Share
<TABLE>
<CAPTION>
[BAR CHART HERE]
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075
</TABLE>
[LINE CHART HERE]
Share Price Performance
Values from chart, start 10/1/99, end 9/30/00
14.44
14.44
13.94
13.44
13.69
14
13.69
14.38
14.19
14
13.63
13.44
13.31
13.38
13.38
13.44
13.69
14.13
14
13.94
13.81
13.63
13.25
13.19
13.13
13.69
13.5
13.31
13.56
13.75
13.81
13.63
13.56
13.56
14.25
14.13
14
14
14.38
14.63
14.75
14.5
14.44
14.81
15
15
14.75
14.88
14.94
14.75
14.63
14.5
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
calculated using the current market yield and a federal income tax rate of
31%.
<PAGE>
NXQ
Nuveen Select Tax-Free Income Portfolio 2
Performance
OVERVIEW As of September 30, 2000
PORTFOLIO STATISTICS
-----------------------------------------------------
Inception Date 5/92
-----------------------------------------------------
Share Price $13 15/16
-----------------------------------------------------
Net Asset Value $14.74
-----------------------------------------------------
Market Yield 6.24%
-----------------------------------------------------
Taxable-Equivalent Yield 1 9.04%
-----------------------------------------------------
Fund Net Assets ($000) $259,612
-----------------------------------------------------
Average Effective Maturity (Years) 8.91
-----------------------------------------------------
Average Duration 2.63
-----------------------------------------------------
ANNUALIZED TOTAL RETURN
-----------------------------------------------------
ON SHARE PRICE ON NAV
-----------------------------------------------------
1-Year 6.11% 4.22%
-----------------------------------------------------
5-Year 5.65% 5.85%
-----------------------------------------------------
Since Inception 5.18% 6.50%
-----------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
-----------------------------------------------------
U.S. Guaranteed 48%
-----------------------------------------------------
Housing/Multifamily 11%
-----------------------------------------------------
Healthcare 9%
-----------------------------------------------------
Education and Civic Organizations 7%
-----------------------------------------------------
Housing/Single-Family 6%
-----------------------------------------------------
1999-2000 Monthly Tax-Free Dividends Per Share
<TABLE>
<CAPTION>
[BAR CHART HERE]
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0.0725 0.0725 0.0725 0.0725 0.0725 0.0725 0.0725 0.0725 0.0725 0.0725 0.0725 0.0725
</TABLE>
[LINE CHART HERE]
Share Price Performance
Values from chart, start 10/1/99, end 9/30/00
14.06
14.06
13.19
13.25
13.44
13.5
13.38
13.38
13.31
13.19
12.75
13
13
13.13
13
12.88
13.38
13.56
13.44
13.31
13.5
13
12.75
12.88
13.06
13.38
13.31
13.06
13.06
13.13
13.25
13.06
13.06
13.38
13.75
13.69
13.63
13.81
13.94
14.31
14.56
14.38
14.31
14.38
14.5
14.5
14.38
14.5
14.5
14.31
13.69
13.94
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
calculated using the current market yield and a federal income tax rate of
31%.
<PAGE>
NXR
Nuveen Select Tax-Free Income Portfolio 3
Performance
OVERVIEW As of September 30, 2000
PORTFOLIO STATISTICS
---------------------------------------------------------
Inception Date 7/92
---------------------------------------------------------
Share Price $13 5/16
---------------------------------------------------------
Net Asset Value $14.34
---------------------------------------------------------
Market Yield 6.13%
---------------------------------------------------------
Taxable-Equivalent Yield1 8.88%
---------------------------------------------------------
Fund Net Assets ($000) $185,847
---------------------------------------------------------
Average Effective Maturity (Years) 10.65
---------------------------------------------------------
Average Duration 3.08
---------------------------------------------------------
ANNUALIZED TOTAL RETURN
---------------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------------
1-Year 8.48% 4.54%
---------------------------------------------------------
5-Year 6.13% 6.10%
---------------------------------------------------------
Since Inception 4.47% 5.97%
---------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
---------------------------------------------------------
U.S. Guaranteed 40%
---------------------------------------------------------
Transportation 11%
---------------------------------------------------------
Utilities 11%
---------------------------------------------------------
Housing/Multifamily 10%
---------------------------------------------------------
Healthcare 8%
---------------------------------------------------------
1999-2000 Monthly Tax-Free Dividends Per Share
<TABLE>
<CAPTION>
[BAR CHART HERE]
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068
</TABLE>
[LINE CHART HERE]
Share Price Performance
Values from chart, start 10/1/99, end 9/30/00
13
13.13
12.56
12.5
13
13.13
13
13
12.63
12.69
12.44
12.44
12.38
12.44
12.44
12.56
12.75
13.06
12.88
12.88
12.69
12.44
12.19
12.38
12.56
12.88
12.56
12.5
12.44
12.5
12.69
12.81
12.88
12.88
13.19
13.19
13.38
13.13
13.44
13.63
13.69
13.69
13.44
13.5
13.69
13.69
13.69
13.81
13.81
13.75
13.25
13.31
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
calculated using the current market yield and a federal income tax rate of
31%.
<PAGE>
NXC
Nuveen Insured California Select Tax-Free Income Portfolio
Performance
OVERVIEW As of September 30, 2000
PORTFOLIO STATISTICS
--------------------------------------------------------
Inception Date 6/92
--------------------------------------------------------
Share Price $14 7/16
--------------------------------------------------------
Net Asset Value $14.63
--------------------------------------------------------
Market Yield 5.49%
--------------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.96%
--------------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.78%
--------------------------------------------------------
Fund Net Assets ($000) $91,562
--------------------------------------------------------
Average Effective Maturity (Years) 11.48
--------------------------------------------------------
Average Duration 3.13
--------------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------
1-Year 7.92% 5.10%
--------------------------------------------------------
5-Year 6.69% 5.96%
--------------------------------------------------------
Since Inception 5.12% 5.95%
--------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------------
U.S. Guaranteed 30%
--------------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------------
Transportation 12%
--------------------------------------------------------
Utilities 12%
--------------------------------------------------------
Healthcare 11%
--------------------------------------------------------
1999-2000 Monthly Tax-Free Dividends Per Share2
<TABLE>
<CAPTION>
[BAR CHART HERE]
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0.066 0.066 0.066 0.066 0.066 0.066 0.066 0.066 0.066 0.066 0.066 0.066
</TABLE>
[LINE CHART HERE]
Share Price Performance
Values from chart, start 10/1/99, end 9/30/00
14.19
14.13
14
13.78
13.38
13.63
13.44
13.31
13.31
12.94
13.19
12.81
12.81
12.75
12.63
12.75
13
13.56
13.5
13.69
13.44
13.5
13.31
13.5
13.63
13.75
13.94
14.06
13.94
13.75
13.88
13.88
13.81
14
14.19
14.31
14.19
14.19
14.31
14.38
14.31
14.31
14.25
14.38
14.38
14.5
14.63
14.56
14.88
14.69
14.56
14.44
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
calculated using 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 also are exempt from state income taxes. It is based on a combined
federal and state income tax rate of 37.5%.
2 The Fund also paid shareholders a capital gains distribution in December 1999
of $0.0223 per share.
<PAGE>
NXN
Nuveen Insured New York Select Tax-Free Income Portfolio
Performance
OVERVIEW As of September 30, 2000
PORTFOLIO STATISTICS
-------------------------------------------------------
Inception Date 6/92
-------------------------------------------------------
Share Price $13 1/4
-------------------------------------------------------
Net Asset Value $14.33
-------------------------------------------------------
Market Yield 5.89%
-------------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.54%
-------------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.13%
-------------------------------------------------------
Fund Net Assets ($000) $55,995
-------------------------------------------------------
Average Effective Maturity (Years) 9.86
-------------------------------------------------------
Average Duration 2.53
-------------------------------------------------------
ANNUALIZED TOTAL RETURN
-------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------
1-Year 3.22% 4.49%
-------------------------------------------------------
5-Year 5.49% 5.62%
-------------------------------------------------------
Since Inception 4.05% 5.58%
-------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
-------------------------------------------------------
U.S. Guaranteed 43%
-------------------------------------------------------
Education and Civic Organizations 20%
-------------------------------------------------------
Water and Sewer 10%
-------------------------------------------------------
Housing/Multifamily 5%
-------------------------------------------------------
Tax Obligation/Limited 5%
-------------------------------------------------------
1999-2000 Monthly Tax-Free Dividends Per Share
<TABLE>
<CAPTION>
[BAR CHART HERE]
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065
</TABLE>
[LINE CHART HERE]
Share Price Performance
Values from chart, start 10/1/99, end 9/30/00
13.56
13.69
13.31
13.38
13
13.31
13
13
12.81
12.56
12.69
12.75
12.5
12.56
12.5
12.63
12.63
13.06
13.25
13.06
13
12.88
12.81
12.75
12.81
12.69
12.88
12.88
13
13.13
13.19
13.25
13.44
12.94
13.13
13.19
13.25
13.19
13.06
13
13
12.94
12.81
13.13
13.31
13.31
13.38
13.31
13.25
13.19
13.19
13.25
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
calculated using 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 also are exempt from state income taxes. It is based on a combined
federal and state income tax rate of 35.5%.
<PAGE>
Shareholder
MEETING REPORT
The annual shareholder meeting was held in Chicago, Illinois on July 26, 2000.
<TABLE>
<CAPTION>
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 14,911,311 16,352,951 11,945,877 5,726,210 3,501,770
Withhold 153,714 112,942 118,274 39,182 34,910
------------------------------------------------------------------------------------------------------------------------------
Total 15,065,025 16,465,893 12,064,151 5,765,392 3,536,680
==============================================================================================================================
Jack B. Evans
For 14,931,406 16,359,184 11,953,521 5,728,655 3,502,770
Withhold 133,619 106,709 110,630 36,737 33,910
------------------------------------------------------------------------------------------------------------------------------
Total 15,065,025 16,465,893 12,064,151 5,765,392 3,536,680
==============================================================================================================================
William L. Kissick
For 14,916,598 16,361,879 11,950,448 5,728,958 3,500,770
Withhold 148,427 104,014 113,703 36,434 35,910
------------------------------------------------------------------------------------------------------------------------------
Total 15,065,025 16,465,893 12,064,151 5,765,392 3,536,680
==============================================================================================================================
Thomas E. Leafstrand
For 14,924,933 16,364,584 11,953,481 5,728,958 3,501,551
Withhold 140,092 101,309 110,670 36,434 35,129
------------------------------------------------------------------------------------------------------------------------------
Total 15,065,025 16,465,893 12,064,151 5,765,392 3,536,680
==============================================================================================================================
Timothy R. Schwertfeger
For 14,929,104 16,359,083 11,951,221 5,727,955 3,502,770
Withhold 135,921 106,810 112,930 37,437 33,910
------------------------------------------------------------------------------------------------------------------------------
Total 15,065,025 16,465,893 12,064,151 5,765,392 3,536,680
==============================================================================================================================
Sheila W. Wellington
For 14,911,525 16,358,565 11,952,495 5,735,258 3,501,470
Withhold 153,500 107,328 111,656 30,134 35,210
------------------------------------------------------------------------------------------------------------------------------
Total 15,065,025 16,465,893 12,064,151 5,765,392 3,536,680
==============================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 14,891,375 16,321,489 11,916,752 5,670,949 3,490,089
Against 52,960 33,748 45,346 5,772 17,772
Abstain 120,690 110,656 102,053 88,671 28,819
------------------------------------------------------------------------------------------------------------------------------
Total 15,065,025 16,465,893 12,064,151 5,765,392 3,536,680
==============================================================================================================================
</TABLE>
<PAGE>
Nuveen Select Tax-Free Income Portfolio (NXP)
Portfolio of INVESTMENTS
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.2%
<S> <C> <C> <C> <C>
$ 505 Alabama Housing Finance Authority, Single Family Mortgage Revenue 4/04 at 102 Aaa $ 520,574
Bonds (Collateralized Home Mortgage Revenue Bond Program),
1994 Series A-1 Bonds, 6.550%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1%
2,500 Little Rock Health Facilities Board (Arkansas), Refunding Revenue 4/02 at 102 A 2,610,825
Bonds (Baptist Medical Center/Parkway Village Project),
Series 1992, 7.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.5%
4,750 State Public Works Board of the State of California, Lease Revenue 3/04 at 102 Aaa 5,256,065
Bonds (California Community Colleges), 1994 Series B
(Various Community College Projects), 7.000%, 3/01/14
(Pre-refunded to 3/01/04)
3,000 State Public Works Board of the State of California, Lease Revenue 11/04 at 102 Aaa 3,352,710
Bonds (Department of Corrections), 1994 Series A
(California State Prison-Monterey County (Soledad II)),
6.875%, 11/01/14 (Pre-refunded to 11/01/04)
4,905 California Statewide Communities Development Authority, Revenue 8/02 at 102 A2 5,172,175
Certificates of Participation (Cedars-Sinai Medical
Center), Series 1992, 6.500%, 8/01/15
2,000 Los Angeles County Metropolitan Transportation Authority 7/03 at 102 AAA 2,032,280
(California), Proposition A, Sales Tax Revenue
Refunding Bonds, Series 1993-A, 5.625%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.5%
Colorado Housing Finance Authority, Single Family Program
Senior Revenue Bonds, Series 1992A-1:
2,290 6.800%, 11/01/12 5/02 at 102 AA+ 2,348,212
640 6.875%, 11/01/16 5/02 at 102 AA+ 655,725
10,750 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 12,737,783
Bonds, Series 1991D, 7.750%, 11/15/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
1,000 District of Columbia, Hospital Revenue and Refunding Bonds 8/06 at 102 AAA 1,016,700
(Medlantic Healthcare Group, Inc. Issue), Series
1996A, 5.750%, 8/15/16
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.1%
250 Escambia County, Florida, Pollution Control Revenue Bonds 12/03 at 102 BBB+ 236,660
(Champion International Project), Series 1993,
5.875%, 6/01/22 (Alternative Minimum Tax)
7,000 State Board of Education of Florida, Public Education Capital 6/02 at 101 AAA 7,307,790
Outlay Bonds, Series 1991-C, 6.625%,
6/01/22 (Pre-refunded to 6/01/02)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5%
1,330 State of Hawaii, Certificates of Participation (Kapolei State 11/08 at 101 AAA 1,212,907
Office Building), 1998 Series A, 5.000%, 5/01/17
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.4%
City of Chicago Heights, Illinois, General Obligation Bonds,
Series 1993 (Corporate Purpose Bonds):
3,820 5.650%, 12/01/15 12/08 at 100 AAA 3,873,786
2,600 5.650%, 12/01/17 12/08 at 100 AAA 2,615,132
7,000 The County of Cook, Illinois, General Obligation Bonds, 11/02 at 102 AAA 7,421,260
Series 1992A, 6.600%, 11/15/22 (Pre-refunded
to 11/15/02)
1,260 Illinois Educational Facilities Authority, Revenue Refunding 7/01 at 102 AAA 1,309,657
Bonds, Loyola University of Chicago, Series 1991-A,
7.125%, 7/01/11 (Pre-refunded to 7/01/01)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 3,000 Illinois Educational Facilities Authority, Revenue Refunding 7/03 at 102 AAA $ 3,171,510
onds (Loyola University of Chicago), Series 1989-A,
6.100%, 7/01/15 (Pre-refunded to 7/01/03)
2,365 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R*** 2,545,142
Series 1992B (Evangelical Hospitals Corporation),
6.500%, 4/15/09
3,850 Illinois Health Facilities Authority, Revenue Bonds (Sarah Bush 5/02 at 102 Aaa 4,085,120
Lincoln Health Center), Series 1992, 7.250%,
5/15/22 (Pre-refunded to 5/15/02)
800 Illinois Housing Development Authority, Homeowner Mortgage 2/10 at 100 AA 805,920
Revenue Bonds, Series 2000-D3,
5.700%, 8/01/17
2,000 State of Illinois, General Obligation Bonds, Series 1994, 8/04 at 102 AA 2,054,420
5.875%, 8/01/14
2,500 Regional Transportation Authority (Cook, DuPage, Kane, Lake, 6/03 at 102 AAA 2,621,625
McHenry and Will Counties in Illinois), General
Obligation Bonds, Series 1993A, 5.800%, 6/01/13
(Pre-refunded to 6/01/03)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.7%
3,000 Indiana Bond Bank, Special Hospital Program (Hendricks Community 4/02 at 102 A+ 3,128,910
Hospital Financing Program), Series 1992A, 7.125%, 4/01/13
Indiana Bond Bank, Special Program Bonds, Series 1992 A:
1,000 7.000%, 8/01/12 2/02 at 102 A+ 1,042,240
2,250 7.000%, 8/01/18 2/02 at 102 A+ 2,343,555
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.1%
2,565 Woodbury County, Iowa, Hospital Facility Revenue Bonds (St. Luke's 3/01 at 102 AAA 2,640,385
Regional Medical Center Project), Series 1991A, 6.750%,
3/01/21 (Pre-refunded to 3/01/01)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.9%
9,000 City of Wichita, Kansas, Revenue Bonds (CSJ Health System of 1/01 at 102 A+*** 9,453,690
Wichita, Inc.), Series 1985 XXV (Remarketed),
7.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.9%
1,100 County of Jefferson, Kentucky, Health System Revenue Bonds, 10/08 at 101 AAA 1,020,602
Series 1998 (Alliant Health System, Inc.),
5.125%, 10/01/18
3,230 Lexington-Fayette Urban County Government (Kentucky), 1/04 at 102 AAA 3,545,345
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 - 1.8%
960 Maine Educational Loan Authority, Educational Loan Revenue Bonds, 12/02 at 102 A 1,000,243
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):
1,525 6.800%, 12/01/07 (Alternative Minimum Tax) 12/02 at 102 Aaa 1,591,475
1,725 7.000%, 12/01/16 (Alternative Minimum Tax) 12/02 at 102 Aaa 1,795,708
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
2,000 Plymouth County (Massachusetts), Certificates of Participation 10/02 at 102 Aaa 2,134,440
(Plymouth County Correctional Facility), Series A,
7.000%, 4/01/22 (Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.5%
3,600 Calhoun County (Mississippi), Solid Waste Disposal Revenue Bonds 4/07 at 103 A 3,773,880
(Weyerhauser Company Project), Series 1992, 6.875%,
4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 4.2%
10,000 New Hampshire Housing Finance Authority, Multifamily Housing 7/01 at 102 A1 10,276,900
Revenue Refunding Bonds, 1991 Series 1,
7.050%, 7/01/11
<PAGE>
<CAPTION>
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS
September 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK - 12.3%
$ 7,250 Metropolitan Transportation Authority (New York), Commuter 7/01 at 102 A $ 7,505,055
Facilities, 1987 Service Contract Bonds,
Series 5, 7.000%, 7/01/12
3,000 Metropolitan Transportation Authority (New York), Transit 7/02 at 100 A 3,055,620
Facilities, Service Contract Bonds,
Series N, 6.000%, 7/01/11
The City of New York, New York, General Obligation Bonds,
Fiscal 1995 Series A:
300 6.250%, 8/01/10 (Pre-refunded to 8/01/04) 8/04 at 101 1/2 A*** 321,816
4,870 6.250%, 8/01/10 8/04 at 101 1/2 A 5,157,817
4,465 New York State Dormitory Authority, State University Educational 5/02 at 102 Aaa 4,745,313
Facilities Revenue Bonds, Series 1991A, 7.250%,
5/15/18 (Pre-refunded to 5/15/02)
1,600 Dormitory Authority of the State of New York, Mount Sinai Health 7/10 at 101 BBB+ 1,706,336
Obligated Group Revenue Bonds (New York University),
Series 2000A, 6.500%, 7/01/17
2,090 New York Local Government Assistance Corporation, New York, 4/01 at 100 AAA 2,117,860
Series 1991B, 7.000%, 4/01/21
(Pre-refunded to 4/01/01)
1,365 New York Local Government Assistance Corporation, Series 1991D Bonds, 4/02 at 102 AAA 1,441,617
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 7.500%, 2/15/21 (Pre-refunded to 2/15/01) 2/01 at 102 Aaa 185,639
900 7.500%, 2/15/21 2/01 at 102 A 926,370
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1991
Series D:
1,395 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A*** 1,475,268
1,425 7.400%, 2/15/18 2/02 at 102 A 1,496,592
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.2%
2,790 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds, 9/07 at 102 Aaa 2,856,625
Series 1997A, 6.050%, 9/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.6%
7,235 Delaware County Authority (Pennsylvania), First Mortgage Revenue 4/02 at 102 N/R*** 7,727,486
Bonds (The Dunwoody Project), Series 1992, 8.125%,
4/01/17 (Pre-refunded to 4/01/02)
935 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 970,446
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 6.625%, 8/15/09 (Pre-refunded to 8/15/02) 8/02 at 102 A2*** 1,846,215
750 6.625%, 8/15/09 8/02 at 102 AAA 789,218
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.9%
5,000 South Carolina Housing Finance and Development Authority, 5/02 at 102 Aaa 5,169,850
Multifamily Housing Revenue Bonds, 1992
Series A, 6.875%, 11/15/23
4,060 York County Public Facilities Corporation (South Carolina), 6/01 at 102 Aaa 4,222,197
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 Memphis-Shelby County Airport Authority (Tennessee), Airport 7/03 at 102 BBB 5,759,603
Special Facilities and Project Revenue Bonds (Federal
Express Corporation), Series 1993, 6.200%, 7/01/14
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.5%
9,825 Harris County Health Facilities Development Corporation (Texas), 6/02 at 102 A3*** 10,406,149
Hospital Revenue Bonds (Memorial Hospital System Project),
Series 1992, 7.125%, 6/01/15 (Pre-refunded to 6/01/02)
4,000 Port of Corpus Christi Authority of Nueces County (Texas), 4/02 at 102 BBB 4,047,560
Pollution Control Revenue Bonds (Hoechst Celanese
Corporation), Series 1992, 6.875%, 4/01/17
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS (continued)
$ 3,500 Red River Authority (Texas), Pollution Control Revenue Bonds 4/02 at 102 BBB $ 3,536,190
(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:
1,450 6.000%, 5/15/16 (Pre-refunded to 5/15/02) 5/02 at 100 AAA 1,484,032
95 6.000%, 5/15/16 (Pre-refunded to 5/15/07) 5/07 at 100 AAA 101,651
465 6.000%, 5/15/16 No Opt. Call AAA 494,923
2,990 6.000%, 5/15/16 5/02 at 100 AAA 3,016,222
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.1%
5,070 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ 5,236,195
Bonds, 1992 Series A, 7.100%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.1%
2,500 Public Utility District No. 1 of Snohomish County, Washington, 1/01 at 102 A+ 2,562,975
Electric System Refunding Revenue Bonds, Series 1991 A,
7.000%, 1/01/16
5,700 Public Utility District No. 1 of Snohomish County, Washington, 1/02 at 102 Aaa 6,415,521
Generation System Revenue Bonds, Series 1989,
6.750%, 1/01/12
2,750 Washington Health Care Facilities Authority, Revenue Bonds, 2/02 at 102 AA-*** 2,882,740
Series 1992 (Sacred Heart Medical Center, Spokane),
6.875%, 2/15/12 (Pre-refunded to 2/15/02)
10,000 Washington Public Power Supply System, Nuclear Project No. 1 7/01 at 102 Aaa 10,376,500
Refunding Revenue Bonds, Series 1991A,
6.875%, 7/01/17 (Pre-refunded to 7/01/01)
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.3%
1,885 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,070,861
Bonds, Series 1992, 6.500%, 5/15/10
1,000 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 103 AAA 1,044,670
1992 Series A, 7.000%, 5/01/24
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1%
5,000 Wisconsin Housing and Economic Development Authority, Multifamily 4/02 at 102 AA 5,225,600
Housing Revenue Bonds, 1992 Series B, 7.050%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 1.3%
3,000 Wyoming Community Development Authority, Single Family Mortgage 11/01 at 103 AA 3,095,970
Revenue Bonds (Federally Insured or Guaranteed
Mortgage Loans), Series 1988-G, 7.200%, 6/01/10
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 228,410 Total Investments (cost $ 224,294,951) - 98.5% 240,186,053
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 3,654,440
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 243,840,493
====================================================================================================================
* 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.
<PAGE>
<CAPTION>
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Portfolio of INVESTMENTS
September 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA - 5.3%
$ 3,250 State Public Works Board of the State of California, Lease Revenue 3/04 at 102 Aaa $ 3,596,255
Bonds (California Community Colleges), 1994 Series B
(Various Community College Projects), 7.000%,
3/01/14 (Pre-refunded to3/01/04)
2,000 State Public Works Board of the State of California, Lease Revenue No Opt. Call Aa2 2,123,540
Refunding Bonds (The Regents of the University of
California), 1993 Series A (Various University of
California Projects), 5.500%, 6/01/14
5,000 State Public Works Board of the State of California, Lease Revenue 11/04 at 102 Aaa 5,587,850
Bonds (Department of Corrections), 1994 Series A
(California State Prison-Monterey County
(Soledad II)), 6.875%, 11/01/14
(Pre-refunded to 11/01/04)
500 State Public Works Board of the State of California, Lease Revenue 12/08 at 101 Aa3 502,900
Refunding Bonds (California Community Colleges) (Various
Community College Projects), 1998 Series A, 5.250%, 12/01/16
500 City of Contra Costa Water District (California), Water Revenue 10/07 at 100 AA- 487,425
Bonds, Refunding Series 1997 H, 5.000%, 10/01/17
500 County of Contra Costa, California, Certificates of Participation 11/07 at 102 AAA 504,265
(Merrithew Memorial Hospital Replacement Project),
Refunding Series of 1997, 5.375%, 11/01/17
1,000 City of Fresno, California, Health Facility Revenue Bonds, Series 12/03 at 102 AAA 1,026,500
1993B (Holy Cross Health System Corporation),
5.625%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.6%
2,330 Colorado Housing Finance Authority, Single Family Program Senior 5/02 at 102 AA+ 2,397,267
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 7.250%, 11/15/12 (Alternative Minimum Tax) 11/02 at 102 Aaa 2,504,498
(Pre-refunded to 11/15/02)
9,130 7.250%, 11/15/12 (Alternative Minimum Tax) 11/02 at 102 A 9,652,236
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.1%
4,600 District of Columbia, Hospital Revenue Refunding Bonds 8/02 at 102 A3*** 4,885,246
(Washington Hospital Center), Series 1992-A,
7.125%, 8/15/19 (Pre-refunded to 8/15/02)
500 District of Columbia, Hospital Revenue Refunding Bonds 8/06 at 102 AAA 508,350
(Medlantic Healthcare Group, Inc.
Issue), Series 1996A, 5.750%, 8/15/16
7,500 District of Columbia (Washington, D.C.), General Obligation 6/02 at 102 AAA 7,853,175
Bonds, Series 1992B, 6.300%, 6/01/12
(Pre-refunded to 6/01/02)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.3%
8,180 Hillsborough County (Florida), Environmentally Sensitive Land 7/02 at 102 Aa3*** 8,591,699
Acquisition and Protection Program Bonds, Series 1992,
6.375%, 7/01/11 (Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4%
1,100 State of Hawaii, Certificates of Participation (Kapolei State 11/08 at 101 AAA 1,003,156
Office Building), 1998 Series A, 5.000%, 5/01/17
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.8%
8,420 Chicago Metropolitan Housing Development Corporation (Illinois), 7/02 at 102 AA 8,748,633
Housing Development Revenue Refunding Bonds (FHA-Insured
Mortgage Loans - Section 8 Assisted Projects),
Series 1992A, 6.800%, 7/01/17
8,070 The County of Cook, Illinois, General Obligation Bonds, Series 11/02 at 102 AAA 8,555,653
1992A, 6.600%, 11/15/22 (Pre-refunded to 11/15/02)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 2,500 Illinois Educational Facilities Authority, Revenue Bonds, 12/03 at 102 BBB $ 2,423,900
Series 1993 (Columbia College), 6.125%, 12/01/18
Illinois Educational Facilities Authority, Revenue Refunding
Bonds, Columbia College, Series 1992:
2,610 6.875%, 12/01/17 (Pre-refunded to 12/01/04) 12/04 at 100 N/R*** 2,822,585
1,140 6.875%, 12/01/17 12/04 at 100 BBB 1,172,832
1,900 Illinois Housing Development Authority, Homeowner Mortgage 2/10 at 100 AA 1,914,060
Revenue Bonds, Series 2000-D3, 5.700%, 8/01/17
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Bonds, Series 1992A:
2,205 6.500%, 6/15/22 (Pre-refunded to 6/15/03) 6/03 at 102 Aaa 2,352,051
45 6.500%, 6/15/22 6/03 at 102 Aa3 46,755
5,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, 6/03 at 102 AAA 5,243,250
McHenry and Will Counties in Illinois), General
Obligation Bonds, Series 1993A, 5.800%, 6/01/13
(Pre-refunded to 6/01/03)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.8%
2,005 Howard County Jail and Juvenile Detention Center Corporation 1/02 at 102 A1*** 2,098,894
(Indiana), First Mortgage Revenue Bonds, Series 1992,
6.850%, 1/01/12 (Pre-refunded to 1/01/02)
10,000 Indiana Educational Facilities Authority, Educational Facilities 1/02 at 102 AAA 10,398,700
Refunding Revenue Bonds (Butler University Project),
Series 1992A, 6.600%, 1/01/18
2,400 Westfield-Washington South School Building Corporation (Indiana), 7/02 at 102 A*** 2,526,624
First Mortgage Revenue Bonds, Series 1992, 6.500%,
7/15/13 (Pre-refunded to 7/15/02)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
3,105 Kentucky Housing Corporation, Housing Revenue Bonds (Federally 7/02 at 102 AAA 3,167,473
Insured or Guaranteed Mortgage Loans), Series 1992A,
6.600%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.7%
11,425 Louisiana Public Facilities Authority, Revenue Bonds, 1992 Series, 11/02 at 102 A+*** 12,111,072
Tulane University of Louisiana, 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 6.500%, 8/01/11 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 2,120,276
1,585 6.500%, 8/01/11 8/01 at 102 Aa2 1,640,000
3,000 Massachusetts Health and Educational Facilities Authority, 10/02 at 102 BBB+*** 3,181,110
Revenue 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 Hospital Finance Authority (Michigan), Revenue
Bonds (Beaumont Properties, Inc.), Series 1992E:
435 6.625%, 1/01/19 (Pre-refunded to 1/01/02) 1/02 at 102 AAA 454,597
3,565 6.625%, 1/01/19 1/02 at 102 AA 3,703,750
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.8%
2,065 City of Billings, Montana, Tax Increment Urban Renewal Bonds, 3/02 at 101 Baa3 2,139,175
Refunding Series 1992, 7.100%, 3/01/08
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.2%
500 Clark County, Nevada, General Obligation (Limited Tax), Las 7/06 at 101 AAA 497,520
Vegas Convention and Visitors Authority Bonds,
Series 1996, 5.500%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.0%
3,850 Metropolitan Transportation Authority (New York), Transit 7/02 at 100 A 3,921,379
Facilities Service Contract Bonds, Series N,
6.000%, 7/01/11
<PAGE>
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS
September 30, 2000 (Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (continued)
The City of New York, New York, General Obligation Bonds, Fiscal
1992 Series H:
$ 7,355 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A*** $ 7,712,747
645 7.100%, 2/01/11 2/02 at 101 1/2 A 673,270
2,865 7.100%, 2/01/12 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A*** 3,004,354
285 7.100%, 2/01/12 2/02 at 101 1/2 A 297,469
2,700 Dormitory Authority of the State of New York, Mount Sinai 7/10 at 101 BBB+ 2,879,442
Health Obligated Group Revenue Bonds (New York
University), Series 2000A, 6.500%, 7/01/17
4,000 New York State Medical Care Facilities Finance Agency, New York 2/05 at 102 AAA 4,408,640
Hospital FHA-Insured Mortgage Revenue Bonds, Series
1994A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05)
5,000 Triborough Bridge and Tunnel Authority (New York), Convention No Opt. Call A 5,603,200
Center Project Bonds, Series E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.4%
2,800 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia Health 8/05 at 102 AAA 3,043,852
System), Series 1995, 6.250%, 8/15/14
(Pre-refunded to 8/15/05)
3,000 County of Erie, Ohio, Hospital Improvement and Refunding Revenue 1/02 at 102 A 3,075,510
Bonds, Series 1992 (Firelands Community Hospital
Project), 6.750%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.4%
6,000 Oklahoma City (Oklahoma), Water Utilities Trust, Water and Sewer 7/02 at 100 AAA 6,167,880
Revenue Bonds, 6.400%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.9%
1,000 Dauphin County General Authority (Pennsylvania), Health System 2/09 at 101 AAA 933,500
Revenue Bonds, Series of 1999 (Pinnacle Health System
Project), 5.125%, 8/15/17
6,295 Pennsylvania Intergovernmental Cooperation Authority, Special 6/02 at 100 Aaa 6,534,840
Tax Revenue Bonds (City of Philadelphia Funding
Program), Series of 1992, 6.800%, 6/15/22
(Pre-refunded to 6/15/02)
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.2%
5,500 Rhode Island Depositors Economic Corporation, Special Obligation 8/02 at 102 AAA 5,834,290
Bonds, 1992 Series A, 6.900%, 8/01/13
(Pre-refunded to 8/01/02)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.7%
7,000 Richland County (South Carolina), Solid Waste Disposal Facilities 5/02 at 102 BBB+ 7,083,580
Revenue Bonds (Union Camp Corporation Project),
Series 1992-A, 6.750%, 5/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 4.8%
4,500 Memphis-Shelby County Airport Authority (Tennessee), Special 9/01 at 103 BBB 4,740,975
Facilities Revenue Bonds, Series 1984 (Federal Express
Corporation), 7.875%, 9/01/09
7,495 Tennessee Housing Development Agency, Homeownership Program 7/02 at 102 AA 7,655,243
Bonds, Issue WR, 6.800%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.7%
3,275 Bexar County (Texas), Health Facilities Development Corporation, 8/04 at 102 AAA 3,588,188
Hospital Revenue Bonds (Baptist Memorial Hospital
System Project), Series 1994, 6.900%, 2/15/14
(Pre-refunded to 8/15/04)
4,715 Cleveland Housing Corporation (Texas), Mortgage Revenue 1/01 at 102 AAA 4,823,304
Refunding Bonds, Series 1992-C (FHA-Insured-
Section 8 Project), 7.375%, 7/01/24
2,500 Harris County Health Facilities Development Corporation, 10/05 at 102 AAA 2,488,150
Texas Children's Hospital Project, Series
1995, 5.500%, 10/01/16
7,600 Port of Corpus Christi Authority of Nueces County (Texas), 4/02 at 102 BBB 7,690,364
Pollution Control Revenue Bonds (Hoechst Celanese
Corporation), Series 1992, 6.875%, 4/01/17
(Alternative Minimum Tax)
1,460 Red River Authority (Texas), Pollution Control Revenue Bonds 4/02 at 102 BBB 1,475,096
(Hoechst Celanese Corporation), Series 1992, 6.875%,
4/01/17 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTAH - 0.8%
$ 1,655 Municipal Building Authority of Ogden City School District, 1/02 at 101 A3*** $ 1,729,955
Weber County, Utah, Lease Revenue Bonds (Central
Middle School Project), Series 1992, 6.700%,
1/01/12 (Pre-refunded to 1/01/02)
285 Utah Housing Finance Agency, Single Family Mortgage Purchase 7/02 at 102 Aaa 291,284
Refunding Senior Bonds, Series 1992, 6.800%, 1/01/12
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.6%
3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100 AAA 2,993,610
1999 Series C, 5.800%, 8/15/16
3,600 Vermont Industrial Development Authority, Industrial Development 9/02 at 102 A 3,735,324
Refunding Revenue Bonds (Stanley Works Project),
Series 1992, 6.750%, 9/01/10
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8%
2,000 Industrial Development Authority of Covington-Alleghany County, 4/02 at 102 N/R*** 2,095,460
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 6.750%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 Aa1*** 3,731,112
6,160 6.500%, 7/01/18 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 6,374,920
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
1,750 West Virginia School Building Authority, Capital Improvement 7/02 at 102 A*** 1,843,240
Revenue Bonds, Series 1992-A, 6.625%, 7/01/22
(Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0%
10,000 Wisconsin Housing and Economic Development Authority, 4/02 at 102 AA 10,450,400
Multifamily Housing Revenue Bonds, 1992 Series D,
7.200%, 11/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 244,335 Total Investments (cost $ 241,769,826) - 98.4% 255,423,850
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 4,187,801
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 259,611,651
====================================================================================================================
* 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.
<PAGE>
<CAPTION>
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Portfolio of INVESTMENTS
September 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA - 2.9%
$ 3,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa $ 3,352,710
Revenue Bonds (Department of Corrections), 1994
Series A (California State Prison-Monterey County
(Soledad II)), 6.875%, 11/01/14
(Pre-refunded to 11/01/04)
500 City of Fresno, California, Health Facility Revenue Refunding 12/03 at 102 AAA 507,565
Bonds (Holy Cross Health System Corporation),
5.625%, 12/01/18
1,390 City of Torrance, California, Hospital Revenue Bonds (Little 7/02 at 102 A*** 1,471,885
Company of Mary Hospital Project), Series 1992,
6.875%, 7/01/15 (Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.9%
2,500 City of Colorado Springs, Colorado, Utilities System Refunding 11/02 at 100 AA 2,532,025
Revenue Bonds, Series 1992A, 6.125%, 11/15/20
1,500 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 1,777,365
Bonds, Series 1991D, 7.750%, 11/15/13
(Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992B:
815 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Aaa 874,161
(Pre-refunded to 11/15/02)
3,185 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 3,362,150
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992C:
470 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 Aaa 499,502
(Pre-refunded to 11/15/02)
3,530 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 A 3,691,321
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 262,408
Revenue Bonds, Bridgeport Hospital Issue,
Series A, 6.625%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.5%
2,000 District of Columbia, Hospital Revenue Refunding Bonds 8/02 at 102 A3*** 2,124,020
(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 6.000%, 6/01/13 (Pre-refunded to 6/01/03) 6/03 at 102 AAA 173,806
4,080 6.000%, 6/01/13 6/03 at 102 AAA 4,273,514
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.9%
3,310 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium 5/02 at 102 N/R*** 3,518,034
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 6.250%, 9/01/13 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,358,045
2,000 6.375%, 9/01/22 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,100,580
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.6%
3,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding 2/02 at 102 A2 3,039,510
Bonds (Central Illinois Light Company Project),
Series 1992, 6.500%, 2/01/18
2,475 Chicago Metropolitan Housing Development Corporation (Illinois), 7/02 at 102 AA 2,571,525
Housing Development Revenue Refunding Bonds (FHA-Insured
Mortgage Loans - Section 8 Assisted Projects),
Series 1992A, 6.850%, 7/01/22
2,550 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 6/02 at 102 AAA 2,613,801
(FHA-Insured Mortgage Loan - Lakeview Towers Project),
6.600%, 12/01/20
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 1,700 City of Chicago, O'Hare International Airport, General Airport 1/03 at 102 AAA $ 1,656,735
Second Lien Revenue Refunding Bonds, 5.600%,
1/01/18 (Alternative Minimum Tax)
1,500 Illinois Health Facilities Authority, Revenue Bonds, Series No Opt. Call N/R*** 1,579,515
1992C (Evangelical Hospitals Corporation),
6.250%, 4/15/22
4,000 Illinois Health Facilities Authority, Revenue Bonds, 9/06 at 100 AAA 4,384,120
Series 1992B (Franciscan Sisters Health Care
Corporation Project), 6.625%, 9/01/13
(Pre-refunded to 9/01/06)
1,000 Illinois Health Facilities Authority, Revenue Bonds, 10/02 at 102 Baa2*** 1,054,830
Series 1992 (Mercy Center for Health Care
Services), 6.650%, 10/01/22 (Pre-refunded
to 10/01/02)
620 Illinois Housing Development Authority, Homeowner Mortgage 2/10 at 100 AA 624,588
Revenue Bonds, Series 2000-D3, 5.700%, 8/01/17
7,750 The Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102 AA-*** 8,176,483
Revenue Bonds, 1992 Series A, 6.375%, 1/01/15
(Pre-refunded to 1/01/03)
1,360 Board of Regents of Sangamon State University (Illinois), 10/02 at 102 AA 1,433,658
Auxiliary Facilities System Revenue Bonds,
Series 1992, 6.375%, 10/01/17
(Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.5%
1,205 Allen County, Indiana, Refunding Certificates of Participation, 5/02 at 101 Aa3 1,246,247
Series 1991, 6.500%, 11/01/17
4,000 Indiana State Office Building Commission, Correctional Facilities 12/01 at 102 Aa2*** 4,166,200
Program Revenue Bonds, Series 1991, 6.375%, 7/01/16
(Pre-refunded to 12/01/01)
2,000 School Building Corporation of Warren Township (Marion County, 7/02 at 102 A+*** 2,088,460
Indiana), First Mortgage Bonds, Series 1992A,
6.000%, 7/15/12 (Pre-refunded to 7/15/02)
2,725 Warrick County, Indiana, Adjustable Rate Environmental 5/03 at 102 AA 2,731,840
Improvement Revenue Bonds, 1993 Series B
(Southern Indiana Gas and Electric
Company Project), 6.000%, 5/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.5%
500 County of Trimble, Kentucky, Pollution Control Revenue Bonds, 9/02 at 102 Aaa 528,065
1990 Series B (Louisville Gas and Electric Company
Project), 6.550%, 11/01/20 (Alternative Minimum
Tax) (Pre-refunded to 9/16/02)
4,080 Trimble County, Kentucky, Pollution Control Revenue Bonds 9/02 at 102 A1 4,131,938
(Louisville Gas and Electric Company Project),
Series 1990-B, 6.550%, 11/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
4,000 Louisiana Public Facilities Authority, Revenue Bonds, Series 1992, 2/03 at 101 AA 4,147,600
Baton Rouge Water Works Company Project, 6.400%,
2/01/10 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.7%
1,270 Massachusetts Health and Educational Facilities Authority, 11/02 at 102 Aaa 1,345,743
Revenue Bonds, MetroWest Health, Inc. Issue,
Series C, 6.500%, 11/15/18
(Pre-refunded to 11/15/02)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.8%
4,000 Michigan State Housing Development Authority, Single Family 6/06 at 102 AA+ 4,085,960
Mortgage Revenue Bonds, 1996 Series C,
5.950%, 12/01/17
8,240 Michigan Housing Development Authority, Limited Obligation 9/02 at 103 AAA 8,561,525
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 6.500%, 7/01/12 (Alternative Minimum Tax) 7/02 at 102 A 2,032,809
980 6.250%, 7/01/22 (Alternative Minimum Tax)
(Pre-refunded to 7/01/02) 7/02 at 102 Aaa 1,023,541
20 6.250%, 7/01/22 (Alternative Minimum Tax) 7/02 at 102 A 20,341
<PAGE>
<CAPTION>
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS
September 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK - 10.3%
$ 1,750 The City of New York, New York, General Obligation Bonds, Fiscal 8/02 at 101 1/2 Aaa $ 1,853,460
1992 Series C, 7.000%, 8/01/17 (Pre-refunded to 8/01/02)
The City of New York, New York, General Obligation Bonds, Fiscal
1992 Series D:
1,480 7.500%, 2/01/18 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 Aaa 1,559,994
20 7.500%, 2/01/18 2/02 at 101 1/2 A 20,973
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series B:
990 7.000%, 6/01/12 (Pre-refunded to 6/01/01) 6/01 at 101 1/2 Aaa 1,021,838
10 7.000%, 6/01/12 6/01 at 101 1/2 A 10,297
The City of New York, New York, General Obligation Bonds, Fiscal
1992 Series H:
1,845 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A*** 1,934,741
155 7.100%, 2/01/11 2/02 at 101 1/2 A 161,794
The City of New York, New York, General Obligation Bonds, Fiscal
1992 Series B:
205 7.000%, 2/01/18 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A*** 214,709
855 7.000%, 2/01/18 2/02 at 101 1/2 A 891,132
2,785 New York City Municipal Water Finance Authority, Water and Sewer 6/02 at 101 AAA 2,900,578
System Revenue Bonds, Fiscal 1993 Series B, 6.375%,
6/15/22 (Pre-refunded to 6/15/02)
4,000 New York City Municipal Water Finance Authority (New York), 6/02 at 101 1/2 AA 4,071,960
Water and Sewer System Revenue Bonds, Fiscal 1993
Series A, 6.000%, 6/15/17
2,130 Dormitory Authority of the State of New York, City University No Opt. Call Baa1 2,428,179
System Consolidated Second General Resolution Revenue
Bonds, Series 1990C, 7.500%, 7/01/10
2,000 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 2,121,320
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.2%
2,500 Cambria County Hospital Development Authority (Pennsylvania), 7/02 at 102 AAA 2,623,225
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 Dauphin County, Pennsylvania, Industrial Development Authority, No Opt. Call A 2,688,167
Water Development Refunding Revenue Bonds, Series 1992B
(Dauphin Consolidates Water Supply Company),
6.700%, 6/01/17
4,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/02 at 102 AAA 4,137,720
Bonds, Issue of 1992 (FNMA Insured Mortgage Loans),
6.500%, 7/01/23
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/03 at 102 A- 2,062,240
Bonds (Drexel University), Series 1993, 6.375%, 5/01/17
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.1%
4,000 South Carolina Public Service Authority, Revenue Bonds, 1992 7/02 at 102 Aa2 4,168,440
Refunding Series A, 6.375%, 7/01/11
City of Spartanburg, South Carolina, Water System Improvement
Refunding Revenue Bonds, Series 1992:
1,290 6.250%, 6/01/17 (Pre-refunded to 6/01/02) 6/02 at 101 AAA 1,338,801
310 6.250%, 6/01/17 6/02 at 101 AA- 315,087
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.3%
4,000 South Dakota Health and Educational Facilities Authority, 9/02 at 102 AAA 4,194,640
Revenue Bonds, Series 1992 (Rapid City Regional
Hospital Issue), 6.150%, 9/01/18
(Pre-refunded to 9/01/02)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.5%
4,420 Memphis-Shelby County Airport Authority (Tennessee), Special 9/02 at 102 BBB 4,602,148
Facilities Revenue Refunding Bonds, Series 1992
(Federal Express Corporation), 6.750%, 9/01/12
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.1%
3,755 Grand Prairie Industrial Development Authority, Industrial 12/02 at 102 A 3,893,747
Development Revenue Refunding Bonds, Series 1992
(Baxter International, Inc. Project),
6.550%, 12/01/12
2,500 Harris County Health Facilities (Texas), Development Corporation 10/04 at 101 AAA 2,681,950
Hospital Revenue Bonds (Hermann Hospital), Series 1994,
6.375%, 10/01/17 (Pre-refunded to 10/01/04)
5,000 North Central Texas Health Facilities Development Corporation, 5/06 at 102 AA- 4,673,250
Hospital Revenue Refunding Bonds (Baylor Health Care
System Project), Series 1995, 5.250%, 5/15/16
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA - 2.2%
$ 4,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ $ 4,126,200
Bonds, 1992 Series A, 7.100%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.9%
Port of Seattle, Washington, Revenue Bonds, Series 1992B: 11/02 at 100 Aa2*** 298,364
290 6.000%, 11/01/17 (Alternative Minimum Tax)
(Pre-refunded to 11/01/02)
3,710 6.000%, 11/01/17 (Alternative Minimum Tax) 11/02 at 100 Aa2 3,728,884
5,840 State of Washington, Certificates of Participation, Series 1991-A, 4/01 at 102 Aa2 5,957,326
State Office Building Project, 6.000%, 4/01/12
4,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/01 at 102 Aaa 4,150,600
Refunding Revenue Bonds, Series 1991A, 6.875%,
7/01/17 (Pre-refunded to 7/01/01)
4,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/02 at 102 AAA 4,208,280
Refunding Revenue Bonds, Series 1992A, 6.500%,
7/01/15 (Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 4.2%
2,500 Berkeley County Building Commission (West Virginia), Hospital 11/02 at 102 BBB+ 2,518,925
Revenue Bonds (City Hospital Project), Series 1992,
6.500%, 11/01/09
3,000 Mason County, West Virginia, Pollution Control Revenue Bonds 10/02 at 102 BBB+ 3,011,040
(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 6.500%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 A*** 1,949,973
395 6.500%, 7/01/12 7/02 at 102 A 412,420
------------------------------------------------------------------------------------------------------------------------------------
$ 175,900 Total Investments (cost $ 174,727,684) - 98.5% 183,056,527
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3%
$ 500 Allegheny County Industrial Development Authority (Longwood at VMIG-1 500,000
============= Oakmont, Inc. Project), 1997B, Variable Rate Demand
Revenue Bonds, 5.650%, 7/01/27+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,290,493
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 185,847,020
====================================================================================================================
* 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.
<PAGE>
<CAPTION>
Nuveen Insured California Select Tax-Free Income Portfolio (NXC)
Portfolio of INVESTMENTS
September 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 1.6%
$ 1,410 California Educational Facilities Authority, Refunding Revenue 10/01 at 100 AAA $ 1,432,504
Bonds, Series 1992 (Loyola Marymount University),
6.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.7%
2,500 California Health Facilities Financing Authority, Insured 10/02 at 102 AAA 2,636,200
Hospital Revenue Bonds (Scripps Memorial
Hospitals), Series 1992A, 6.400%, 10/01/12
1,000 California Health Facilities Financing Authority, Insured 3/01 at 102 AAA 1,027,990
Hospital Revenue Bonds (Adventist Health
System/West), 1991 Series B, 6.500%, 3/01/11
4,000 California Health Facilities Financing Authority, Insured 8/02 at 102 AAA 4,193,440
Hospital Revenue Bonds (San Diego Hospital
Association), Series 1992B, 6.125%, 8/01/11
1,880 California Statewide Communities Development Authority, Revenue 6/07 at 101 AAA 1,908,990
Bonds (Los Angeles Orthopedic Hospital Foundation and
Orthopedic Hospital), Series 2000, 5.500%, 6/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.4%
Golden West Schools Financing Authority (California), 1999
Revenue Bonds (School District General Obligation Refunding
Program), Series A:
4,650 0.000%, 8/01/16 No Opt. Call AAA 1,973,507
1,750 0.000%, 2/01/17 No Opt. Call AAA 713,755
2,375 0.000%, 8/01/17 No Opt. Call AAA 942,448
2,345 0.000%, 2/01/18 No Opt. Call AAA 894,711
Mountain View-Los Altos Union High School District (County of
Santa Clara, California), 1995 General Obligation Capital
Appreciation Bonds, Series C:
1,015 0.000%, 5/01/17 No Opt. Call AAA 409,654
1,080 0.000%, 5/01/18 No Opt. Call AAA 407,776
4,000 City of Oakland, Alameda County, California, General Obligation 6/02 at 102 AAA 4,155,120
Bonds, Series 1992, 6.000%, 6/15/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.9%
3,500 State Public Works Board, State of California, Lease Revenue No Opt. Call AAA 4,057,375
Bonds, Department of Corrections, 1991 Series A,
Calipatria State Prison in Imperial County,
6.500%, 9/01/17
2,430 County of Los Angeles, Certificates of Participation (Edmund D. 4/02 at 102 AAA 2,532,740
Edelman Children's Court and Petersen Museum Projects),
6.000%, 4/01/12
1,200 Los Angeles County Metropolitan Transportation Authority 7/03 at 102 AAA 1,219,368
(California), Proposition A, Sales Tax Revenue
Refunding Bonds, Series 1993-A, 5.625%, 7/01/18
4,000 San Bernardino County, California, Certificates of Participation 11/02 at 102 AAA 4,170,480
(1992 West Valley Detention Center Refinancing Project),
6.000%, 11/01/18
2,445 Walnut Public Financing Authority (Los Angeles County, 9/02 at 102 AAA 2,576,786
California), 1992 Tax Allocation Revenue
Bonds (Walnut Improvement Project),
6.500%, 9/01/22
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.8%
3,675 Palm Springs Financing Authority, Palm Springs Regional Airport, 1/02 at 102 AAA 3,792,710
Revenue Bonds, Series 1992, 6.000%, 1/01/12
(Alternative Minimum Tax)
3,750 Port of Oakland, California, Revenue Bonds, Series 1992-E, 11/02 at 102 AAA 3,943,388
6.500%, 11/01/16 (Alternative Minimum Tax)
2,095 San Francisco Airports Commission, San Francisco International 5/02 at 102 AAA 2,194,114
Airport, Second Series Refunding Revenue Bonds,
Issue 1, 6.300%, 5/01/11
820 Airports Commission, City and County of San Francisco, 5/03 at 102 AAA 852,611
California, San Francisco International Airport,
Second Series Refunding Revenue Bonds, Issue 4,
6.200%, 5/01/20 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED - 30.9%
$ 640 California Educational Facilities Authority, Refunding Revenue 10/01 at 100 AAA $ 653,728
Bonds, Series 1992 (Loyola Marymount University),
6.000%, 10/01/14 (Pre-refunded to 10/01/01)
4,000 The Community Redevelopment Agency of the City of Los Angeles, 7/02 at 102 AAA 4,210,840
California, Hollywood Redevelopment Project, Tax
Allocation Bonds, Series B, 6.100%, 7/01/22
(Pre-refunded to 7/01/02)
4,000 The City of Los Angeles, California, Wastewater System Revenue 6/02 at 102 AAA 4,214,440
Bonds, Series 1992-B, 6.250%, 6/01/12
(Pre-refunded to 6/01/02)
1,500 Modesto Irrigation District Financing Authority, Domestic Water 9/02 at 102 AAA 1,583,715
Project Revenue Bonds, Series 1992A, 6.125%, 9/01/19
(Pre-refunded to 9/01/02)
3,310 Rio Linda Union School District (California), General Obligation 8/02 at 102 AAA 3,505,422
Bonds, Series 1992A, 6.375%, 8/01/17
(Pre-refunded to 8/01/02)
475 Rio Linda Union School District (California), General Obligation 8/02 at 102 AAA 502,004
Bonds, Series 1992A, 6.250%, 8/01/15
(Pre-refunded to 8/01/02)
3,500 Sacramento Municipal Utility District (California), Electric 8/02 at 102 AAA 3,709,440
Revenue Bonds, 1992 Series B, 6.375%, 8/15/22
(Pre-refunded to 8/15/02)
4,000 County of San Diego (California), Certificates of Participation 8/04 at 102 AAA 4,431,360
(1994 Inmate Reception Center and Cooling Plant
Financing), 6.750%, 8/01/14 (Pre-refunded to 8/01/04)
1,405 San Francisco Airports Commission, San Francisco International 5/02 at 102 AAA 1,479,142
Airport, Second Series Refunding Revenue Bonds,
Issue 1, 6.300%, 5/01/11 (Pre-refunded to 5/01/02)
1,330 Airports Commission, City and County of San Francisco, California, 5/03 at 102 AAA 1,414,548
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 Tulare County, California, Certificates of Participation (1992 11/02 at 102 AAA 1,059,890
Financing Project), Series A, 6.125%, 11/15/12
(Pre-refunded to 11/15/02)
1,555 Walnut Public Financing Authority (Los Angeles County, California), 9/02 at 102 AAA 1,653,058
1992 Tax Allocation Revenue Bonds (Walnut Improvement
Project), 6.500%, 9/01/22 (Pre-refunded to 9/01/02)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5%
3,450 M-S-R Public Power Agency (California), San Juan Project Revenue 7/01 at 100 AAA 3,468,216
Bonds, Series 1991E, 6.000%, 7/01/22
2,430 Modesto Irrigation District, California, Certificates of 10/01 at 100 AAA 2,481,638
Participation (Refunding and Capital Improvements
Project), Series 1991A, 6.000%, 10/01/21
3,000 Northern California Power Agency, Hydroelectric Project Number 7/02 at 102 AAA 3,148,380
One, Revenue Bonds, 1992 Refunding Series A,
6.250%, 7/01/12
1,225 Turlock Irrigation District (California), Revenue Refunding No Opt. Call AAA 1,393,413
Bonds, Series 1992A, 6.250%, 1/01/12
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.9%
4,000 Eastern Municipal Water District (Riverside County, California), 7/01 at 101 AAA 4,093,920
Water and Sewer Revenue Refunding Certificates of
Participation, Series 1991A, 6.300%, 7/01/20
1,250 Fairfield-Suisun Sewer District (Solano County, California), 5/01 at 102 AAA 1,288,224
Sewer Revenue Refunding Bonds, Series 1991A,
6.250%, 5/01/16
------------------------------------------------------------------------------------------------------------------------------------
$ 93,990 Total Investments (cost $ 86,051,680) - 98.7% 90,327,045
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 1,235,397
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 91,562,442
====================================================================================================================
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.
<PAGE>
<CAPTION>
Nuveen Insured New York Select Tax-Free Income Portfolio (NXN)
Portfolio of INVESTMENTS
September 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 20.0%
$ 1,000 New York City Industrial Development Agency, Civic Facility 11/04 at 102 AAA $ 1,071,410
Revenue Bonds (USTA National Tennis Center
Incorporated Project), 6.375%, 11/15/14
570 Dormitory Authority of the State of New York, City University No Opt. Call AAA 660,915
System Consolidated Second General Resolution Revenue
Bonds, Series 1990C, 7.500%, 7/01/10
1,370 Dormitory Authority of the State of New York, Siena College, 7/02 at 102 AAA 1,425,280
Insured Revenue Bonds, Series 1992, 6.000%, 7/01/11
2,050 Dormitory Authority of the State of New York, Ithaca College, 7/01 at 102 AAA 2,122,632
Insured Revenue Bonds, Series 1991, 6.500%, 7/01/10
1,100 Dormitory Authority of the State of New York, Mount Sinai School 7/01 at 102 AAA 1,137,928
of Medicine, Insured Revenue Bonds, Series 1991,
6.750%, 7/01/15
2,500 Dormitory Authority of the State of New York, Marist College, 7/02 at 102 AAA 2,589,175
Insured Revenue Bonds, Series 1992, 6.000%, 7/01/12
2,115 Dormitory Authority of the State of New York, New York University, 7/01 at 102 AAA 2,177,858
Insured Revenue Bonds, Series 1991, 6.250%, 7/01/09
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 4.7%
2,500 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 2,651,650
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series C, 6.250%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.8%
1,365 New Hartford Housing Development Corporation, Mortgage Revenue 7/02 at 100 AAA 1,399,302
Refunding Bonds, Series 1992A (Village Point Project-
FHA-Insured Mortgage Loan - Section 8 Assisted Project),
7.375%, 1/01/24
1,245 New York State Housing Finance Agency, FHA-Insured Multifamily 8/02 at 102 AAA 1,278,715
Housing Mortgage Revenue Bonds, Series 1992C,
6.450%, 8/15/14
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 3.0%
Town of Clarkstown, Rickland County, New York, Various Purposes
Serial Bonds of 1992:
505 5.600%, 6/15/10 No Opt. Call AAA 534,219
525 5.600%, 6/15/11 No Opt. Call AAA 555,975
525 5.600%, 6/15/12 No Opt. Call AAA 554,295
10 The City of New York, New York, General Obligation Bonds, Fiscal 8/02 at 101 1/2 AAA 10,411
1992 Series C, 6.250%, 8/01/11
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 4.8%
20 New York State Medical Care Facilities Finance Agency, Mental 8/02 at 102 AAA 20,853
Health Services Facilities Improvement Revenue Bonds,
1992 Series D, 6.100%, 8/15/13
140 New York State Medical Care Facilities Finance Agency, Mental 2/02 at 102 AAA 143,728
Health Services Facilities Improvement Revenue Bonds,
1992 Series B, 6.250%, 8/15/18
200 New York State Thruway Authority, Highway and Bridge Trust Fund 4/05 at 102 AAA 195,204
Bonds, Series 1995B, 5.125%, 4/01/15
2,250 Triborough Bridge and Tunnel Authority (New York), Special 1/01 at 102 AAA 2,304,877
Obligation Refunding Bonds, Series 1991A,
6.625%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.7%
2,500 Port of Authority of New York and New Jersey, Consolidated 1/05 at 101 AAA 2,627,225
Revenue Bonds, Ninety-Seventh Series, 6.500%,
7/15/19 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED - 42.4%
$ 3,500 Metropolitan Transportation Authority (New York), Commuter 7/02 at 102 AAA $ 3,673,110
Facilities Revenue Bonds, Series 1992B,
6.250%, 7/01/17 (Pre-refunded to 7/01/02)
2,250 Metropolitan Transportation Authority, Transit Facilities 7/02 at 102 AAA 2,365,988
Revenue Bonds, Series J, 6.375%, 7/01/10
(Pre-refunded to 7/01/02)
245 The City of New York, New York, General Obligation Bonds, Fiscal 8/02 at 101 1/2 AAA 256,319
1992 Series C, 6.250%, 8/01/11
(Pre-refunded to 8/01/02)
2,000 The City of New York, New York, General Obligation Bonds, Fiscal 8/04 at 101 AAA 2,188,300
1995 Series B1, 6.950%, 8/15/12
(Pre-refunded to 8/15/04)
1,000 New York City Municipal Water Finance Authority, Water and Sewer 6/02 at 101 1/2 AAA 1,043,280
System Revenue Bonds, Fiscal 1992 Series C, 6.200%,
6/15/21 (Pre-refunded to 6/15/02)
630 New York City Municipal Water Finance Authority, Water and Sewer 6/01 at 100 AAA 638,442
System Revenue Bonds, Fiscal 1992 Series A, 6.250%,
6/15/21 (Pre-refunded to 6/15/01)
1,535 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,799,097
Lease Revenue Bonds (Suffolk County Issue), Series 1986,
7.375%, 7/01/16
2,400 Dormitory Authority of the State of New York, Hamilton College, 7/01 at 102 AAA 2,485,032
Insured Revenue Bonds, Series 1991, 6.500%, 7/01/21
(Pre-refunded to 7/01/01)
135 Dormitory Authority of the State of New York, New York University, 7/01 at 102 AAA 139,514
Insured Revenue Bonds, Series 1991, 6.250%, 7/01/09
(Pre-refunded to 7/01/01)
1,965 New York State Medical Care Facilities Finance Agency, Mental 2/02 at 102 AAA 2,049,849
Health Services Facilities Improvement Revenue Bonds,
1992 Series B, 6.250%, 8/15/18 (Pre-refunded to 2/15/02)
2,500 New York State Medical Care Facilities Finance Agency, New York 2/05 at 102 AAA 2,755,400
Hospital FHA-Insured Mortgage Revenue Bonds, Series
1994A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05)
230 New York State Medical Care Facilities Finance Agency, Mental 8/02 at 102 AAA 241,134
Health Services Facilities Improvement Revenue Bonds,
1992 Series D, 6.100%, 8/15/13 (Pre-refunded to 8/15/02)
1,500 New York State Thruway Authority, General Revenue Bonds, Series A, 1/02 at 100 AAA 1,519,920
5.500%, 1/01/23 (Pre-refunded to 1/01/02)
2,000 New York State Thruway Authority, Local Highway and Bridge Service 4/02 at 102 AAA 2,064,400
Contract Bonds, Series 1992, 6.000%, 4/01/10
(Pre-refunded to 4/01/02)
485 Suffolk County Water Authority (New York), Waterworks Revenue No Opt. Call AAA 548,617
Bonds, Series 1986-V, 6.750%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.6%
1,945 New York State Power Authority, General Purpose Bonds, Series 1/02 at 102 AAA 2,025,756
1992 AA, 6.250%, 1/01/23
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.9%
4,900 New York City Municipal Water Finance Authority, Water and Sewer 6/02 at 101 1/2 AAA 4,940,964
System Revenue Bonds, Fiscal 1993 Series A,
5.750%, 6/15/18
620 New York City Municipal Water Finance Authority, Water and Sewer 6/01 at 100 AAA 623,547
System Revenue Bonds, Fiscal 1992 Series A,
6.250%, 6/15/21
------------------------------------------------------------------------------------------------------------------------------------
$ 52,330 Total Investments (cost $ 52,200,303) - 97.9% 54,820,321
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,174,844
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 55,995,165
====================================================================================================================
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>
<CAPTION>
Statement of NET ASSETS
September 30, 2000 (Unaudited)
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in municipal securities,
at market value $240,186,053 $255,423,850 $183,056,527 $90,327,045 $54,820,321
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value -- -- 500,000 -- --
Cash -- 794,143 171,130 320,423 679,712
Receivables:
Interest 5,143,844 4,675,253 3,112,730 1,393,745 802,318
Investments sold 75,000 137,228 -- -- --
Other assets 32,010 34,133 25,919 14,101 10,092
------------------------------------------------------------------------------------------------------------------------------------
Total assets 245,436,907 261,064,607 186,866,306 92,055,314 56,312,443
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 188,788 -- -- -- --
Accrued expenses:
Surveillance and administration fees 48,998 62,663 40,703 22,652 13,845
Other 130,693 113,705 97,023 57,254 49,474
Dividends payable 1,227,935 1,276,588 881,560 412,966 253,959
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,596,414 1,452,956 1,019,286 492,872 317,278
------------------------------------------------------------------------------------------------------------------------------------
Net assets $243,840,493 $259,611,651 $185,847,020 $91,562,442 $55,995,165
====================================================================================================================================
Shares outstanding 16,378,096 17,607,068 12,964,124 6,257,070 3,907,069
====================================================================================================================================
Net asset value per share outstanding
(net assets divided by shares outstanding) $ 14.89 $ 14.74 $ 14.34 $ 14.63 $ 14.33
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of OPERATIONS
Six Months Ended September 30, 2000 (Unaudited)
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME $7,837,547 $8,188,167 $5,702,291 $2,662,482 $1,655,559
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Surveillance and administration fees 297,610 380,835 274,941 136,992 84,043
Shareholders' servicing agent fees and expenses 14,848 16,024 9,914 3,941 3,123
Custodian's fees and expenses 16,722 21,004 20,861 9,339 7,460
Trustees' fees and expenses 22,991 22,838 19,339 7,972 4,899
Professional fees 9,714 11,379 62,963 8,600 8,823
Shareholders' reports - printing and mailing expenses 15,414 22,677 18,498 5,869 5,788
Stock exchange listing fees 12,164 12,164 12,164 8,107 8,250
Investor relations expense 16,763 19,040 13,870 6,436 4,416
Other expenses 6,763 7,035 5,631 1,445 2,442
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 412,989 512,996 438,181 188,701 129,244
Custodian fee credit (6,005) (9,695) (6,725) (3,375) (2,483)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 406,984 503,301 431,456 185,326 126,761
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,430,563 7,684,866 5,270,835 2,477,156 1,528,798
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions 413 9,114 (499) 79,582 (3,324)
Change in net unrealized appreciation
(depreciation) of investments (34,094) (83,313) 194,999 317,712 69,475
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (33,681) (74,199) 194,500 397,294 66,151
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $7,396,882 $7,610,667 $5,465,335 $2,874,450 $1,594,949
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of CHANGES IN NET ASSETS (Unaudited)
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
9/30/00 3/31/00 9/30/00 3/31/00 9/30/00 3/31/00
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 7,430,563 $ 14,778,332 $ 7,684,866 $ 15,363,527 $ 5,270,835 $ 10,642,206
Net realized gain (loss) from
investment transactions 413 220 9,114 1,289 (499) (1,274)
Change in net unrealized appreciation
(depreciation) of investments (34,094) (10,859,173) (83,313) (11,626,371) 194,999 (8,555,845)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 7,396,882 3,919,379 7,610,667 3,738,445 5,465,335 2,085,087
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net
investment income (7,370,147) (14,740,296) (7,659,079) (15,318,154) (5,289,363) (10,578,723)
From accumulated net realized gains
from investment transactions -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (7,370,147) (14,740,296) (7,659,079) (15,318,154) (5,289,363) (10,578,723)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets 26,735 (10,820,917) (48,412) (11,579,709) 175,972 (8,493,636)
Net assets at the
beginning of period 243,813,758 254,634,675 259,660,063 271,239,772 185,671,048 194,164,684
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $243,840,493 $243,813,758 $259,611,651 $259,660,063 $185,847,020 $185,671,048
====================================================================================================================================
Balance of undistributed net
investment income at the
end of period $ 293,391 $ 232,975 $ 178,606 $ 152,819 $ 88,508 $ 107,036
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSURED CALIFORNIA INSURED NEW YORK
SELECT TAX-FREE (NXC) SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
9/30/00 3/31/00 9/30/00 3/31/00
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,477,156 $ 4,956,189 $ 1,528,798 $ 3,041,027
Net realized gain (loss) from
investment transactions 79,582 332,845 (3,324) (630)
Change in net unrealized appreciation
(depreciation) of investments 317,712 (4,529,191) 69,475 (2,371,642)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 2,874,450 759,843 1,594,949 668,755
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net
investment income (2,477,800) (4,955,596) (1,523,757) (3,047,612)
From accumulated net realized gains
from investment transactions -- (139,533) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (2,477,800) (5,095,129) (1,523,757) (3,047,612)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 396,650 (4,335,286) 71,192 (2,378,857)
Net assets at the beginning of period 91,165,792 95,501,078 55,923,973 58,302,830
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $91,562,442 $91,165,792 $55,995,165 $55,923,973
====================================================================================================================================
Balance of undistributed net
investment income at the
end of period $ 22,782 $ 23,426 $ 69,949 $ 64,908
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
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
accounting principles generally accepted in the United States.
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. Any 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, 2000, 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 (NXC) and from New York state income taxes for Insured New York
Select Tax-Free (NXN), to retain such tax-exempt status when distributed to
shareholders of the Trusts.
<PAGE>
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 accounting principles generally
accepted in the United States. 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 (NXC) and Insured New York Select Tax-Free
(NXN) invest in municipal securities which are either covered by insurance or
are backed by an escrow or trust account containing sufficient U.S. Government
or U.S. Government agency securities, both of which ensure the timely payment of
principal and interest. Each insured municipal security is covered by Original
Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such
insurance does not guarantee the market value of the municipal securities or the
value of the Trusts' shares. Original Issue Insurance and Secondary Market
Insurance remain in effect as long as the municipal securities covered thereby
remain outstanding and the insurer remains in business, regardless of whether
the Trusts ultimately dispose of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance or
Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held by
the Trust. Accordingly, neither the prices used in determining the market value
of the underlying municipal securities nor the net asset value of the Trusts'
shares include value, if any, attributable to the Portfolio Insurance. Each
policy of the Portfolio Insurance does, however, give the Trusts the right to
obtain permanent insurance with respect to the municipal security covered by the
Portfolio Insurance policy at the time of its sale.
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 certain 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 accounting principles
generally accepted in the United States 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, 2000,
nor during the fiscal year ended March 31, 2000, 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, 2000, to shareholders of record on October
15, 2000, as follows:
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
--------------------------------------------------------------------------------
Dividend per share $.0750 $.0725 $.0680 $.0660 $.0650
================================================================================
<PAGE>
Notes to FINANCIAL STATEMENTS (Unaudited) (continued)
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, 2000, 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
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $2,408,640 $4,614,580 $620,000 $1,880,000 $ --
Short-term municipal securities -- 1,000,000 -- -- --
Sales and maturities:
Long-term municipal securities 370,000 3,968,900 295,000 2,367,185 35,000
Short-term municipal securities 1,800,000 2,200,000 -- -- 500,000
=========================================================================================================
At September 30, 2000, the identified cost of investments owned for federal
income tax purposes were as follows:
INSURED INSURED
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
$224,294,951 $241,770,368 $175,227,684 $86,051,680 $52,200,592
=========================================================================================================
</TABLE>
At March 31, 2000, the Trusts' last fiscal year end, the following 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
NEW YORK
SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE
(NXP) (NXQ) (NXR) (NXN)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
2001 $ -- $ -- $ 200,114 $618,333
2002 -- -- 15,243 432
2003 -- -- -- 1,954
2004 77,435 -- 170,137 321,550
2005 31,707 41,441 674,505 1,480
2006 24,357 44,578 3,603 828
2007 -- -- -- 933
2008 -- -- -- 538
---------------------------------------------------------------------------------------------------------
Total $133,499 $86,019 $1,063,602 $946,048
=========================================================================================================
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at September 30, 2000, 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
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gross unrealized:
appreciation $16,076,378 $13,806,445 $8,328,843 $4,702,114 $2,620,018
depreciation (185,276) (152,963) -- (426,749) (289)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $15,891,102 $13,653,482 $8,328,843 $4,275,365 $2,619,729
=========================================================================================================
</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 (NXQ)
SELECT TAX-FREE 3 (NXR)
INSURED CALIFORNIA SELECT TAX-FREE (NXC)
AVERAGE DAILY NET ASSETS SELECT TAX-FREE (NXP) INSURED NEW YORK SELECT TAX-FREE (NXN)
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
For the first $125 million .2500 of 1% .3000 of 1%
For the next $125 million .2375 of 1 .2875 of 1
For the next $250 million .2250 of 1 .2750 of 1
For the next $500 million .2125 of 1 .2625 of 1
For the next $1 billion .2000 of 1 .2500 of 1
For net assets over $2 billion .1875 of 1 .2375 of 1
==============================================================================================================
</TABLE>
The fee compensates the Adviser for performing ongoing administration,
surveillance and portfolio adjustment services. The Trusts pay no compensation
directly to those 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.
7. COMPOSITION OF NET ASSETS
At September 30, 2000, 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
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
<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 87,122,142 54,215,788
Balance of undistributed net
investment income 293,391 178,606 88,508 22,782 69,949
Accumulated net realized gain (loss)
from investment transactions (133,086) (77,448) (1,064,101) 79,582 (949,661)
Net unrealized appreciation
of investments 15,891,102 13,654,024 8,328,843 4,275,365 2,620,018
---------------------------------------------------------------------------------------------------------
Net assets $243,840,493 $259,611,651 $185,847,020 $91,562,442 $55,995,165
=========================================================================================================
</TABLE>
<PAGE>
Notes to FINANCIAL STATEMENTS (Unaudited) (continued)
8. INVESTMENT COMPOSITION
At September 30, 2000, 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
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Basic Materials 2% 3% --% --% --%
Education and Civic Organizations 2 7 2 2 20
Healthcare 9 9 8 11 5
Housing/Multifamily 9 11 10 -- 5
Housing/Single Family 7 6 5 -- --
Tax Obligation/General 6 1 3 11 3
Tax Obligation/Limited 8 5 4 16 5
Transportation 8 6 11 12 5
U.S. Guaranteed 47 48 40 30 43
Utilities 1 -- 11 12 4
Water and Sewer 1 3 6 6 10
Other -- 1 -- -- --
---------------------------------------------------------------------------------------------------------
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 (NXP), 61% for Select Tax-Free 2 (NXQ), 48%
for Select Tax-Free 3 (NXR), 100% for Insured California Select Tax-Free (NXC),
and 100% for Insured New York Select Tax-Free (NXN)). Such insurance or escrow,
however, does not guarantee the market value of the municipal securities or the
value of any of the Trusts' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Trust.
<PAGE>
Financial HIGHLIGHTS (Unaudited)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Investment Operations Less Distributions
------------------------------- --------------------------------
Net
Realized/
Beginning Net Unrealized Net
Net Asset Investment Investment Investment Capital
Value Income Gain (Loss) Total Income Gains Total
------------------------------------------------------------------------------------------------------------------------------------
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) $14.89 $.45 $ -- $ .45 $(.45) $ -- $ (.45)
2000 15.55 .90 (.66) .24 (.90) -- (.90)
1999 15.62 .90 (.07) .83 (.90) -- (.90)
1998 15.15 .90 .47 1.37 (.90) -- (.90)
1997 15.07 .90 .10 1.00 (.92) -- (.92)
1996 14.71 .91 .39 1.30 (.94) -- (.94)
<CAPTION>
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) 14.75 .44 (.01) .43 (.44) -- (.44)
2000 15.41 .87 (.66) .21 (.87) -- (.87)
1999 15.43 .87 (.02) .85 (.87) -- (.87)
1998 14.95 .88 .49 1.37 (.89) -- (.89)
1997 14.92 .88 .04 .92 (.89) -- (.89)
1996 14.57 .88 .38 1.26 (.91) -- (.91)
<CAPTION>
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) 14.32 .41 .02 .43 (.41) -- (.41)
2000 14.98 .82 (.66) .16 (.82) -- (.82)
1999 14.96 .82 .02 .84 (.82) -- (.82)
1998 14.35 .82 .62 1.44 (.83) -- (.83)
1997 14.23 .82 .13 .95 (.83) -- (.83)
1996 13.90 .83 .34 1.17 (.84) -- (.84)
<CAPTION>
INSURED CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) 14.57 .40 .06 .46 (.40) -- (.40)
2000 15.26 .79 (.67) .12 (.79) (.02) (.81)
1999 15.21 .79 .05 .84 (.79) -- (.79)
1998 14.53 .79 .69 1.48 (.80) -- (.80)
1997 14.42 .80 .11 .91 (.80) -- (.80)
1996 14.16 .80 .27 1.07 (.81) -- (.81)
<CAPTION>
INSURED NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) 14.31 .39 .02 .41 (.39) -- (.39)
2000 14.92 .78 (.61) .17 (.78) -- (.78)
1999 14.91 .78 .01 .79 (.78) -- (.78)
1998 14.28 .78 .63 1.41 (.78) -- (.78)
1997 14.25 .78 .03 .81 (.78) -- (.78)
1996 14.04 .78 .21 .99 (.78) -- (.78)
<PAGE>
<CAPTION>
Ratios/Supplemental Data
--------------------------------------------------------------------
Total Returns Before Credit After Credit***
------------------ ------------------------ -----------------------
Ratio of Net Ratio of Net
Ending Based on Ending Ratio of Investment Ratio of Investment
Net Ending Based on Net Net Expenses to Income to Expenses to Income to Portfolio
Asset Market Market Asset Assets Average Average Average Average Turnover
Value Value Value** Value** (000) Net Assets Net Assets Net Assets Net Assets Rate
------------------------------------------------------------------------------------------------------------------------------------
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2001 (a) $14.89 $14.5000 9.29% 3.06% $243,840 .34%* 6.08%* .33%* 6.09%* --%
2000 14.89 13.6875 (11.09) 1.62 243,814 .36 5.97 .36 5.97 --
1999 15.55 16.3750 9.02 5.43 254,635 .36 5.78 .36 5.78 1
1998 15.62 15.8750 14.06 9.24 255,865 .36 5.83 .36 5.83 1
1997 15.15 14.7500 4.58 6.79 248,092 .39 5.97 .39 5.97 1
1996 15.07 15.0000 9.14 8.97 246,858 .36 6.02 .36 6.02 1
<CAPTION>
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) 14.74 13.9375 7.49 2.92 259,612 .39* 5.91* .39* 5.91* 2
2000 14.75 13.3750 (10.38) 1.43 259,660 .40 5.82 .40 5.82 1
1999 15.41 15.8750 9.51 5.63 271,240 .40 5.65 .40 5.65 1
1998 15.43 15.3125 14.92 9.34 271,752 .40 5.72 .40 5.72 --
1997 14.95 14.1250 .93 6.34 263,176 .42 5.86 .42 5.86 2
1996 14.92 14.8750 13.02 8.79 262,768 .42 5.89 .42 5.89 1
<CAPTION>
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) 14.34 13.3125 6.60 3.03 185,847 .47* 5.67* .46* 5.67* --
2000 14.32 12.8750 (10.29) 1.11 185,671 .41 5.65 .41 5.65 --
1999 14.98 15.2500 7.78 5.76 194,165 .42 5.45 .42 5.45 --
1998 14.96 14.9375 19.38 10.24 193,899 .42 5.56 .42 5.56 --
1997 14.35 13.2500 3.30 6.85 186,065 .44 5.74 .44 5.74 5
1996 14.23 13.6250 11.41 8.56 184,464 .44 5.79 .44 5.79 4
<CAPTION>
INSURED CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) 14.63 14.4375 7.94 3.17 91,562 .41* 5.42* .41* 5.42* 2
2000 14.57 13.7500 (7.57) .90 91,166 .45 5.37 .45 5.38 3
1999 15.26 15.7500 8.22 5.65 95,501 .44 5.20 .44 5.20 1
1998 15.21 15.3125 16.52 10.41 95,164 .44 5.31 .44 5.31 --
1997 14.53 13.8750 3.06 6.46 90,894 .45 5.47 .45 5.47 --
1996 14.42 14.2500 9.80 7.67 90,223 .44 5.50 .44 5.50 --
<CAPTION>
INSURED NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 3/31:
2001 (a) 14.33 13.2500 7.55 2.90 55,995 .46* 5.45* .45* 5.46* --
2000 14.31 12.6875 (11.18) 1.21 55,924 .50 5.36 .49 5.37 --
1999 14.92 15.1250 6.14 5.40 58,303 .49 5.19 .49 5.19 --
1998 14.91 15.0000 18.31 10.07 58,250 .49 5.30 .49 5.30 --
1997 14.28 13.3750 4.91 5.79 55,782 .51 5.42 .51 5.42 --
1996 14.25 13.5000 8.94 7.13 55,682 .48 5.44 .48 5.44 --
* 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.
(a) For the six months ended September 30, 2000.
</TABLE>
<PAGE>
Build Your Wealth
AUTOMATICALLY
Sidebar text: 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.
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. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
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.
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 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 reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. 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 F. Bacon
Jack B. Evans
William T. Kissick
Thomas E. Leafstrand
Timothy R. Schwertfeger
Sheila 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
Each Trust intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. No shares were
repurchased during the 6-month period ended September 30, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
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Serving Investors FOR GENERATIONS
[PHOTO OF JOHN NUVEEN, SR.]
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
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Invest well. Look ahead. LEAVE YOUR MARK.(SM)
NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive PSA-1-9-00
Chicago, IL 60606 o www.nuveen.com
