NUVEEN Exchange-Traded Funds
NOVEMBER 30, 1997
Semiannual Report
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NIM
Select Maturities
Photo of: people sitting on front porch and gardening.
<PAGE>
Contents
1 Dear Shareholder
3 Answering Your Questions
7 NIM Performance Overview
8 Shareholder Meeting Report
9 Portfolio of Investments
14 Statement of Net Assets
15 Statement of Operations
16 Statement of Changes in Net Assets
17 Notes to Financial Statements
22 Financial Highlights
24 Fund Information
<PAGE>
INSERT:
New from Nuveen THE NUVEEN RITTENHOUSE GROWTH FUND
General Electric. Johnson & Johnson. Gillette. Familiar names to be sure.
And the sort of established "blue chip" companies our new growth fund invests
in. For many, these are the holdings that belong at the core of a
well-constructed portfolio. Why? They provide attractive long-term growth
potential plus the benefits of investing in companies you know and trust.
The fund is managed by Rittenhouse Financial Services, a premier growth
manager selected by Nuveen for their proven track record and disciplined
investment process. The portfolio team focuses on companies that are global
industry leaders - household names with a history of strength and consistent
growth.
Sound reassuring? Ask your financial adviser today about the fund and
Nuveen's growing family of equity, balanced and income mutual funds. Or call
(800) 621-7227 to receive an investor guide, containing a prospectus which
provides more complete information, including charges and expenses. Please read
it carefully before you invest.
(See other side for a Nuveen product listing)
<PAGE>
NUVEEN INVESTMENTS CAN HELP YOU SUSTAIN THE WEALTH OF A LIFETIME
MUTUAL FUNDS
Nuveen Rittenhouse Growth Fund
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
National Municipal Bond Funds
State-Specific Municipal Bond Funds
UNIT TRUSTS
Equity
Corporate Bond
Municipal Bond
EXCHANGE-TRADED FUNDS
MUNIPREFERRED(R)
PRIVATE ASSET MANAGEMENT
For more information about any of these Nuveen products, including charges and
expenses, call your financial adviser for a prospectus where available, or call
Nuveen at (800) 621-7227.
Please read it carefully before you invest.
<PAGE>
Dear Shareholder
Photo of: TIMOTHY R. SCHWERTFEGER
CHAIRMAN OF THE BOARD
Wealth takes a lifetime to build. Once achieved, it should be preserved.
It's a pleasure to report to you on the performance of your Nuveen Select
Maturities Municipal Fund. Over the past 12 months, the fund has performed well,
rewarding shareholders with dependable tax-free income and attractive returns.
Investors in the fund continued to enjoy tax-free dividends generated by the
underlying portfolio of quality municipal bonds with intermediate-term effective
maturities. As of November 30, 1997, shareholders in the Select Maturities Fund
were receiving a current market yield of 5.46%. To match this yield, investors
in the 31% federal income tax bracket would have had to earn 7.91% on taxable
alternatives. Dividend stability continues to be a hallmark of your Nuveen
exchange-traded fund, as the dividends for this fund were declared a total of 12
times over the past year with only one modest adjustment.
For the 12 months ended November 30, 1997, the total return on the Select
Maturities Fund was 6.24%, providing a taxable-equivalent return of 8.70% for
investors in the 31% federal tax bracket. For shareholders in higher tax
brackets, the tax-adjusted returns were even more attractive. You will find
additional details on the performance of your fund on page 7.
THE YEAR IN REVIEW
Over the past year, American investors have benefited from robust economic
growth with little evidence of inflationary pressures. With unemployment rates
at 20-year lows and the current economic expansion entering its seventh year,
the presence of benign inflation has sparked debate over whether the traditional
link between growth and inflation has been broken. During 1997, expectations
that excess growth would generate inflation disrupted the markets on several
occasions, most notably following the Federal Reserve's interest rate tightening
in March and speeches by Chairman Greenspan. Still, falling commodity prices
kept producer prices in check, while low import prices--due in part to the
weakness in Asian markets--limited U.S. companies' ability to raise consumer
prices. This combination has kept inflation subdued and the Federal Reserve "on
hold" since March. The reduction in the federal deficit and passage of the
Taxpayer Relief Act of 1997 offer additional encouragement to long-term
fixed-income investors.
<PAGE>
HELPING YOU BUILD A BETTER PORTFOLIO
The events of 1997 have also focused renewed attention on the need for
diversification and appropriate asset allocation. Stock market volatility,
especially late in the year, provided a vivid illustration of the steadying
effect that fixed-income investments can provide in a well-constructed
investment portfolio. Nuveen exchange-traded funds provide an excellent balance
to other equity and bond investments, and their current yields make them very
attractive.
You already know that you can rely on Nuveen to provide the tax-advantaged
investments you need to achieve your investment goals. Your financial adviser
can also introduce you to a variety of other Nuveen products and services
designed to round out your portfolio of core investments, including the Nuveen
Growth and Income Stock Fund and two balanced stock and bond funds. In addition,
we recently expanded our private asset management capabilities through the
acquisition of Rittenhouse Financial Services, a well-respected growth
investment manager. We encourage you to talk to your financial adviser about
ways you can complement your current Nuveen investment by taking advantage of
these additional products and services.
We at Nuveen remain committed to providing you with quality investment solutions
that withstand the test of time. We thank you for your confidence in us and our
family of investments, and we look forward to our next report to you.
Sincerely,
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
January 15, 1998
"The fund has performed well, rewarding share holders with dependable tax-free
income and attractive returns."
<PAGE>
Answering Your Questions
TED NEILD, MANAGING DIRECTOR OF NUVEEN'S PORTFOLIO MANAGEMENT TEAM, TALKS ABOUT
THE MUNICIPAL BOND MARKET AND OFFERS INSIGHTS INTO FACTORS THAT AFFECTED THE
PERFORMANCE OF THE SELECT MATURITIES MUNICIPAL FUND OVER THE PAST YEAR.
WHAT ECONOMIC AND MARKET FACTORS INFLUENCED THE PERFORMANCE OF MUNICIPAL BONDS
OVER THE PAST YEAR?
Over the past 12 months, the performance of the municipal bond market was
influenced by three major factors: the continued strength of the U.S. economy,
minimal inflation and volatility in the equity markets. These factors
contributed to a positive environment for fixed-income investments, including
municipal issues.
Between December 1996 and November 1997, the yield on 10-year Treasury
bonds dropped from 6.04% to 5.85%, and the municipal market followed suit, as
the yield on the Lehman Brothers 10-year Municipal Bond Index declined from
4.95% to 4.74%. The spread between tax-free municipal bonds and taxable Treasury
bonds remained tight, making municipal bonds very attractive. The strong total
returns produced in this environment were somewhat muted by an increased supply
of newly issued municipal bonds that temporarily impacted bond prices. The
increased supply worked to our advantage, however, as it expanded our
opportunities to find value in the marketplace.
HOW HAS THE SELECT MATURITIES FUND PERFORMED DURING THIS PERIOD?
As Tim mentioned in his letter to shareholders, the total return for the Nuveen
Select Maturities Fund was 6.24% for the 12 months ended November 30, 1997. This
compares favorably with the one-year return of 6.04% for the Lehman Brothers
7-Year Municipal Bond Index and, given its shorter maturity and lower
volatility, trails the annual average return of 7.04% for the group of 18
national unleveraged closed-end municipal bond funds tracked by Lipper
Analytical Services.
<PAGE>
During periods of changing interest rates, shorter duration serves to cushion
the Select Maturities Fund from the effects of volatility. When interest rates
are rising and bond prices are consequently falling, the share price benefits
from this protection. However, during periods of declining interest rates, such
as the past 12 months, shorter duration prevents the fund's share price from
rising as much as those of funds with longer durations.
The performance of the Select Maturities Fund was also affected by comparatively
low turnover during the past year. This reflects our deliberate decision to
emphasize current income, price stability and tax-efficiency in keeping with the
fund's objectives. The portfolio currently maintains an embedded yield of 6.21%,
compared with the 4.59% offered by today's municipal bonds with average
maturities of 10 years. This difference of 162 basis points helps to sustain the
tax-free dividends provided by the Select Maturities Fund. Additionally, the
majority of the bonds in this fund are trading at significant premiums, which
provide more price stability in volatile markets.
WHAT ARE YOUR KEY STRATEGIES FOR THE COMING YEAR?
While credit spreads remain tight, we will continue to purchase bonds with high
credit quality at yields that are similar to those of bonds with lower ratings.
During the past year, as yield differentials between AAA and BBB bonds narrowed,
the fund would not have been adequately compensated for the additional risk
involved in buying bonds at the lower end of the rating spectrum. We were able
to buy more highly rated bonds without sacrificing much yield, thereby enhancing
the credit quality of our portfolio. We believe that if credit spreads widen
again, these high-quality issues will increase in value relative to lower-rated
bonds.
SIDE BAR TEXT:
"By identifying individual bonds with current yields, prices, credit
quality, and future prospects that are exceptionally attractive relative to
other bonds in the market, we believe the portfolio will be positioned to
deliver above-market, risk-adjusted performance."
<PAGE>
We will also continue to look for individual bonds that offer good long-term
value and the potential for relative price appreciation. If we succeed in
identifying individual bonds with current yields, prices, credit quality, and
future prospects that are exceptionally attractive relative to other bonds in
the market, the portfolio will be positioned to deliver above-market,
risk-adjusted performance. Our search, backed by outstanding resources of the
Nuveen Research Department, emphasizes three strategic sectors:
o Healthcare: Increasing competitive pressures in this industry will result in
some attrition. We are selective in buying only the bonds of the strongest
issues that we believe will show favorable price movement as the market
recognizes their value.
o Public Utilities: Deregulation of this sector is creating opportunities for
the research-intensive bond buying in which Nuveen excels. We are currently
focusing on bonds issued by utility companies that we believe are strong
enough to weather the deregulation process and the increased risk of credit
quality realignments.
SIDE BAR TEXT:
" We are selective in buying only the bonds of the strongest issues that we
believe will show favorable price movement as the market recognizes their
value."
<PAGE>
o Housing: Because the timing of cash flows can be uncertain, these bonds carry
some additional risk. However, we believe this is one of the few sectors of
the municipal market in which our portfolios are still compensated for
assuming that incremental risk.
Whenever possible, we will also pursue strategies aimed at enhancing the
structure of your Nuveen exchange-traded fund. Specifically, this means
upgrading call protection. By selling bonds with shorter call protection, we can
re-deploy assets into bonds with longer protection and better yields, thereby
extending call protection and supporting the funds' embedded yields. We will
also be exploring opportunities to purchase discount bonds, which can enhance
the potential for price appreciation, extend duration, and provide additional
income stability if interest rates continue to decline.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
Looking at the year ahead, we believe a potential for weakness exists in the
economy, as evidenced by continuing volatility in the equity market, layoffs
that are beginning to reach a national level, and a shortage of raw material
supplies. These factors could increase the demand for municipal bonds.
SIDE BAR TEXT:
" We will also be exploring opportunities to purchase discount bonds, which
can enhance the potential for price appreciation, extend duration, and provide
additional income stability if interest rates continue to decline."
<PAGE>
Nuveen Select Maturities
Municipal Fund
Performance Overview
As of November 30, 1997
NIM
FUND HIGHLIGHTS
- ---------------------------------------------
Inception Date 9/92
- ---------------------------------------------
Share Price 11 5/16
- ---------------------------------------------
Net Asset Value $11.93
- ---------------------------------------------
Current Market Yield 5.46%
- ---------------------------------------------
Taxable Equivalent Yield(1) 7.91%
- ---------------------------------------------
- ---------------------------------------------
Total Net Assets ($000) $147,521
- ---------------------------------------------
Average Weighted Maturity (Years) 14.84
- ---------------------------------------------
Average Weighted Duration (Years) 5.62
- ---------------------------------------------
ANNUALIZED TOTAL RETURN (AT NAV)
- ---------------------------------------------
1-Year 6.24%
- ---------------------------------------------
3-Year 9.43%
- ---------------------------------------------
5-Year 6.97%
- ---------------------------------------------
Since Inception 6.78%
- ---------------------------------------------
TAXABLE EQUIVALENT TOTAL RETURN(2)
- ---------------------------------------------
1-Year 8.70%
- ---------------------------------------------
3-Year 12.01%
- ---------------------------------------------
5-Year 9.54%
- ---------------------------------------------
Since Inception 9.25%
- ---------------------------------------------
1 Taxable equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. It is
based on the current market yield and a federal income tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return
and a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The fund paid shareholders a capital gains distribution in December 1996 of
$0.0352 per share.
PIE CHARTS:
Credit Quality
AAA 42%
AA 21%
BBB/NR 20%
A 17%
Diversification
Transportation 9%
Other 8%
General Obligation 10%
Education 3%
Escrowed Bonds 12%
Lease Rental 3%
Health Care 13%
Pollution Control 3%
Utilities 16%
Industrial Development 3%
Housing 20%
BAR CHART:
Dividend History(3)
12/96 0.0540
1/97 0.0540
2/97 0.0540
3/97 0.0540
4/97 0.0540
5/97 0.0515
6/97 0.0515
7/97 0.0515
8/97 0.0515
9/97 0.0515
10/97 0.0515
11/97 0.0515
<PAGE>
Shareholder Meeting Report
Annual Meeting Date: July 30, 1997
<TABLE>
<CAPTION>
SELECT MATURITIES
- ---------------------------------------------------------
<S> <C>
TOTAL SHARES OUTSTANDING: 12,370,635
- ---------------------------------------------------------
TOTAL SHARES VOTED: 7,667,718
- ---------------------------------------------------------
ROBERT P. BREMNER
For 7,572,425
Withhold 95,293
- ---------------------------------------------------------
Total 7,667,718
LAWRENCE H. BROWN
For 7,576,278
Withhold 91,440
- ---------------------------------------------------------
Total 7,667,718
ANTHONY T. DEAN
For 7,576,745
Withhold 90,973
- ---------------------------------------------------------
Total 7,667,718
ANNE E. IMPELLIZZERI
For 7,574,922
Withhold 92,796
- ---------------------------------------------------------
Total 7,667,718
PETER R. SAWERS
For 7,577,810
Withhold 89,908
- ---------------------------------------------------------
Total 7,667,718
WILLIAM J. SCHNEIDER
For 7,575,645
Withhold 93,073
- ---------------------------------------------------------
Total 7,668,718
TIMOTHY R. SCHWERTFEGER
For 7,575,213
Withhold 92,505
- ---------------------------------------------------------
Total 7,667,718
JUDITH M. STOCKDALE
For 7,573,957
Withhold 93,761
- ---------------------------------------------------------
Total 7,667,718
RATIFICATION OF AUDITORS
For 7,522,120
Against 38,974
Abstain 106,624
- ---------------------------------------------------------
Total 7,667,718
CHANGE IN FUNDAMENTAL INVESTMENT POLICY
For 5,405,367
Against 150,405
Abstain 275,829
- ---------------------------------------------------------
Total 5,831,601
Broker Non Vote 1,836,117
</TABLE>
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<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
NUVEEN SELECT MATURITIES
MUNICIPAL FUND (NIM)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ARIZONA - 1.8%
$ 2,470,000 Arizona Educational Loan Marketing Corporation, Educational Loan
Revenue Bonds, 6.375%, 9/01/05 (Alternative Minimum Tax) 9/02 at 101 Aa $2,636,947
ARKANSAS - 2.4%
2,380,000 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 2,469,345
Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed
Securities Program), 6.200%, 1/01/21 (Alternative Minimum Tax)
990,000 Arkansas Student Loan Authority, Student Loan Revenue Bonds, 6/01 at 102 A 1,059,775
Series 1992A-2 (Subordinate), 6.750%, 6/01/06 (Alternative Minimum Tax)
COLORADO - 6.1%
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A:
1,460,000 8.750%, 11/15/23 (Alternative Minimum Tax)
(Pre-refunded to 11/15/01) 11/01 at 102 Baa1 1,718,624
4,040,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 4,681,431
1,226,191 El Paso County, Colorado, Single Family, Mortgage Revenue
Tax-Exempt Refunding Bonds, No Opt. Call Aaa 1,345,598
Series 1992A, Class, A-2, 8.750%, 6/01/11
1,000,000 Summit County, Colorado, Sports Facilities, Refunding Revenue
Bonds (Keystone Resorts No Opt. Call A- 1,201,670
Management, Inc. Project), Series 1990, 7.750%, 9/01/06
DISTRICT OF COLUMBIA - 4.7%
1,000,000 District of Columbia (Washington, D.C.), General Obligation No Opt. Call Aaa 1,093,230
Refunding Bonds, Series 1994A, 6.000%, 6/01/11
5,400,000 District of Columbia (Washington, D.C.), General Obligation No Opt. Call Aaa 5,907,276
Refunding Bonds, Series 1993A, 6.000%, 6/01/07
FLORIDA - 4.2%
2,000,000 State of Florida, Faith and Credit, State Board of Education, 6/00 at 100 Aaa 2,144,180
Public Education Capital Outlay Bonds, Series 1986-C,
7.100%, 6/01/07
3,500,000 Hillsborough County Industrial Development Authority, Pollution
Control, Revenue Refunding Bonds (Tampa Electric Company 5/02 at 103 AA 4,057,235
Project), Series 1992, 8.000%, 5/01/22
GEORGIA - 8.7%
2,540,000 Municipal Electric Authority of Georgia, General Power No Opt. Call Aaa 3,064,281
Revenue Bonds, 1992B Series, 7.500%, 1/01/07
1,800,000 State of Georgia, General Obligation Bonds, 1994-D, No Opt. Call Aaa 2,120,490
6.700%, 8/01/09
810,000 Urban Residential Finance Authority, Of The City of Atlanta, No Opt. Call N/R 848,896
Revenue Bonds (Landrum Arms Project), Series 1994, 6.750%, 7/01/04
5,755,000 Development Authority of Burke County, Georgia, Pollution 1/03 at 103 Aaa 6,833,257
Control Revenue Bonds (Oglethorpe Power Corporation Vogtle
Project), Series 1992, 8.000%, 1/01/15 (Pre-refunded to 1/01/03)
ILLINOIS - 8.9%
3,880,000 Illinois Development Finance Authority, Child Care Facility, 9/02 at 102 N/R 4,136,584
Revenue Bonds, Series 1992 (Illinois Facilities Fund Project),
7.400%, 9/01/04
2,305,000 Illinois Housing Development Authority, Section 8 Elderly 11/02 at 102 A 2,443,023
Housing Revenue Bonds (Skyline Towers Apartments),
Series 1992B, 6.625%, 11/01/07
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - CONTINUED
$1,000,000 Chicago School Reform Board of Trustees of the Board of Education No Opt. Call Aaa $1,129,040
of the City of Chicago, Illinois, Unlimited Tax, General
Obligation Bond, Series 1996, 6.250%, 12/01/11
1,300,000 General Obligation Lease Certificates, 1992 Series A (Board of No Opt. Call Aaa 1,438,255
Education of the City of Chicago), Illinois, 6.125%, 1/01/07
2,630,000 Chicago Metropolitan Housing Development Corporation 7/03 at 100 Aaa 2,667,504
(Chicago, Illinois), Housing Development Revenue Refunding Bonds
(FHA-Insured Mortgage Loan-Section 8 Assisted Project),
Series 1993B, 5.700%, 1/01/13
570,000 City of Danville, Vermilion County, Illinois, Single Family, 11/03 at 102 A1 607,688
Mortgage Revenue Refunding Bonds, Series 1993, 7.300%, 11/01/10
640,000 City of Rock Island, Illinois, Residential Mortgage Revenue 9/02 at 102 Aa 685,594
Refunding Bonds, Series 1992, 7.700%, 9/01/08
INDIANA - 8.2%
1,000,000 The Indianapolis Local Public Improvement Bond Bank, No Opt. Call A+ 1,137,010
Series 1992 D Bonds, 6.600%, 2/01/07
2,100,000 The Indianapolis Local Public Improvement Bond Bank, 7/03 at 102 Aa 2,241,582
Transportation Revenue Bonds, Series 1992, 6.000%, 7/01/10
City of Beech Grove, Indiana, Economic Development, Multifamily Housing, Mortgage
Revenue Bonds, Series 1997A (FHA Insured Mortgage Loan-McGregor Woods
Apartments Project):
170,000 5.000%, 6/01/02 (Mandatory put 6/01/98) 2/98 at 100 N/R 170,027
375,000 5.000%, 6/01/07 (Mandatory put 6/01/98) 2/98 at 100 N/R 375,060
500,000 5.000%, 6/01/12 (Mandatory put 6/01/98) 2/98 at 100 N/R 500,240
685,000 5.000%, 6/01/17 (Mandatory put 6/01/98) 2/98 at 100 N/R 685,110
4,770,000 5.000%, 6/01/37 (Mandatory put 6/01/98) 2/98 at 100 N/R 4,772,290
2,000,000 Hospital Authority of Elkhart County, Indiana, Hospital Revenue 7/02 at 102 A1 2,210,580
Bonds, Series 1992 (Elkhart General Hospital, Inc.), 7.000%, 7/01/08
MAINE - 0.9%
1,190,000 Maine Educational Loan Marketing Corporation, Student Loan 5/02 at 101 A 1,265,982
Revenue Refunding Bonds, Series 1992, Student Loan, Revenue
Refunding Bonds, Subordinate Series 1992A-2, 6.600%, 5/01/05
(Alternative Minimum Tax)
MARYLAND - 1.4%
2,000,000 Anne Arundel County, Maryland, Multifamily Housing, Revenue No Opt. Call BBB+ 2,115,600
Bonds (Woodside Apartments Project), Series 1994,
7.450%, 12/01/24 (Alternative Minimum Tax)
(Mandatory put 12/01/03)
MASSACHUSETTS - 1.2%
1,760,000 Massachusetts Municipal Wholesale Electric Company, No Opt. Call Aaa 1,772,795
Power Supply System Revenue Bonds, 1994 Series B, 4.700%, 7/01/06
MICHIGAN - 4.6%
6,000,000 Greater Detroit Resource Recovery Authority, Michigan, No Opt. Call Aaa 6,722,220
Resource Revenue Refunding Bonds, Series 1996-A, 6.250%, 12/13/07
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEBRASKA - 4.1%
Nebraska Public Gas Agency, Gas Supply System Revenue Bonds, 1995 Series A:
$1,000,000 5.250%, 4/01/02 No Opt. Call Baa1 $1,025,650
1,250,000 5.300%, 4/01/03 No Opt. Call Baa1 1,285,575
1,000,000 5.400%, 4/01/04 No Opt. Call Baa1 1,032,950
2,400,000 Airport Authority of the City of Omaha (Nebraska), Airport 1/02 at 102 A1 2,756,616
Facilities Revenue Refunding Bonds, Series 1991, 8.375%, 1/01/14
NEW YORK - 8.1%
2,000,000 New York State Medical Care, Facilities Finance Agency, 2/06 at 102 AA+ 2,136,160
FHA-Insured Mortgage Project, Revenue Bonds, 1995 Series C,
6.100%, 8/15/15
3,000,000 New York City Housing Development Corporation, Multi-Family 5/03 at 102 Aa 3,065,340
Housing Revenue Bonds, 1993 Series A, 5.700%, 11/01/13
3,800,000 New York City Industrial Development Agency, Amended 11/04 at 102 Aaa 4,030,280
and Restated Industrial Development Revenue Bonds (1991 Japan
Airlines Company, Ltd. Project), 6.000%, 11/01/15
(Alternative Minimum Tax)
2,130,000 City of Niagara Falls, Niagara County, New York, Water No Opt. Call Aaa 2,756,156
Treatment Plant (Serial), Bonds, 1994, 8.500%, 11/01/07
(Alternative Minimum Tax)
OHIO - 8.0%
2,430,000 Ohio Water Development Authority, Revenue Bonds, USA Waste 3/02 at 102 N/R 2,636,817
Services, Series 1992, 7.750%, 9/01/07 (Alternative Minimum Tax)
2,000,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/02 at 102 A3 2,150,940
Hospital Facilities Revenue Bonds, Series 1992 (Summa Health
System Project), 6.250%, 11/15/07
1,000,000 Dayton Special Facilities, Revenue Refunding 1993, Series F No Opt. Call BBB 1,067,710
(Emery Air Freight Corp.), 6.050%, 10/01/09
4,500,000 County of Hamilton, Ohio, Hospital Facilities Revenue, No Opt. Call A1 4,885,920
Refunding Bonds, Series 1992A (Bethesda Hospital, Inc.),
6.250%, 1/01/06
1,000,000 City of Oxford, Ohio, Water Supply System Mortgage Revenue, 12/02 at 102 Aaa 1,056,090
Series 1992 Refunding Bonds, 6.000%, 12/01/14
PENNSYLVANIA - 1.5%
1,840,000 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 2,207,963
and University Revenue Bonds, 9th Series, 7.625%, 7/01/15
RHODE ISLAND - 2.1%
3,000,000 Rhode Island Housing and Mortgage, Finance Corporation, 4/02 at 102 AA+ 3,095,070
Homeownership Opportunity Bonds, Series 7, 6.500%, 4/01/25
(Alternative Minimum Tax)
SOUTH CAROLINA - 0.7%
1,000,000 Piedmont Municipal Power Agency (South Carolina), Electric No Opt. Call Aaa 1,094,460
Revenue Bonds, 1996B Refunding Series, 6.000%, 1/01/07
TEXAS - 7.9%
1,800,000 City of Austin, Texas, Water, Sewer and Electric Refunding No Opt. Call A 2,186,604
Revenue Bonds, Series 1982, 14.000%, 11/15/01
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS - CONTINUED
$ 610,000 Austin-Travis County MHMR Center Revenue Bonds (Mental 3/05 at 102 Aaa $ 665,437
Health and Mental Retardation Center Facilities Acquisition
Program), Series 1995-A, 6.500%, 3/01/15
1,060,000 City of Galveston Property Finance Authority, Inc., Single Family 9/01 at 103 A 1,151,478
Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11
1,150,000 Texas Community MHMR Centers Revenue Bonds (Mental Health and 3/05 at 102 Aaa 1,254,512
Mental Retardation Center Facilities Acquisition Program),
Series 1995 A-E, 6.500%, 3/01/15
3,135,000 Ratama Development Corporation, Special Facilities Revenue Bonds No Opt. Call Aaa 4,307,271
(Retama Park District Racetrack Project), Series 1993,
8.750%, 12/15/11
1,100,000 Travis County Health Facilities Development Corporation, 11/03 at 102 Aa2 1,174,833
Hospital Revenue Bonds (Daughters of Charity National Health
System-Daughters of Charity Health Services of Austin),
Series 1993B, 5.900%, 11/15/07
830,000 Tri-County MHMR Services Revenue Bonds (Mental Health and Mental 3/05 at 102 Aaa 905,430
Retardation Center Facilities Acquisition Program),
Series 1995-E, 6.500%, 3/01/15
VIRGINIA - 1.5%
2,000,000 Hampton Redevelopment and Housing Authority, Multifamily Housing 7/02 at 104 Baa2 2,163,860
Revenue Refunding Bonds, Series 1994 (Chase Hampton II
Apartments), 7.000%, 7/01/24 (Mandatory put 7/01/04)
WASHINGTON - 10.9%
Washington Health Care Facilities Authority, Revenue Bonds, Series
1996 (Yakima Valley Memorial Hospital Association, Yakima):
1,880,000 6.000%, 12/01/09 No Opt. Call AAA 2,068,019
1,500,000 6.000%, 12/01/10 No Opt. Call AAA 1,643,685
Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1993A:
2,500,000 7.000%, 7/01/07 No Opt. Call Aa1 2,917,625
3,000,000 7.000%, 7/01/08 No Opt. Call Aa1 3,519,630
7,000,000 Washington Public Power Supply System, Nuclear Project No. 3 No Opt. Call Aa1 4,610,410
Refunding Revenue Bonds, Series 1990B, 0.000%, 7/01/06
1,255,000 Public Utility District No. 1, of Douglas County, Washington, 9/00 at 102 A+ 1,374,653
Wells Hydroelectric Revenue Bonds, Series of 1990,
7.700%, 9/01/08 (Alternative Minimum Tax)
$133,416,191 Total Investments - (cost $135,530,187) - 97.9% 144,485,563
============
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term Municipal Securities - 0.7%
$ 700,000 The Economic Development Corporation of the County of Delta P-1 $ 700,000
Michigan, Environmental Improvement Revenue Refunding Bonds,
1985 Series D (Mead-Escanaba Paper Company Project), Variable
Rate Demand Bonds, 3.800%, 12/01/23+
400,000 Quadalupe-Blanco River Authority (Texas), Pollution Control VMIG-1 400,000
Revenue Refunding Bonds (Central Power and Light Company
Project), Series 1995, Variable Rate Demand Bonds,
3.900%, 11/01/15+
$1,100,000 Total Temporary Investments - 0.7% 1,100,000
===========
Other Assets Less Liabilities - 1.4% 1,935,266
Net Assets - 100% $147,520,829
============================================================================================================
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS (UNAUDITED)
NOVEMBER 30, 1997
<CAPTION>
SELECT MATURITIES
<S> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $144,485,563
Temporary investments in short-term municipal securities, at amortized cost,
which approximates market value (note1) 1,100,000
Receivables:
Interest 2,695,759
Investments sold 120,770
Other assets 2,751
------------
Total assets 148,404,843
------------
LIABILITIES
Cash overdraft 131,959
Accrued expenses:
Management fees (note 6) 60,266
Other 54,701
Dividends payable 637,088
------------
Total liabilities 884,014
------------
Net assets (note 7) $147,520,829
============
Shares outstanding 12,370,635
============
Net asset value per share outstanding (net assets divided by shares outstanding) $ 11.93
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED NOVEMBER 30, 1997
<CAPTION>
SELECT MATURITIES
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $4,274,114
----------
EXPENSES
Management fees (note 6) 366,702
Shareholders' servicing agent fees and expenses 9,472
Custodian's fees and expenses 26,925
Trustees' fees and expenses (note 6) 465
Professional fees 10,290
Shareholders' reports - printing and mailing expenses 34,012
Stock exchange listing fees 12,173
Investor relations expense 5,560
Other expenses 4,216
----------
Total expenses 469,815
----------
Net investment income 3,804,299
----------
REALIZED AND UNREALIZED GAIN FROM INVESTMENTS
Net realized gain from investment transactions (notes 1 and 4) 185,967
Net change in unrealized appreciation or depreciation of investments 2,578,422
----------
Net gain from investments 2,764,389
----------
Net increase in net assets from operations $6,568,688
==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
<CAPTION>
SELECT MATURITIES
SIX MONTHS YEAR ENDED
ENDED 11/30/97 5/31/97
<S> <C> <C>
OPERATIONS
Net investment income $ 3,804,299 $ 7,720,297
Net realized gain from investment transactions (notes 1 and 4) 185,967 259,465
Net change in unrealized appreciation or depreciation of investments 2,578,422 1,851,855
------------- -------------
Net increase in net assets from operations 6,568,688 9,831,617
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income (3,822,528) (8,022,356)
From accumulated net realized gains from investment transactions -- (398,327)
------------- -------------
Decrease in net assets from distributions to shareholders (3,822,528) (8,420,683)
------------- -------------
Net increase in net assets 2,746,160 1,410,934
Net assets at beginning of period 144,774,669 143,363,735
------------- -------------
Net assets at end of period $ 147,520,829 $ 144,774,669
============= =============
Balance of undistributed net investment income at end of period $ 27,952 $ 46,181
============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At November 30, 1997, the Fund covered in this report and its corresponding New
York Stock Exchange symbol is Nuveen Select Maturities Municipal Fund (NIM).
The Fund has invested in a diversified, investment-grade quality portfolio of
municipal obligations with intermediate characteristics having an initial
average effective maturity of approximately ten years. In assembling and
managing its portfolio, the Fund has purchased municipal obligations having
remaining effective maturities of no more than fifteen years with respect to 80%
of its total assets, that in the opinion of the Fund's investment adviser,
represent the best value in terms of the balance between yield and capital
preservation currently available from the intermediate sector of the municipal
market. The Fund's investment adviser, Nuveen Advisory Corp. (the "Adviser"), a
wholly owned subsidiary of The John Nuveen Company, will actively monitor the
effective maturities of the Fund's investments in response to prevailing market
conditions, and will adjust its portfolio consistent with its investment policy
of maintaining an average effective remaining maturity for the Fund's portfolio
of twelve years or less.
The Fund is registered under the Investment Company Act of 1940 as a closed-end,
diversified management investment company.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements in accordance with generally
accepted accounting principles.
Securities Valuation
The prices of municipal bonds in the Fund's investment portfolio are provided by
a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers and general market
conditions. Temporary investments in securities that have variable rate and
demand features qualifying them as short-term securities are traded and valued
at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Fund has 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
November 30, 1997, there were no such outstanding purchase commitments in the
Fund.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
<PAGE>
Federal Income Taxes
The Fund 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. The Fund currently considers significant net realized capital
gains and/or market discount as amounts in excess of $.001 per share.
Furthermore, the Fund intends to satisfy conditions which will enable interest
from municipal securities, which is exempt from regular federal income tax, to
retain such tax-exempt status when distributed to shareholders of the Fund. Net
realized capital gain and market discount distributions are subject to federal
taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
Derivative Financial Instruments
The Fund may invest in transactions in certain derivative financial instruments
including futures, forward, swap, option contracts, and other financial
instruments with similar characteristics. Although the Fund is authorized to
invest in such financial instruments, and may do so in the future, it did not
make any such investments during the six months ended November 30, 1997.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
2. FUND SHARES
There were no share transactions during the six months ended November 30, 1997
or during the fiscal year ended May 31, 1997.
3. DISTRIBUTIONS TO SHAREHOLDERS
On December 1, 1997, the Fund declared a dividend distribution of $.0515 per
share from its tax-exempt net investment income which was paid December 31,
1997, to shareholders of record on December 15, 1997. At the same time, the Fund
also declared taxable distributions, which includes capital gains and/or market
discount, of $.0376 per share.
<PAGE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities for the six months ended November 30, 1997, aggregated $10,206,758
and $9,960,006, respectively. Purchases and sales (including maturities) of
temporary municipal investments for the six months ended November 30, 1997,
aggregated $1,700,000 and $1,800,000, respectively.
At November 30, 1997, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes.
5. UNREALIZED APPRECIATION (DEPRECIATION)
At November 30, 1997, net unrealized appreciation aggregated $8,955,376, of
which $8,982,829 related to appreciated securities and $27,453 related to
depreciated securities.
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Fund's investment management agreement with Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of The John Nuveen Company, the Fund pays
an annual management fee, payable monthly, at the rates set forth below, which
are based upon the average daily net asset value of the Fund:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- ------------------------------------------------------------------------------
<S> <C>
For the first $125 million .5000 of 1%
For the next $125 million .4875 of 1
For the next $250 million .4750 of 1
For the next $500 million .4625 of 1
For the next $1 billion .4500 of 1
For net assets over $2 billion .4375 of 1
- -------------------------------------------------------------------------------
</TABLE>
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Fund pays no
compensation directly to those Trustees who are affiliated with the Adviser or
to their officers, all of whom receive remuneration for their services to the
Fund from the Adviser.
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At November 30, 1997, net assets consisted of:
<CAPTION>
<S> <C>
Common shares, $.01 par value per share $ 123,706
Paid-in surplus 138,037,220
Balance of undistributed net investment income 27,952
Accumulated net realized gain from investment transactions 376,575
Net unrealized appreciation of investments 8,955,376
------------
Net assets $147,520,829
============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
The Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At November 30, 1997, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
<S> <C>
Revenue Bonds:
Housing Facilities 20%
Utilities 16
Health Care Facilities 13
Transportation 9
Pollution Control Facilities 3
Educational Facilities 3
Lease Rental Facilities 3
Industrial Development 3
Other 8
General Obligation Bonds 10
Escrowed Bonds 12
----
100%
====
</TABLE>
In addition, 39% of the long-term and intermediate-term investments owned by the
Fund are either 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, both of which ensure the timely payment of principal and
interest in the event of default. Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of the
Fund's shares.
All of the temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of the Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (UNAUDITED) Selected data for a share outstanding
throughout each period is as follows:
<CAPTION>
OPERATING PERFORMANCE
NET
REALIZED & DIVIDENDS
NET ASSET NET UNREALIZED FROM
VALUE INVEST- GAIN (LOSS) TAX-EXEMPT DISTRIBUTIONS
BEGINNING MENT FROM INVEST- NET INVESTMENT FROM
OF PERIOD INCOME MENTS INCOME CAPITAL GAINS
================================================================================================================================
<S> <C> <C> <C> <C> <C>
SELECT MATURITIES
Six months ended 11/30/97 $11.70 $ .31 $ .23 $(.31) $ --
Year ended 5/31:
1997 11.59 .62 .18 (.65) (.04)
1996 11.73 .64 (.09) (.65) (.04)
1995 11.37 .64 .39 (.65) (.02)
1994 11.71 .62 (.27) (.65) (.04)
9/18/92 to 5/31/93 11.30 .39 .46 (.32) --
================================================================================================================================
<PAGE>
<CAPTION>
TOTAL
INVEST-
MENT
PER SHARE RETURN TOTAL NET ASSETS
ORGANIZATION NET ASSET MARKET VALUE ON RETURN ON
AND VALUE END END OF MARKET NET ASSET
OFFERING COSTS OF PERIOD PERIOD VALUE+ VALUE+
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
SELECT MATURITIES
Six months ended 11/30/97 $-- $11.93 $11.3125 8.15% 4.64%
Year ended 5/31:
1997 -- 11.70 10.7500 2.68 6.98
1996 -- 11.59 11.1250 6.14 4.76
1995 -- 11.73 11.1250 7.67 9.51
1994 -- 11.37 11.0000 (1.90) 2.86
9/18/92 to 5/31/93 (.12) 11.71 11.8750 1.74 6.54
===========================================================================================================================
<PAGE>
<CAPTION>
RATIO/SUPPLEMENTAL DATA
RATIO OF
NET
NET ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME PORTFOLIO
PERIOD (IN TO AVERAGE TO AVERAGE TURNOVER
THOUSANDS) NET ASSETS NET ASSETS RATE
==========================================================================================================
<S> <C> <C> <C> <C>
SELECT MATURITIES
Six months ended 11/30/97 $ 147,521 .64%* 5.17%* 7%
Year ended 5/31:
1997 144,775 .64 5.35 17
1996 143,364 .63 5.45 25
1995 144,987 .65 5.64 38
1994 140,602 .72 5.26 11
9/18/92 to 5/31/93 91,599 .75* 5.11* 25
==========================================================================================================
<FN>
*Annualized.
+ Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains distributions, if any, and
changes in net asset value per share. Total returns are not annualized.
</FN>
</TABLE>
<PAGE>
Fund Information
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Fried, Frank, Harris,
Shriver & Jacobson
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, Illinois
<PAGE>
INSERT:
BUILD A BETTER PORTFOLIO WITH NUVEEN
Your financial adviser can show you how you can combine this Nuveen fund
with other Nuveen stock and bond investments to build a portfolio that meets
your short- and longer-term goals.
Together, you can craft an investment portfolio that provides the income
you need today and the growth you need for tomorrow, while simultaneously
offering tax-efficiency and reduced overall risk.
Talk with your adviser about putting Nuveen's full family of funds and
trusts to work for you.
(See other side for a Nuveen product listing)
<PAGE>
NUVEEN INVESTMENTS CAN HELP YOU SUSTAIN THE WEALTH OF A LIFETIME
MUTUAL FUNDS
Nuveen Rittenhouse Growth Fund
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
National Municipal Bond Funds
State-Specific Municipal Bond Funds
UNIT TRUSTS
Equity
Corporate Bond
Municipal Bond
EXCHANGE-TRADED FUNDS
MUNIPREFERRED(R)
PRIVATE ASSET MANAGEMENT
<PAGE>
Serving Investors for Generations
Photo of: JOHN NUVEEN, SR.
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for risk-sensitive individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them maintain the lifestyle they currently enjoy.
The cornerstone of Nuveen's investment philosophy is a commitment to
disciplined long-term investment strategies focused on providing consistent,
attractive performance over time - with moderated risk. We emphasize quality
securities carefully chosen through in-depth research, and we follow those
securities closely over time to ensure that they continue to meet our exacting
standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of products and services
to help meet your unique circumstances and financial planning needs. Our equity,
balanced, and income funds, along with our unit trusts and private asset
management, can form the foundation of a tax-efficient and risk-resistant
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you build and sustain your long-term financial
security. Or call us at (800) 257-8787 for more information, including a
prospectus where applicable. Please read that information carefully before you
invest.
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
(800) 257-8787
www.nuveen.com
FSA-1.11.97
<PAGE>
