Washington, D.C. 20549
Kevin J. McCarthy
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
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ITEM 1. REPORTS TO STOCKHOLDERS.
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Table of Contents
| Chairman’s Letter to Shareholders | 4 |
| Portfolio Managers’ Comments | 5 |
| Dividend and Share Price Information | 10 |
| Performance Overviews | 11 |
| Shareholder Meeting Report | 16 |
| Portfolios of Investments | 18 |
| Statement of Assets and Liabilities | 48 |
| Statement of Operations | 49 |
| Statement of Changes in Net Assets | 50 |
| Financial Highlights | 52 |
| Notes to Financial Statements | 58 |
| Annual Investment Management Agreement Approval Process | 66 |
| Reinvest Automatically, Easily and Conveniently | 74 |
| Glossary of Terms Used in this Report | 76 |
| Other Useful Information | 79 |
Chairman’s
Letter to Shareholders
Dear Shareholders,
The global economy continues to be weighed down by an unusual combination of pressures facing the larger developed economies. Japanese leaders continue to work through the economic aftereffects of the March 2011 earthquake and tsunami. Political leaders in Europe and the U.S. have resolved some of the near term fiscal problems, but the financial markets are not convinced that these leaders are able to address more complex longer term fiscal issues. Despite improved earnings and capital increases, the largest banks in these countries continue to be vulnerable to deteriorating mortgage portfolios and sovereign credit exposure, adding another source of uncertainty to the global financial system.
In the U.S., recent economic statistics indicate that the economic recovery may be losing momentum. Consumption, which represents about 70% of the gross domestic product, faces an array of challenges from seemingly intractable declines in housing values, increased energy costs and limited growth in the job market. The failure of Congress and the administration to agree on the debt ceiling increase on a timely basis and the deep divisions between the political parties over fashioning a balanced program to address growing fiscal imbalances that led to the recent S&P ratings downgrade add considerable uncertainty to the domestic economic picture.
On a more positive note, corporate earnings continue to hold up well and the municipal bond market is recovering from recent weakness as states and municipalities implement various programs to reduce their budgetary deficits. In addition, the Federal Reserve has made it clear that it stands ready to take additional steps should the economic recovery falter. However, there are concerns that the Fed is approaching the limits of its resources to intervene in the economy.
These perplexing times highlight the importance of professional investment management. Your Nuveen investment team is working hard to develop an appropriate response to increased risk, and they continue to seek out opportunities created by stressful markets using proven investment disciplines designed to help your Fund achieve its investment objectives. On your behalf, we monitor their activities to assure that they maintain their investment disciplines.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
November 21, 2011
Portfolio Managers’ Comments
Nuveen Select Tax-Free Income Portfolio (NXP)
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Nuveen California Select Tax-Free Income Portfolio (NXC)
Nuveen New York Select Tax-Free Income Portfolio (NXN)
Portfolio managers Tom Spalding and Scott Romans review key investment strategies and the six-month performance of the Nuveen Select Portfolios. With 35 years of investment experience, Tom has managed the three national Portfolios since 1999. Scott, who joined Nuveen in 2000, has managed NXC since 2003 and NXN since January 2011.
What key strategies were used to manage the Nuveen Select Portfolios during the six-month reporting period ended September 30, 2011?
During this reporting period, municipal bond prices generally rallied as yields declined across the municipal curve. The relative decline in yields was attributable in part to the continued depressed levels of municipal bond issuance. Tax-exempt volume, which had been limited in 2010 by issuers’ extensive use of taxable Build America Bonds (BABs), continued to drift lower in 2011. Even though BABs were no longer an option for issuers (the BAB program expired at the end of 2010), some borrowers had accelerated issuance into 2010 in order to take advantage of the program’s favorable terms before its termination, fulfilling their capital program borrowing needs well into 2012. This reduced the need for many borrowers to come to market with new issues during this period. For the six months ended September 30, 2011, national municipal issuance was down 25% compared with the same period in 2010, while the decline was smaller in both California and New York, which saw issuance drop 5% and 7%, respectively, during the same period.
Despite the constrained issuance of tax-exempt municipal bonds and relatively lower yields, we continued to take a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. During this period, NXC found value in health care and redevelopment agency (RDA) bonds, which fund programs to improve economically depressed areas in California. In addition, NXC purchased higher-rated, long-dated zero coupon bonds issued by local school districts and community colleges. In NXN, we added to our positions in health care, education,
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
utilities and tax-backed credits. In the national Portfolios, our focus was on adding bonds rated A and BBB, along with some AA rated credits, across a broad base of sectors, including transportation and tax-backed bonds, in states where issuance remained stronger, such as California, New York, Texas and Illinois. In general, we emphasized discounted bonds that had strong performance potential.
Extending duration was a common theme across all of the Portfolios during this period. In NXC, this included buying long zero coupon bonds as previously mentioned, while NXN added to its position in inverse floating rate securities. Because the national Portfolios tended to have shorter durations, they were in a position to benefit from opportunities to purchase bonds with longer maturities when we found appropriate candidates. The purchase of longer bonds also provided attractive yields at the longer end of the municipal yield curve.
Cash for new purchases during this period was generated by the proceeds from called and maturing bonds, which we worked to redeploy to keep the Portfolios fully invested. On the whole, selling was relatively limited, as the bonds in our portfolios generally offered higher yields than those available in the current marketplace. Both NXC and NXN sold some bonds with very short maturities or short call dates in order to fund additional purchases, while the national Portfolios did not engage in any active selling.
As of September 30, 2011, all these Portfolios continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement.
How did the Portfolios perform?
Individual results for the Nuveen Select Portfolios, as well as for relevant index and peer group information, are presented in the accompanying table.
Average Annual Total Returns on Net Asset Value*
For periods ended 9/30/11
| | 6-Month | 1-Year | 5-Year | 10-Year |
| National Portfolios | | | | |
| NXP | 6.30% | 3.59% | 4.07% | 4.70% |
| NXQ | 6.74% | 3.16% | 3.18% | 4.16% |
| NXR | 6.36% | 3.38% | 4.09% | 4.62% |
| | | | | |
| Standard & Poor’s (S&P) National Municipal Bond Index** | 8.08% | 3.87% | 4.69% | 5.10% |
| Lipper General and Insured Unleveraged Municipal Debt | | | | |
| Classification Average** | 7.92% | 3.52% | 3.73% | 4.35% |
| | | | | |
| California Portfolio | | | | |
| NXC | 9.92% | 5.69% | 4.31% | 4.78% |
| | | | | |
| Standard & Poor’s (S&P) California Municipal Bond Index** | 9.30% | 4.19% | 4.54% | 4.99% |
| Lipper California Municipal Debt Classification Average** | 16.32% | 3.94% | 3.38% | 5.36% |
| | | | | |
| New York Portfolio | | | | |
| NXN | 7.17% | 4.45% | 4.56% | 4.78% |
| | | | | |
| Standard & Poor’s (S&P) New York Municipal Bond Index** | 7.49% | 3.70% | 4.88% | 5.15% |
| Lipper New York Municipal Debt Classification Average** | 12.11% | 3.52% | 3.80% | 5.54% |
For the six months ended September 30, 2011, the cumulative returns on net asset value (NAV) for NXP, NXQ and NXR underperformed the Standard & Poor’s (S&P) National Municipal Bond Index and the Lipper General and Insured Unleveraged Municipal Debt Classification Average. For this same period, NXC outperformed the Standard & Poor’s (S&P) California Municipal Bond Index, while NXN trailed the return of the Standard & Poor’s (S&P) New York Municipal Bond Index. Both Portfolios underperformed their respective state Lipper averages. One of the major reasons behind the underperformance of NXC and NXN relative to their Lipper peer groups was the fact that these Portfolios do not use structural leverage, while the majority of Funds in the Lipper California and New York groups are leveraged. The use of structural leverage generally added to the Lipper averages’ portfolio performance over this period.
| | Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Portfolio distributions or upon the sale of Portfolio shares. |
| | |
| | For additional information, see the individual Performance Overview for your Portfolio in this report. |
| | |
| * | Six-month returns are cumulative; all other returns are annualized. |
| | |
| ** | Refer to Glossary of Terms used in this Report for definitions. |
Key management factors that influenced the Portfolios’ returns during this period included yield curve and duration positioning, credit exposure and sector allocation.
During this period, as yield across the municipal yield curve declined, municipal bonds with longer maturities generally outperformed those with shorter maturities, with credits at the longest end of the municipal yield curve posting the strongest returns. The outperformance of longer term bonds was due in part to the decline in interest rates, particularly at the longer end of the curve. In general, the national Portfolios had greater exposure to the short end of the yield curve that produced the weakest returns and smaller exposure to the outperforming longer segments of the curve. This hurt the performance of these three Portfolios for the period. Duration and yield curve positioning was more of a neutral factor in NXC and NXN, although NXC’s yield curve positioning detracted somewhat from its performance.
Credit exposure also played an important role in performance during these six months, as bonds rated BBB and A generally outperformed those rated AAA. This outperformance was due in part to the longer durations typically associated with the lower-rated categories. During this period, credit exposure was a strong positive contributor to the performance of NXC, which was overweighted in lower-rated bonds, especially those rated BBB, and underweighted in bonds rated AAA and AA. NXP, NXQ, NXR and NXN were overweighted in the AAA credit sector, which detracted from their performance, while NXN also was underexposed to bonds rated A that outperformed.
Holdings that generally made positive contributions to the Portfolios’ returns during this period included zero coupon bonds and hospitals, transportation and education credits. NXC, in particular, benefited from its allocations to health care and education, while exposures to health care, higher education and utilities were helpful for the national Portfolios. Although general obligation (GO) and other tax-supported bonds generally trailed the market during this period, NXC’s holdings of GO bonds issued by local municipalities performed well for the Portfolio. NXC also benefited from its underweighting in California state GOs, which underperformed during this period. NXC’s underweighting resulted from the fact that California GOs comprise such a large portion of the tax-supported sector in California that it is difficult to match the market weighting in our portfolios.
In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, were among the poorest performing market segments during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. As of September 30, 2011, the three national Portfolios were overweighted in pre-refunded bonds relative to the market average, which detracted from their investment performance. NXC and NXN held significantly smaller amounts of these bonds, which lessened the negative impact.
RISK CONSIDERATIONS
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
Investment Risk. The possible loss of the entire principal amount that you invest.
Price Risk. Shares of closed-end investment companies like these Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.
Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.
Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.
Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.
Dividend
and Share Price Information
During the six-month reporting period ended September 30, 2011, NXC and NXN each had one monthly dividend increase. The monthly dividends of NXP and NXR remained stable throughout the reporting period, while NXQ’s dividend was cut effective June 2011.
All of these Portfolios seek to pay stable dividends at rates that reflect each Portfolio’s past results and projected future performance. During certain periods, each Portfolio may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Portfolio during the period. If a Portfolio has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Portfolio’s NAV. Conversely, if a Portfolio has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Portfolio’s NAV. Each Portfolio will, over time, pay all of its net investment income as dividends to shareholders. As of September 30, 2011, all of the Portfolios had positive UNII balances, based upon our best estimate, for tax purposes and positive UNII balances for financial reporting purposes.
SHARE REPURCHASES AND SHARE PRICE INFORMATION
Since the inception of the Portfolios’ repurchase programs, the Portfolios have not repurchased any of their outstanding shares.
As of September 30, 2011, the share prices of the Select Portfolios were trading even to or at (-) discounts to their NAVs as shown in the accompanying table.
| | 9/30/11 | 6-Month Average |
| Portfolio | (-)Discount | (-)Discount |
| NXP | 0.00% | (-)1.08% |
| NXQ | (-)3.35% | (-)3.27% |
| NXR | (-)1.85% | (-)2.24% |
| NXC | (-)8.05% | (-)6.15% |
| NXN | (-)5.15% | (-)4.94% |
| NXP | | Nuveen Select Tax-Free |
| Performance | | Income Portfolio |
| OVERVIEW | | |
| | | as of September 30, 2011 |
| Fund Snapshot | | | | | | | |
| Share Price | | | | | $ | 14.07 | |
| Net Asset Value (NAV) | | | | | $ | 14.07 | |
| Premium/Discount to NAV | | | | | | 0.00 | % |
| Market Yield | | | | | | 5.07 | % |
Taxable Equivalent Yield1 | | | | | | 7.04 | % |
| Net Assets ($000) | | | | | $ | 232,408 | |
| Average Annual Total Return | | | | | | | |
| (Inception 3/19/92) | | | | | | | |
| | | | On Share Price | | On NAV |
| 6-Month (Cumulative) | | | 8.98 | % | | 6.30 | % |
| 1-Year | | | -2.93 | % | | 3.59 | % |
| 5-Year | | | 4.79 | % | | 4.07 | % |
| 10-Year | | | 5.36 | % | | 4.70 | % |
States3 | | | | | | | |
| (as a % of total investments) | | | | | | | |
| Illinois | | | | | | 15.7 | % |
| California | | | | | | 10.6 | % |
| Texas | | | | | | 9.1 | % |
| Colorado | | | | | | 8.9 | % |
| South Carolina | | | | | | 7.3 | % |
| Indiana | | | | | | 6.5 | % |
| New Jersey | | | | | | 6.3 | % |
| Nevada | | | | | | 5.3 | % |
| Florida | | | | | | 3.2 | % |
| Washington | | | | | | 2.6 | % |
| New Mexico | | | | | | 2.3 | % |
| Oklahoma | | | | | | 2.2 | % |
| Puerto Rico | | | | | | 2.1 | % |
| Alaska | | | | | | 2.0 | % |
| Wisconsin | | | | | | 1.8 | % |
| Other | | | | | | 14.1 | % |
Portfolio Composition3 | | | | | | | |
| (as a % of total investments) | | | | | | | |
| U.S. Guaranteed | | | | | | 26.0 | % |
| Health Care | | | | | | 21.0 | % |
| Tax Obligation/Limited | | | | | | 16.8 | % |
| Transportation | | | | | | 11.9 | % |
| Tax Obligation/General | | | | | | 8.7 | % |
| Consumer Staples | | | | | | 6.2 | % |
| Other | | | | | | 9.4 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| NXQ | | Nuveen Select Tax-Free |
| Performance | | Income Portfolio 2 |
| OVERVIEW | | |
| | | as of September 30, 2011 |
| Fund Snapshot | | | | | | | |
| Share Price | | | | | $ | 12.98 | |
| Net Asset Value (NAV) | | | | | $ | 13.43 | |
| Premium/Discount to NAV | | | | | | -3.35 | % |
| Market Yield | | | | | | 4.85 | % |
Taxable Equivalent Yield1 | | | | | | 6.74 | % |
| Net Assets ($000) | | | | | $ | 237,610 | |
| Average Annual Total Return | | | | | | | |
| (Inception 5/21/92) | | | | | | | |
| | | | On Share Price | | On NAV |
| 6-Month (Cumulative) | | | 7.31 | % | | 6.74 | % |
| 1-Year | | | -3.83 | % | | 3.16 | % |
| 5-Year | | | 4.08 | % | | 3.18 | % |
| 10-Year | | | 4.64 | % | | 4.16 | % |
States3 | | | | | | | |
| (as a % of total investments) | | | | | | | |
| Illinois | | | | | | 16.5 | % |
| Texas | | | | | | 11.9 | % |
| Colorado | | | | | | 11.6 | % |
| California | | | | | | 11.1 | % |
| Indiana | | | | | | 5.9 | % |
| South Carolina | | | | | | 5.0 | % |
| New Mexico | | | | | | 3.2 | % |
| Massachusetts | | | | | | 2.5 | % |
| Florida | | | | | | 2.5 | % |
| Pennsylvania | | | | | | 2.4 | % |
| Louisiana | | | | | | 2.3 | % |
| Rhode Island | | | | | | 2.3 | % |
| Nevada | | | | | | 1.9 | % |
| New Jersey | | | | | | 1.9 | % |
| Ohio | | | | | | 1.9 | % |
| Puerto Rico | | | | | | 1.9 | % |
| New York | | | | | | 1.8 | % |
| Other | | | | | | 13.4 | % |
Portfolio Composition3 | | | | | | | |
| (as a % of total investments) | | | | | | | |
| Health Care | | | | | | 20.3 | % |
| U.S. Guaranteed | | | | | | 18.5 | % |
| Transportation | | | | | | 13.3 | % |
| Tax Obligation/Limited | | | | | | 12.9 | % |
| Tax Obligation/General | | | | | | 9.4 | % |
| Utilities | | | | | | 8.1 | % |
| Consumer Staples | | | | | | 6.1 | % |
| Other | | | | | | 11.4 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| NXR | | Nuveen Select Tax-Free |
| Performance | | Income Portfolio 3 |
| OVERVIEW | | |
| | | as of September 30, 2011 |
| Fund Snapshot | | | | | | | |
| Share Price | | | | | $ | 13.78 | |
| Net Asset Value (NAV) | | | | | $ | 14.04 | |
| Premium/Discount to NAV | | | | | | -1.85 | % |
| Market Yield | | | | | | 4.66 | % |
Taxable Equivalent Yield1 | | | | | | 6.47 | % |
| Net Assets ($000) | | | | | $ | 182,742 | |
| Average Annual Total Return | | | | | | | |
| (Inception 7/24/92) | | | | | | | |
| | | | On Share Price | | On NAV |
| 6-Month (Cumulative) | | | 8.28 | % | | 6.36 | % |
| 1-Year | | | -3.32 | % | | 3.38 | % |
| 5-Year | | | 5.07 | % | | 4.09 | % |
| 10-Year | | | 5.38 | % | | 4.62 | % |
States4 | | | | | | | |
| (as a % of total investments) | | | | | | | |
| Illinois | | | | | | 18.6 | % |
| California | | | | | | 16.0 | % |
| Texas | | | | | | 9.3 | % |
| Colorado | | | | | | 8.3 | % |
| Indiana | | | | | | 6.2 | % |
| Nevada | | | | | | 3.7 | % |
| South Carolina | | | | | | 3.2 | % |
| North Carolina | | | | | | 2.9 | % |
| Pennsylvania | | | | | | 2.9 | % |
| New Mexico | | | | | | 2.8 | % |
| Michigan | | | | | | 2.6 | % |
| New Jersey | | | | | | 2.4 | % |
| Puerto Rico | | | | | | 2.2 | % |
| Ohio | | | | | | 2.2 | % |
| Nebraska | | | | | | 2.0 | % |
| Other | | | | | | 14.7 | % |
Portfolio Composition4 | | | | | | | |
| (as a % of total investments) | | | | | | | |
| Health Care | | | | | | 22.1 | % |
| U.S. Guaranteed | | | | | | 19.6 | % |
| Tax Obligation/Limited | | | | | | 19.2 | % |
| Utilities | | | | | | 10.3 | % |
| Tax Obligation/General | | | | | | 5.9 | % |
| Consumer Staples | | | | | | 5.9 | % |
| Transportation | | | | | | 5.9 | % |
| Other | | | | | | 11.1 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | The Fund paid shareholders a capital gains distribution in December 2010 of $0.0011 per share. |
| 3 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 4 | Holdings are subject to change. |
| NXC | | Nuveen California |
| Performance | | Select Tax-Free |
| OVERVIEW | | Income Portfolio |
| | | as of September 30, 2011 |
| Fund Snapshot | | | | | | | |
| Share Price | | | | | $ | 13.25 | |
| Net Asset Value (NAV) | | | | | $ | 14.41 | |
| Premium/Discount to NAV | | | | | | -8.05 | % |
| Market Yield | | | | | | 5.16 | % |
Taxable Equivalent Yield1 | | | | | | 7.90 | % |
| Net Assets ($000) | | | | | $ | 90,285 | |
| Average Annual Total Return | | | | | | | |
| (Inception 6/19/92) | | | | | | | |
| | | | On Share Price | | On NAV |
| 6-Month (Cumulative) | | | 7.98 | % | | 9.92 | % |
| 1-Year | | | 0.41 | % | | 5.69 | % |
| 5-Year | | | 3.93 | % | | 4.31 | % |
| 10-Year | | | 4.58 | % | | 4.78 | % |
Portfolio Composition3 | | | | | | | |
| (as a % of total investments) | | | | | | | |
| Tax Obligation/General | | | | | | 33.2 | % |
| Tax Obligation/Limited | | | | | | 19.5 | % |
| Health Care | | | | | | 12.7 | % |
| Education and Civic Organizations | | | | | | 9.6 | % |
| Utilities | | | | | | 6.8 | % |
| U.S. Guaranteed | | | | | | 4.8 | % |
| Other | | | | | | 13.4 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| NXN | | Nuveen New York |
| Performance | | Select Tax-Free |
| OVERVIEW | | Income Portfolio |
| | | as of September 30, 2011 |
| Fund Snapshot | | | | | | | |
| Share Price | | | | | $ | 13.63 | |
| Net Asset Value (NAV) | | | | | $ | 14.37 | |
| Premium/Discount to NAV | | | | | | -5.15 | % |
| Market Yield | | | | | | 4.67 | % |
Taxable Equivalent Yield1 | | | | | | 6.96 | % |
| Net Assets ($000) | | | | | $ | 56,295 | |
| Average Annual Total Return | | | | | | | |
| (Inception 6/19/92) | | | | | | | |
| | | | On Share Price | | On NAV |
| 6-Month (Cumulative) | | | 6.81 | % | | 7.17 | % |
| 1-Year | | | -0.62 | % | | 4.45 | % |
| 5-Year | | | 4.75 | % | | 4.56 | % |
| 10-Year | | | 4.98 | % | | 4.78 | % |
Portfolio Composition3 | | | | | | | |
| (as a % of total investments) | | | | | | | |
| Tax Obligation/Limited | | | | | | 23.8 | % |
| Health Care | | | | | | 15.8 | % |
| Education and Civic Organizations | | | | | | 14.3 | % |
| Long-Term Care | | | | | | 8.4 | % |
| Housing/Single Family | | | | | | 8.4 | % |
| Water and Sewer | | | | | | 6.4 | % |
| Housing/Multifamily | | | | | | 6.1 | % |
| Tax Obligation/General | | | | | | 5.7 | % |
| Other | | | | | | 11.1 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| NXP | | Shareholder Meeting Report |
| NXQ | | |
| NXR | | |
| | | The annual meeting of shareholders was held on July 25, 2011 in the Lobby Conference Room, 333 West Wacker Drive, Chicago, IL 60606; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies.3 The meeting was subsequently adjourned to August 31, 2011 and additionally adjourned for NXN to October 19, 2011. |
| | | | NXP | | | NXQ | | | NXR | |
| Approval of the Board Members was reached | | | | | | | | | | |
| as follows: | | | | | | | | | | |
| John P. Amboian | | | | | | | | | | |
| For | | | 9,775,920 | | | 10,615,586 | | | 8,370,447 | |
| Withhold | | | 469,316 | | | 408,775 | | | 283,432 | |
| Total | | | 10,245,236 | | | 11,024,361 | | | 8,653,879 | |
| David J. Kundert | | | | | | | | | | |
| For | | | 9,770,412 | | | 10,608,539 | | | 8,365,538 | |
| Withhold | | | 474,824 | | | 415,822 | | | 288,341 | |
| Total | | | 10,245,236 | | | 11,024,361 | | | 8,653,879 | |
| Terence J. Toth | | | | | | | | | | |
| For | | | 9,777,274 | | | 10,609,941 | | | 8,369,622 | |
| Withhold | | | 467,962 | | | 414,420 | | | 284,257 | |
| Total | | | 10,245,236 | | | 11,024,361 | | | 8,653,879 | |
| To approve the elimination of the | | | | | | | | | | |
| Fund’s fundamental investment | | | | | | | | | | |
| policy relating to the Fund’s ability | | | | | | | | | | |
| to make loans | | | | | | | | | | |
| For | | | 7,325,634 | | | 7,805,730 | | | 6,022,465 | |
| Against | | | 690,581 | | | 516,527 | | | 374,922 | |
| Abstain | | | 236,388 | | | 316,750 | | | 256,314 | |
| Broker Non-Votes | | | 1,992,633 | | | 2,385,354 | | | 2,000,178 | |
| Total | | | 10,245,236 | | | 11,024,361 | | | 8,653,879 | |
| To approve the new fundamental | | | | | | | | | | |
| investment policy relating to the | | | | | | | | | | |
| Fund’s ability to make loans | | | | | | | | | | |
| For | | | 7,312,676 | | | 7,759,176 | | | 6,012,478 | |
| Against | | | 708,658 | | | 538,183 | | | 374,523 | |
| Abstain | | | 231,269 | | | 341,647 | | | 266,701 | |
| Broker Non-Votes | | | 1,992,633 | | | 2,385,355 | | | 2,000,177 | |
| Total | | | 10,245,236 | | | 11,024,361 | | | 8,653,879 | |
| | | | NXC | | | NXN | |
| Approval of the Board Members was reached | | | | | | | |
| as follows: | | | | | | | |
| John P. Amboian | | | | | | | |
| For | | | 3,817,399 | | | 2,469,133 | |
| Withhold | | | 143,725 | | | 338,558 | |
| Total | | | 3,961,124 | | | 2,807,691 | |
| David J. Kundert | | | | | | | |
| For | | | 3,826,265 | | | 2,476,633 | |
| Withhold | | | 134,859 | | | 331,058 | |
| Total | | | 3,961,124 | | | 2,807,691 | |
| Terence J. Toth | | | | | | | |
| For | | | 3,828,777 | | | 2,477,133 | |
| Withhold | | | 132,347 | | | 330,558 | |
| Total | | | 3,961,124 | | | 2,807,691 | |
| To approve the elimination of the | | | | | | | |
| Fund’s fundamental investment | | | | | | | |
| policy relating to the Fund’s ability | | | | | | | |
| to make loans | | | | | | | |
| For | | | 2,756,345 | | | 1,997,243 | |
| Against | | | 212,017 | | | 362,041 | |
| Abstain | | | 107,552 | | | 76,276 | |
| Broker Non-Votes | | | 885,210 | | | 521,155 | |
| Total | | | 3,961,124 | | | 2,956,715 | |
| To approve the new fundamental | | | | | | | |
| investment policy relating to the | | | | | | | |
| Fund’s ability to make loans | | | | | | | |
| For | | | 2,749,540 | | | 1,992,842 | |
| Against | | | 227,567 | | | 368,808 | |
| Abstain | | | 98,807 | | | 73,910 | |
| Broker Non-Votes | | | 885,210 | | | 521,155 | |
| Total | | | 3,961,124 | | | 2,956,715 | |
| | | Nuveen Select Tax-Free Income Portfolio |
| NXP | | Portfolio of Investments |
| | | September 30, 2011 (Unaudited) |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Alaska – 1.9% | | | | | | |
| $ | 2,475 | | Alaska Municipal Bond Bank Authority, General Obligation Bonds, Series 2003E, 5.250%, 12/01/23 (Pre-refunded 12/01/13) – NPFG Insured | 12/13 at 100.00 | | A+ (4) | $ | 2,734,133 | |
| | 2,675 | | Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46 | 6/14 at 100.00 | | B2 | | 1,691,001 | |
| | 5,150 | | Total Alaska | | | | | 4,425,134 | |
| | | | Arizona – 0.3% | | | | | | |
| | 625 | | Pima County Industrial Development Authority, Arizona, Revenue Bonds, Tucson Electric Power Company, Series 2010A, 5.250%, 10/01/40 | 10/20 at 100.00 | | BBB– | | 598,988 | |
| | | | Arkansas – 0.4% | | | | | | |
| | 5,915 | | Arkansas Development Finance Authority, Tobacco Settlement Revenue Bonds, Arkansas Cancer Research Center Project, Series 2006, 0.000%, 7/01/46 – AMBAC Insured | No Opt. Call | | Aa2 | | 1,019,746 | |
| | | | California – 10.1% | | | | | | |
| | 2,000 | | Alameda Corridor Transportation Authority, California, Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 – AMBAC Insured | 10/17 at 100.00 | | A– | | 1,738,440 | |
| | 1,290 | | Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/30 – AGM Insured | No Opt. Call | | AA+ | | 368,398 | |
| | 3,325 | | California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 6.000%, 5/01/14 (Pre-refunded 5/01/12) | 5/12 at 101.00 | | AA– (4) | | 3,470,801 | |
| | 1,000 | | California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38 | 8/19 at 100.00 | | Aa2 | | 1,143,930 | |
| | 3,790 | | Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/36 – AGM Insured | 8/16 at 33.78 | | AA+ | | 853,167 | |
| | 2,645 | | Cypress Elementary School District, Orange County, California, General Obligation Bonds, Series 2009A, 0.000%, 5/01/34 – AGM Insured | No Opt. Call | | AA+ | | 677,067 | |
| | 1,335 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/28 – AMBAC Insured | No Opt. Call | | A2 | | 501,626 | |
| | 3,000 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) | 6/13 at 100.00 | | Aaa | | 3,307,140 | |
| | 2,350 | | Golden Valley Unified School District, Madera County, California, General Obligation Bonds, Election 2006 Series 2007A, 0.000%, 8/01/29 – AGM Insured | 8/17 at 56.07 | | AA+ | | 778,109 | |
| | 3,030 | | Grossmont Union High School District, San Diego County, California, General Obligation Bonds, Series 2006, 0.000%, 8/01/25 – NPFG Insured | No Opt. Call | | Aa2 | | 1,425,070 | |
| | 365 | | Los Angeles, California, Parking System Revenue Bonds, Series 1999A, 5.250%, 5/01/29 – AMBAC Insured | 11/11 at 100.00 | | AA– | | 366,033 | |
| | 1,000 | | Moreno Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 0.000%, 8/01/23 – NPFG Insured | No Opt. Call | | AA– | | 505,890 | |
| | 5,395 | | Napa Valley Community College District, Napa and Sonoma Counties, California, General Obligation Bonds, Election 2002 Series 2007C, 0.000%, 8/01/32 – NPFG Insured | 8/17 at 46.57 | | Aa2 | | 1,535,741 | |
| | 590 | | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39 | 11/19 at 100.00 | | Baa3 | | 609,293 | |
| | 1,700 | | Placentia-Yorba Linda Unified School District, Orange County, California, Certificates of Participation, Series 2006, 0.000%, 10/01/34 – FGIC Insured | No Opt. Call | | A+ | | 391,017 | |
| | 8,000 | | Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2009A, 0.000%, 8/01/33 | No Opt. Call | | Aa2 | | 2,207,200 | |
| | 2,930 | | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/27 – NPFG Insured | No Opt. Call | | Baa1 | | 828,897 | |
| | 1,250 | | San Jose, California, Airport Revenue Bonds, Series 2004D, 5.000%, 3/01/28 – NPFG Insured | 3/14 at 100.00 | | A | | 1,259,150 | |
| | 2,110 | | Sierra Sands Unified School District, Kern County, California, General Obligation Bonds, Election of 2006, Series 2006A, 0.000%, 11/01/28 – FGIC Insured | No Opt. Call | | Aa3 | | 756,414 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | California (continued) | | | | | | |
| $ | 750 | | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45 | 6/15 at 100.00 | | BB– | $ | 472,170 | |
| | 1,150 | | Woodside Elementary School District, San Mateo County, California, General Obligation Bonds, Series 2007, 0.000%, 10/01/30 – AMBAC Insured | No Opt. Call | | AAA | | 381,409 | |
| | 49,005 | | Total California | | | | | 23,576,962 | |
| | | | Colorado – 8.5% | | | | | | |
| | 1,000 | | Colorado Health Facilities Authority, Health Facilities Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40 | No Opt. Call | | AA | | 1,006,310 | |
| | | | Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series 2002A: | | | | | | |
| | 1,700 | | 5.500%, 3/01/22 (Pre-refunded 3/02/12) | 3/12 at 100.00 | | AA (4) | | 1,737,740 | |
| | 690 | | 5.500%, 3/01/22 (Pre-refunded 3/01/12) | 3/12 at 100.00 | | Aa2 (4) | | 705,318 | |
| | 5,295 | | Denver City and County, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) | No Opt. Call | | A+ | | 5,681,535 | |
| | 5,000 | | Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A, 5.625%, 11/15/17 – FGIC Insured (Alternative Minimum Tax) | 11/11 at 100.00 | | A+ | | 5,024,600 | |
| | 3,000 | | Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center Hotel, Senior Lien Series 2003A, 5.000%, 12/01/23 (Pre-refunded 12/01/13) – SYNCORA GTY Insured | 12/13 at 100.00 | | N/R (4) | | 3,270,570 | |
| | 500 | | Denver, Colorado, Airport System Revenue Refunding Bonds, Series 2003B, 5.000%, 11/15/33 – SYNCORA GTY Insured | 11/13 at 100.00 | | A+ | | 505,745 | |
| | 12,500 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2006A, 0.000%, 9/01/38 – NPFG Insured | 9/26 at 54.77 | | Baa1 | | 1,865,750 | |
| | 29,685 | | Total Colorado | | | | | 19,797,568 | |
| | | | Florida – 3.0% | | | | | | |
| | 2,000 | | Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006, 5.375%, 6/01/46 | 6/16 at 100.00 | | A– | | 1,935,480 | |
| | 5,050 | | Jacksonville Health Facilities Authority, Florida, Revenue Bonds, Ascension Health, Series 2002A, 5.250%, 11/15/32 | 11/12 at 101.00 | | AA+ | | 5,149,788 | |
| | 7,050 | | Total Florida | | | | | 7,085,268 | |
| | | | Georgia – 0.9% | | | | | | |
| | 2,000 | | Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional Medical Center Project, Series 2010, 8.125%, 12/01/45 | 12/20 at 100.00 | | N/R | | 2,055,220 | |
| | | | Illinois – 15.1% | | | | | | |
| | 2,465 | | Board of Trustees of Southern Illinois University, Housing and Auxiliary Facilities System Revenue Bonds, Series 1999A, 0.000%, 4/01/20 – NPFG Insured | No Opt. Call | | A2 | | 1,629,612 | |
| | 2,600 | | Chicago Heights, Illinois, General Obligation Corporate Purpose Bonds, Series 1993, 5.650%, 12/01/17 – FGIC Insured | 12/11 at 100.00 | | BBB | | 2,622,698 | |
| | 195 | | DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 – AGM Insured | 11/13 at 100.00 | | Aa3 | | 209,953 | |
| | 805 | | DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 (Pre-refunded 11/01/13) – AGM Insured | 11/13 at 100.00 | | Aa3 (4) | | 885,460 | |
| | 600 | | Illinois Educational Facilities Authority, Student Housing Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22 (Pre-refunded 5/01/12) | 5/12 at 101.00 | | Aaa | | 626,424 | |
| | 1,050 | | Illinois Finance Authority, Revenue Bonds, Loyola University of Chicago, Tender Option Bond Trust 1137, 9.112%, 7/01/15 (IF) | No Opt. Call | | Aa1 | | 1,142,463 | |
| | 4,000 | | Illinois Finance Authority, Revenue Bonds, Northwestern Memorial Hospital, Series 2004A, 5.500%, 8/15/43 (Pre-refunded 8/15/14) | 8/14 at 100.00 | | N/R (4) | | 4,558,160 | |
| | 1,000 | | Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38 | 8/19 at 100.00 | | BBB | | 1,054,830 | |
| | 2,100 | | Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross Hospital and Medical Centers, Series 2008A, 5.500%, 8/15/30 | 8/18 at 100.00 | | BBB | | 1,973,160 | |
| | 1,320 | | Illinois Health Facilities Authority, Revenue Bonds, Decatur Memorial Hospital, Series 2001, 5.600%, 10/01/16 | 4/12 at 100.00 | | A | | 1,322,785 | |
| | | Nuveen Select Tax-Free Income Portfolio (continued) |
| NXP | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Illinois (continued) | | | | | | |
| $ | 2,950 | | Illinois Health Facilities Authority, Revenue Bonds, Lake Forest Hospital, Series 2002A, 6.000%, 7/01/17 | 7/12 at 100.00 | | AA+ | $ | 3,039,769 | |
| | 2,275 | | Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17 | 1/13 at 100.00 | | Baa1 | | 2,338,882 | |
| | 450 | | Illinois Health Facilities Authority, Revenue Refunding Bonds, Rockford Health System, Series 1997, 5.000%, 8/15/21 – AMBAC Insured | 2/11 at 100.00 | | N/R | | 423,513 | |
| | 3,125 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 1993A, 0.000%, 6/15/17 – FGIC Insured | No Opt. Call | | A2 | | 2,593,438 | |
| | | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A: | | | | | | |
| | 1,720 | | 0.000%, 12/15/29 – NPFG Insured | No Opt. Call | | AAA | | 644,415 | |
| | 810 | | 0.000%, 6/15/30 – NPFG Insured | No Opt. Call | | AAA | | 290,077 | |
| | 5,000 | | 0.000%, 12/15/36 – NPFG Insured | No Opt. Call | | AAA | | 1,155,900 | |
| | 5,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.000%, 6/15/21 – NPFG Insured | 6/12 at 101.00 | | AAA | | 5,102,300 | |
| | 1,300 | | Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.250%,
12/01/34 – FGIC Insured | 12/14 at 100.00 | | Aaa | | 1,405,599 | |
| | | | Yorkville, Illinois, General Obligation Debt Certificates, Series 2003: | | | | | | |
| | 1,000 | | 5.000%, 12/15/19 (Pre-refunded 12/15/11) – RAAI Insured | 12/11 at 100.00 | | N/R (4) | | 1,010,130 | |
| | 1,000 | | 5.000%, 12/15/20 (Pre-refunded 12/15/11) – RAAI Insured | 12/11 at 100.00 | | N/R (4) | | 1,010,130 | |
| | 40,765 | | Total Illinois | | | | | 35,039,698 | |
| | | | Indiana – 6.2% | | | | | | |
| | 1,000 | | Franklin Community Multi-School Building Corporation, Marion County, Indiana, First Mortgage Revenue Bonds, Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) – FGIC Insured | 7/14 at 100.00 | | A+ (4) | | 1,126,200 | |
| | 1,260 | | Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 – AGM Insured | No Opt. Call | | AA+ | | 1,395,891 | |
| | 1,000 | | Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37 | 3/17 at 100.00 | | BBB+ | | 967,410 | |
| | 9,855 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project, Series 2002A, 5.125%, 7/01/21 (Pre-refunded 7/01/12) – NPFG Insured | 7/12 at 100.00 | | AA+ (4) | | 10,220,226 | |
| | 750 | | West Clark 2000 School Building Corporation, Clark County, Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 – NPFG Insured | 1/15 at 100.00 | | AA+ | | 797,910 | |
| | 13,865 | | Total Indiana | | | | | 14,507,637 | |
| | | | Iowa – 1.8% | | | | | | |
| | 1,000 | | Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 5.375%, 6/01/38 | 6/15 at 100.00 | | BBB | | 735,530 | |
| | 4,000 | | Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34 | 6/17 at 100.00 | | BBB | | 3,351,880 | |
| | 5,000 | | Total Iowa | | | | | 4,087,410 | |
| | | | Kansas – 0.5% | | | | | | |
| | 500 | | Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial Hospital, Refunding Series 2006, 4.875%, 7/01/36 | 7/16 at 100.00 | | A2 | | 496,410 | |
| | 750 | | Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and Electric Company, Series 2004, 5.300%, 6/01/31 – NPFG Insured | 6/14 at 100.00 | | BBB+ | | 766,875 | |
| | 1,250 | | Total Kansas | | | | | 1,263,285 | |
| | | | Louisiana – 1.2% | | | | | | |
| | 2,765 | | Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 | 11/11 at 101.00 | | A– | | 2,766,493 | |
| | | | Massachusetts – 1.1% | | | | | | |
| | 500 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1 &2, 5.000%, 7/01/28 | 7/18 at 100.00 | | A– | | 506,390 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Massachusetts (continued) | | | | | | |
| $ | 20 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 6.000%, 7/01/17 | 7/12 at 100.00 | | AA | $ | 20,273 | |
| | 1,935 | | Massachusetts Housing Finance Agency, Housing Bonds, Series 2009F, 5.700%, 6/01/40 | 12/18 at 100.00 | | AA– | | 1,996,223 | |
| | 2,455 | | Total Massachusetts | | | | | 2,522,886 | |
| | | | Michigan – 1.3% | | | | | | |
| | 2,655 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 | 12/12 at 100.00 | | AA | | 2,679,638 | |
| | 245 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 (Pre-refunded 12/01/12) | 12/12 at 100.00 | | N/R (4) | | 259,629 | |
| | 2,900 | | Total Michigan | | | | | 2,939,267 | |
| | | | Missouri – 0.9% | | | | | | |
| | | | Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue Bonds, Series 2004B-1: | | | | | | |
| | 500 | | 0.000%, 4/15/23 – AMBAC Insured | No Opt. Call | | AA+ | | 315,305 | |
| | 5,000 | | 0.000%, 4/15/30 – AMBAC Insured | No Opt. Call | | AA– | | 1,843,250 | |
| | 5,500 | | Total Missouri | | | | | 2,158,555 | |
| | | | Nevada – 5.1% | | | | | | |
| | 2,500 | | Clark County, Nevada, Motor Vehicle Fuel Tax Highway Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 – AMBAC Insured | 7/13 at 100.00 | | AA– | | 2,637,575 | |
| | 1,000 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/42 | 1/20 at 100.00 | | Aa3 | | 1,039,620 | |
| | | | Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: | | | | | | |
| | 2,360 | | 0.000%, 1/01/21 – AMBAC Insured | No Opt. Call | | N/R | | 353,150 | |
| | 4,070 | | 0.000%, 1/01/22 – AMBAC Insured | No Opt. Call | | N/R | | 569,108 | |
| | 6,025 | | 5.375%, 1/01/40 – AMBAC Insured (5) | 1/12 at 100.00 | | N/R | | 1,386,051 | |
| | 1,500 | | Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Series 2009A, 8.000%, 6/15/30 | 6/19 at 100.00 | | A | | 1,740,000 | |
| | 1,515 | | Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.500%, 6/01/21 – FGIC Insured | 6/12 at 100.00 | | A | | 1,530,211 | |
| | 2,555 | | Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.500%, 6/01/21 (Pre-refunded 6/01/12) – FGIC Insured | 6/12 at 100.00 | | A3 (4) | | 2,645,268 | |
| | 21,525 | | Total Nevada | | | | | 11,900,983 | |
| | | | New Hampshire – 0.2% | | | | | | |
| | 325 | | New Hampshire Housing Finance Authority, Single Family Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) | 11/11 at 100.00 | | Aa2 | | 340,197 | |
| | | | New Jersey – 6.1% | | | | | | |
| | 2,500 | | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23 | 7/13 at 100.00 | | Ba2 | | 2,254,575 | |
| | 35,000 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C, 0.000%, 12/15/34 – AGM Insured | No Opt. Call | | AA+ | | 9,187,150 | |
| | 1,010 | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12) | 6/12 at 100.00 | | Aaa | | 1,047,097 | |
| | 2,500 | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41 | 6/17 at 100.00 | | BB– | | 1,617,900 | |
| | 41,010 | | Total New Jersey | | | | | 14,106,722 | |
| | | | New Mexico – 2.2% | | | | | | |
| | 1,000 | | New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42 (Alternative Minimum Tax) | 9/17 at 100.00 | | N/R | | 964,140 | |
| | 4,000 | | University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds, Series 2004, 4.625%, 7/01/25 – AGM Insured | 7/14 at 100.00 | | AA+ | | 4,098,400 | |
| | 5,000 | | Total New Mexico | | | | | 5,062,540 | |
| | | Nuveen Select Tax-Free Income Portfolio (continued) |
| NXP | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | New York – 0.7% | | | | | | |
| $ | 1,000 | | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Kaleida Health, Series 2004, 5.050%, 2/15/25 | 2/14 at 100.00 | | AAA | $ | 1,027,740 | |
| | 530 | | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/42 | 12/20 at 100.00 | | BBB– | | 549,186 | |
| | 1,530 | | Total New York | | | | | 1,576,926 | |
| | | | North Carolina – 1.1% | | | | | | |
| | 1,000 | | North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Series 2008C, 6.750%, 1/01/24 | 1/19 at 100.00 | | A– | | 1,204,740 | |
| | 1,420 | | North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/21 | 1/12 at 100.00 | | A– | | 1,422,868 | |
| | 2,420 | | Total North Carolina | | | | | 2,627,608 | |
| | | | Ohio – 0.5% | | | | | | |
| | 1,545 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2, 6.000%, 6/01/42 | 6/17 at 100.00 | | BB– | | 1,110,469 | |
| | | | Oklahoma – 2.1% | | | | | | |
| | 1,000 | | Norman Regional Hospital Authority, Oklahoma, Hospital Revenue Bonds, Series 2005, 5.375%, 9/01/36 | 9/16 at 100.00 | | BB+ | | 819,690 | |
| | 4,000 | | Oklahoma Development Finance Authority, Revenue Bonds, St. John Health System, Series 2004, 5.000%, 2/15/24 | 2/14 at 100.00 | | A | | 4,098,720 | |
| | 5,000 | | Total Oklahoma | | | | | 4,918,410 | |
| | | | Pennsylvania – 0.9% | | | | | | |
| | 500 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Widener University, Series 2003, 5.250%, 7/15/24 | 7/13 at 100.00 | | BBB+ | | 510,800 | |
| | 1,000 | | Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special Revenue Bonds, Series 2010B, 0.000%, 12/01/30 | No Opt. Call | | Aa3 | | 819,040 | |
| | 700 | | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2004A, 5.500%, 12/01/31 – AMBAC Insured | 12/14 at 100.00 | | Aa3 | | 753,074 | |
| | 2,200 | | Total Pennsylvania | | | | | 2,082,914 | |
| | | | Puerto Rico – 2.0% | | | | | | |
| | 1,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42 | 8/19 at 100.00 | | A+ | | 1,082,960 | |
| | | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A: | | | | | | |
| | 17,500 | | 0.000%, 8/01/41 – NPFG Insured | No Opt. Call | | Aa2 | | 3,012,275 | |
| | 1,000 | | 0.000%, 8/01/43 – NPFG Insured | No Opt. Call | | Aa2 | | 151,660 | |
| | 7,000 | | 0.000%, 8/01/54 – AMBAC Insured | No Opt. Call | | Aa2 | | 502,460 | |
| | 26,500 | | Total Puerto Rico | | | | | 4,749,355 | |
| | | | South Carolina – 7.0% | | | | | | |
| | 1,250 | | Dorchester County School District 2, South Carolina, Installment Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/20 | 12/14 at 100.00 | | AA– | | 1,383,138 | |
| | 10,000 | | Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19 (Pre-refunded 12/01/12) | 12/12 at 101.00 | | AA (4) | | 10,755,098 | |
| | 1,500 | | Lexington County Health Service District, South Carolina, Hospital Revenue Refunding and Improvement Bonds, Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13) | 11/13 at 100.00 | | AA– (4) | | 1,673,250 | |
| | 520 | | South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12) | 11/12 at 100.00 | | A3 (4) | | 551,470 | |
| | 1,980 | | South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, Bon Secours Health System Inc., Series 2002B, 5.625%, 11/15/30 | 11/12 at 100.00 | | A– | | 1,983,920 | |
| | 15,250 | | Total South Carolina | | | | | 16,346,876 | |
| | | | Texas – 8.8% | | | | | | |
| | 5,000 | | Brazos River Harbor Navigation District, Brazoria County, Texas, Environmental Facilities Revenue Bonds, Dow Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33 (Mandatory put 5/15/17) (Alternative Minimum Tax) | 5/12 at 101.00 | | BBB | | 5,118,400 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Texas (continued) | | | | | | |
| $ | 250 | | Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 6.000%, 1/01/41 | 1/21 at 100.00 | | BBB– | $ | 253,335 | |
| | 500 | | Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/35 – FGIC Insured | 1/15 at 100.00 | | BBB | | 446,895 | |
| | 360 | | Dallas-Fort Worth International Airport Public Facility Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001, 5.500%, 1/15/20 – AGM Insured | 1/12 at 100.00 | | AA+ | | 360,644 | |
| | 2,300 | | Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 – NPFG Insured | 11/13 at 100.00 | | AA | | 2,351,244 | |
| | 2,485 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H, 0.000%, 11/15/30 – NPFG Insured | No Opt. Call | | Baa1 | | 629,500 | |
| | 3,805 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004-A3, 0.000%, 11/15/35 – NPFG Insured | 11/24 at 52.47 | | Baa1 | | 657,694 | |
| | 3,470 | | Harris County-Houston Sports Authority, Texas, Senior Lien Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/38 – NPFG Insured | 11/30 at 61.17 | | Baa1 | | 579,212 | |
| | 45 | | Irving Independent School District, Dallas County, Texas, General Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31 | 2/12 at 100.00 | | AAA | | 45,618 | |
| | 3,455 | | Irving Independent School District, Dallas County, Texas, General Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31 (Pre-refunded 2/15/12) | 2/12 at 100.00 | | Aaa | | 3,517,985 | |
| | 1,780 | | Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2007, 0.000%, 8/15/37 | 8/16 at 35.23 | | AAA | | 493,630 | |
| | 2,000 | | North Texas Tollway Authority, First Tier System Revenue Refunding Bonds, Capital Appreciation Series 2008I, 0.000%, 1/01/43 | 1/25 at 100.00 | | A2 | | 1,819,460 | |
| | 2,000 | | Richardson Hospital Authority, Texas, Revenue Bonds, Richardson Regional Medical Center, Series 2004, 6.000%, 12/01/34 | 12/13 at 100.00 | | A | | 2,025,500 | |
| | 240 | | San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992, 6.000%, 5/15/16 (Pre-refunded 5/15/12) – NPFG Insured | 5/12 at 100.00 | | Aa3 (4) | | 247,709 | |
| | 1,750 | | Texas, General Obligation Bonds, Water Financial Assistance Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) | 8/13 at 100.00 | | Aaa | | 1,765,733 | |
| | 29,440 | | Total Texas | | | | | 20,312,559 | |
| | | | Utah – 0.3% | | | | | | |
| | 775 | | Utah State Building Ownership Authority, Lease Revenue Bonds, State Facilities Master Lease Program, Series 2001B, 5.250%, 5/15/24 (Pre-refunded 11/15/11) | 11/11 at 100.00 | | AA+ (4) | | 779,883 | |
| | | | Virginia – 1.4% | | | | | | |
| | 1,000 | | Fairfax County Economic Development Authority, Virginia, Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/42 | 10/17 at 100.00 | | N/R | | 958,830 | |
| | 1,000 | | Henrico County Economic Development Authority, Virginia, Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 | No Opt. Call | | BBB | | 929,410 | |
| | 2,000 | | Metropolitan Washington DC Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Dulles Metrorail Capital Appreciation, Series 2010B, 0.000%, 10/01/44 | 10/28 at 100.00 | | BBB+ | | 1,324,820 | |
| | 4,000 | | Total Virginia | | | | | 3,213,060 | |
| | | | Washington – 2.5% | | | | | | |
| | 250 | | Energy Northwest, Washington, Electric Revenue Refunding Bonds, Columbia Generating Station, Series 2002A, 5.500%, 7/01/17 – NPFG Insured | 7/12 at 100.00 | | Aa1 | | 259,213 | |
| | 1,330 | | Snohomish County Public Utility District 1, Washington, Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12 (ETM) | No Opt. Call | | Aaa | | 1,349,564 | |
| | 990 | | Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2011A, 5.625%, 1/01/35 | 1/21 at 100.00 | | A | | 1,012,117 | |
| | 2,000 | | Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 | 6/13 at 100.00 | | A3 | | 2,026,840 | |
| | 2,115 | | Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2003F, 0.000%, 12/01/27 – NPFG Insured | No Opt. Call | | AA+ | | 1,087,745 | |
| | 6,685 | | Total Washington | | | | | 5,735,479 | |
| | | Nuveen Select Tax-Free Income Portfolio (continued) |
| NXP | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | West Virginia – 0.2% | | | | | | |
| $ | 500 | | West Virginia Hospital Finance Authority, Revenue Bonds, United Hospital Center Inc. Project, Series 2006A, 4.500%, 6/01/26 – AMBAC Insured | 6/16 at 100.00 | | A+ | $ | 487,130 | |
| | | | Wisconsin – 1.8% | | | | | | |
| | 470 | | Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12) | 6/12 at 100.00 | | Aaa | | 487,982 | |
| | 1,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%, 8/15/17 | 8/13 at 100.00 | | BBB+ | | 1,031,230 | |
| | 2,500 | | Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 5.000%, 11/01/26 | 11/13 at 100.00 | | AA | | 2,590,300 | |
| | 3,970 | | Total Wisconsin | | | | | 4,109,512 | |
| $ | 341,605 | | Total Investments (cost $221,411,809) – 96.1% | | | | | 223,304,740 | |
| | | | Other Assets Less Liabilities – 3.9% | | | | | 9,103,476 | |
| | | | Net Assets – 100% | | | | $ | 232,408,216 | |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | | 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. |
| (5) | | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| N/R | | Not rated. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
See accompanying notes to financial statements.
| | | Nuveen Select Tax-Free Income Portfolio 2 |
| NXQ | | Portfolio of Investments |
| | | September 30, 2011 (Unaudited) |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Alaska – 0.3% | | | | | | |
| $ | 1,000 | | Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32 | 6/14 at 100.00 | | B2 | $ | 691,320 | |
| | | | Arizona – 1.1% | | | | | | |
| | 600 | | Pima County Industrial Development Authority, Arizona, Revenue Bonds, Tucson Electric Power Company, Series 2010A, 5.250%, 10/01/40 | 10/20 at 100.00 | | BBB– | | 575,028 | |
| | 2,250 | | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 | No Opt. Call | | A | | 2,026,283 | |
| | 2,850 | | Total Arizona | | | | | 2,601,311 | |
| | | | Arkansas – 0.9% | | | | | | |
| | 2,000 | | University of Arkansas, Fayetteville, Various Facilities Revenue Bonds, Series 2002, 5.000%, 12/01/32 – FGIC Insured | 12/12 at 100.00 | | Aa2 | | 2,027,200 | |
| | | | California – 10.8% | | | | | | |
| | 1,000 | | Alameda Corridor Transportation Authority, California, Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 – AMBAC Insured | 10/17 at 100.00 | | A– | | 869,220 | |
| | 11,000 | | Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Capital Appreciation Series 2009B, 0.000%, 8/01/41 – AGC Insured | No Opt. Call | | AA+ | | 1,667,050 | |
| | 3,600 | | Arcadia Unified School District, Los Angeles County, California, General Obligation Bonds, Election 2006 Series 2007A, 0.000%, 8/01/33 – AGM Insured | 2/17 at 44.77 | | AA+ | | 973,656 | |
| | 3,325 | | California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 6.000%, 5/01/14 (Pre-refunded 5/01/12) | 5/12 at 101.00 | | AA– (4) | | 3,470,801 | |
| | 500 | | California State Public Works Board, Lease Revenue Refunding Bonds, Community Colleges Projects, Series 1998A, 5.250%, 12/01/16 | 12/11 at 100.00 | | A2 | | 501,205 | |
| | 1,540 | | California State Public Works Board, Lease Revenue Refunding Bonds, Various University of California Projects, Series 1993A, 5.500%, 6/01/14 | No Opt. Call | | Aa2 | | 1,638,314 | |
| | 2,500 | | California State, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 | 3/16 at 100.00 | | A1 | | 2,554,025 | |
| | 60 | | California, General Obligation Bonds, Series 1997, 5.000%, 10/01/18 – AMBAC Insured | 10/11 at 100.00 | | A1 | | 60,196 | |
| | 3,200 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) | 6/13 at 100.00 | | Aaa | | 3,527,616 | |
| | 1,000 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 | 6/17 at 100.00 | | BB+ | | 639,160 | |
| | 3,030 | | Grossmont Union High School District, San Diego County, California, General Obligation Bonds, Series 2006, 0.000%, 8/01/25 – NPFG Insured | No Opt. Call | | Aa2 | | 1,425,070 | |
| | 450 | | M-S-R Energy Authority, California, Gas Revenue Bonds, Series 2009C, 6.500%, 11/01/39 | No Opt. Call | | A | | 494,055 | |
| | 1,195 | | Palmdale Elementary School District, Los Angeles County, California, General Obligation Bonds, Series 2003, 0.000%, 8/01/28 – AGM Insured | No Opt. Call | | AA+ | | 474,272 | |
| | 590 | | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39 | 11/19 at 100.00 | | Baa3 | | 609,293 | |
| | 2,755 | | Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2007, 0.000%, 7/01/25 – AGM Insured | No Opt. Call | | AA | | 1,311,766 | |
| | | | San Joaquin Delta Community College District, California, General Obligation Bonds, Election 2004 Series 2008B: | | | | | | |
| | 1,000 | | 0.000%, 8/01/30 – AGM Insured | 8/18 at 50.12 | | AA+ | | 316,890 | |
| | 1,890 | | 0.000%, 8/01/31 – AGM Insured | 8/18 at 47.14 | | AA+ | | 561,311 | |
| | 1,500 | | San Jose, California, Airport Revenue Bonds, Series 2004D, 5.000%, 3/01/28 – NPFG Insured | 3/14 at 100.00 | | A | | 1,510,980 | |
| | 6,025 | | Simi Valley Unified School District, Ventura County, California, General Obligation Bonds, Series 2007C, 0.000%, 8/01/30 | No Opt. Call | | AA+ | | 1,953,426 | |
| | 1,750 | | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45 | 6/15 at 100.00 | | BB– | | 1,101,730 | |
| | 47,910 | | Total California | | | | | 25,660,036 | |
| | | Nuveen Select Tax-Free Income Portfolio 2 (continued) |
| NXQ | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Colorado – 11.3% | | | | | | |
| $ | 500 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Series 2009A, 5.500%, 7/01/34 | 7/19 at 100.00 | | AA | $ | 528,195 | |
| | 1,000 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Valley View Hospital Association, Series 2007, 5.250%, 5/15/42 | 5/17 at 100.00 | | BBB+ | | 919,560 | |
| | 1,975 | | Colorado Health Facilities Authority, Health Facilities Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40 | No Opt. Call | | AA | | 1,987,462 | |
| | | | Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series 2002A: | | | | | | |
| | 1,700 | | 5.500%, 3/01/22 (Pre-refunded 3/02/12) | 3/12 at 100.00 | | AA (4) | | 1,737,740 | |
| | 1,300 | | 5.500%, 3/01/22 (Pre-refunded 3/01/12) | 3/12 at 100.00 | | Aa2 (4) | | 1,328,860 | |
| | 1,570 | | Denver City and County, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) | No Opt. Call | | A+ | | 1,684,610 | |
| | 5,000 | | Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A, 5.625%, 11/15/17 – FGIC Insured (Alternative Minimum Tax) | 11/11 at 100.00 | | A+ | | 5,024,599 | |
| | 1,555 | | Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001, 5.500%, 11/15/16 – FGIC Insured | 11/11 at 100.00 | | A+ | | 1,563,413 | |
| | 3,000 | | Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center Hotel, Senior Lien Series 2003A, 5.000%, 12/01/23 (Pre-refunded 12/01/13) – SYNCORA GTY Insured | 12/13 at 100.00 | | N/R (4) | | 3,270,570 | |
| | 2,230 | | Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center Hotel, Senior Lien Series 2006, 4.750%, 12/01/35 – SYNCORA GTY Insured | 11/16 at 100.00 | | BBB– | | 1,879,043 | |
| | | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: | | | | | | |
| | 5,100 | | 0.000%, 9/01/24 – NPFG Insured | No Opt. Call | | Baa1 | | 2,252,058 | |
| | 8,100 | | 0.000%, 9/01/29 – NPFG Insured | No Opt. Call | | Baa1 | | 2,514,807 | |
| | 4,200 | | 0.000%, 9/01/33 – NPFG Insured | No Opt. Call | | Baa1 | | 958,566 | |
| | 1,100 | | University of Colorado Hospital Authority, Revenue Bonds, Series 2001A, 5.600%, 11/15/31 (Pre-refunded 11/15/11) | 11/11 at 100.00 | | A3 (4) | | 1,107,469 | |
| | 38,330 | | Total Colorado | | | | | 26,756,952 | |
| | | | Florida – 2.4% | | | | | | |
| | 1,000 | | Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa General Hospital, Series 2006, 5.250%, 10/01/41 | 10/16 at 100.00 | | A3 | | 969,890 | |
| | 1,500 | | Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and Improvement Bonds, Series 2002, 5.000%, 10/01/21 – FGIC Insured | 10/12 at 100.00 | | A+ | | 1,534,650 | |
| | 2,500 | | JEA, Florida, Electric System Revenue Bonds, Series Three 2006A, 5.000%, 10/01/41 – AGM Insured | 4/15 at 100.00 | | AA+ | | 2,569,025 | |
| | 625 | | Miami-Dade County Expressway Authority, Florida, Toll System Revenue Refunding Bonds, Series 2001, 5.125%, 7/01/29 – FGIC Insured | 7/12 at 100.00 | | A3 | | 627,331 | |
| | 5,625 | | Total Florida | | | | | 5,700,896 | |
| | | | Georgia – 0.4% | | | | | | |
| | 1,000 | | Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional Medical Center Project, Series 2010, 8.125%, 12/01/45 | 12/20 at 100.00 | | N/R | | 1,027,610 | |
| | | | Illinois – 16.0% | | | | | | |
| | 630 | | Chicago Metropolitan Housing Development Corporation, Illinois, FHA-Insured Section 8 Assisted Housing Development Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17 | 1/12 at 100.00 | | AA | | 631,959 | |
| | 590 | | Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 5.000%,
1/01/33 – AMBAC Insured | 7/13 at 100.00 | | AA+ | | 596,514 | |
| | 1,665 | | Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.000%, 1/01/33 – FGIC Insured | 1/16 at 100.00 | | A1 | | 1,681,700 | |
| | 600 | | Illinois Educational Facilities Authority, Student Housing Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22 (Pre-refunded 5/01/12) | 5/12 at 101.00 | | Aaa | | 626,424 | |
| | 1,050 | | Illinois Finance Authority, Revenue Bonds, Loyola University of Chicago, Tender Option Bond Trust 1137, 9.112%, 7/01/15 (IF) | No Opt. Call | | Aa1 | | 1,142,463 | |
| | 200 | | Illinois Finance Authority, Revenue Bonds, Palos Community Hospital, Series 2007A, 5.000%, 5/15/32 – NPFG Insured | 5/17 at 100.00 | | Baa1 | | 192,394 | |
| | 2,185 | | Illinois Finance Authority, Revenue Bonds, YMCA of Southwest Illinois, Series 2005, 5.000%, 9/01/31 – RAAI Insured | 9/15 at 100.00 | | Aa3 | | 1,776,558 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Illinois (continued) | | | | | | |
| $ | 1,750 | | Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross Hospital and Medical Centers, Series 2008A, 5.500%, 8/15/30 | 8/18 at 100.00 | | BBB | $ | 1,644,300 | |
| | 750 | | Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., University Center Project, Series 2006B, 5.000%, 5/01/25 | No Opt. Call | | Baa3 | | 726,960 | |
| | 2,255 | | Illinois Health Facilities Authority, Revenue Bonds, Lake Forest Hospital, Series 2002A, 6.250%, 7/01/22 | 7/12 at 100.00 | | AA+ | | 2,310,293 | |
| | 415 | | Illinois Health Facilities Authority, Revenue Refunding Bonds, Rockford Health System, Series 1997, 5.000%, 8/15/21 – AMBAC Insured | 2/12 at 100.00 | | N/R | | 390,573 | |
| | 1,000 | | Illinois Housing Development Authority, Housing Finance Bonds, Series 2005E, 4.750%, 7/01/30 – FGIC Insured | 1/15 at 100.00 | | AA | | 999,930 | |
| | 5,700 | | Illinois, Sales Tax Revenue Bonds, First Series 2002, 5.000%, 6/15/22 | 6/13 at 100.00 | | AAA | | 5,987,108 | |
| | | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A: | | | | | | |
| | 1,350 | | 0.000%, 6/15/35 – NPFG Insured | No Opt. Call | | AAA | | 342,090 | |
| | 5,000 | | 0.000%, 12/15/36 – NPFG Insured | No Opt. Call | | AAA | | 1,155,900 | |
| | 9,170 | | 0.000%, 6/15/39 – NPFG Insured | No Opt. Call | | AAA | | 1,838,310 | |
| | 7,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.000%, 6/15/21 – NPFG Insured | 6/12 at 101.00 | | AAA | | 7,143,216 | |
| | 5,045 | | Sauk Village, Illinois, General Obligation Alternate Revenue Source Bonds, Tax Increment, Series 2002A, 5.000%, 6/01/22 – RAAI Insured | 12/12 at 100.00 | | N/R | | 5,075,975 | |
| | | | Sauk Village, Illinois, General Obligation Alternate Revenue Source Bonds, Tax Increment, Series 2002B: | | | | | | |
| | 1,060 | | 0.000%, 12/01/17 – RAAI Insured | No Opt. Call | | N/R | | 830,468 | |
| | 1,135 | | 0.000%, 12/01/18 – RAAI Insured | No Opt. Call | | N/R | | 841,750 | |
| | 1,100 | | Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.250%,
12/01/34 – FGIC Insured | 12/14 at 100.00 | | Aaa | | 1,189,353 | |
| | 1,000 | | Yorkville, Illinois, General Obligation Debt Certificates, Series 2003, 5.000%, 12/15/21 (Pre-refunded 12/15/11) – RAAI Insured | 12/11 at 100.00 | | N/R (4) | | 1,010,130 | |
| | 50,650 | | Total Illinois | | | | | 38,134,368 | |
| | | | Indiana – 5.8% | | | | | | |
| | 1,000 | | Franklin Community Multi-School Building Corporation, Marion County, Indiana, First Mortgage Revenue Bonds, Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) – FGIC Insured | 7/14 at 100.00 | | A+ (4) | | 1,126,200 | |
| | 1,600 | | Indiana Bond Bank, Special Program Bonds, Carmel Junior Waterworks Project, Series 2008B, 0.000%, 6/01/30 – AGM Insured | No Opt. Call | | AA+ | | 623,168 | |
| | 825 | | Indiana Health and Educational Facilities Financing Authority, Revenue Bonds, Ascension Health, Series 2006B-5, 5.000%, 11/15/36 | No Opt. Call | | AA+ | | 843,084 | |
| | 635 | | Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22 | 3/12 at 100.00 | | BBB | | 609,841 | |
| | 1,000 | | Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37 | 3/17 at 100.00 | | BBB+ | | 967,410 | |
| | 4,380 | | Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series 2002A, 5.125%, 1/01/21 – AMBAC Insured | 1/12 at 100.00 | | A+ | | 4,417,230 | |
| | 385 | | St. Joseph County Hospital Authority, Indiana, Revenue Bonds, Memorial Health System, Series 1998A, 4.625%, 8/15/28 – NPFG Insured | 2/12 at 100.00 | | AA– | | 385,119 | |
| | 750 | | West Clark 2000 School Building Corporation, Clark County, Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 – NPFG Insured | 1/15 at 100.00 | | AA+ | | 797,910 | |
| | 3,840 | | Whiting Redevelopment District, Indiana, Tax Increment Revenue Bonds, Lakefront Development Project, Series 2010, 6.000%, 1/15/19 | No Opt. Call | | N/R | | 3,919,027 | |
| | 14,415 | | Total Indiana | | | | | 13,688,989 | |
| | | | Iowa – 1.0% | | | | | | |
| | 660 | | Iowa Finance Authority, Single Family Mortgage Revenue Bonds, Series 2007B, 4.800%, 1/01/37 (Alternative Minimum Tax) | 7/16 at 100.00 | | Aaa | | 657,558 | |
| | 1,350 | | Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 5.375%, 6/01/38 | 6/15 at 100.00 | | BBB | | 992,966 | |
| | | Nuveen Select Tax-Free Income Portfolio 2 (continued) |
| NXQ | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Iowa (continued) | | | | | | |
| $ | 1,000 | | Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34 | 6/17 at 100.00 | | BBB | $ | 837,970 | |
| | 3,010 | | Total Iowa | | | | | 2,488,494 | |
| | | | Kansas – 0.8% | | | | | | |
| | 795 | | Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial Hospital, Refunding Series 2006, 4.875%, 7/01/36 | 7/16 at 100.00 | | A2 | | 789,292 | |
| | 1,000 | | Salina, Kansas, Hospital Revenue Bonds, Salina Regional Medical Center, Series 2006, 4.500%, 10/01/26 | 4/13 at 100.00 | | A1 | | 1,001,510 | |
| | 1,795 | | Total Kansas | | | | | 1,790,802 | |
| | | | Louisiana – 2.3% | | | | | | |
| | 2,180 | | Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 – NPFG Insured | 7/14 at 100.00 | | Baa1 | | 2,284,139 | |
| | 3,000 | | Louisiana Public Facilities Authority, Revenue Bonds, Tulane University, Series 2002A, 5.125%, 7/01/27 (Pre-refunded 7/01/12) – AMBAC Insured | 7/12 at 100.00 | | N/R (4) | | 3,111,420 | |
| | 5,180 | | Total Louisiana | | | | | 5,395,559 | |
| | | | Massachusetts – 2.5% | | | | | | |
| | 3,000 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31 | 10/13 at 100.00 | | BBB+ | | 3,024,900 | |
| | 500 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1 &2, 5.000%, 7/01/28 | 7/18 at 100.00 | | A– | | 506,390 | |
| | 1,270 | | Massachusetts Water Resources Authority, General Revenue Bonds, Series 1993C, 5.250%, 12/01/15 – NPFG Insured (ETM) | No Opt. Call | | BBB (4) | | 1,414,348 | |
| | 820 | | Massachusetts Water Resources Authority, General Revenue Bonds, Series 1993C, 5.250%, 12/01/15 – NPFG Insured | No Opt. Call | | Aa1 | | 905,682 | |
| | 5,590 | | Total Massachusetts | | | | | 5,851,320 | |
| | | | Michigan – 1.6% | | | | | | |
| | 545 | | Detroit, Michigan, General Obligation Bonds, Series 2003A, 5.250%, 4/01/19 – SYNCORA GTY Insured | 4/13 at 100.00 | | BB | | 481,900 | |
| | 2,655 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 | 12/12 at 100.00 | | AA | | 2,679,638 | |
| | 245 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 (Pre-refunded 12/01/12) | 12/12 at 100.00 | | N/R (4) | | 259,629 | |
| | 250 | | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 | 9/18 at 100.00 | | A1 | | 297,423 | |
| | 3,695 | | Total Michigan | | | | | 3,718,590 | |
| | | | Minnesota – 0.6% | | | | | | |
| | 1,465 | | Minnesota Housing Finance Agency, Residential Housing Finance Bonds, Series 2007-I, 4.850%, 7/01/38 (Alternative Minimum Tax) | 7/16 at 100.00 | | AA+ | | 1,435,847 | |
| | | | Mississippi – 0.2% | | | | | | |
| | 500 | | Mississippi Development Bank, Revenue Bonds, Mississippi Municipal Energy Agency, Mississippi Power, Series 2006A, 5.000%, 3/01/21 – SYNCORA GTY Insured | 3/16 at 100.00 | | Baa2 | | 516,170 | |
| | | | Nevada – 1.9% | | | | | | |
| | 1,000 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/42 | 1/20 at 100.00 | | Aa3 | | 1,039,620 | |
| | | | Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: | | | | | | |
| | 4,595 | | 0.000%, 1/01/22 – AMBAC Insured | No Opt. Call | | N/R | | 642,519 | |
| | 12,250 | | 5.375%, 1/01/40 – AMBAC Insured (5) | 1/12 at 100.00 | | N/R | | 2,818,113 | |
| | 17,845 | | Total Nevada | | | | | 4,500,252 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | New Jersey – 1.9% | | | | | | |
| $ | 2,500 | | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23 | 7/13 at 100.00 | | Ba2 | $ | 2,254,575 | |
| | | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: | | | | | | |
| | 1,000 | | 6.375%, 6/01/32 (Pre-refunded 6/01/13) | 6/13 at 100.00 | | Aaa | | 1,086,010 | |
| | 1,010 | | 6.250%, 6/01/43 (Pre-refunded 6/01/13) | 6/13 at 100.00 | | Aaa | | 1,108,596 | |
| | 4,510 | | Total New Jersey | | | | | 4,449,181 | |
| | | | New Mexico – 3.1% | | | | | | |
| | 1,000 | | New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42 (Alternative Minimum Tax) | 9/17 at 100.00 | | N/R | | 964,140 | |
| | | | University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds, Series 2004: | | | | | | |
| | 555 | | 4.625%, 1/01/25 – AGM Insured | 7/14 at 100.00 | | AA+ | | 568,803 | |
| | 660 | | 4.625%, 7/01/25 – AGM Insured | 7/14 at 100.00 | | AA+ | | 676,236 | |
| | 2,000 | | 4.750%, 7/01/27 – AGM Insured | 7/14 at 100.00 | | AA+ | | 2,045,680 | |
| | 3,000 | | 4.750%, 1/01/28 – AGM Insured | 7/14 at 100.00 | | AA+ | | 3,059,880 | |
| | 7,215 | | Total New Mexico | | | | | 7,314,739 | |
| | | | New York – 1.8% | | | | | | |
| | 1,700 | | Dormitory Authority of the State of New York, FHA Insured Mortgage Hospital Revenue Bonds, Kaleida Health, Series 2006, 4.700%, 2/15/35 | 8/16 at 100.00 | | AAA | | 1,711,917 | |
| | 2,000 | | New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, Series 2004B, 5.000%, 6/15/36 – AGM Insured (UB) | 12/14 at 100.00 | | AAA | | 2,085,560 | |
| | 395 | | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/42 | 12/20 at 100.00 | | BBB– | | 409,299 | |
| | 4,095 | | Total New York | | | | | 4,206,776 | |
| | | | North Carolina – 0.5% | | | | | | |
| | 1,155 | | Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, Carolinas Healthcare System, Series 2001A, 5.000%, 1/15/31 | 1/12 at 100.00 | | AA– | | 1,156,860 | |
| | | | Ohio – 1.9% | | | | | | |
| | | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | | | | | | |
| | 1,845 | | 5.375%, 6/01/24 | 6/17 at 100.00 | | BB– | | 1,449,819 | |
| | 50 | | 5.125%, 6/01/24 | 6/17 at 100.00 | | BB– | | 38,313 | |
| | 680 | | 5.875%, 6/01/30 | 6/17 at 100.00 | | BB– | | 512,237 | |
| | 775 | | 5.750%, 6/01/34 | 6/17 at 100.00 | | BB– | | 558,535 | |
| | 2,680 | | 5.875%, 6/01/47 | 6/17 at 100.00 | | BB– | | 1,881,280 | |
| | 6,030 | | Total Ohio | | | | | 4,440,184 | |
| | | | Oklahoma – 1.6% | | | | | | |
| | 1,000 | | Norman Regional Hospital Authority, Oklahoma, Hospital Revenue Bonds, Series 2005, 5.375%, 9/01/36 | 9/16 at 100.00 | | BB+ | | 819,690 | |
| | 3,000 | | Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007, 5.000%, 2/15/42 | 2/17 at 100.00 | | A | | 3,042,870 | |
| | 4,000 | | Total Oklahoma | | | | | 3,862,560 | |
| | | | Pennsylvania – 2.3% | | | | | | |
| | 1,500 | | Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special Revenue Bonds, Series 2010B, 0.000%, 12/01/30 | 12/20 at 100.0 | | AA | | 1,228,560 | |
| | 1,000 | | Philadelphia Authority for Industrial Development, Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 – FGIC Insured (Alternative Minimum Tax) | 1/12 at 101.00 | | A+ | | 1,012,900 | |
| | 3,250 | | Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) – AGM Insured | 2/12 at 100.00 | | AA+ (4) | | 3,307,525 | |
| | 5,750 | | Total Pennsylvania | | | | | 5,548,985 | |
| | | Nuveen Select Tax-Free Income Portfolio 2 (continued) |
| NXQ | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Puerto Rico – 1.8% | | | | | | |
| $ | 1,035 | | Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003, 5.000%, 12/01/20 | 12/13 at 100.00 | | AA+ | $ | 1,070,045 | |
| | 1,965 | | Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003, 5.000%, 12/01/20 (Pre-refunded 12/01/13) | 12/13 at 100.00 | | Aaa | | 2,156,077 | |
| | 15,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/54 – AMBAC Insured | No Opt. Call | | Aa2 | | 1,076,700 | |
| | 18,000 | | Total Puerto Rico | | | | | 4,302,822 | |
| | | | Rhode Island – 2.2% | | | | | | |
| | 5,835 | | Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42 | 6/12 at 100.00 | | BBB | | 5,332,606 | |
| | | | South Carolina – 4.7% | | | | | | |
| | 700 | | Dorchester County School District 2, South Carolina, Installment Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/20 | 12/14 at 100.00 | | AA– | | 774,557 | |
| | 4,000 | | Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19 (Pre-refunded 12/01/12) | 12/12 at 101.00 | | AA (4) | | 4,302,040 | |
| | 2,500 | | Lexington County Health Service District, South Carolina, Hospital Revenue Refunding and Improvement Bonds, Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13) | 11/13 at 100.00 | | AA– (4) | | 2,788,750 | |
| | | | Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds, Series 2004A: | | | | | | |
| | 500 | | 5.250%, 8/15/20 – NPFG Insured | 8/14 at 100.00 | | Baa1 | | 527,215 | |
| | 2,435 | | 5.250%, 2/15/21 – NPFG Insured | 8/14 at 100.00 | | Baa1 | | 2,611,440 | |
| | 475 | | The College of Charleston, Charleston South Carolina, Academic and Administrative Revenue Bonds, Series 2004B, 5.125%, 4/01/30 – SYNCORA GTY Insured | 4/14 at 100.00 | | A1 | | 487,892 | |
| | 10,610 | | Total South Carolina | | | | | 11,491,894 | |
| | | | South Dakota – 0.4% | | | | | | |
| | 1,000 | | South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.250%, 11/01/34 | 11/14 at 100.00 | | AA– | | 1,012,010 | |
| | | | Texas – 11.6% | | | | | | |
| | 4,000 | | Brazos River Harbor Navigation District, Brazoria County, Texas, Environmental Facilities Revenue Bonds, Dow Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33 (Mandatory put 5/15/17) (Alternative Minimum Tax) | 5/12 at 101.00 | | BBB | | 4,094,720 | |
| | 250 | | Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 6.000%, 1/01/41 | 1/21 at 100.00 | | BBB– | | 253,335 | |
| | 1,500 | | Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 – FGIC Insured | 1/15 at 100.00 | | BBB | | 1,313,955 | |
| | 2,500 | | Harris County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Texas Children’s Hospital, Series 1995, 5.500%, 10/01/16 – NPFG Insured (ETM) | No Opt. Call | | BBB (4) | | 2,903,600 | |
| | 3,000 | | Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 – NPFG Insured | 11/13 at 100.00 | | AA | | 3,066,840 | |
| | 10,025 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H, 0.000%, 11/15/41 – NPFG Insured | 11/31 at 53.78 | | Baa1 | | 1,103,652 | |
| | 575 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/24 – AMBAC Insured | No Opt. Call | | A2 | | 284,004 | |
| | 2,000 | | Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2002A, 5.625%, 7/01/20 – AGM Insured (Alternative Minimum Tax) | 7/12 at 100.00 | | AA+ | | 2,032,680 | |
| | 3,125 | | Katy Independent School District, Harris, Fort Bend and Waller Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%, 2/15/32 (Pre-refunded 2/15/12) | 2/12 at 100.00 | | AAA | | 3,181,625 | |
| | 1,400 | | Kerrville Health Facilities Development Corporation, Texas, Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005, 5.375%, 8/15/35 | No Opt. Call | | BBB– | | 1,329,580 | |
| | 335 | | Live Oak, Texas, General Obligation Bonds, Series 2004, 5.250%, 8/01/20 – NPFG Insured | 8/14 at 100.00 | | Aa3 | | 354,125 | |
| | 4,850 | | Sam Rayburn Municipal Power Agency, Texas, Power Supply System Revenue Refunding Bonds, Series 2002A, 5.500%, 10/01/17 – RAAI Insured | 10/12 at 100.00 | | BBB | | 4,970,571 | |
| | 1,000 | | San Antonio, Texas, Water System Revenue Bonds, Series 2005, 4.750%, 5/15/37 – NPFG Insured | 5/15 at 100.00 | | Aa1 | | 1,027,580 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Texas (continued) | | | | | | |
| $ | 1,560 | | Texas, General Obligation Bonds, Water Financial Assistance Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) | 8/13 at 100.00 | | Aaa | $ | 1,574,024 | |
| | 36,120 | | Total Texas | | | | | 27,490,291 | |
| | | | Utah – 1.3% | | | | | | |
| | 1,435 | | Salt Lake City and Sandy Metropolitan Water District, Utah, Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 – AMBAC Insured | 7/14 at 100.00 | | Aa2 | | 1,562,801 | |
| | 5,465 | | Utah Transit Authority, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 6/15/36 | 6/17 at 38.77 | | Aa3 | | 1,487,300 | |
| | 6,900 | | Total Utah | | | | | 3,050,101 | |
| | | | Vermont – 0.4% | | | | | | |
| | 915 | | Vermont Housing Finance Agency, Multifamily Housing Bonds, Series 1999C, 5.800%, 8/15/16 – AGM Insured | 2/12 at 100.00 | | AA+ | | 917,233 | |
| | | | Virginia – 1.0% | | | | | | |
| | 1,000 | | Henrico County Economic Development Authority, Virginia, Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 | No Opt. Call | | BBB | | 929,410 | |
| | 1,500 | | Metropolitan Washington DC Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Series 2009C, 0.000%, 10/01/41 – AGC Insured | 10/26 at 100.00 | | AA+ | | 1,257,960 | |
| | 250 | | Norfolk, Virginia, Water Revenue Bonds, Series 1995, 5.750%, 11/01/13 – NPFG Insured | 11/11 at 100.00 | | Aa2 | | 255,070 | |
| | 2,750 | | Total Virginia | | | | | 2,442,440 | |
| | | | Washington – 0.4% | | | | | | |
| | 990 | | Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2011A, 5.625%, 1/01/35 | 1/21 at 100.00 | | A | | 1,012,117 | |
| | | | Wisconsin – 0.5% | | | | | | |
| | 1,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%, 8/15/18 | 8/13 at 100.00 | | BBB+ | | 1,026,530 | |
| | 175 | | Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Bonds, Series 2002G, 4.850%, 9/01/17 | 3/12 at 100.00 | | AA | | 176,600 | |
| | 1,175 | | Total Wisconsin | | | | | 1,203,130 | |
| $ | 319,910 | | Total Investments (cost $239,250,644) – 97.3% | | | | | 231,219,645 | |
| | | | Floating Rate Obligations – (0.4)% | | | | | (1,000,000 | ) |
| | | | Other Assets Less Liabilities – 3.1% | | | | | 7,390,816 | |
| | | | Net Assets – 100% | | | | $ | 237,610,461 | |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | | 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. |
| (5) | | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| N/R | | Not rated. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| | | Nuveen Select Tax-Free Income Portfolio 3 |
| NXR | | Portfolio of Investments |
| | | September 30, 2011 (Unaudited) |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Alabama – 0.3% | | | | | | |
| $ | 500 | | Marshall County Healthcare Authority, Alabama, Revenue Bonds, Series 2002A, 6.250%, 1/01/22 | 1/12 at 101.00 | | A- | $ | 507,745 | |
| | | | Alaska – 1.0% | | | | | | |
| | 2,675 | | Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32 | 6/14 at 100.00 | | B2 | | 1,849,281 | |
| | | | California – 15.8% | | | | | | |
| | 12,500 | | Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/35 – AGM Insured | No Opt. Call | | AA+ | | 2,527,875 | |
| | 2,105 | | Azusa Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2002, 5.375%, 7/01/21 (Pre-refunded 7/01/12) – AGM Insured | 7/12 at 100.00 | | AA+ (4) | | 2,186,969 | |
| | 1,000 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 5.600%, 6/01/36 | 12/18 at 100.00 | | B1 | | 724,830 | |
| | 1,000 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 5.000%, 6/01/26 | 6/15 at 100.00 | | BBB | | 815,150 | |
| | 3,350 | | California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 6.000%, 5/01/14 (Pre-refunded 5/01/12) | 5/12 at 101.00 | | AA- (4) | | 3,496,898 | |
| | 2,595 | | California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37 | 4/16 at 100.00 | | A+ | | 2,605,899 | |
| | 1,000 | | California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38 | 8/19 at 100.00 | | Aa2 | | 1,143,930 | |
| | 315 | | California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29 | No Opt. Call | | B2 | | 294,790 | |
| | 1,605 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/28 – AMBAC Insured | No Opt. Call | | A2 | | 603,079 | |
| | 3,000 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) | 6/13 at 100.00 | | Aaa | | 3,307,140 | |
| | | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: | | | | | | |
| | 770 | | 4.500%, 6/01/27 | 6/17 at 100.00 | | BBB- | | 603,341 | |
| | 1,885 | | 5.000%, 6/01/33 | 6/17 at 100.00 | | BB+ | | 1,330,961 | |
| | 4,055 | | Kern Community College District, California, General Obligation Bonds, Series 2003A, 0.000%, 3/01/28 – FGIC Insured | No Opt. Call | | Aa2 | | 1,527,600 | |
| | 8,040 | | Placentia-Yorba Linda Unified School District, Orange County, California, Certificates of Participation, Series 2006, 0.000%, 10/01/34 – FGIC Insured | No Opt. Call | | A+ | | 1,849,280 | |
| | 1,500 | | Placer Union High School District, Placer County, California, General Obligation Bonds, Series 2004C, 0.000%, 8/01/32 – AGM Insured | No Opt. Call | | AA+ | | 430,200 | |
| | 8,000 | | Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2009A, 0.000%, 8/01/32 | No Opt. Call | | Aa2 | | 2,341,280 | |
| | 3,940 | | Rancho Mirage Redevelopment Agency, California, Tax Allocation Bonds, Combined Whitewater and 1984 Project Areas, Series 2003A, 0.000%,
4/01/35 – NPFG Insured | No Opt. Call | | A+ | | 890,243 | |
| | 1,005 | | Riverside Public Financing Authority, California, University Corridor Tax Allocation Bonds, Series 2007C, 5.000%, 8/01/37 – NPFG Insured | 8/17 at 100.00 | | Baa1 | | 850,562 | |
| | 1,250 | | San Jose, California, Airport Revenue Bonds, Series 2004D, 5.000%, 3/01/28 – NPFG Insured | 3/14 at 100.00 | | A | | 1,259,150 | |
| | 58,915 | | Total California | | | | | 28,789,177 | |
| | | | Colorado – 8.2% | | | | | | |
| | 1,540 | | Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/40 – SYNCORA GTY Insured | 10/16 at 100.00 | | BBB | | 1,383,120 | |
| | 400 | | Colorado Department of Transportation, Certificates of Participation, Series 2004, 5.000%, 6/15/34 – NPFG Insured | 6/14 at 100.00 | | AA- | | 409,064 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Colorado (continued) | | | | | | |
| $ | 1,000 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Valley View Hospital Association, Series 2007, 5.250%, 5/15/42 | 5/17 at 100.00 | | BBB+ | $ | 919,560 | |
| | 2,000 | | Colorado Health Facilities Authority, Health Facilities Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40 | No Opt. Call | | AA | | 2,012,620 | |
| | | | Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series 2002A: | | | | | | |
| | 2,265 | | 5.500%, 3/01/22 (Pre-refunded 3/02/12) | 3/12 at 100.00 | | AA (4) | | 2,315,283 | |
| | 1,735 | | 5.500%, 3/01/22 (Pre-refunded 3/01/12) | 3/12 at 100.00 | | Aa2 (4) | | 1,773,517 | |
| | 1,330 | | Denver City and County, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) | No Opt. Call | | A+ | | 1,427,090 | |
| | 3,000 | | Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center Hotel, Senior Lien Series 2003A, 5.000%, 12/01/24 (Pre-refunded 12/01/13) – SYNCORA GTY Insured | 12/13 at 100.00 | | N/R (4) | | 3,270,570 | |
| | 4,360 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/28 – NPFG Insured | 9/20 at 63.98 | | Baa1 | | 1,428,510 | |
| | 17,630 | | Total Colorado | | | | | 14,939,334 | |
| | | | Connecticut – 0.1% | | | | | | |
| | 250 | | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital Issue, Series 1992A, 6.625%, 7/01/18 – NPFG Insured | 1/12 at 100.00 | | Baa1 | | 252,015 | |
| | | | District of Columbia – 0.3% | | | | | | |
| | 430 | | District of Columbia Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24 | 12/11 at 101.00 | | A1 | | 430,224 | |
| | 15 | | District of Columbia, General Obligation Bonds, Series 1993E, 6.000%, 6/01/13 – NPFG Insured (ETM) | 12/11 at 100.00 | | AAA | | 15,070 | |
| | 445 | | Total District of Columbia | | | | | 445,294 | |
| | | | Florida – 0.5% | | | | | | |
| | 1,000 | | Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa General Hospital, Series 2006, 5.250%, 10/01/41 | 10/16 at 100.00 | | A3 | | 969,890 | |
| | | | Illinois – 18.3% | | | | | | |
| | 55 | | Chicago Metropolitan Housing Development Corporation, Illinois, FHA-Insured Section 8 Assisted Housing Development Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22 | 1/12 at 100.00 | | AA | | 55,117 | |
| | 1,050 | | Illinois Finance Authority, Revenue Bonds, Loyola University of Chicago, Tender Option Bond Trust 1137, 9.112%, 7/01/15 (IF) | No Opt. Call | | Aa1 | | 1,142,463 | |
| | 2,185 | | Illinois Finance Authority, Revenue Bonds, YMCA of Southwest Illinois, Series 2005, 5.000%, 9/01/31 – RAAI Insured | 9/15 at 100.00 | | Aa3 | | 1,776,558 | |
| | 750 | | Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., University Center Project, Series 2006B, 5.000%, 5/01/25 | No Opt. Call | | Baa3 | | 726,960 | |
| | 4,425 | | Illinois Health Facilities Authority, Remarketed Revenue Bonds, University of Chicago Project, Series 1985A, 5.500%, 8/01/20 | 2/12 at 103.00 | | Aa1 | | 4,565,095 | |
| | 1,500 | | Illinois Health Facilities Authority, Revenue Bonds, Evangelical Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 (ETM) | No Opt. Call | | N/R (4) | | 1,935,720 | |
| | 280 | | Illinois Health Facilities Authority, Revenue Bonds, Holy Family Medical Center, Series 1997, 5.125%, 8/15/17 – NPFG Insured | 2/12 at 100.00 | | Baa1 | | 279,992 | |
| | 2,255 | | Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17 | 1/13 at 100.00 | | Baa1 | | 2,318,320 | |
| | 880 | | Illinois Health Facilities Authority, Revenue Refunding Bonds, Rockford Health System, Series 1997, 5.000%, 8/15/21 – AMBAC Insured | 2/12 at 100.00 | | N/R | | 828,203 | |
| | 2,215 | | Illinois Housing Development Authority, Homeowner Mortgage Revenue Bonds, Series 2006C2, 5.050%, 8/01/27 (Alternative Minimum Tax) | 2/16 at 100.00 | | AA | | 2,241,912 | |
| | 5,700 | | Illinois, Sales Tax Revenue Bonds, First Series 2002, 5.000%, 6/15/22 | 6/13 at 100.00 | | AAA | | 5,987,108 | |
| | 1,000 | | Kankakee & Will Counties Community Unit School District 5, Illinois, General Obligation Bonds, Series 2006, 0.000%, 5/01/23 – AGM Insured | No Opt. Call | | Aa3 | | 568,260 | |
| | | Nuveen Select Tax-Free Income Portfolio 3 (continued) |
| NXR | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Illinois (continued) | | | | | | |
| | | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A: | | | | | | |
| $ | 2,500 | | 0.000%, 12/15/30 – NPFG Insured | No Opt. Call | | AAA | $ | 871,050 | |
| | 5,000 | | 0.000%, 12/15/36 – NPFG Insured | No Opt. Call | | AAA | | 1,155,900 | |
| | 2,000 | | 0.000%, 6/15/37 – NPFG Insured | No Opt. Call | | AAA | | 450,240 | |
| | 6,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.000%, 6/15/21 – NPFG Insured | 6/12 at 101.00 | | AAA | | 6,122,758 | |
| | 1,300 | | Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.250%,
12/01/34 – FGIC Insured | 12/14 at 100.00 | | Aaa | | 1,405,599 | |
| | 1,000 | | Yorkville, Illinois, General Obligation Debt Certificates, Series 2003, 5.000%, 12/15/22 (Pre-refunded 12/15/11) – RAAI Insured | 12/11 at 100.00 | | N/R (4) | | 1,010,130 | |
| | 40,095 | | Total Illinois | | | | | 33,441,385 | |
| | | | Indiana – 6.1% | | | | | | |
| | 1,000 | | Franklin Community Multi-School Building Corporation, Marion County, Indiana, First Mortgage Revenue Bonds, Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) – FGIC Insured | 7/14 at 100.00 | | A+ (4) | | 1,126,200 | |
| | 3,500 | | Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22 | 3/12 at 100.00 | | BBB | | 3,361,330 | |
| | 1,570 | | Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 – AGM Insured | No Opt. Call | | AA+ | | 1,739,325 | |
| | 2,000 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded 7/01/12) – NPFG Insured | 7/12 at 100.00 | | AA+ (4) | | 2,076,000 | |
| | 2,295 | | Shelbyville Central Renovation School Building Corporation, Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/25 – NPFG Insured | 7/15 at 100.00 | | AA+ | | 2,364,309 | |
| | 1,000 | | Zionsville Community Schools Building Corporation, Indiana, First Mortgage Bonds, Series 2005Z, 0.000%, 7/15/28 – AGM Insured | No Opt. Call | | AAA | | 448,330 | |
| | 11,365 | | Total Indiana | | | | | 11,115,494 | |
| | | | Iowa – 1.7% | | | | | | |
| | 2,745 | | Iowa Finance Authority, Health Facility Revenue Bonds, Care Initiatives Project, Series 2006A, 5.000%, 7/01/20 | 7/16 at 100.00 | | BB+ | | 2,405,444 | |
| | 750 | | Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34 | 6/17 at 100.00 | | BBB | | 628,478 | |
| | 3,495 | | Total Iowa | | | | | 3,033,922 | |
| | | | Kansas – 1.2% | | | | | | |
| | | | Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial Hospital, Refunding Series 2006: | | | | | | |
| | 1,425 | | 5.125%, 7/01/26 | 7/16 at 100.00 | | A2 | | 1,461,708 | |
| | 700 | | 4.875%, 7/01/36 | 7/16 at 100.00 | | A2 | | 694,974 | |
| | 2,125 | | Total Kansas | | | | | 2,156,682 | |
| | | | Maine – 0.0% | | | | | | |
| | 90 | | Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Series 1999B, 6.000%, 7/01/19 – NPFG Insured | 1/12 at 100.00 | | Aaa | | 90,354 | |
| | | | Massachusetts – 0.6% | | | | | | |
| | 1,000 | | Massachusetts Development Finance Agency, Resource Recovery Revenue Bonds, Ogden Haverhill Associates, Series 1998B, 5.200%, 12/01/13 (Alternative Minimum Tax) | 12/11 at 100.00 | | A- | | 1,000,970 | |
| | 15 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 6.000%, 7/01/17 | 7/12 at 100.00 | | AA | | 15,205 | |
| | 1,015 | | Total Massachusetts | | | | | 1,016,175 | |
| | | | Michigan – 2.5% | | | | | | |
| | 1,500 | | Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second Lien, Series 2006B, 4.625%, 7/01/34 – FGIC Insured | 7/16 at 100.00 | | A | | 1,395,060 | |
| | 2,655 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 | 12/12 at 100.00 | | AA | | 2,679,638 | |
| | 245 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 (Pre-refunded 12/01/12) | 12/12 at 100.00 | | N/R (4) | | 259,629 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Michigan (continued) | | | | | | |
| $ | 250 | | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 | 9/18 at 100.00 | | A1 | $ | 297,423 | |
| | 4,650 | | Total Michigan | | | | | 4,631,750 | |
| | | | Mississippi – 0.4% | | | | | | |
| | 725 | | Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 | 9/14 at 100.00 | | AA | | 752,565 | |
| | | | Nebraska – 1.9% | | | | | | |
| | 3,500 | | Nebraska Public Power District, General Revenue Bonds, Series 2002B, 5.000%, 1/01/33 – AMBAC Insured | 1/13 at 100.00 | | A1 | | 3,536,785 | |
| | | | Nevada – 3.6% | | | | | | |
| | 1,000 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/42 | 1/20 at 100.00 | | Aa3 | | 1,039,620 | |
| | 4,095 | | Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured (5) | 1/12 at 100.00 | | N/R | | 942,055 | |
| | 1,680 | | Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.500%, 6/01/22 – FGIC Insured | 6/12 at 100.00 | | A | | 1,695,254 | |
| | 2,830 | | Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.500%, 6/01/22 (Pre-refunded 6/01/12) – FGIC Insured | 6/12 at 100.00 | | A3 (4) | | 2,929,984 | |
| | 9,605 | | Total Nevada | | | | | 6,606,913 | |
| | | | New Hampshire – 0.2% | | | | | | |
| | 415 | | New Hampshire Housing Finance Authority, Single Family Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) | 11/11 at 100.00 | | Aa2 | | 434,405 | |
| | | | New Jersey – 2.4% | | | | | | |
| | 4,570 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C, 0.000%, 12/15/28 – AMBAC Insured | No Opt. Call | | A+ | | 1,777,045 | |
| | | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: | | | | | | |
| | 1,000 | | 6.750%, 6/01/39 (Pre-refunded 6/01/13) | 6/13 at 100.00 | | Aaa | | 1,105,940 | |
| | 1,355 | | 6.250%, 6/01/43 (Pre-refunded 6/01/13) | 6/13 at 100.00 | | Aaa | | 1,487,275 | |
| | 6,925 | | Total New Jersey | | | | | 4,370,260 | |
| | | | New Mexico – 2.8% | | | | | | |
| | 1,000 | | New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42 (Alternative Minimum Tax) | 9/17 at 100.00 | | N/R | | 964,140 | |
| | 4,000 | | University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds, Series 2004, 4.625%, 1/01/25 – AGM Insured | 7/14 at 100.00 | | AA+ | | 4,099,480 | |
| | 5,000 | | Total New Mexico | | | | | 5,063,620 | |
| | | | New York – 0.7% | | | | | | |
| | 1,000 | | Dormitory Authority of the State of New York, FHA Insured Mortgage Hospital Revenue Bonds, Kaleida Health, Series 2006, 4.700%, 2/15/35 | 8/16 at 100.00 | | AAA | | 1,007,010 | |
| | 35 | | New York City, New York, General Obligation Bonds, Series 1991B, 7.000%, 2/01/18 | 2/12 at 100.00 | | AA | | 35,190 | |
| | 265 | | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/42 | 12/20 at 100.00 | | BBB- | | 274,593 | |
| | 1,300 | | Total New York | | | | | 1,316,793 | |
| | | | North Carolina – 2.9% | | | | | | |
| | 5,000 | | North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/18 – NPFG Insured | 1/13 at 100.00 | | A | | 5,247,399 | |
| | | | Ohio – 2.1% | | | | | | |
| | | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | | | | | | |
| | 1,345 | | 5.375%, 6/01/24 | 6/17 at 100.00 | | BB- | | 1,056,914 | |
| | 1,355 | | 6.000%, 6/01/42 | 6/17 at 100.00 | | BB- | | 973,906 | |
| | 435 | | 5.875%, 6/01/47 | 6/17 at 100.00 | | BB- | | 305,357 | |
| | | Nuveen Select Tax-Free Income Portfolio 3 (continued) |
| NXR | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Ohio (continued) | | | | | | |
| $ | 2,280 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-3, 0.000%, 6/01/37 | 6/22 at 100.00 | | BB- | $ | 1,583,118 | |
| | 5,415 | | Total Ohio | | | | | 3,919,295 | |
| | | | Oklahoma – 1.7% | | | | | | |
| | 3,000 | | Oklahoma Development Finance Authority, Revenue Bonds, St. John Health System, Series 2004, 5.000%, 2/15/24 | 2/14 at 100.00 | | A | | 3,074,040 | |
| | | | Pennsylvania – 2.9% | | | | | | |
| | 2,435 | | Dauphin County Industrial Development Authority, Pennsylvania, Water Development Revenue Refunding Bonds, Dauphin Consolidated Water Supply Company, Series 1992B, 6.700%, 6/01/17 | No Opt. Call | | A- | | 2,878,389 | |
| | 500 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Widener University, Series 2003, 5.250%, 7/15/24 | 7/13 at 100.00 | | BBB+ | | 510,800 | |
| | 1,000 | | Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special Revenue Bonds, Series 2010B, 0.000%, 12/01/30 | No Opt. Call | | AA | | 819,040 | |
| | 1,000 | | Philadelphia Authority for Industrial Development, Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 – FGIC Insured (Alternative Minimum Tax) | 1/12 at 101.00 | | A+ | | 1,012,900 | |
| | 4,935 | | Total Pennsylvania | | | | | 5,221,129 | |
| | | | Puerto Rico – 2.2% | | | | | | |
| | 1,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42 | 8/19 at 100.00 | | A+ | | 1,082,960 | |
| | | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A: | | | | | | |
| | 1,170 | | 0.000%, 8/01/40 – NPFG Insured | No Opt. Call | | Aa2 | | 213,689 | |
| | 12,000 | | 0.000%, 8/01/41 – NPFG Insured | No Opt. Call | | Aa2 | | 2,065,560 | |
| | 9,015 | | 0.000%, 8/01/54 – AMBAC Insured | No Opt. Call | | Aa2 | | 647,097 | |
| | 23,185 | | Total Puerto Rico | | | | | 4,009,306 | |
| | | | South Carolina – 3.2% | | | | | | |
| | 1,500 | | Lexington County Health Service District, South Carolina, Hospital Revenue Refunding and Improvement Bonds, Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13) | 11/13 at 100.00 | | AA- (4) | | 1,673,250 | |
| | 1,500 | | Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 8/15/20 – NPFG Insured | 8/14 at 100.00 | | Baa1 | | 1,581,645 | |
| | 520 | | South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12) | 11/12 at 100.00 | | A3 (4) | | 551,470 | |
| | 1,980 | | South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, Bon Secours Health System Inc., Series 2002B, 5.625%, 11/15/30 | 11/12 at 100.00 | | A- | | 1,983,920 | |
| | 5,500 | | Total South Carolina | | | | | 5,790,285 | |
| | | | South Dakota – 1.1% | | | | | | |
| | 1,010 | | South Dakota Health and Educational Facilities Authority, Revenue Bonds, Avera Health, Series 2002, 5.125%, 7/01/27 – AMBAC Insured | 7/12 at 101.00 | | A+ | | 1,024,049 | |
| | 1,000 | | South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.250%, 11/01/34 | 11/14 at 100.00 | | AA- | | 1,012,010 | |
| | 2,010 | | Total South Dakota | | | | | 2,036,059 | |
| | | | Tennessee – 1.1% | | | | | | |
| | 2,000 | | Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22 | 4/12 at 101.00 | | A1 | | 2,069,440 | |
| | | | Texas – 9.2% | | | | | | |
| | 250 | | Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 6.000%, 1/01/41 | 1/21 at 100.00 | | BBB- | | 253,335 | |
| | 1,500 | | Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 – FGIC Insured | 1/15 at 100.00 | | BBB | | 1,313,955 | |
| | 2,500 | | Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 – NPFG Insured | 11/13 at 100.00 | | AA | | 2,555,700 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Texas (continued) | | | | | | |
| $ | 1,525 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H, 0.000%, 11/15/36 – NPFG Insured | 11/31 at 73.51 | | Baa1 | $ | 245,098 | |
| | 370 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004-A3, 0.000%, 11/15/32 – NPFG Insured | 11/24 at 62.70 | | Baa1 | | 80,368 | |
| | 4,005 | | Harris County-Houston Sports Authority, Texas, Senior Lien Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/38 – NPFG Insured | 11/30 at 61.17 | | Baa1 | | 668,515 | |
| | 3,000 | | Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2002B, 5.500%, 7/01/18 (Pre-refunded 7/01/12) – AGM Insured | 7/12 at 100.00 | | AA+ (4) | | 3,119,880 | |
| | 1,625 | | Katy Independent School District, Harris, Fort Bend and Waller Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%, 2/15/32 (Pre-refunded 2/15/12) | 2/12 at 100.00 | | AAA | | 1,654,445 | |
| | 290 | | North Texas Tollway Authority, First Tier System Revenue Refunding Bonds, Capital Appreciation Series 2008I, 0.000%, 1/01/42 – AGC Insured | 1/25 at 100.00 | | AA+ | | 263,796 | |
| | 4,750 | | Sam Rayburn Municipal Power Agency, Texas, Power Supply System Revenue Refunding Bonds, Series 2002A, 5.500%, 10/01/17 – RAAI Insured | 10/12 at 100.00 | | BBB | | 4,868,084 | |
| | 1,750 | | Texas, General Obligation Bonds, Water Financial Assistance Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) | 8/13 at 100.00 | | Aaa | | 1,765,733 | |
| | 21,565 | | Total Texas | | | | | 16,788,909 | |
| | | | Utah – 0.8% | | | | | | |
| | 5,465 | | Utah Transit Authority, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 6/15/36 | 6/17 at 38.77 | | Aa3 | | 1,487,300 | |
| | | | Virginia – 0.5% | | | | | | |
| | 1,000 | | Henrico County Economic Development Authority, Virginia, Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 | No Opt. Call | | BBB | | 929,410 | |
| | | | Washington – 0.8% | | | | | | |
| | 510 | | Port of Seattle, Washington, Revenue Bonds, Series 2001A, 5.000%, 4/01/31 – FGIC Insured | 4/12 at 100.00 | | Aa2 | | 510,383 | |
| | 990 | | Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2011A, 5.625%, 1/01/35 | 1/21 at 100.00 | | A | | 1,012,117 | |
| | 1,500 | | Total Washington | | | | | 1,522,500 | |
| | | | Wisconsin – 1.4% | | | | | | |
| | 2,500 | | Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 5.000%, 11/01/26 | 11/13 at 100.00 | | AA | | 2,590,300 | |
| $ | 254,795 | | Total Investments (cost $177,791,988) – 98.5% | | | | | 180,005,211 | |
| | | | Other Assets Less Liabilities – 1.5% | | | | | 2,736,420 | |
| | | | Net Assets – 100% | | | | $ | 182,741,631 | |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | | 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. |
| (5) | | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| N/R | | Not rated. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
See accompanying notes to financial statements.
| | | Nuveen California Select Tax-Free Income Portfolio |
| NXC | | Portfolio of Investments |
| | | September 30, 2011 (Unaudited) |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Consumer Staples – 4.1% | | | | | | |
| $ | 150 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21 | 6/15 at 100.00 | | BBB | $ | 140,637 | |
| | 1,015 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Revenue Bonds, Fresno County Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23 | 6/12 at 100.00 | | A3 | | 1,015,355 | |
| | 4,045 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37 | 6/22 at 100.00 | | BB+ | | 2,578,688 | |
| | 5,210 | | Total Consumer Staples | | | | | 3,734,680 | |
| | | | Education and Civic Organizations – 9.6% | | | | | | |
| | 3,000 | | California Educational Facilities Authority, Revenue Bonds, Santa Clara University, Series 2008A, 5.625%, 4/01/37 | 4/18 at 100.00 | | Aa3 | | 3,265,080 | |
| | 45 | | California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35 | 11/15 at 100.00 | | A3 | | 44,228 | |
| | 1,000 | | California Educational Facilities Authority, Revenue Bonds, University of San Diego, Series 2002A, 5.500%, 10/01/32 | 10/12 at 100.00 | | A2 | | 1,013,760 | |
| | | | California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006: | | | | | | |
| | 35 | | 5.000%, 11/01/21 | 11/15 at 100.00 | | A2 | | 37,106 | |
| | 45 | | 5.000%, 11/01/25 | 11/15 at 100.00 | | A2 | | 46,619 | |
| | 3,000 | | California Infrastructure Economic Development Bank, Revenue Bonds, J. David Gladstone Institutes, Series 2001, 5.500%, 10/01/19 | 4/12 at 101.00 | | A– | | 3,035,700 | |
| | 250 | | California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46 | 7/21 at 100.00 | | N/R | | 248,993 | |
| | 1,000 | | Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 – AMBAC Insured | 11/11 at 101.00 | | BBB | | 981,640 | |
| | 8,375 | | Total Education and Civic Organizations | | | | | 8,673,126 | |
| | | | Health Care – 12.7% | | | | | | |
| | 110 | | California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37 | 4/16 at 100.00 | | A+ | | 110,462 | |
| | 2,550 | | California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB) | 11/16 at 100.00 | | AA– | | 2,584,451 | |
| | 1,500 | | California Statewide Community Development Authority, Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 – AGM Insured | 6/13 at 100.00 | | AA+ | | 1,586,115 | |
| | 1,500 | | California Statewide Community Development Authority, Insured Mortgage Hospital Revenue Bonds, Mission Community Hospital, Series 2001, 5.375%, 11/01/26 | 11/11 at 100.00 | | A– | | 1,500,900 | |
| | 545 | | California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31 | 8/16 at 100.00 | | A+ | | 558,391 | |
| | 1,880 | | California Statewide Community Development Authority, Revenue Bonds, Los Angeles Orthopaedic Hospital Foundation, Series 2000, 5.500%, 6/01/17 – AMBAC Insured | 12/11 at 100.00 | | BBB+ | | 1,882,914 | |
| | 540 | | Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38 | 12/17 at 100.00 | | BBB | | 600,637 | |
| | 1,100 | | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41 | 11/20 at 100.00 | | Baa3 | | 1,059,949 | |
| | 670 | | San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41 | 12/21 at 100.00 | | BB | | 683,735 | |
| | 800 | | Upland, California, Certificates of Participation, San Antonio Community Hospital, Series 2011, 6.500%, 1/01/41 | 1/21 at 100.00 | | A | | 860,024 | |
| | 11,195 | | Total Health Care | | | | | 11,427,578 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Housing/Multifamily – 1.3% | | | | | | |
| $ | 375 | | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45 | 8/20 at 100.00 | | BBB– | $ | 376,425 | |
| | 750 | | California Statewide Community Development Authority, Student Housing Revenue Bonds, EAH – Irvine East Campus Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 – ACA Insured | 8/12 at 100.00 | | Baa1 | | 754,080 | |
| | 1,125 | | Total Housing/Multifamily | | | | | 1,130,505 | |
| | | | Housing/Single Family – 0.1% | | | | | | |
| | 75 | | California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax) | 2/16 at 100.00 | | BBB | | 75,028 | |
| | | | Industrials – 1.2% | | | | | | |
| | 1,015 | | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Republic Services Inc., Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17) (Alternative Minimum Tax) | No Opt. Call | | BBB | | 1,099,560 | |
| | | | Long-Term Care – 2.8% | | | | | | |
| | 1,500 | | ABAG Finance Authority for Non-Profit Corporations, California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22 | 11/12 at 100.00 | | A– | | 1,516,560 | |
| | 1,000 | | California Statewide Communities Development Authority, Revenue Bonds, Inland Regional Center Project, Series 2007, 5.250%, 12/01/27 | 12/17 at 100.00 | | Baa1 | | 977,030 | |
| | 2,500 | | Total Long-Term Care | | | | | 2,493,590 | |
| | | | Tax Obligation/General – 33.1% | | | | | | |
| | 750 | | California State, General Obligation Bonds, Series 2004, 5.000%, 2/01/23 | 2/14 at 100.00 | | A1 | | 789,473 | |
| | 1,650 | | California State, General Obligation Bonds, Various Purpose Series 2009, 5.500%, 11/01/39 | 11/19 at 100.00 | | A1 | | 1,760,171 | |
| | 6,225 | | Escondido Union High School District, San Diego County, California, General Obligation Refunding Bonds, Series 2009, 0.000%, 8/01/36 – AGM Insured | No Opt. Call | | AA+ | | 1,374,542 | |
| | 1,000 | | Fremont Unified School District, Alameda County, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 – FGIC Insured | 8/12 at 101.00 | | Aa2 | | 1,041,420 | |
| | | | Golden West Schools Financing Authority, California, General Obligation Revenue Refunding Bonds, School District Program, Series 1999A: | | | | | | |
| | 4,650 | | 0.000%, 8/01/16 – NPFG Insured | No Opt. Call | | Baa1 | | 3,829,646 | |
| | 1,750 | | 0.000%, 2/01/17 – NPFG Insured | No Opt. Call | | Baa1 | | 1,376,060 | |
| | 2,375 | | 0.000%, 8/01/17 – NPFG Insured | No Opt. Call | | Baa1 | | 1,819,179 | |
| | 2,345 | | 0.000%, 2/01/18 – NPFG Insured | No Opt. Call | | Baa1 | | 1,735,323 | |
| | | | Mountain View-Los Altos Union High School District, Santa Clara County, California, General Obligation Capital Appreciation Bonds, Series 1995C: | | | | | | |
| | 1,015 | | 0.000%, 5/01/17 – NPFG Insured | No Opt. Call | | Aa1 | | 842,846 | |
| | 1,080 | | 0.000%, 5/01/18 – NPFG Insured | No Opt. Call | | Aa1 | | 848,534 | |
| | 5,500 | | Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2011A, 0.000%, 8/01/46 | No Opt. Call | | Aa2 | | 667,865 | |
| | 100 | | Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured | 8/15 at 100.00 | | AA– | | 104,005 | |
| | 3,220 | | Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 – NPFG Insured | 7/15 at 100.00 | | Aa3 | | 3,346,352 | |
| | 8,075 | | San Bernardino Community College District, California, General Obligation Bonds, Election of 2008 Series 2009B, 0.000%, 8/01/44 | No Opt. Call | | Aa2 | | 1,035,134 | |
| | 1,500 | | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Series 2003E, 5.250%, 7/01/24 – AGM Insured | 7/13 at 101.00 | | AA+ | | 1,635,015 | |
| | 26,655 | | Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 0.000%, 8/01/46 | No Opt. Call | | Aa2 | | 3,004,818 | |
| | 2,565 | | Sunnyvale School District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 – AGM Insured | 9/15 at 100.00 | | AA+ | | 2,785,462 | |
| | 4,250 | | West Hills Community College District, California, General Obligation Bonds, School Facilities Improvement District 3, 2008 Election Series 2011, 0.000%, 8/01/38 – AGM Insured | 8/31 at 100.00 | | AA+ | | 1,853,595 | |
| | 74,705 | | Total Tax Obligation/General | | | | | 29,849,440 | |
| | | Nuveen California Select Tax-Free Income Portfolio (continued) |
| NXC | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/Limited – 19.4% | | | | | | |
| $ | 1,000 | | Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33 – RAAI Insured | 10/13 at 100.00 | | N/R | $ | 812,780 | |
| | 3,070 | | California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Calipatria State Prison, Series 1991A, 6.500%, 9/01/17 – NPFG Insured | No Opt. Call | | A2 | | 3,445,429 | |
| | 1,000 | | California State Public Works Board, Lease Revenue Bonds, Department of Mental Health, Coalinga State Hospital, Series 2004A, 5.500%, 6/01/23 | 6/14 at 100.00 | | A2 | | 1,030,300 | |
| | 1,500 | | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009I-1, 6.375%, 11/01/34 | 11/19 at 100.00 | | A2 | | 1,660,410 | |
| | 120 | | Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured | 9/15 at 100.00 | | BBB | | 120,376 | |
| | 360 | | Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured | 9/16 at 101.00 | | A– | | 323,006 | |
| | 135 | | Community Development Commission, California, National City Redevelopment Project 2011 Tax Allocation Bonds, 6.500%, 8/01/24 | 8/21 at 100.00 | | A– | | 144,947 | |
| | 1,000 | | Fontana Public Financing Authority, California, Tax Allocation Revenue Bonds, North Fontana Redevelopment Project, Series 2005A, 5.000%, 10/01/32 – AMBAC Insured | 10/15 at 100.00 | | A | | 930,530 | |
| | | | Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A: | | | | | | |
| | 55 | | 5.000%, 9/01/26 | 9/16 at 100.00 | | N/R | | 53,366 | |
| | 130 | | 5.125%, 9/01/36 | 9/16 at 100.00 | | N/R | | 119,787 | |
| | 215 | | Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured | 9/15 at 100.00 | | A1 | | 202,923 | |
| | 50 | | Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40 | 9/21 at 100.00 | | A– | | 54,368 | |
| | 1,300 | | Orange County, California, Special Tax Bonds, Community Facilities District 03-1 of Ladera Ranch, Series 2004A, 5.625%, 8/15/34 | 8/12 at 101.00 | | N/R | | 1,302,418 | |
| | 415 | | Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28 (WI/DD, Settling 10/03/11) | 9/18 at 100.00 | | BBB | | 418,183 | |
| | 160 | | Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30 | 9/21 at 100.00 | | BBB+ | | 165,117 | |
| | 105 | | Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured | 9/15 at 100.00 | | A– | | 96,166 | |
| | 30 | | Riverside County, California, Redevelopment Agency Jurupa Valley Project Area 2011 Tax Allocation Bonds Series B, 6.500%, 10/01/25 | 10/21 at 100.00 | | A– | | 31,577 | |
| | 130 | | Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured | 8/13 at 100.00 | | AA– | | 131,365 | |
| | 605 | | Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – NPFG Insured | No Opt. Call | | A1 | | 661,979 | |
| | 25 | | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41 | 2/21 at 100.00 | | A– | | 27,216 | |
| | | | San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D: | | | | | | |
| | 25 | | 7.000%, 8/01/33 | 2/21 at 100.00 | | BBB | | 26,673 | |
| | 30 | | 7.000%, 8/01/41 | 2/21 at 100.00 | | BBB | | 31,897 | |
| | 3,000 | | San Mateo County Transit District, California, Sales Tax Revenue Bonds, Series 2005A, 5.000%, 6/01/21 – NPFG Insured | 6/15 at 100.00 | | AA | | 3,371,639 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/Limited (continued) | | | | | | |
| $ | 1,000 | | Santa Clara County Board of Education, California, Certificates of Participation, Series 2002, 5.000%, 4/01/25 – NPFG Insured | 4/12 at 101.00 | | Baa1 | $ | 970,390 | |
| | 40 | | Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26 | 4/21 at 100.00 | | N/R | | 40,834 | |
| | 1,000 | | Travis Unified School District, Solano County, California, Certificates of Participation, Series 2006, 5.000%, 9/01/26 – FGIC Insured | 9/16 at 100.00 | | N/R | | 925,500 | |
| | 360 | | Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.500%, 9/01/39 | 3/21 at 100.00 | | BBB+ | | 384,070 | |
| | 70 | | Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32 | 9/21 at 100.00 | | A– | | 74,004 | |
| | 16,930 | | Total Tax Obligation/Limited | | | | | 17,557,250 | |
| | | | Transportation – 1.4% | | | | | | |
| | 1,150 | | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 | 1/12 at 100.00 | | BBB– | | 958,893 | |
| | 335 | | San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 1999, Issue 23A, 5.000%, 5/01/30 – FGIC Insured (Alternative Minimum Tax) | 11/11 at 100.00 | | A+ | | 332,384 | |
| | 1,485 | | Total Transportation | | | | | 1,291,277 | |
| | | | U.S. Guaranteed – 4.8% (4) | | | | | | |
| | 800 | | California State, General Obligation Bonds, Series 2004, 5.125%, 2/01/27 (Pre-refunded 2/01/14) | 2/14 at 100.00 | | AA+ (4) | | 888,040 | |
| | 2,000 | | North Orange County Community College District, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/22 (Pre-refunded 8/01/12) – NPFG Insured | 8/12 at 101.00 | | AA (4) | | 2,096,600 | |
| | 1,000 | | Port of Oakland, California, Revenue Bonds, Series 2002M, 5.250%, 11/01/20 (Pre-refunded 11/01/12) – FGIC Insured | 11/12 at 100.00 | | A (4) | | 1,054,620 | |
| | 225 | | San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured | 12/17 at 100.00 | | AA– (4) | | 275,549 | |
| | 4,025 | | Total U.S. Guaranteed | | | | | 4,314,809 | |
| | | | Utilities – 6.7%) | | | | | | |
| | 1,000 | | Imperial Irrigation District, California, Electric System Revenue Bonds, Refunding Series 2011A, 5.500%, 11/01/41 | 11/20 at 100.00 | | AA– | | 1,085,900 | |
| | 645 | | Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37 | No Opt. Call | | A | | 603,643 | |
| | 200 | | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 – NPFG Insured | 7/13 at 100.00 | | AA– | | 211,578 | |
| | 7,600 | | Merced Irrigation District, California, Certificates of Participation, Water and Hydroelectric Series 2008B, 0.000%, 9/01/23 | 9/16 at 64.56 | | A | | 3,696,107 | |
| | 215 | | Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured | 9/15 at 100.00 | | N/R | | 198,935 | |
| | 275 | | Turlock Irrigation District, California, Revenue Refunding Bonds, Series 1992A, 6.250%, 1/01/12 – NPFG Insured | No Opt. Call | | A2 | | 277,687 | |
| | 9,935 | | Total Utilities | | | | | 6,073,850 | |
| | | Nuveen California Select Tax-Free Income Portfolio (continued) |
| NXC | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Water and Sewer – 2.5% | | | | | | |
| $ | 150 | | Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured | 4/16 at 100.00 | | AA– | $ | 153,425 | |
| | 250 | | Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 – FGIC Insured | 6/16 at 100.00 | | AA | | 262,330 | |
| | 825 | | South Feather Water and Power Agency, California, Water Revenue Certificates of Participation, Solar Photovoltaic Project, Series 2003, 5.375%, 4/01/24 | 4/13 at 100.00 | | A | | 833,110 | |
| | 1,000 | | Woodbridge Irrigation District, California, Certificates of Participation, Water Systems Project, Series 2003, 5.625%, 7/01/43 | 7/13 at 100.00 | | A+ | | 1,002,460 | |
| | 2,225 | | Total Water and Sewer | | | | | 2,251,325 | |
| $ | 138,800 | | Total Investments (cost $86,930,112) – 99.7% | | | | | 89,972,018 | |
| | | | Floating Rate Obligations – (1.7)% | | | | | (1,540,000 | ) |
| | | | Other Assets Less Liabilities – 2.0% | | | | | 1,853,225 | |
| | | | Net Assets – 100% | | | | $ | 90,285,243 | |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | | 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. |
| N/R | | Not rated. |
| WI/DD | | Purchased on a when-issued or delayed delivery basis. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| | | Nuveen New York Select Tax-Free Income Portfolio |
| NXN | | Portfolio of Investments |
| | | September 30, 2011 (Unaudited) |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Consumer Discretionary – 0.2% | | | | | | |
| $ | 100 | | New York City Industrial Development Agency, New York, Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005, 5.000%, 9/01/35 | 9/15 at 100.00 | | BB+ | $ | 89,241 | |
| | | | Consumer Staples – 1.5% | | | | | | |
| | | | TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006: | | | | | | |
| | 365 | | 4.750%, 6/01/22 | 6/16 at 100.00 | | BBB | | 351,364 | |
| | 540 | | 5.000%, 6/01/26 | 6/16 at 100.00 | | BBB | | 503,226 | |
| | 905 | | Total Consumer Staples | | | | | 854,590 | |
| | | | Education and Civic Organizations – 13.7% | | | | | | |
| | 100 | | Albany Industrial Development Agency, New York, Revenue Bonds, Albany Law School, Series 2007A, 5.000%, 7/01/31 | 7/17 at 100.00 | | BBB | | 100,389 | |
| | 165 | | Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/37 | 4/17 at 100.00 | | N/R | | 136,145 | |
| | 280 | | Buffalo and Erie County, New York, Industrial Land Development Corporation Tax-Exempt Revenue Bonds (Enterprise Charter School Project), Series 2011A, 7.500%, 12/01/40 | 12/20 at 100.00 | | N/R | | 301,683 | |
| | 30 | | Cattaraugus County Industrial Development Agency, New York, Revenue Bonds, St. Bonaventure University, Series 2006, 5.000%, 5/01/23 | 5/16 at 100.00 | | BBB– | | 30,096 | |
| | 430 | | Dormitory Authority of the State of New York, General Revenue Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/41 – RAAI Insured | 7/17 at 100.00 | | N/R | | 399,246 | |
| | 1,000 | | Dormitory Authority of the State of New York, Housing Revenue Bonds, Fashion Institute of Technology, Series 2007, 5.250%, 7/01/34 – FGIC Insured | No Opt. Call | | BBB | | 1,027,470 | |
| | 785 | | Dormitory Authority of the State of New York, Insured Revenue Bonds, Iona College, Series 2002, 5.000%, 7/01/22 – SYNCORA GTY Insured | 7/12 at 100.00 | | BBB | | 793,368 | |
| | 50 | | Dormitory Authority of the State of New York, Lease Revenue Bonds, State University Dormitory Facilities, Series 2004A, 5.000%, 7/01/29 – NPFG Insured | 7/15 at 100.00 | | Aa2 | | 52,015 | |
| | 120 | | Dormitory Authority of the State of New York, Revenue Bonds, St. Joseph’s College, Series 2010, 5.250%, 7/01/35 | 7/20 at 100.00 | | Baa1 | | 125,076 | |
| | 815 | | Dutchess County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Bard College Refunding, Series 2007-A1, 5.000%, 8/01/46 | 8/17 at 100.00 | | Baa1 | | 795,888 | |
| | 100 | | Hempstead Town Industrial Development Agency, New York, Revenue Bonds, Adelphi University, Civic Facility Project, Series 2005, 5.000%, 10/01/35 | 10/15 at 100.00 | | A | | 102,125 | |
| | 2,000 | | Monroe County Industrial Development Corporation, New York, Revenue Bonds, University of Rochester Project, Series 2011B, 5.000%, 7/01/41 | 7/21 at 100.00 | | Aa3 | | 2,108,000 | |
| | 100 | | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, St. Francis College, Series 2004, 5.000%, 10/01/34 | 10/14 at 100.00 | | A– | | 101,769 | |
| | 500 | | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, YMCA of Greater New York, Series 2002, 5.250%, 8/01/21 | 2/12 at 100.00 | | A– | | 500,735 | |
| | 430 | | New York City Industrial Development Agency, New York, PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006, 4.750%, 1/01/42 – AMBAC Insured | 1/17 at 100.00 | | BB+ | | 341,579 | |
| | 590 | | New York City Industrial Development Authority, New York, PILOT Revenue Bonds, Yankee Stadium Project, Series 2006, 4.500%, 3/01/39 – FGIC Insured | 9/16 at 100.00 | | BBB– | | 535,832 | |
| | 185 | | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 | 2/12 at 100.00 | | BBB– | | 185,057 | |
| | 65 | | Seneca County Industrial Development Authority, New York, Revenue Bonds, New York Chiropractic College, Series 2007, 5.000%, 10/01/27 | 10/17 at 100.00 | | BBB | | 65,738 | |
| | 7,745 | | Total Education and Civic Organizations | | | | | 7,702,211 | |
| | | | Financials – 0.8% | | | | | | |
| | 435 | | Liberty Development Corporation, New York, Goldman Sachs Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37 | No Opt. Call | | A1 | | 463,166 | |
| | | Nuveen New York Select Tax-Free Income Portfolio (continued) |
| NXN | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Health Care – 15.1% | | | | | | |
| $ | 450 | | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 – FGIC Insured | 2/15 at 100.00 | | BBB | $ | 484,358 | |
| | 500 | | Dormitory Authority of the State of New York, FHA-Insured Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005, 4.900%, 8/15/31 | 8/15 at 100.00 | | N/R | | 506,750 | |
| | 100 | | Dormitory Authority of the State of New York, Highland Hospital of Rochester Revenue Bonds, Series 2010, 5.200%, 7/01/32 | 7/20 at 100.00 | | A2 | | 103,365 | |
| | 950 | | Dormitory Authority of the State of New York, Revenue Bonds, Memorial Sloan Kettering Cancer Center, Series 2006-1, 5.000%, 7/01/35 | 7/16 at 100.00 | | AA | | 986,727 | |
| | 670 | | Dormitory Authority of the State of New York, Revenue Bonds, Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 – NPFG Insured | 7/13 at 100.00 | | AA | | 709,262 | |
| | 390 | | Dormitory Authority of the State of New York, Revenue Bonds, New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 – AGM Insured | 8/14 at 100.00 | | AA+ | | 425,966 | |
| | 750 | | Dormitory Authority of the State of New York, Revenue Bonds, NYU Hospitals Center, Series 2011A, 6.000%, 7/01/40 | 7/20 at 100.00 | | BBB+ | | 789,803 | |
| | 1,680 | | Dormitory Authority of the State of New York, Revenue Bonds, Winthrop South Nassau University Health System Obligated Group, Series 2001A, 5.250%, 7/01/17 – AMBAC Insured | 7/12 at 100.00 | | N/R | | 1,699,673 | |
| | 1,195 | | Dormitory Authority of the State of New York, Revenue Bonds, Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/17 – AMBAC Insured | 7/12 at 100.00 | | Baa1 | | 1,208,993 | |
| | 500 | | Dormitory Authority of the State of New York, Revenue Bonds, Winthrop-South Nassau University Hospital Association, Series 2003A, 5.500%, 7/01/32 | 7/13 at 100.00 | | Baa1 | | 503,480 | |
| | | | Madison County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Oneida Health System, Series 2007A: | | | | | | |
| | 100 | | 5.250%, 2/01/27 | No Opt. Call | | BBB– | | 94,116 | |
| | 90 | | 5.500%, 2/01/32 | No Opt. Call | | BBB– | | 84,998 | |
| | 750 | | New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 – AMBAC Insured | 2/13 at 100.00 | | Aa3 | | 786,158 | |
| | 125 | | Westchester County Health Care Corporation, New York, Senior Lien Revenue Bonds, Series 2010-C2, 6.125%, 11/01/37 | 11/20 at 100.00 | | A3 | | 129,933 | |
| | 8,250 | | Total Health Care | | | | | 8,513,582 | |
| | | | Housing/Multifamily – 5.8% | | | | | | |
| | 1,700 | | Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 – AMBAC Insured | 8/12 at 101.00 | | N/R | | 1,715,096 | |
| | 1,000 | | New Hartford-Sunset Woods Funding Corporation, New York, FHA-Insured Mortgage Revenue Bonds, Sunset Woods Apartments II Project, Series 2002, 5.350%, 2/01/20 | 8/12 at 101.00 | | AA+ | | 1,023,940 | |
| | 250 | | New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2004A, 5.250%, 11/01/30 | 5/14 at 100.00 | | AA | | 254,643 | |
| | 275 | | New York State Housing Finance Agency, Affordable Housing Revenue, Series 2007A, 5.250%, 11/01/38 (Alternative Minimum Tax) | 11/17 at 100.00 | | Aa2 | | 277,338 | |
| | 3,225 | | Total Housing/Multifamily | | | | | 3,271,017 | |
| | | | Housing/Single Family – 8.0% | | | | | | |
| | 2,000 | | New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 101, 5.000%, 10/01/18 (Alternative Minimum Tax) | 4/12 at 100.00 | | Aa1 | | 2,001,580 | |
| | 2,500 | | New York State Mortgage Agency, Mortgage Revenue Bonds, Thirty-First Series A, 5.300%, 10/01/31 (Alternative Minimum Tax) | 4/12 at 100.00 | | Aaa | | 2,500,700 | |
| | 4,500 | | Total Housing/Single Family | | | | | 4,502,280 | |
| | | | Long-Term Care – 8.1% | | | | | | |
| | 100 | | Dormitory Authority of the State of New York, Non-State Supported Debt, Ozanam Hall of Queens Nursing Home Revenue Bonds, Series 2006, 5.000%, 11/01/31 | 11/16 at 100.00 | | Ba3 | | 78,506 | |
| | 50 | | Dormitory Authority of the State of New York, Revenue Bonds, Providence Rest, Series 2005, 5.000%, 7/01/35 – ACA Insured | 7/15 at 100.00 | | N/R | | 35,670 | |
| | 2,000 | | East Rochester Housing Authority, New York, FHA-Insured Mortgage Revenue Refunding Bonds, Jewish Home of Rochester, Series 2002, 4.625%, 2/15/17 | 8/12 at 101.00 | | AAA | | 2,067,220 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Long-Term Care (continued) | | | | | | |
| $ | 1,000 | | East Rochester Housing Authority, New York, Revenue Bonds, GNMA/FHA-Secured Revenue Bonds, St. Mary’s Residence Project, Series 2002A, 5.375%, 12/20/22 | 12/12 at 103.00 | | N/R | $ | 1,046,630 | |
| | 980 | | New York City Industrial Development Agency, New York, GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor House Inc., Series 2002A, 4.950%, 11/20/32 | 11/12 at 101.00 | | AA+ | | 1,026,354 | |
| | 25 | | Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2008-B1, 5.500%, 7/01/18 | 7/16 at 100.00 | | N/R | | 23,323 | |
| | 275 | | Yonkers Industrial Development Agency, New York, Civic Facilities Revenue Bonds, Special Needs Facilities Pooled Program Bonds, Series 2008-C1, 5.500%, 7/01/18 | 7/16 at 101.00 | | N/R | | 256,556 | |
| | 4,430 | | Total Long-Term Care | | | | | 4,534,259 | |
| | | | Materials – 0.2% | | | | | | |
| | 90 | | Jefferson County Industrial Development Agency, New York, Solid Waste Disposal Revenue Bonds, International Paper Company Project, Series 2003A, 5.200%, 12/01/20 (Alternative Minimum Tax) | 12/13 at 100.00 | | BBB | | 90,322 | |
| | | | Tax Obligation/General – 5.4% | | | | | | |
| | 1,260 | | New York City, New York, General Obligation Bonds, Fiscal 2008 Series D, 5.125%, 12/01/25 | 12/17 at 100.00 | | AA | | 1,393,132 | |
| | 300 | | New York City, New York, General Obligation Bonds, Fiscal Series 2004C, 5.250%, 8/15/16 | 8/14 at 100.00 | | AA | | 335,544 | |
| | 200 | | New York City, New York, General Obligation Bonds, Fiscal Series 2005J, 5.000%, 3/01/19 – FGIC Insured | 3/15 at 100.00 | | AA | | 222,318 | |
| | 1,000 | | New York City, New York, General Obligation Bonds, Fiscal Series 2006J-1, 5.000%, 6/01/25 | 6/16 at 100.00 | | AA | | 1,107,830 | |
| | 2,760 | | Total Tax Obligation/General | | | | | 3,058,824 | |
| | | | Tax Obligation/Limited – 22.8% | | | | | | |
| | 600 | | Battery Park City Authority, New York, Senior Revenue Bonds, Series 2003A, 5.000%, 11/01/23 | 11/13 at 100.00 | | AAA | | 645,084 | |
| | 500 | | Erie County Industrial Development Agency, New York, School Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 – AGM Insured | 5/14 at 100.00 | | AA+ | | 531,925 | |
| | 1,500 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 5.000%, 2/15/47 | 2/17 at 100.00 | | A | | 1,483,950 | |
| | 500 | | Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A, 5.500%, 1/01/20 – NPFG Insured | 7/12 at 100.00 | | AA– | | 515,880 | |
| | | | New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: | | | | | | |
| | 250 | | 5.000%, 10/15/25 – NPFG Insured | 10/14 at 100.00 | | AAA | | 274,235 | |
| | 200 | | 5.000%, 10/15/26 – NPFG Insured | 10/14 at 100.00 | | AAA | | 218,796 | |
| | 1,225 | | 5.000%, 10/15/29 – AMBAC Insured | 10/14 at 100.00 | | AAA | | 1,312,171 | |
| | 600 | | New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 – FGIC Insured | 1/17 at 100.00 | | AA– | | 637,290 | |
| | 560 | | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23 – FGIC Insured | 2/13 at 100.00 | | AAA | | 588,302 | |
| | 550 | | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2007C-1, 5.000%, 11/01/27 | 11/17 at 100.00 | | AAA | | 607,767 | |
| | 535 | | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Tender Option Bond Trust 3545, 13.723%, 5/01/32 (IF) | 5/19 at 100.00 | | AAA | | 656,943 | |
| | 775 | | New York State Environmental Facilities Corporation, State Personal Income Tax Revenue Bonds, Series 2008A, 5.000%, 12/15/26 (UB) | 12/17 at 100.00 | | AAA | | 868,512 | |
| | 250 | | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second General, Series 2004A, 5.000%, 4/01/21 – NPFG Insured | 4/14 at 100.00 | | AA | | 266,545 | |
| | 425 | | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2007, 5.000%, 4/01/27 | 10/17 at 100.00 | | AA | | 462,438 | |
| | 570 | | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2005B, 5.500%, 4/01/20 – AMBAC Insured (UB) | No Opt. Call | | AA | | 699,909 | |
| | | | New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: | | | | | | |
| | 1,000 | | 5.250%, 6/01/20 – AMBAC Insured | 6/13 at 100.00 | | AA– | | 1,070,170 | |
| | 250 | | 5.250%, 6/01/21 – AMBAC Insured | 6/13 at 100.00 | | AA– | | 267,543 | |
| | 500 | | New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 | 6/13 at 100.00 | | AA– | | 537,150 | |
| | | Nuveen New York Select Tax-Free Income Portfolio (continued) |
| NXN | | Portfolio of Investments |
September 30, 2011 (Unaudited)
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/Limited (continued) | | | | | | |
| $ | 1,000 | | New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Tender Option Bond Trust 09-6W, 13.576%, 3/15/37 (IF) (4) | 3/17 at 100.00 | | AAA | $ | 1,169,080 | |
| | 11,790 | | Total Tax Obligation/Limited | | | | | 12,813,690 | |
| | | | Transportation – 2.6% | | | | | | |
| | 500 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2003A, 5.000%, 11/15/15 – FGIC Insured | No Opt. Call | | A | | 569,285 | |
| | 100 | | New York State Thruway Authority, General Revenue Bonds, Series 2005G, 5.000%, 1/01/30 – AGM Insured | 7/15 at 100.00 | | AA+ | | 106,185 | |
| | 105 | | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/31 – SYNCORA GTY Insured | 6/15 at 101.00 | | Aa2 | | 110,797 | |
| | 120 | | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Forty Eighth Series 2007, Trust 2920, 17.484%, 8/15/32 – AGM Insured (IF) | 8/17 at 100.00 | | AA+ | | 153,053 | |
| | | | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010: | | | | | | |
| | 290 | | 6.500%, 12/01/28 | 12/15 at 100.00 | | BBB– | | 305,495 | |
| | 215 | | 6.000%, 12/01/36 | 12/20 at 100.00 | | BBB– | | 224,056 | |
| | 1,330 | | Total Transportation | | | | | 1,468,871 | |
| | | | U.S. Guaranteed – 2.2% (5) | | | | | | |
| | 760 | | Dormitory Authority of the State of New York, Judicial Facilities Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 (ETM) | No Opt. Call | | AAA | | 903,207 | |
| | 230 | | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Staten Island University Hospital, Series 2002C, 6.450%, 7/01/32 (Pre-refunded 7/01/12) | 7/12 at 101.00 | | Baa3 (5) | | 241,449 | |
| | 110 | | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23 (Pre-refunded 2/01/13) – FGIC Insured | 2/13 at 100.00 | | Aaa | | 116,865 | |
| | 1,100 | | Total U.S. Guaranteed | | | | | 1,261,521 | |
| | | | Utilities – 3.1% | | | | | | |
| | | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: | | | | | | |
| | 570 | | 5.000%, 12/01/23 – FGIC Insured | 6/16 at 100.00 | | A– | | 615,486 | |
| | 430 | | 5.000%, 12/01/25 – FGIC Insured | 6/16 at 100.00 | | A– | | 458,784 | |
| | 400 | | Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2011A, 5.000%, 5/01/38 | 5/21 at 100.00 | | A– | | 416,208 | |
| | 250 | | Niagara County Industrial Development Agency, New York, Solid Waste Disposal Facility Revenue Bonds, American Ref-Fuel Company of Niagara LP, Series 2001A, 5.450%, 11/15/26 (Mandatory put 11/15/12) (Alternative Minimum Tax) | 11/11 at 101.00 | | Baa2 | | 252,955 | |
| | 1,650 | | Total Utilities | | | | | 1,743,433 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Water and Sewer – 6.1% | | | | | | |
| $ | 275 | | New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, Tender Option Bond Trust 3484, 17.735%, 6/15/32 (IF) | 6/18 at 100.00 | | AA+ | $ | 343,420 | |
| | | | New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds, New York City Municipal Water Finance Authority Loan, Series 2002B: | | | | | | |
| | 1,000 | | 5.250%, 6/15/19 | 6/12 at 100.00 | | AAA | | 1,030,459 | |
| | 2,000 | | 5.000%, 6/15/27 | 6/12 at 100.00 | | AAA | | 2,053,099 | |
| | 3,275 | | Total Water and Sewer | | | | | 3,426,978 | |
| $ | 51,585 | | Total Investments (cost $51,618,386) – 95.6% | | | | | 53,793,985 | |
| | | | Floating Rate Obligations – (1.8)% | | | | | (1,005,000 | ) |
| | | | Other Assets Less Liabilities – 6.2% | | | | | 3,505,605 | |
| | | | Net Assets – 100% | | | | $ | 56,294,590 | |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | | 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (5) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. |
| N/R | | Not rated. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| | | Statement of |
| | | Assets & Liabilities |
| | | September 30, 2011 (Unaudited) |
| | | Select Tax-Free (NXP | ) | | Select Tax-Free 2 (NXQ | ) | | Select Tax-Free 3 (NXR | ) | | California Select Tax-Free (NXC | ) | | New York Select Tax-Free (NXN | ) |
| Assets | | | | | | | | | | | | | | | |
| Investments, at value (cost $221,411,809, $239,250,644, $177,791,988, $86,930,112 and $51,618,386, respectively) | | $ | 223,304,740 | | | $ | 231,219,645 | | | $ | 180,005,211 | | | $ | 89,972,018 | | | $ | 53,793,985 | |
| Cash | | | — | | | | — | | | | 2,904,222 | | | | 1,600,731 | | | | — | |
| Receivables: | | | | | | | | | | | | | | | | | | | | |
| Interest | | | 3,249,615 | | | | 3,606,093 | | | | 2,405,522 | | | | 1,056,611 | | | | 777,215 | |
| Investments sold | | | 9,750,000 | | | | 8,186,371 | | | | 10,084 | | | | — | | | | 3,288,606 | |
| Other assets | | | 48,838 | | | | 51,191 | | | | 38,106 | | | | 19,900 | | | | 13,229 | |
| Total assets | | | 236,353,193 | | | | 243,063,300 | | | | 185,363,145 | | | | 92,649,260 | | | | 57,873,035 | |
| Liabilities | | | | | | | | | | | | | | | | | | | | |
| Cash overdraft | | | 2,889,410 | | | | 1,587,346 | | | | — | | | | — | | | | 336,093 | |
| Floating rate obligations | | | — | | | | 1,000,000 | | | | — | | | | 1,540,000 | | | | 1,005,000 | |
| Payables: | | | | | | | | | | | | | | | | | | | | |
| Dividends | | | 904,363 | | | | 872,006 | | | | 653,497 | | | | 332,406 | | | | 192,616 | |
| Investments purchased | | | — | | | | 1,827,856 | | | | 1,840,436 | | | | 420,805 | | | | — | |
| Accrued expenses: | | | 42,223 | | | | 52,900 | | | | 40,909 | | | | 20,485 | | | | 12,810 | |
| Management fees | | | | | | | | | | | | | | | | | | | | |
| Other | | | 108,981 | | | | 112,731 | | | | 86,672 | | | | 50,321 | | | | 31,926 | |
| Total liabilities | | | 3,944,977 | | | | 5,452,839 | | | | 2,621,514 | | | | 2,364,017 | | | | 1,578,445 | |
| Net assets | | $ | 232,408,216 | | | $ | 237,610,461 | | | $ | 182,741,631 | | | $ | 90,285,243 | | | $ | 56,294,590 | |
| Shares outstanding | | | 16,518,376 | | | | 17,695,939 | | | | 13,020,213 | | | | 6,267,291 | | | | 3,916,592 | |
| Net asset value per share outstanding | | $ | 14.07 | | | $ | 13.43 | | | $ | 14.04 | | | $ | 14.41 | | | $ | 14.37 | |
| Net assets consist of: | | | | | | | | | | | | | | | | | | | | |
| Shares, $.01 par value per share | | $ | 165,184 | | | $ | 176,959 | | | $ | 130,202 | | | $ | 62,673 | | | $ | 39,166 | |
| Paid-in surplus | | | 229,599,415 | | | | 246,883,378 | | | | 179,166,579 | | | | 87,267,477 | | | | 53,739,413 | |
| Undistributed (Over-distribution of) net investment income | | | 1,009,462 | | | | 216,883 | | | | 682,758 | | | | 190,240 | | | | 187,126 | |
| Accumulated net realized gain (loss) | | | (258,776 | ) | | | (1,635,760 | ) | | | 548,869 | | | | (277,053 | ) | | | 153,286 | |
| Net unrealized appreciation (depreciation) | | | 1,892,931 | | | | (8,030,999 | ) | | | 2,213,223 | | | | 3,041,906 | | | | 2,175,599 | |
| Net assets | | $ | 232,408,216 | | | $ | 237,610,461 | | | $ | 182,741,631 | | | $ | 90,285,243 | | | $ | 56,294,590 | |
| Authorized shares | | Unlimited | | | Unlimited | | | Unlimited | | | Unlimited | | | Unlimited | |
See accompanying notes to financial statements.
| | | Statement of |
| | | Operations |
| | | Six Months Ended September 30, 2011 (Unaudited) |
| | | Select Tax-Free (NXP | ) | | Select Tax-Free 2 (NXQ | ) | | Select Tax-Free 3 (NXR | ) | | California Select Tax-Free (NXC | ) | | New York Select Tax-Free (NXN | ) |
| Investment Income | | $ | 6,245,567 | | | $ | 6,135,203 | | | $ | 4,713,040 | | | $ | 2,357,708 | | | $ | 1,440,440 | |
| Expenses | | | | | | | | | | | | | | | | | | | | |
| Management fees | | | 254,628 | | | | 318,202 | | | | 246,139 | | | | 121,665 | | | | 76,780 | |
| Shareholders’ servicing agent fees and expenses | | | 10,864 | | | | 9,805 | | | | 8,255 | | | | 2,853 | | | | 2,514 | |
| Interest expense on floating rate obligations | | | — | | | | 3,446 | | | | — | | | | 4,575 | | | | 2,280 | |
| Custodian’s fees and expenses | | | 23,384 | | | | 23,919 | | | | 18,877 | | | | 10,840 | | | | 8,598 | |
| Trustees’ fees and expenses | | | 2,916 | | | | 2,972 | | | | 2,284 | | | | 1,108 | | | | 703 | |
| Professional fees | | | 62,493 | | | | 88,617 | | | | 37,325 | | | | 17,785 | | | | 18,613 | |
| Shareholders’ reports – printing and mailing expenses | | | 27,320 | | | | 29,083 | | | | 21,264 | | | | 9,559 | | | | 8,167 | |
| Stock exchange listing fees | | | 4,505 | | | | 4,479 | | | | 4,467 | | | | 4,429 | | | | 4,445 | |
| Investor relations expense | | | 9,326 | | | | 9,859 | | | | 7,436 | | | | 3,659 | | | | 2,423 | |
| Other expenses | | | 6,182 | | | | 6,320 | | | | 3,825 | | | | 3,899 | | | | 3,639 | |
| Total expenses before custodian fee credit | | | 401,618 | | | | 496,702 | | | | 349,872 | | | | 180,372 | | | | 128,162 | |
| Custodian fee credit | | | (494 | ) | | | (547 | ) | | | (402 | ) | | | (233 | ) | | | (161 | ) |
| Net expenses | | | 401,124 | | | | 496,155 | | | | 349,470 | | | | 180,139 | | | | 128,001 | |
| Net investment income (loss) | | | 5,844,443 | | | | 5,639,048 | | | | 4,363,570 | | | | 2,177,569 | | | | 1,312,439 | |
| Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | | | | | | | | |
| Net realized gain (loss) from investments | | | 206,260 | | | | 425,185 | | | | 548,185 | | | | 33,627 | | | | 269,105 | |
Change in net unrealized appreciation (depreciation) of investments | | | 7,888,256 | | | | 9,211,027 | | | | 6,138,851 | | | | 5,999,625 | | | | 2,237,714 | |
| Net realized and unrealized gain (loss) | | | 8,094,516 | | | | 9,636,212 | | | | 6,687,036 | | | | 6,033,252 | | | | 2,506,819 | |
| Net increase (decrease) in net assets from operations | | $ | 13,938,959 | | | $ | 15,275,260 | | | $ | 11,050,606 | | | $ | 8,210,821 | | | $ | 3,819,258 | |
See accompanying notes to financial statements.
| | | Statement of |
| | | Changes in Net Assets (Unaudited) |
| | | Select Tax-Free (NXP) | | | Select Tax-Free 2 (NXQ) | | | Select Tax-Free 3 (NXR) | |
| | | Six Months Ended 9/30/11 | | | Year Ended 3/31/11 | | | Six Months Ended 9/30/11 | | | Year Ended 3/31/11 | | | Six Months Ended 9/30/11 | | | Year Ended 3/31/11 | |
| Operations | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 5,844,443 | | | $ | 11,697,973 | | | $ | 5,639,048 | | | $ | 11,371,002 | | | $ | 4,363,570 | | | $ | 8,609,571 | |
| Net realized gain (loss) from investments | | | 206,260 | | | | 378,580 | | | | 425,185 | | | | 124,603 | | | | 548,185 | | | | 7,746 | |
| Change in net unrealized appreciation (depreciation) of investments | | | 7,888,256 | | | | (10,357,591 | ) | | | 9,211,027 | | | | (11,123,104 | ) | | | 6,138,851 | | | | (7,416,691 | ) |
| Net increase (decrease) in net assets from operations | | | 13,938,959 | | | | 1,718,962 | | | | 15,275,260 | | | | 372,501 | | | | 11,050,606 | | | | 1,200,626 | |
| Distributions to Shareholders | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (5,895,403 | ) | | | (11,781,528 | ) | | | (5,680,397 | ) | | | (11,780,156 | ) | | | (4,179,207 | ) | | | (8,354,275 | ) |
| From accumulated net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (14,320 | ) |
| Decrease in net assets from distributions to shareholders | | | (5,895,403 | ) | | | (11,781,528 | ) | | | (5,680,397 | ) | | | (11,780,156 | ) | | | (4,179,207 | ) | | | (8,368,595 | ) |
| Capital Share Transactions | | | | | | | | | | | | | | | | | | | | | | | | |
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | | | 96,713 | | | | 462,007 | | | | — | | | | 322,937 | | | | 24,185 | | | | 235,146 | |
| Net increase (decrease) in net assets from capital share transactions | | | 96,713 | | | | 462,007 | | | | — | | | | 322,937 | | | | 24,185 | | | | 235,146 | |
| Net increase (decrease) in net assets | | | 8,140,269 | | | | (9,600,559 | ) | | | 9,594,863 | | | | (11,084,718 | ) | | | 6,895,584 | | | | (6,932,823 | ) |
| Net assets at the beginning of period | | | 224,267,947 | | | | 233,868,506 | | | | 228,015,598 | | | | 239,100,316 | | | | 175,846,047 | | | | 182,778,870 | |
| Net assets at the end of period | | $ | 232,408,216 | | | $ | 224,267,947 | | | $ | 237,610,461 | | | $ | 228,015,598 | | | $ | 182,741,631 | | | $ | 175,846,047 | |
| Undistributed (Over-distribution of) net investment income at the end of period | | $ | 1,009,462 | | | $ | 1,060,422 | | | $ | 216,883 | | | $ | 258,232 | | | $ | 682,758 | | | $ | 498,395 | |
See accompanying notes to financial statements.
| | | California Select Tax-Free (NXC) | | | New York Select Tax-Free (NXN) | |
| | | Six Months Ended 9/30/11 | | | Year Ended 3/31/11 | | | Six Months Ended 9/30/11 | | | Year Ended 3/31/11 | |
| Operations | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 2,177,569 | | | $ | 4,278,502 | | | $ | 1,312,439 | | | $ | 2,504,122 | |
| Net realized gain (loss) from investments | | | 33,627 | | | | 321,966 | | | | 269,105 | | | | (52,944 | ) |
| Change in net unrealized appreciation (depreciation) of investments | | | 5,999,625 | | | | (3,775,747 | ) | | | 2,237,714 | | | | (1,410,318 | ) |
| Net increase (decrease) in net assets from operations | | | 8,210,821 | | | | 824,721 | | | | 3,819,258 | | | | 1,040,860 | |
| Distributions to Shareholders | | | | | | | | | | | | | | | | |
| From net investment income | | | (2,124,611 | ) | | | (4,174,015 | ) | | | (1,229,810 | ) | | | (2,395,928 | ) |
| From accumulated net realized gains | | | — | | | | — | | | | — | | | | — | |
| Decrease in net assets from distributions to shareholders | | | (2,124,611 | ) | | | (4,174,015 | ) | | | (1,229,810 | ) | | | (2,395,928 | ) |
| Capital Share Transactions | | | | | | | | | | | | | | | | |
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | | | — | | | | — | | | | — | | | | 53,132 | |
| Net increase (decrease) in net assets from capital share transactions | | | — | | | | — | | | | — | | | | 53,132 | |
| Net increase (decrease) in net assets | | | 6,086,210 | | | | (3,349,294 | ) | | | 2,589,448 | | | | (1,301,936 | ) |
| Net assets at the beginning of period | | | 84,199,033 | | | | 87,548,327 | | | | 53,705,142 | | | | 55,007,078 | |
| Net assets at the end of period | | $ | 90,285,243 | | | $ | 84,199,033 | | | $ | 56,294,590 | | | $ | 53,705,142 | |
| Undistributed (Over-distribution of) net investment income at the end of period | | $ | 190,240 | | | $ | 137,282 | | | $ | 187,126 | | | $ | 104,497 | |
See accompanying notes to financial statements.
| | | Financial |
| | | Highlights (Unaudited) |
| | | |
| | Selected data for a Common share outstanding throughout each period: |
| | | | | Investment Operations | | Less Distributions | | | | | | | |
| | | Beginning Net Asset Value | | | Net Investment Income (Loss | ) | | Net Realized/ Unrealized Gain (Loss | ) | | Total | | | Net Investment Income | | | Capital Gains | | | Total | | | Ending Net Asset Value | | | Ending Market Value | |
| Select Tax-Free (NXP) | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 3/31: | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2012(d) | | $ | 13.58 | | | $ | .35 | | | $ | .50 | | | $ | .85 | | | $ | (.36 | ) | | $ | — | | | $ | (.36 | ) | | $ | 14.07 | | | $ | 14.07 | |
| 2011 | | | 14.19 | | | | .71 | | | | (.61 | ) | | | .10 | | | | (.71 | ) | | | — | | | | (.71 | ) | | | 13.58 | | | | 13.25 | |
| 2010 | | | 13.52 | | | | .73 | | | | .66 | | | | 1.39 | | | | (.72 | ) | | | — | | | | (.72 | ) | | | 14.19 | | | | 14.74 | |
| 2009 | | | 14.30 | | | | .71 | | | | (.81 | ) | | | (.10 | ) | | | (.68 | ) | | | — | | | | (.68 | ) | | | 13.52 | | | | 13.67 | |
| 2008 | | | 14.72 | | | | .70 | | | | (.44 | ) | | | .26 | | | | (.68 | ) | | | — | | | | (.68 | ) | | | 14.30 | | | | 14.24 | |
| 2007 | | | 14.62 | | | | .70 | | | | .08 | | | | .78 | | | | (.68 | ) | | | — | | | | (.68 | ) | | | 14.72 | | | | 14.85 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Select Tax-Free 2 (NXQ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 3/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2012(d) | | | 12.89 | | | | .32 | | | | .54 | | | | .86 | | | | (.32 | ) | | | — | | | | (.32 | ) | | | 13.43 | | | | 12.98 | |
| 2011 | | | 13.53 | | | | .64 | | | | (.61 | ) | | | .03 | | | | (.67 | ) | | | — | | | | (.67 | ) | | | 12.89 | | | | 12.40 | |
| 2010 | | | 12.63 | | | | .68 | | | | .89 | | | | 1.57 | | | | (.67 | ) | | | — | | | | (.67 | ) | | | 13.53 | | | | 13.81 | |
| 2009 | | | 13.93 | | | | .67 | | | | (1.30 | ) | | | (.63 | ) | | | (.67 | ) | | | — | | | | (.67 | ) | | | 12.63 | | | | 13.14 | |
| 2008 | | | 14.60 | | | | .66 | | | | (.69 | ) | | | (.03 | ) | | | (.64 | ) | | | — | | | | (.64 | ) | | | 13.93 | | | | 13.79 | |
| 2007 | | | 14.44 | | | | .66 | | | | .14 | | | | .80 | | | | (.64 | ) | | | — | | | | (.64 | ) | | | 14.60 | | | | 14.07 | |
| | | | | | | | Ratios/Supplemental Data | |
| | Total Returns | | | | | | Ratios to Average Net Assets(b) | | | | |
| | Based on Market Value | (a) | | Based on Net Asset Value | (a) | | Ending Net Assets (000 | ) | | Expenses | (c) | | Net Investment Income (Loss | ) | | Portfolio Turnover Rate | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | 8.98 | % | | | 6.30 | % | | $ | 232,408 | | | | .35 | %* | | | 5.11 | %* | | | 9 | % |
| | | (5.40 | ) | | | .69 | | | | 224,268 | | | | .32 | | | | 5.05 | | | | 6 | |
| | | 13.45 | | | | 10.45 | | | | 233,869 | | | | .32 | | | | 5.20 | | | | 3 | |
| | | .89 | | | | (.65 | ) | | | 222,114 | | | | .33 | | | | 5.12 | | | | 11 | |
| | | .61 | | | | 1.83 | | | | 234,494 | | | | .32 | | | | 4.83 | | | | 4 | |
| | | 9.59 | | | | 5.48 | | | | 241,074 | | | | .31 | | | | 4.77 | | | | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 7.31 | | | | 6.74 | | | | 237,610 | | | | .43 | * | | | 4.83 | * | | | 7 | |
| | | (5.56 | ) | | | .13 | | | | 228,016 | | | | .39 | | | | 4.81 | | | | 6 | |
| | | 10.45 | | | | 12.62 | | | | 239,100 | | | | .37 | | | | 5.12 | | | | 4 | |
| | | .24 | | | | (4.63 | ) | | | 222,771 | | | | .39 | | | | 5.08 | | | | 6 | |
| | | 2.69 | | | | (.24 | ) | | | 245,244 | | | | .40 | | | | 4.58 | | | | 7 | |
| | | 10.21 | | | | 5.62 | | | | 257,037 | | | | .37 | | | | 4.50 | | | | 3 | |
| (a) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| | Total Return Based on Net Asset Value is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| (b) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (c) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities as follows: |
| Select Tax-Free (NXP) | | | |
| Year Ended 3/31: | | | | |
| 2012(d) | | | — | % |
| 2011 | | | — | |
| 2010 | | | — | |
| 2009 | | | — | |
| 2008 | | | .— | |
| 2007 | | | — | |
| | | | | |
| Select Tax-Free 2 (NXQ) | | | | |
| Year Ended 3/31: | | | | |
| 2012(d) | | | .01 | %* |
| 2011 | | | — | |
| 2010 | | | — | |
| 2009 | | | .01 | |
| 2008 | | | .04 | |
| 2007 | | | .01 | |
| (d) | For the six months ended September 30, 2011. |
| * | Annualized. |
See accompanying notes to financial statements.
| | | Financial |
| | | Highlights (Unaudited) (continued) |
| | | |
| | Selected data for a Common share outstanding throughout each period: |
| | | | Investment Operations | | Less Distributions | | | | | |
| | Beginning Net Asset Value | | Net Investment Income (Loss | ) | Net Realized/ Unrealized Gain (Loss | ) | Total | | Net Investment Income | | Capital Gains | | Total | | Ending Net Asset Value | | Ending Market Value | |
| Select Tax-Free 3 (NXR) | | | | | | | | | |
| Year Ended 3/31: | | | | | | | | | | | | | | | | | |
| 2012(d) | | $ | 13.51 | | | $ | .34 | | | $ | .51 | | | $ | .85 | | | $ | (.32 | ) | | $ | — | | | $ | (.32 | ) | | $ | 14.04 | | | $ | 13.78 | |
| 2011 | | | 14.06 | | | | .66 | | | | (.57 | ) | | | .09 | | | | (.64 | ) | | | — | * | | | (.64 | ) | | | 13.51 | | | | 13.03 | |
| 2010 | | | 13.38 | | | | .67 | | | | .65 | | | | 1.32 | | | | (.64 | ) | | | — | * | | | (.64 | ) | | | 14.06 | | | | 14.22 | |
| 2009 | | | 13.98 | | | | .66 | | | | (.62 | ) | | | .04 | | | | (.64 | ) | | | — | | | | (.64 | ) | | | 13.38 | | | | 13.57 | |
| 2008 | | | 14.42 | | | | .64 | | | | (.44 | ) | | | .20 | | | | (.64 | ) | | | — | | | | (.64 | ) | | | 13.98 | | | | 13.75 | |
| 2007 | | | 14.29 | | | | .64 | | | | .13 | | | | .77 | | | | (.64 | ) | | | — | | | | (.64 | ) | | | 14.42 | | | | 14.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| California Select Tax-Free (NXC) | |
| Year Ended 3/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2012(d) | | | 13.43 | | | | .35 | | | | .97 | | | | 1.32 | | | | (.34 | ) | | | — | | | | (.34 | ) | | | 14.41 | | | | 13.25 | |
| 2011 | | | 13.97 | | | | .68 | | | | (.55 | ) | | | .13 | | | | (.67 | ) | | | — | | | | (.67 | ) | | | 13.43 | | | | 12.59 | |
| 2010 | | | 13.24 | | | | .67 | | | | .73 | | | | 1.40 | | | | (.67 | ) | | | — | | | | (.67 | ) | | | 13.97 | | | | 13.08 | |
| 2009 | | | 14.09 | | | | .66 | | | | (.84 | ) | | | (.18 | ) | | | (.67 | ) | | | — | | | | (.67 | ) | | | 13.24 | | | | 12.00 | |
| 2008 | | | 14.73 | | | | .66 | | | | (.65 | ) | | | .01 | | | | (.64 | ) | | | (.01 | ) | | | (.65 | ) | | | 14.09 | | | | 14.08 | |
| 2007 | | | 14.57 | | | | .64 | | | | .18 | | | | .82 | | | | (.64 | ) | | | (.02 | ) | | | (.66 | ) | | | 14.73 | | | | 14.22 | |
| | | | | | | | Ratios/Supplemental Data | |
| | Total Returns | | | | | | Ratios to Average Net Assets(b) | | | | |
| | Based on Market Value | (a) | | Based on Net Asset Value | (a) | | Ending Net Assets (000 | ) | | Expenses | (c) | | Net Investment Income (Loss | ) | | Portfolio Turnover Rate | |
| | | | | | | | | | | | | | | | | | |
| | | 8.28 | % | | | 6.36 | % | | $ | 182,742 | | | | .39 | %** | | | 4.87 | %** | | | 13 | % |
| | | (3.98 | ) | | | .62 | | | | 175,846 | | | | .37 | | | | 4.75 | | | | 4 | |
| | | 9.70 | | | | 10.05 | | | | 182,779 | | | | .38 | | | | 4.81 | | | | 3 | |
| | | 3.51 | | | | .34 | | | | 173,678 | | | | .39 | | | | 4.83 | | | | 5 | |
| | | 2.91 | | | | 1.42 | | | | 181,288 | | | | .38 | | | | 4.49 | | | | 2 | |
| | | 9.15 | | | | 5.51 | | | | 186,969 | | | | .38 | | | | 4.43 | | | | 9 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 7.98 | | | | 9.92 | | | | 90,285 | | | | .41 | ** | | | 4.98 | ** | | | 6 | |
| | | 1.18 | | | | .83 | | | | 84,199 | | | | .38 | | | | 4.89 | | | | 8 | |
| | | 14.71 | | | | 10.71 | | | | 87,548 | | | | .41 | | | | 4.87 | | | | 4 | |
| | | (10.34 | ) | | | (1.30 | ) | | | 82,953 | | | | .43 | | | | 4.85 | | | | 12 | |
| | | 3.68 | | | | .05 | | | | 88,224 | | | | .44 | | | | 4.52 | | | | 8 | |
| | | 9.89 | | | | 5.72 | | | | 92,177 | | | | .40 | | | | 4.37 | | | | 16 | |
| (a) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| | Total Return Based on Net Asset Value is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| (b) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (c) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities as follows: |
| Select Tax-Free 3 (NXR) | | | | |
| Year Ended 3/31: | | | | |
| 2012(d) | | | — | % |
| 2011 | | | — | |
| 2010 | | | — | |
| 2009 | | | — | |
| 2008 | | | .02 | |
| 2007 | | | .01 | |
| California Select Tax-Free (NXC) | | | | |
| Year Ended 3/31: | | | | |
| 2012(d) | | | .01 | %** |
| 2011 | | | .01 | |
| 2010 | | | .02 | |
| 2009 | | | .02 | |
| 2008 | | | .06 | |
| 2007 | | | .01 | |
| (d) | For the six months ended September 30, 2011. |
| * | Rounds to less than $.01 per share. |
| ** | Annualized. |
See accompanying notes to financial statements.
| | | Financial |
| | | Highlights (Unaudited) (continued) |
| | | |
| | Selected data for a Common share outstanding throughout each period: |
| | | | Investment Operations | | Less Distributions | | | | | |
| | Beginning Net Asset Value | | Net Investment Income (Loss | ) | Net Realized/ Unrealized Gain (Loss | ) | Total | | Net Investment Income | | Capital Gains | | Total | | Ending Net Asset Value | | Ending Market Value | |
| New York Select Tax-Free (NXN) | |
| Year Ended 3/31: | | | | | | | | | | | | | | | | | |
| 2012(d) | | $ | 13.71 | | | $ | .34 | | | $ | .63 | | | $ | .97 | | | $ | (.31 | ) | | $ | — | | | $ | (.31 | ) | | $ | 14.37 | | | $ | 13.63 | |
| 2011 | | | 14.06 | | | | .64 | | | | (.38 | ) | | | .26 | | | | (.61 | ) | | | — | | | | (.61 | ) | | | 13.71 | | | | 13.06 | |
| 2010 | | | 13.37 | | | | .62 | | | | .68 | | | | 1.30 | | | | (.61 | ) | | | — | | | | (.61 | ) | | | 14.06 | | | | 13.80 | |
| 2009 | | | 13.79 | | | | .62 | | | | (.43 | ) | | | .19 | | | | (.61 | ) | | | — | | | | (.61 | ) | | | 13.37 | | | | 13.08 | |
| 2008 | | | 14.28 | | | | .62 | | | | (.49 | ) | | | .13 | | | | (.61 | ) | | | (.01 | ) | | | (.62 | ) | | | 13.79 | | | | 13.79 | |
| 2007 | | | 14.19 | | | | .61 | | | | .13 | | | | .74 | | | | (.61 | ) | | | (.04 | ) | | | (.65 | ) | | | 14.28 | | | | 14.15 | |
| | | | | | Ratios/Supplemental Data | |
| | Total Returns | | | | Ratios to Average Net Assets(b) | | | |
| | Based on Market Value | (a) | Based on Net Asset Value | (a) | Ending Net Assets (000 | ) | Expenses | (c) | Net Investment Income (Loss | ) | Portfolio Turnover Rate | |
| | | | | | | | | | | | | |
| | | 6.81 | % | | | 7.17 | % | | $ | 56,295 | | | | .46 | %* | | | 4.76 | %* | | | 12 | % |
| | | (1.08 | ) | | | 1.84 | | | | 53,705 | | | | .41 | | | | 4.55 | | | | 3 | |
| | | 10.31 | | | | 9.89 | | | | 55,007 | | | | .44 | | | | 4.50 | | | | 1 | |
| | | (.57 | ) | | | 1.47 | | | | 52,268 | | | | .47 | | | | 4.57 | | | | 1 | |
| | | 2.06 | | | | .94 | | | | 53,908 | | | | .46 | | | | 4.35 | | | | 20 | |
| | | 11.15 | | | | 5.30 | | | | 55,828 | | | | .46 | | | | 4.29 | | | | 6 | |
| (a) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| | Total Return Based on Net Asset Value is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| (b) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (c) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities as follows: |
| New York Select Tax-Free (NXN) | | | |
| Year Ended 3/31: | | | | |
| 2012(d) | | | — | % |
| 2011 | | | .01 | |
| 2010 | | | .02 | |
| 2009 | | | .02 | |
| 2008 | | | .03 | |
| 2007 | | | .04 | |
| (d) | For the six months ended September 30, 2011. |
| * | Annualized. |
See accompanying notes to financial statements.
| | | Notes to |
| | | Financial Statements (Unaudited) |
1. General Information and Significant Accounting Policies
General Information
The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) 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 California Select Tax-Free Income Portfolio (NXC) and Nuveen New York Select Tax-Free Income Portfolio (NXN) (each a “Fund” and collectively, the “Funds”). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, registered investment companies.
Each Fund seeks to provide current income and stable dividends, exempt from regular federal and designated state income taxes, where applicable, consistent with the preservation of capital by investing primarily in a portfolio of municipal obligations.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Prices of municipal bonds are provided by a pricing service approved by the Funds’ Board of Trustees. These securities are generally classified as Level 2 for fair value measurement purposes. When price quotes are not readily available (which is usually the case for municipal bonds) the pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by Nuveen Fund Advisors, Inc. (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of these securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Trustees or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the
custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At September 30, 2011, California Select Tax-Free (NXC) had outstanding when-issued/delayed delivery purchase commitments of $420,805. There were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders of net investment income, net realized capital gains and/or market discount, if any, 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 U.S. GAAP.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as a component of “Interest expense on floating rate obligations” on the Statement of Operations.
| | | Notes to |
| | | Financial Statements (Unaudited) (continued) |
During the six months ended September 30, 2011, each Fund invested in externally deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
At September 30, 2011, each Fund’s maximum exposure to externally-deposited Recourse Trusts was as follows:
| | | Select Tax-Free (NXP | ) | | Select Tax-Free 2 (NXQ | ) | | Select Tax-Free 3 (NXR | ) | | California Select Tax-Free (NXC | ) | | New York Select Tax-Free (NXN | ) |
| Maximum exposure to Recourse Trusts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,000,000 | |
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters for the following Funds during the six months ended September 30, 2011, were as follows:
| | | Select Tax-Free 2 (NXQ | ) | | California Select Tax-Free (NXC | ) | | New York Select Tax-Free (NXN | ) |
| Average floating rate obligations outstanding | | $ | 1,000,000 | | | $ | 1,540,000 | | | $ | 1,005,000 | |
| Average annual interest rate and fees | | | .69 | % | | | .59 | % | | | .45 | % |
Derivative Financial Instruments
Each Fund is authorized to invest in certain derivative instruments, including foreign currency forwards, futures, options and swap contracts. Although the Funds are authorized to invest in such derivative instruments, and may do so in the future, they did not make any such investments during the six months ended September 30, 2011.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds’ organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP 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. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
| | Level 1 – | Quoted prices in active markets for identical securities. |
| | Level 2 – | Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
| | Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of September 30, 2011:
| Select Tax-Free (NXP) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 223,304,740 | | | $ | — | | | $ | 223,304,740 | |
| Select Tax-Free 2 (NXQ) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 231,219,645 | | | $ | — | | | $ | 231,219,645 | |
| Select Tax-Free 3 (NXR) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 180,005,211 | | | $ | — | | | $ | 180,005,211 | |
| California Select Tax-Free (NXC) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 89,972,018 | | | $ | — | | | $ | 89,972,018 | |
| New York Select Tax-Free (NXN) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 53,793,985 | | | $ | — | | | $ | 53,793,985 | |
During the six months ended September 30, 2011, the Funds recognized no significant transfers to or from Level 1, Level 2 or Level 3.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the six months ended September 30, 2011.
4. Fund Shares
The Funds did not repurchase any of their outstanding shares during the six months ended September 30, 2011, or the fiscal year ended March 31, 2011.
Transactions in shares were as follows:
| | | Select Tax-Free (NXP) | | Select Tax-Free 2 (NXQ) | | Select Tax-Free 3 (NXR) | |
| | | Six Months Ended 9/30/11 | | Year Ended 3/31/11 | | Six Months Ended 9/30/11 | | Year Ended 3/31/11 | | Six Months Ended 9/30/11 | | Year Ended 3/31/11 | |
| Shares issued to shareholders due to reinvestment of distributions | | | 6,959 | | 32,336 | | | — | | 23,798 | | | 1,755 | | 16,661 | |
| | | Notes to |
| | | Financial Statements (Unaudited) (continued) |
| | | California Select Tax-Free (NXC) | | New York Select Tax-Free (NXN) | |
| | | Six Months Ended 9/30/11 | | Year Ended 3/31/11 | | Six Months Ended 9/30/11 | | Year Ended 3/31/11 | |
| Shares issued to shareholders due to reinvestment of distributions | | | — | | — | | | — | | 3,724 | |
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions, where applicable) during the six months ended September 30, 2011, were as follows:
| | Select Tax-Free | | Select Tax-Free 2 | | Select Tax-Free 3 | | California Select Tax-Free | | New York Select Tax-Free | |
| | | (NXP | ) | | (NXQ | ) | | (NXR | ) | | (NXC | ) | | (NXN | ) |
| Purchases | | $ | 20,941,239 | | | $ | 16,023,997 | | | $ | 22,296,256 | | | $ | 4,795,647 | | | $ | 6,371,204 | |
| Sales and maturities | | | 27,828,228 | | | | 20,595,019 | | | | 22,727,091 | | | | 6,539,384 | | | | 8,987,218 | |
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At September 30, 2011, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives, where applicable), as determined on a federal income tax basis, were as follows:
| | | Select Tax-Free (NXP | ) | | Select Tax-Free 2 (NXQ | ) | | Select Tax-Free 3 (NXR | ) | | California Select Tax-Free (NXC | ) | | New York Select Tax-Free (NXN | ) |
| Cost of investments | | $ | 220,821,917 | | | $ | 237,960,806 | | | $ | 177,522,830 | | | $ | 85,381,446 | | | $ | 50,606,688 | |
| Gross unrealized: | | | | | | | | | | | | | | | | | | | | |
| Appreciation | | $ | 13,747,211 | | | $ | 8,497,769 | | | $ | 7,952,715 | | | $ | 4,984,218 | | | $ | 2,446,055 | |
| Depreciation | | | (11,264,388 | ) | | | (16,238,930 | ) | | | (5,470,334 | ) | | | (1,938,088 | ) | | | (260,824 | ) |
| Net unrealized appreciation (depreciation) of investments | | $ | 2,482,823 | | | $ | (7,741,161 | ) | | $ | 2,482,381 | | | $ | 3,046,130 | | | $ | 2,185,231 | |
Permanent differences, primarily due to federal taxes paid, taxable market discount and distribution character reclassifications, resulted in reclassifications among the Funds’ components of net assets at March 31, 2011, the Funds’ last tax year end, as follows:
| | | Select Tax-Free (NXP | ) | | Select Tax-Free 2 (NXQ | ) | | Select Tax-Free 3 (NXR | ) | | California Select Tax-Free (NXC | ) | | New York Select Tax-Free (NXN | ) |
| Paid-in-surplus | | $ | 405 | | | $ | 9,131 | | | $ | 16,160 | | | $ | 3,609 | | | $ | — | |
| Undistributed (Over-distribution of) net investment income | | | (515 | ) | | | (13,088 | ) | | | (10,376 | ) | | | (4,246 | ) | | | (1,895 | ) |
| Accumulated net realized gain (loss) | | | 110 | | | | 3,957 | | | | (5,784 | ) | | | 637 | | | | 1,895 | |
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at March 31, 2011, the Funds’ last tax year end, were as follows:
| | Select Tax-Free (NXP | ) | Select Tax-Free 2 (NXQ | ) | Select Tax-Free 3 (NXR | ) | California Select Tax-Free (NXC | ) | New York Select Tax-Free (NXN | ) |
| Undistributed net tax-exempt income* | | $ | 1,507,365 | | | $ | 956,516 | | | $ | 926,575 | | | $ | 481,944 | | | $ | 291,976 | |
| Undistributed net ordinary income** | | | 55,604 | | | | 4,185 | | | | 185 | | | | — | | | | — | |
| Undistributed net long-term capital gains | | | — | | | | — | | | | 465 | | | | — | | | | — | |
| * | Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on March 1, 2011, paid on April 1, 2011. |
| ** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ last tax year ended March 31, 2011, was designated for purposes of the dividends paid deduction as follows:
| | | Select Tax-Free (NXP | ) | | Select Tax-Free 2 (NXQ | ) | | Select Tax-Free 3 (NXR | ) | | California Select Tax-Free (NXC | ) | | New York Select Tax-Free (NXN | ) |
| Distributions from net tax-exempt income | | $ | 11,779,604 | | | $ | 11,778,835 | | | $ | 8,353,383 | | | $ | 4,174,015 | | | $ | 2,395,738 | |
| Distributions from net ordinary income** | | | — | | | | — | | | | — | | | | — | | | | — | |
| Distributions from net long-term capital gains | | | — | | | | — | | | | 14,320 | | | | — | | | | — | |
| ** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
At March 31, 2011, the Funds’ last tax year end, the following Funds 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:
| | | Select Tax-Free (NXP | ) | | Select Tax-Free 2 (NXQ | ) | | California Select Tax-Free (NXC | ) | | New York Select Tax-Free (NXN | ) |
| Expiration: | | | | | | | | | | | | |
| March 31, 2015 | | $ | 465,330 | | | $ | 1,317,559 | | | $ | — | | | $ | — | |
| March 31, 2016 | | | — | | | | 7,597 | | | | 29,942 | | | | 40,192 | |
| March 31, 2017 | | | — | | | | 400,800 | | | | 107,619 | | | | 15,314 | |
| March 31, 2018 | | | — | | | | — | | | | — | | | | 9,265 | |
| March 31, 2019 | | | — | | | | 335,742 | | | | 173,121 | | | | 27,908 | |
| Total | | $ | 465,330 | | | $ | 2,061,698 | | | $ | 310,682 | | | $ | 92,679 | |
During the Fund’s last tax year ended March 31, 2011, Select Tax-Free (NXP) utilized $378,690 of its capital loss carryforwards.
The following Fund has elected to defer net realized losses from investments incurred from November 1, 2010 through March 31, 2011, the Fund’s last tax year end, (“post-October losses”) in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the current fiscal year. The following Fund has elected to defer post-October losses as follows:
| | | New York Select Tax-Free (NXN | ) |
| Post-October capital losses | | $ | 23,141 | |
| | | Notes to |
| | | Financial Statements (Unaudited) (continued) |
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Managed Assets* | | Select Tax-Free (NXP) Fund-Level Fee Rate | | Select Tax-Free 2 (NXQ) Select Tax-Free 3 (NXR) California Select Tax-Free (NXC) New York Select Tax-Free (NXN) Fund-Level Fee Rate | |
| For the first $125 million | | | .0500 | % | | .1000 | % |
| For the next $125 million | | | .0375 | | | .0875 | |
| For the next $250 million | | | .0250 | | | .0750 | |
| For the next $500 million | | | .0125 | | | .0625 | |
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Complex-Level Managed Asset Breakpoint Level* | | Effective Rate at Breakpoint Level | |
| $55 billion | | | .2000 | % |
| $56 billion | | | .1996 | |
| $57 billion | | | .1989 | |
| $60 billion | | | .1961 | |
| $63 billion | | | .1931 | |
| $66 billion | | | .1900 | |
| $71 billion | | | .1851 | |
| $76 billion | | | .1806 | |
| $80 billion | | | .1773 | |
| $91 billion | | | .1691 | |
| $125 billion | | | .1599 | |
| $200 billion | | | .1505 | |
| $250 billion | | | .1469 | |
| $300 billion | | | .1445 | |
| * | For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of September 30, 2011, the complex-level fee rate for each of these Funds was .1785%. |
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a wholly-owned subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
The Funds pay no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds.
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, the reasons for the transfers, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
Annual Investment Management
Agreement Approval Process (Unaudited)
The Board of Trustees (each, a “Board” and each Trustee, a “Board Member”) of the Funds, including the Board Members who are not parties to the Funds’ advisory or sub-advisory agreements or “interested persons” of any such parties (the “Independent Board Members”), is responsible for approving the advisory agreements (each, an “Investment Management Agreement”) between each Fund and Nuveen Fund Advisors, Inc. (the “Advisor”) and the sub-advisory agreements (each a “Sub-Advisory Agreement”) between the Advisor and Nuveen Asset Management, LLC (the “Sub-Advisor”) (the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the “Advisory Agreements”) and their periodic continuation. Pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”), the Board is generally required to consider the continuation of advisory agreements and sub-advisory agreements on an annual basis. Accordingly, at an in-person meeting held on May 23-25, 2011 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the Advisor and the Sub-Advisor (the Advisor and the Sub-Advisor are collectively, the “Fund Advisers” and each, a “Fund Adviser”). As described in more detail below, the information provided included, among other things, a review of Fund performance, including Fund investment performance assessments against peer groups and appropriate benchmarks, a comparison of Fund fees and expenses relative to peers, a description and assessment of shareholder service levels for the Funds, a summary of the performance of certain service providers, a review of product initiatives and shareholder communications and an analysis of the Advisor’s profitability with comparisons to comparable peers in the managed fund business. As part of their annual review, the Board also held a separate meeting on April 19-20, 2011, to review the Funds’ investment performance and consider an analysis provided by the Advisor of the Sub-Advisor which generally evaluated the Sub-Advisor’s investment team, investment mandate, organizational structure and history, investment philosophy and process, performance of the applicable Fund, and significant changes to the foregoing. As a result of their review of the materials and discussions, the Board presented the Advisor with questions and the Advisor responded.
The materials and information prepared in connection with the review of the Advisory Agreements at the May Meeting supplemented the information provided to the Board
during the year. In this regard, throughout the year, the Board, acting directly or through its committees, regularly reviews the performance and various services provided by the Advisor and, since the internal restructuring described in Section A below, the Sub-Advisor. The Board meets at least quarterly as well as at other times as the need arises. At its quarterly meetings, the Board reviews reports by the Advisor which include, among other things, Fund performance, a review of the investment teams and compliance reports. The Board also meets with key investment personnel managing the Fund portfolios during the year. In addition, the Board continues its program of seeking to visit each sub-advisor to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. The Board also met with State Street Bank & Trust Company, the Funds’ accountant and custodian, in 2010. The Board considers factors and information that are relevant to its consideration of the renewal of the Advisory Agreements at these meetings held throughout the year. Accordingly, the Board considered the information provided and knowledge gained at these meetings when performing its review at the May Meeting of the Advisory Agreements. The Independent Board Members are assisted throughout the process by independent legal counsel who provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts and met with the Independent Board Members in executive sessions without management present.
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Funds and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund’s Advisory Agreements. The Independent Board Members did not identify any single factor as all important or controlling. The Independent Board Members’ considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Fund Adviser’s services, including advisory services and the resulting Fund performance and administrative services. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser’s organization and business; the types of services that the Fund Adviser or its affiliates provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line.
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
In considering advisory services, the Board recognized that the Advisor provides various oversight, administrative, compliance and other services for the Funds and the Sub-Advisor provides the portfolio investment management services to the Funds. The Board recognized that Nuveen engaged in an internal restructuring in 2010 pursuant to which portfolio management services the Advisor had provided directly to the Funds were transferred to the Sub-Advisor, a newly-organized, wholly-owned subsidiary of the Advisor consisting of largely the same investment personnel. Accordingly, in reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Advisor’s investment team and changes thereto, organization and history, assets under management, Fund objectives and mandate, the investment team’s philosophy and strategies in managing the Fund, developments affecting the Sub-Advisor or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive to take undue risks. In addition, the Board considered the Advisor’s execution of its oversight responsibilities over the Sub-Advisor. Given the importance of compliance, the Independent Board Members also considered Nuveen’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures.
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Advisor and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance, legal support, managing leverage and promoting an orderly secondary market for common shares.
In reviewing the services provided, the Board also reviewed materials describing various notable initiatives and projects the Advisor performed in connection with the closed-end fund product line. These initiatives included continued activities to refinance auction rate preferred securities; ongoing services to manage leverage that has become increasingly complex; continued secondary market offerings and share repurchases for certain funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted Nuveen’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. Nuveen’s support services included, among other things: continuing communications in support of refinancing efforts related to auction rate preferred securities; participating in conferences; communicating continually with closed-end fund analysts covering the Nuveen funds; providing marketing for the closed-end funds; share purchases; and maintaining and enhancing a closed-end fund website.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund over various time periods. The Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks.
The Board reviewed reports, including a comprehensive analysis of the Funds’ performance and the applicable investment team. In this regard, the Board reviewed each Fund’s total return information compared to its Performance Peer Group for the quarter, one-, three- and five-year periods ending December 31, 2010 and for the same periods ending March 31, 2011. In addition, the Board reviewed each Fund’s total return information compared to recognized and/or customized benchmarks for the quarter, one-and three-year periods ending December 31, 2010 and for the same periods ending March 31, 2011. The Independent Board Members also reviewed historic premium and discount levels, including a summary of actions taken to address or discuss other developments affecting the secondary market discounts of various funds. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings.
In reviewing performance comparison information, the Independent Board Members recognized that the usefulness of the comparisons of the performance of certain funds with the performance of their respective Performance Peer Group may be limited because the Performance Peer Group may not adequately represent the objectives and strategies of the applicable funds or may be limited in size or number. In this regard, the Independent Board Members noted that the Performance Peer Groups of each of the Funds were classified as having significant differences from such Funds based on various considerations such as special fund objectives, potential investable universe and the composition of the peer set (e.g., the number and size of competing funds and number of competing managers). The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered) and the performance of the fund (or respective class) during that shareholder’s investment period.
All of the Funds, as noted above, had significant differences with their Performance Peer Groups; therefore, the Independent Board Members considered the Funds’ performance compared to their benchmarks. In this regard, the Independent Board Members noted that the Nuveen New York Select Tax-Free Income Portfolio underperformed its benchmark in the three-year period but outperformed its benchmark in the one-year
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
period and that each of the other Funds underperformed its respective benchmark in the one- and three-year periods.
With respect to any Nuveen funds that underperformed their peers and/or benchmarks from time to time, the Board monitors such funds closely and considers any steps necessary or appropriate to address such issues.
Based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory.
| C. | Fees, Expenses and Profitability |
| | The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of funds based on data provided by an independent fund data provider (the “Peer Universe”) and in certain cases, to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations. |
| | The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group (if any). In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; the differences in the type and use of leverage; and differences in the states reflected in the Peer Universe or Peer Group may impact the comparative data thereby limiting the ability to make a meaningful comparison with peers, including for each of the Funds. |
| | In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). In reviewing fees and expenses, the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10 basis points higher, in line if they were within 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group (if available) or Peer Universe if there was no separate Peer Group. |
| | The Independent Board Members observed that all of the Funds had net management fees and net expense ratios below their respective peer averages. Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees were reasonable in light of the nature, extent and quality of services provided to the Fund. |
| | 2. Comparisons with the Fees of Other Clients |
| | The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by the Advisor to other clients, including municipal separately managed accounts and passively managed exchange traded funds (ETFs) sub-advised by the Advisor. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. |
| | In considering the fees of the Sub-Advisor, the Independent Board Members also considered the pricing schedule or fees that the Sub-Advisor charges for similar investment management services for other Nuveen funds. |
| | 3. Profitability of Fund Advisers |
| | In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen’s wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2010. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen. In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members |
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
| | recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen’s investment in its fund business. Based on their review, the Independent Board Members concluded that the Advisor’s level of profitability for its advisory activities was reasonable in light of the services provided. |
| | |
| | In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable. |
| | |
| D. | Economies of Scale and Whether Fee Levels Reflect These Economies of Scale |
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds’ investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services
provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Advisor for serving as agent at Nuveen’s trading desk and as co-manager in initial public offerings of new closed-end funds.
In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. The Independent Board Members recognized that each Fund Adviser has the authority to pay a higher commission in return for brokerage and research services if it determines in good faith that the commission paid is reasonable in relation to the value of the brokerage and research services provided. Nevertheless, the Independent Board Members noted that commissions are generally not paid in connection with municipal securities transactions typically executed on a principal basis.
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of each Advisory Agreement are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
Reinvest Automatically,
Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Automatic Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 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 greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the 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 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.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.
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.
Call today to start reinvesting distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.
Glossary of Terms
Used in this Report
| ■ | Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction. |
| ■ | Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. |
| ■ | Average Effective Maturity: The market-value-weighted average of the effective maturity dates of the individual securities including cash. In the case of a bond that has been advance-refunded to a call date, the effective maturity is the date on which the bond is scheduled to be redeemed using the proceeds of an escrow account. In most other cases the effective maturity is the stated maturity date of the security. |
| ■ | Effective Leverage: Effective leverage is a Fund’s effective economic leverage, and includes both structural leverage and the leverage effects of certain derivative investments in the Fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any structural leverage. |
| ■ | Inverse Floaters: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. |
| ■ | Leverage: Using borrowed money to invest in securities or other assets. |
| ■ | Leverage-Adjusted Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond Fund’s value to changes when market interest rates change. Generally, the longer a bond’s or Fund’s duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund’s portfolio of bonds. |
| ■ | Lipper California Municipal Debt Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 6-month, 26 funds; 1-year, 26 funds; 5-year, 25 funds; and 10-year, 19 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. |
| ■ | Lipper General and Insured Unleveraged Municipal Debt Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 6-month, 8 funds; 1-year, 8 funds; 5-year, 6 funds; and 10-year, 6 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. |
| | |
| ■ | Lipper New York Municipal Debt Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 6-month, 23 funds; 1-year, 23 funds; 5-year, 22 funds; and 10-year, 13 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. |
| ■ | Market Yield (also known as Dividend Yield or Current Yield): An investment’s current annualized dividend divided by its current market price. |
| ■ | Net Asset Value (NAV): The net market value of all securities held in a portfolio. |
| ■ | Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding. |
| ■ | Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value. |
| ■ | Standard & Poor’s (S&P) California Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade California municipal bond market. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in an index. |
Glossary of Terms
Used in this Report (continued)
| | |
| ■ | Standard & Poor’s (S&P) National Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in an index. |
| ■ | Standard & Poor’s (S&P) New York Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade New York municipal bond market. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in an index. |
| ■ | Structural Leverage: Structural Leverage consists of preferred shares or debt issued by the Fund. Both of these are part of a Fund’s capital structure. Structural leverage is sometimes referred to as “‘40 Act Leverage” and is subject to asset coverage limits set in the Investment Company Act of 1940. |
| ■ | Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. |
| ■ | Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. |
Other Useful Information
Board of Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Virginia L. Stringer
Terence J. Toth
Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank
& Trust Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank
& Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Quarterly Portfolio of Investments and Proxy Voting Information
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public References Section at 100 F Street NE, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund’s Chief Executive Officer has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Share Information
Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds did not repurchase any of their common shares.
Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $198 billion of assets as of September 30, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef
Distributed by
Nuveen Securities, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ESA-B-0911D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors or Trustees implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Kevin J. McCarthy
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Gifford R. Zimmerman
Stephen D. Foy
