Nuveen Multistate Trust II
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07755
Nuveen Multistate Trust II
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: August 31st, 2003
-----------------
Date of reporting period: August 31st, 2003
-----------------
Form N-CSR is to be use 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 policy making roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss.3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. The registrant has posted such code of
ethics on its website at www.nuveen.com/mf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors has determined that the registrant has at
least one "audit committee financial expert" (as defined in Item 3 of Form
N-CSR) serving on its audit committee. The registrant's audit committee
financial expert is William E. Bennett, who is "independent" for purposes of
Item 3 of Form N-CSR.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer for
First Chicago Corp./First National Bank. As part of his role as Chief Credit
Officer, Mr. Bennett set policy as to accrual of assets/loans; designated
performing/non-performing assets; set the level of reserves against the credit
portfolio and determined the carrying value of credit related assets and
exposure. Among other things, Mr. Bennett was also responsible for the oversight
of the internal analysis function including setting ground rules for the review
and preparation of financial analysis and financial statements for use in making
credit and risk decisions for clients. Mr. Bennett has significant experience
reviewing, analyzing and evaluating financial statements of domestic and
international companies in a variety of industries with complex accounting
issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to this registrant.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing date of
this report that includes the disclosure required by this paragraph, based on
their evaluation of the controls and procedures required by Rule 30a-3(b) under
the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))
that occurred during the registrant's last fiscal half-year (the registrant's
second fiscal half-year in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 10. EXHIBITS
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment hereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/mf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)) in the exact form set forth below: EX-99.CERT
Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 or Title 18 of
the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registration specifically incorporates it by
reference. EX-99.906CERT attached hereto.
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Nuveen Investments
Municipal Bond Funds
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Semiannual Report dated August
31, 2003
-----------------------------------
Dependable, tax-free income because it's not what you earn, it's what you
keep.(R)
[GRAPHIC]
Nuveen California Municipal Bond Fund
Nuveen California Insured Municipal Bond Fund
[LOGO] Nuveen Investments
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------------------------------
Must be preceded by or accompanied by a prospectus.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Dear Shareholder,
Once again, I am pleased to report that over the most recent reporting period
your Fund continued to provide you with attractive tax-free monthly income. For
more specific information about the performance of your Fund, please see the
Portfolio Manager's Comments and Fund Spotlight sections of this report.
With interest rates at historically low levels, many have begun to wonder
whether interest rates will rise, and whether that possibility should cause
them to adjust their holdings of fixed-income investments. No one knows what
the future will bring, which is why we think a well-balanced portfolio that is
structured and carefully monitored with the help of an investment professional
is an important component in achieving your long-term financial goals. A
well-diversified portfolio may actually help to reduce your overall investment
risk, and we believe that municipal bond investments like your Nuveen
Investments Fund can be important building blocks in a portfolio crafted to
perform well through a variety of market conditions.
I'd also like to direct your attention to the inside front cover of this
report, which explains the quick and easy process to begin receiving Fund
reports like this via e-mail and the internet. Thousands of Nuveen Investments
Fund shareholders already have signed-up, and they are getting their Fund
information faster and more conveniently than ever. I urge you to consider
joining them.
Since 1898, Nuveen Investments has offered financial products and solutions
that incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen
us as a partner as you pursue your financial goals. We look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 15, 2003
[PHOTO]
Timothy R. Schwertfeger
"No one knows what
the future will bring,
which is why we think
a well-balanced portfolio...
is an important
component in achieving
your long-term
financial goals."
Semiannual Report l Page 1
Portfolio Managers' Comments
Nuveen California Municipal Bond Fund
Nuveen California Insured Municipal Bond Fund
Portfolio managers Bill Fitzgerald, Scott Romans, and Tom O'Shaughnessy examine
economic and market conditions, key investment strategies, and the performance
of the Funds. Bill and Scott manage the Nuveen California Municipal Bond Fund,
while Tom manages the Nuveen California Insured Municipal Bond Fund. Bill has
15 years of investment experience with Nuveen Investments, while Scott has 3
years. They began managing Nuveen California Municipal Bond Fund in 1998 and
2003, respectively. Tom, a 20-year Nuveen Investments veteran, began managing
the Nuveen California Insured Municipal Bond Fund in 2003.
What was the general market environment during the six-month reporting period
ended August 31, 2003?
As has been the case for some time, we believe the two greatest influences on
the general economy and the municipal market continued to be historically low
interest rates and the slow pace of economic growth. In June 2003, the Federal
Reserve cut the fed funds rate to 1.0%, its lowest level since 1958. Growth
during the first half of 2003, as measured by the GDP, registered 2.3%, lagging
the 3% pace generally considered indicative of recovery. At the same time,
inflation remained dormant, with the 12-month advance in the core rate dropping
to 1.3% in August. Much of the concern about the economic recovery now centers
on the labor market.
The slow rate of economic recovery, low interest rates, and lack of
inflationary pressures created conditions that helped many municipal bonds
perform well during the early part of the year. However, during July 2003,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets.
During the first eight months of 2003, the municipal market followed up the
record issuance of 2002 with continued strong supply, issuing $254 billion in
new bonds, up 12.5% over the same period in 2002. However, the availability of
new bonds tightened somewhat during the month of August, with volume dropping
31% from August 2002 levels.
During the reporting period, California continued to struggle with significant
budget problems and political uncertainty. On July 29, 2003, nearly a month
into the 2004 fiscal year, the state budget was finally approved, closing a $38
billion deficit. Due to the heavy reliance on borrowing and one-time measures
to balance the fiscal 2004 budget, California is expected to face an additional
$8 billion deficit in fiscal 2005. The govenor recall election added further
uncertainty to California's outlook during the reporting period.
While employment and real estate values remained relatively stable in Southern
California, the San Francisco area continued to be the state's weak spot,
suffering from lingering effects of the technology downturn. Although recent
economic data provided a glimmer of hope for the state's tech-related jobs, the
consensus was that any meaningful improvement in California's employment
market, especially technology, is not expected in 2003.
During the first eight months of 2003, new municipal bond supply in the state
totaled $42 billion, up 56% over the same period in 2002.
The delays in budget approval, the size of the deficit, and the uncertainty
created by the governor recall effort also led to the downgrade of California's
general obligation debt in July as Moody's and S&P lowered the states rating to
A3/BBB, respectively, from A2/A.
The views expressed reflect those of the portfolio managers and are subject to
change at any time, based on market and other conditions.
Semiannual Report l Page 2
How did the Funds perform during the 12 months ended August 31, 2003?
The chart above provides performance information for both of the Funds (Class A
shares at net asset value) for the year ended August 31, 2003. The chart also
compares the Funds' performance to that of their peers, as measured by the
Lipper California Municipal Debt Funds category average and the Lipper
California Insured Municipal Debt Funds category average (Lipper category
averages) and to the corresponding overall California municipal bond market, as
measured by the Lehman Brothers California Municipal Bond Index and the Lehman
Brothers California Insured Municipal Bond Index (Lehman Indexes).
Both Funds outperformed their Lipper category averages but trailed their
corresponding Lehman Indexes. There were two primary reasons for the Funds'
underperformance relative to the Lehman Index. First, the Funds' total returns
reflected the impact of management fees, while the Lehman Index is unmanaged.
Second, the Funds had a
Class A Shares--
One-Year Total Returns as of 8/31/03
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Nuveen California Municipal Bond Fund/1/ 1.58%
Lipper California Municipal Debt Funds
category average/2/ 1.36%
Lehman Brothers California Municipal
Bond Index/3/ 2.00%
----------------------------------------------
Nuveen California Insured Municipal
Bond Fund/1/ 2.23%
Lipper California Insured Municipal Debt
Funds category average/4/ 1.53%
Lehman Brothers California Insured
Municipal Bond Index/5/ 2.65%
- --------------------------------------------------------------------------------
shorter duration than the Lehman Index. During periods of declining interest
rates, such as that experienced during most of this 12-month period,
investments with longer durations generally would be expected to outperform
those with shorter durations, assuming no special circumstances. As of August
31, 2003, the Nuveen California Municipal Bond Fund had a duration of 7.81
compared to 8.91 for its Lehman Index, while the Nuveen California Insured
Municipal Bond Fund had a duration of 7.37 compared to 9.26 for its Lehman
Index.
What strategies were underlying your management of the Funds during the
reporting period?
We strive to identify and invest in attractively valued municipal bonds that,
in our opinion, have above-average return potential. Conducting thorough
research is a very important part of our portfolio management process. In the
end, we are searching for bonds that we believe are priced below their
intrinsic worth, to enable us to manage risk while maximizing return potential
for our shareholders.
Nuveen California Municipal Bond Fund
Over this reporting period, we continued to place strong emphasis on
diversifying the portfolio, improving call protection, and enhancing
dividend-paying capabilities. One of our key strategies focused on managing the
Fund's duration in order to enhance our ability to mitigate interest rate risk
and produce potentially more consistent returns over time. We sought to
increase the Fund's duration as the period went on. Over time, the Fund had
- --------------------------------------------------------------------------------
1Performance figures are for Class A shares at net asset value as of August 31,
2003. Current performance may be more or less than the performance shown.
2Lipper peer group returns represent the average annualized total return of the
120 funds in the Lipper California Municipal Debt Funds category for the 12
months ended August 31, 2003. The returns account for the effects of
management fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges.
3The Lehman Brothers California Municipal Bond Index is composed of a broad
range of California investment-grade municipal bonds and does not reflect any
initial or ongoing expenses. An index is not available for direct investment.
4Lipper peer group returns represent the average annualized total return of the
22 funds in the Lipper California Insured Municipal Debt Funds category for
the 12 months that ended August 31, 2003. The returns account for the effects
of management fees and assume reinvestment of dividends, but do not reflect
any applicable sales charges.
5The Lehman Brothers California Insured Municipal Bond Index is composed of a
broad range of California insured municipal bonds and does not reflect any
initial or ongoing expenses. An index is not available for direct investment.
Semiannual Report l Page 3
become more seasoned and had come to include holdings priced in a shorter part
of the yield curve. Short-term bonds may be less likely to outperform if rates
stay low, though they also are not typically as vulnerable with regard to price
volatility, to a rise in interest rates. However, our efforts to increase
duration stemmed not from a prediction about the future of rates, but from a
desire to add predictability and consistency to future portfolio performance.
Another key strategy centered on selling or purchasing California general
obligation bonds (GOs) to take advantage of general market moves. In early
spring 2003, the yield differential between new California GOs and national AAA
credits with similar maturities had narrowed to 35-40 basis points. We believe
this made California GOs relatively expensive and we largely moved the Fund out
of positions in California GOs. By June 2003, as the budget process stalled and
the governor recall movement gathered strength, spreads had widened, and we
became more aggressive buyers of California GOs. Following the approval of the
fiscal 2004 budget at the end of July 2003, California GOs rallied on a
relative basis. As spreads once again narrowed, we began to lighten our GO
positions by selling at more attractive prices.
Nuveen California Insured Municipal Bond Fund
We had two main areas of concentration during the period: managing the
portfolio's duration and looking to improve its yield characteristics.
Our focus on duration meant attempting to limit its increase. As new money came
into the Fund and required investment, we sought to avoid purchasing securities
on the long end of the yield curve, a move that would have made the portfolio
more sensitive to interest-rate changes. In general, we preferred to buy bonds
on the long-intermediate part of the curve, especially securities due to mature
in approximately 15 to 20 years, because we believed these offered shareholders
the most value.
Our focus on yield meant seeking to take advantage of the rising interest-rate
environment to sustain the Fund's income. When rates rose in July and August,
for example, we looked to do bond swaps, exchanging lower-yielding bonds for
new, higher-yielding bonds.
Semiannual Report l Page 4
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Fund Spotlight as of 8/31/03 Nuveen California Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
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NAV $9.99 $9.98 $9.98 $9.99
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Latest Monthly Dividend/1/ $0.0410 $0.0350 $0.0365 $0.0430
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Latest Capital Gain/2/ $0.0024 $0.0024 $0.0024 $0.0024
--------------------------------------------------------------
Commencement Date 9/07/94 3/07/97 9/19/94 7/01/86
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Average Annual Total Returns as of 8/31/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 1.58% -2.66%
---------------------------------------------
5-Year 3.44 2.56
---------------------------------------------
10-Year 4.52 4.07
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B Shares w/o CDSC w/CDSC
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1-Year 0.81% -3.05%
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5-Year 2.69 2.52
---------------------------------------------
10-Year 3.94 3.94
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C Shares NAV
---------------------------------------------
1-Year 1.05%
---------------------------------------------
5-Year 2.88
---------------------------------------------
10-Year 3.90
---------------------------------------------
R Shares NAV
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1-Year 1.71%
---------------------------------------------
5-Year 3.66
---------------------------------------------
10-Year 4.77
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Market Yield/4/ 4.92% 4.72%
---------------------------------------------
SEC 30-Day Yield 4.58 4.39
---------------------------------------------
Taxable-Equivalent Yield/5/ 6.99 6.70
---------------------------------------------
B Shares NAV
---------------------------------------------
Market Yield/4/ 4.21%
---------------------------------------------
SEC 30-Day Yield 4.04
---------------------------------------------
Taxable-Equivalent Yield/5/ 6.17
---------------------------------------------
C Shares NAV
---------------------------------------------
Market Yield/4/ 4.39%
---------------------------------------------
SEC 30-Day Yield 4.24
---------------------------------------------
Taxable-Equivalent Yield/5/ 6.47
---------------------------------------------
R Shares NAV
---------------------------------------------
Market Yield/4/ 5.17%
---------------------------------------------
SEC 30-Day Yield 4.99
---------------------------------------------
Taxable-Equivalent Yield/5/ 7.62
---------------------------------------------
Average Annual Total Returns as of 9/30/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 2.52% -1.78%
---------------------------------------------
5-Year 3.88 3.00
---------------------------------------------
10-Year 4.71 4.26
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 1.76% -2.15%
---------------------------------------------
5-Year 3.10 2.94
---------------------------------------------
10-Year 4.13 4.13
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 1.99%
---------------------------------------------
5-Year 3.31
---------------------------------------------
10-Year 4.09
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 2.66%
---------------------------------------------
5-Year 4.08
---------------------------------------------
10-Year 4.96
---------------------------------------------
Bond Credit Quality/6/
[CHART]
AAA/U.S. Guaranteed 43%
AA 14
A 12
BBB 15
NR 12
BB or lower 4
Top Five Sectors/6/
Tax Obligation/Limited 21%
--------------------------------------------
Utilities 15
--------------------------------------------
Tax Obligation/General 12
--------------------------------------------
Transportation 10
--------------------------------------------
Water and Sewer 8
--------------------------------------------
Portfolio Statistics
Net Assets ($000) $256,589
--------------------------------------------
Average Effective Maturity (Years) 17.81
--------------------------------------------
Duration 7.81
--------------------------------------------
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Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. Income is generally exempt from
regular federal income taxes. Some income may be subject to state and local
taxes and to the federal alternative minimum tax. Capital gains, if any, are
subject to tax.
1Paid September 2, 2003. This is the latest monthly tax-exempt dividend
declared during the period ended August 31, 2003.
2Paid December 2, 2002. Capital gains and/or ordinary income distributions are
subject to federal taxation.
3Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a contingent
deferred sales charge (CDSC), also known as a back-end sales charge, that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class B shares automatically
convert to Class A shares eight years after purchase. Class C shares have a 1%
CDSC for redemptions within less than one year, which is not reflected in the
one-year total return.
4The Market Yield is an investment's current annualized dividend divided by its
current offering price while the SEC 30-Day Yield is a standardized measure of
a fund's yield that accounts for the future amortization of premiums or
discounts of bonds held in the fund's portfolio.
5The taxable equivalent yield represents the yield that must be earned on a
taxable alternative investment, other than an alternative investment that
generates qualified dividend income that is taxable at the maximum rate of
15%, in order to equal the yield on the Nuveen Investments Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's SEC
30-Day Yield on the indicated date and a combined federal and state income tax
rate of 34.5%
6As a percentage of total holdings as of August 31, 2003. Holdings are subject
to change.
Semiannual Report l Page 5
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Fund Spotlight as of 8/31/03 Nuveen California Insured Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.76 $10.77 $10.70 $10.76
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0400 $0.0330 $0.0345 $0.0415
--------------------------------------------------------------
Latest Capital Gain/2/ $0.0814 $0.0814 $0.0814 $0.0814
--------------------------------------------------------------
Commencement Date 9/07/94 3/07/97 9/13/94 7/01/86
--------------------------------------------------------------
Average Annual Total Returns as of 8/31/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 2.23% -2.10%
---------------------------------------------
5-Year 4.40 3.51
---------------------------------------------
10-Year 4.97 4.52
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 1.36% -2.52%
---------------------------------------------
5-Year 3.61 3.44
---------------------------------------------
10-Year 4.35 4.35
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 1.73%
---------------------------------------------
5-Year 3.83
---------------------------------------------
10-Year 4.28
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 2.40%
---------------------------------------------
5-Year 4.62
---------------------------------------------
10-Year 5.18
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Market Yield/4/ 4.46% 4.27%
---------------------------------------------
SEC 30-Day Yield 3.71 3.55
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.66 5.42
---------------------------------------------
B Shares NAV
---------------------------------------------
Market Yield/4/ 3.68%
---------------------------------------------
SEC 30-Day Yield 3.13
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.78
---------------------------------------------
C Shares NAV
---------------------------------------------
Market Yield/4/ 3.87%
---------------------------------------------
SEC 30-Day Yield 3.32
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.07
---------------------------------------------
R Shares NAV
---------------------------------------------
Market Yield/4/ 4.63%
---------------------------------------------
SEC 30-Day Yield 4.07
---------------------------------------------
Taxable-Equivalent Yield/5/ 6.21
---------------------------------------------
Average Annual Total Returns as of 9/30/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 2.02% -2.28%
---------------------------------------------
5-Year 4.69 3.80
---------------------------------------------
10-Year 5.12 4.67
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 1.25% -2.63%
---------------------------------------------
5-Year 3.89 3.73
---------------------------------------------
10-Year 4.50 4.50
---------------------------------------------
C Shares NAV
1-Year 1.43%
---------------------------------------------
5-Year 4.10
---------------------------------------------
10-Year 4.43
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 2.28%
---------------------------------------------
5-Year 4.91
---------------------------------------------
10-Year 5.33
---------------------------------------------
Bond Credit Quality/6/
[CHART]
Insured 93%
Insured/U.S. Guaranteed 7
The Fund features a portfolio of primarily investment-grade, long-term
municipal securities. These securities are covered by insurance, guaranteeing
the timely payment of principal and interest, or by an escrow or trust account
containing enough U.S. government or U.S. government agency securities to
ensure timely payment of principal and interest.
Top Five Sectors/6/
Tax Obligation/General 19%
-------------------------------------------
Tax Obligation/Limited 19
-------------------------------------------
Housing/Single Family 11
-------------------------------------------
Water and Sewer 11
-------------------------------------------
Housing/Multifamily 10
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $261,242
-------------------------------------------
Average Effective Maturity (Years) 22.47
-------------------------------------------
Duration 7.37
-------------------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. Income is generally exempt from
regular federal income taxes. Some income may be subject to state and local
taxes and to the federal alternative minimum tax. Capital gains, if any, are
subject to tax.
1Paid September 2, 2003. This is the latest monthly tax-exempt dividend
declared during the period ended August 31, 2003.
2Paid December 2, 2002. Capital gains and/or ordinary income distributions are
subject to federal taxation.
3Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a contingent
deferred sales charge (CDSC), also known as a back-end sales charge, that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class B shares automatically
convert to Class A shares eight years after purchase. Class C shares have a 1%
CDSC for redemptions within less than one year, which is not reflected in the
one-year total return.
4The Market Yield is an investment's current annualized dividend divided by its
current offering price while the SEC 30-Day Yield is a standardized measure of
a fund's yield that accounts for the future amortization of premiums or
discounts of bonds held in the fund's portfolio.
5The taxable equivalent yield represents the yield that must be earned on a
taxable alternative investment, other than an alternative investment that
generates qualified income that is taxable at the maximum rate of 15%, in
order to equal the yield on the Nuveen Investments Fund on an after-tax basis.
The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the
indicated date and a combined federal and state income tax rate 34.5%.
6As a percentage of total holdings as of August 31, 2003. Holdings are subject
to change.
Semiannual Report l Page 6
Shareholder
Meeting Report
The annual shareholder meeting was held on July 28, 2003, at the Northern Trust
Bank, Chicago, Illinois.
- -----------------------------------------------------------------------------------------------------
Nuveen
Nuveen California
California Insured
Municipal Municipal
Bond Bond
Approval of the Board Members was reached as follows: Fund Fund
- -----------------------------------------------------------------------------------------------------
William E. Bennett
For 16,569,281 15,447,845
Withhold 461,116 452,296
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
Robert P. Bremner
For 16,580,725 15,470,665
Withhold 449,672 429,476
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 16,581,188 15,466,671
Withhold 449,209 433,470
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
Jack B. Evans
For 16,577,562 15,470,385
Withhold 452,835 429,756
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 16,654,414 15,472,312
Withhold 375,983 427,829
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
William L. Kissick
For 16,574,522 15,471,846
Withhold 455,875 428,295
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
Thomas E. Leafstrand
For 16,573,645 15,472,126
Withhold 456,752 428,015
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
Peter R. Sawers
For 16,574,735 15,472,126
Withhold 455,662 428,015
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
William J. Schneider
For 16,571,639 15,468,219
Withhold 458,758 431,922
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
- ----
7
- -----------------------------------------------------------------------------------------------------
Nuveen
Nuveen California
California Insured
Municipal Municipal
Bond Bond
Approval of the Board Members was reached as follows: Fund Fund
- -----------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For 16,570,541 15,469,399
Withhold 459,856 430,742
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 16,642,866 15,472,502
Withhold 387,531 427,639
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
Sheila W. Wellington
For 16,661,154 15,464,665
Withhold 369,243 435,476
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 15,900,141
- -----------------------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction with respect to
lending*
For 12,108,921 11,864,686
Against 592,874 702,252
Abstain 1,205,125 1,225,324
Broker Non-Vote 3,123,477 3,206,786
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 16,999,048
- -----------------------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction with respect to
borrowing*
For 12,012,724 11,659,872
Against 698,419 717,743
Abstain 1,195,777 1,414,647
Broker Non-Vote 3,123,477 3,206,786
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 16,999,048
- -----------------------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction with respect to
investing in municipal securities*
For 11,895,198 11,643,164
Against 806,661 810,910
Abstain 1,205,061 1,338,188
Broker Non-Vote 3,123,477 3,206,786
- -----------------------------------------------------------------------------------------------------
Total 17,030,397 16,999,048
- -----------------------------------------------------------------------------------------------------
* For Nuveen California Municipal Bond Fund, the shareholder meeting convened
on July 28, 2003 with respect to the proposals to amend the fundamental
policies concerning lending, borrowing and investing up to 5% of the Fund's
assets in certain non-municipal securities. At that meeting, sufficient
votes were received on all three proposals and all three proposals passed.
The vote totals shown reflect the totals received as of July 28, 2003. For
the Nuveen California Insured Municipal Bond Fund, the shareholder meeting
convened on July 28, 2003, but was adjourned to September 10, 2003 with
respect to the same three proposals described above. At the September 10,
2003 reconvened meeting, sufficient votes were received on all three
proposals and all three proposals passed. The vote totals shown reflect the
totals received as of September 10, 2003.
- ----
8
Portfolio of Investments (Unaudited)
NUVEEN CALIFORNIA MUNICIPAL BOND FUND
August 31, 2003
Principal
Amount (000) Description
- -----------------------------------------------------------------------------------------------------------------------
Consumer Staples - 2.6%
$ 3,500 California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda
County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
5,000 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds,
Series 2003A-1, 6.250%, 6/01/33
- -----------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 3.5%
960 California Educational Facilities Authority, Pooled College and University Projects Revenue Bonds,
Series 1997B, Southern California College of Optometry, 6.300%, 4/01/21
1,500 California Statewide Community Development Authority, Certificates of Participation, San Diego Space
and Science Foundation, Series 1996, 7.500%, 12/01/26
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
4,335 University of California - Los Angeles, Refunding Certificates of Participation, Central Chiller/
Cogeneration Facility, Series 1993, 6.000%, 11/01/21 (Pre-refunded to 11/01/03)
1,000 University of California, Certificates of Participation, San Diego and Sacramento Campus Projects,
Series 2002A, 5.250%, 1/01/22
- -----------------------------------------------------------------------------------------------------------------------
Healthcare - 6.7%
6,000 California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center,
Series 1999A, 6.125%, 12/01/30
3,635 California Health Facilities Financing Authority, Insured Health Facility Revenue Bonds, Small Facilities
Pooled Loan Program, 1994 Series B, 7.500%, 4/01/22
3,370 California Health Facilities Financing Authority, Hospital Revenue Bonds, Downey Community Hospital,
Series 1993, 5.750%, 5/15/15
1,735 Central California Joint Powers Health Financing Authority, Certificates of Participation, Community
Hospitals of Central California, Series 1993, 5.000%, 2/01/23
2,475 Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center Project,
Series 1993A, 6.000%, 12/01/06
- -----------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.1%
8,400 ABAG Finance Authority for Nonprofit Corporations, California, Multifamily Housing Revenue
Refunding Bonds, United Dominion/2000 Post Apartments, 2000 Series B, 6.250%, 8/15/30
(Mandatory put 8/15/08)
2,905 California Statewide Communities Development Authority, Multifamily Housing Revenue Bonds, Monte
Vista Terrace, Senior Lien, Series 1996A, 6.375%, 9/01/20
3,455 Los Angeles Community Redevelopment Agency, California, Multifamily Housing Revenue Refunding
Bonds, Angelus Plaza Project, Series 1995A, 7.400%, 6/15/10
2,080 City of Salinas, California, Housing Facility Refunding Revenue Bonds, Series 1994A, GNMA
Collateralized - Villa Serra Project, 6.500%, 7/20/17
470 Housing Authority of the County of Santa Cruz, California, Multifamily Housing Refunding Revenue
Bonds, Series 1990A, FNMA Collateralized, 7.750%, 7/01/23
- -----------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.7%
1,030 California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds, Mortgage-
Backed Securities Program, 1997 Series A, 7.000%, 9/01/29 (Alternative Minimum Tax)
7,815 Department of Veterans Affairs of the State of California, Home Purchase Revenue Bonds,
2000 Series C, 6.150%, 12/01/27
1,950 County of San Bernardino, California, Single Family Home Mortgage Revenue Bonds, Mortgage-Backed
Securities Program, 1997 Series A, 0.000%, 5/01/31 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.7%
5,500 ABAG Finance Authority for Non-Profit Corporations, California, Certificates of Participation, American
Baptist Homes of the West Facilities Project, Series 1997A, 5.850%, 10/01/27
Optional Call
Description Provisions*
- --------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 2.6%
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda 6/12 at 100.00
County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, 6/13 at 100.00
Series 2003A-1, 6.250%, 6/01/33
- --------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 3.5%
California Educational Facilities Authority, Pooled College and University Projects Revenue Bonds, 4/07 at 102.00
Series 1997B, Southern California College of Optometry, 6.300%, 4/01/21
California Statewide Community Development Authority, Certificates of Participation, San Diego Space 12/06 at 105.00
and Science Foundation, Series 1996, 7.500%, 12/01/26
Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach 11/11 at 101.00
Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California - Los Angeles, Refunding Certificates of Participation, Central Chiller/ 11/03 at 102.00
Cogeneration Facility, Series 1993, 6.000%, 11/01/21 (Pre-refunded to 11/01/03)
University of California, Certificates of Participation, San Diego and Sacramento Campus Projects, 1/10 at 101.00
Series 2002A, 5.250%, 1/01/22
- --------------------------------------------------------------------------------------------------------------------------
Healthcare - 6.7%
California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center, 12/09 at 101.00
Series 1999A, 6.125%, 12/01/30
California Health Facilities Financing Authority, Insured Health Facility Revenue Bonds, Small Facilities 4/05 at 102.00
Pooled Loan Program, 1994 Series B, 7.500%, 4/01/22
California Health Facilities Financing Authority, Hospital Revenue Bonds, Downey Community Hospital, 11/03 at 102.00
Series 1993, 5.750%, 5/15/15
Central California Joint Powers Health Financing Authority, Certificates of Participation, Community 2/04 at 100.00
Hospitals of Central California, Series 1993, 5.000%, 2/01/23
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center Project, 12/03 at 102.00
Series 1993A, 6.000%, 12/01/06
- --------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.1%
ABAG Finance Authority for Nonprofit Corporations, California, Multifamily Housing Revenue No Opt. Call
Refunding Bonds, United Dominion/2000 Post Apartments, 2000 Series B, 6.250%, 8/15/30
(Mandatory put 8/15/08)
California Statewide Communities Development Authority, Multifamily Housing Revenue Bonds, Monte 6/06 at 100.00
Vista Terrace, Senior Lien, Series 1996A, 6.375%, 9/01/20
Los Angeles Community Redevelopment Agency, California, Multifamily Housing Revenue Refunding 6/05 at 105.00
Bonds, Angelus Plaza Project, Series 1995A, 7.400%, 6/15/10
City of Salinas, California, Housing Facility Refunding Revenue Bonds, Series 1994A, GNMA 7/04 at 102.00
Collateralized - Villa Serra Project, 6.500%, 7/20/17
Housing Authority of the County of Santa Cruz, California, Multifamily Housing Refunding Revenue 1/04 at 100.00
Bonds, Series 1990A, FNMA Collateralized, 7.750%, 7/01/23
- --------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.7%
California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds, Mortgage- No Opt. Call
Backed Securities Program, 1997 Series A, 7.000%, 9/01/29 (Alternative Minimum Tax)
Department of Veterans Affairs of the State of California, Home Purchase Revenue Bonds, 6/05 at 101.00
2000 Series C, 6.150%, 12/01/27
County of San Bernardino, California, Single Family Home Mortgage Revenue Bonds, Mortgage-Backed 5/07 at 22.57
Securities Program, 1997 Series A, 0.000%, 5/01/31 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.7%
ABAG Finance Authority for Non-Profit Corporations, California, Certificates of Participation, American 10/07 at 102.00
Baptist Homes of the West Facilities Project, Series 1997A, 5.850%, 10/01/27
Market
Description Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 2.6%
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda Baa2 $2,665,635
County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, BBB 4,042,300
Series 2003A-1, 6.250%, 6/01/33
- ------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 3.5%
California Educational Facilities Authority, Pooled College and University Projects Revenue Bonds, Baa2 1,010,957
Series 1997B, Southern California College of Optometry, 6.300%, 4/01/21
California Statewide Community Development Authority, Certificates of Participation, San Diego Space N/R 1,489,305
and Science Foundation, Series 1996, 7.500%, 12/01/26
Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach AAA 1,008,250
Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California - Los Angeles, Refunding Certificates of Participation, Central Chiller/ Aa2 4,459,111
Cogeneration Facility, Series 1993, 6.000%, 11/01/21 (Pre-refunded to 11/01/03)
University of California, Certificates of Participation, San Diego and Sacramento Campus Projects, Aa2 1,017,150
Series 2002A, 5.250%, 1/01/22
- ------------------------------------------------------------------------------------------------------------------------------
Healthcare - 6.7%
California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center, A3 6,314,640
Series 1999A, 6.125%, 12/01/30
California Health Facilities Financing Authority, Insured Health Facility Revenue Bonds, Small Facilities BBB 3,948,991
Pooled Loan Program, 1994 Series B, 7.500%, 4/01/22
California Health Facilities Financing Authority, Hospital Revenue Bonds, Downey Community Hospital, BB+ 2,934,225
Series 1993, 5.750%, 5/15/15
Central California Joint Powers Health Financing Authority, Certificates of Participation, Community Baa2 1,581,036
Hospitals of Central California, Series 1993, 5.000%, 2/01/23
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center Project, BB 2,429,708
Series 1993A, 6.000%, 12/01/06
- ------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.1%
ABAG Finance Authority for Nonprofit Corporations, California, Multifamily Housing Revenue BBB- 8,901,060
Refunding Bonds, United Dominion/2000 Post Apartments, 2000 Series B, 6.250%, 8/15/30
(Mandatory put 8/15/08)
California Statewide Communities Development Authority, Multifamily Housing Revenue Bonds, Monte AAA 2,977,073
Vista Terrace, Senior Lien, Series 1996A, 6.375%, 9/01/20
Los Angeles Community Redevelopment Agency, California, Multifamily Housing Revenue Refunding AAA 3,701,100
Bonds, Angelus Plaza Project, Series 1995A, 7.400%, 6/15/10
City of Salinas, California, Housing Facility Refunding Revenue Bonds, Series 1994A, GNMA AAA 2,143,690
Collateralized - Villa Serra Project, 6.500%, 7/20/17
Housing Authority of the County of Santa Cruz, California, Multifamily Housing Refunding Revenue AAA 470,780
Bonds, Series 1990A, FNMA Collateralized, 7.750%, 7/01/23
- ------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.7%
California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds, Mortgage- AAA 1,063,794
Backed Securities Program, 1997 Series A, 7.000%, 9/01/29 (Alternative Minimum Tax)
Department of Veterans Affairs of the State of California, Home Purchase Revenue Bonds, Aa2 7,997,090
2000 Series C, 6.150%, 12/01/27
County of San Bernardino, California, Single Family Home Mortgage Revenue Bonds, Mortgage-Backed AAA 351,917
Securities Program, 1997 Series A, 0.000%, 5/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.7%
ABAG Finance Authority for Non-Profit Corporations, California, Certificates of Participation, American BB+ 4,945,105
Baptist Homes of the West Facilities Project, Series 1997A, 5.850%, 10/01/27
- ----
9
Portfolio of Investments (Unaudited)
NUVEEN CALIFORNIA MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal
Amount (000) Description
- ----------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
$ 2,500 California Statewide Communities Development Authority, Certificates of Participation, Solheim
Lutheran Home, 6.500%, 11/01/17
2,000 Chico Redevelopment Agency, California, Insured Certificates of Participation, Sierra Sunrise Lodge,
Series 1991A, Walker Senior Housing Corporation VII, 6.750%, 2/01/21
- ----------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 11.3%
8,500 State of California, Various Purpose General Obligation Bonds, 5.750%, 3/01/27 - MBIA Insured
3,335 State of California, General Obligation Bonds, Derivative Tax Exempt Receipts, Series 245,
13.530%, 2/01/15 (IF)
1,250 State of California, General Obligation Bonds, Series 2003, 5.250%, 2/01/15
6,000 Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds,
Series 2003A, 5.000%, 7/01/22 - FSA Insured
4,000 Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds,
Series 2003F, 4.750%, 7/01/24 - FGIC Insured
2,000 San Diego Unified School District, California, General Obligation Bonds, Election of 1998, Series 2000B,
5.125%, 7/01/22 - MBIA Insured
2,000 West Contra Costa Unified School District, Contra Costa County, California, General Obligation Bonds,
Series 2003B, 5.000%, 8/01/20 - FSA Insured
- ----------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 20.0%
1,000 City of Brea Community Facilities District No. 1997-1, California, 1998 Special Tax Bonds, Olinda
Heights Public Improvements, 5.875%, 9/01/28
1,400 Dinuba Financing Authority, California, Lease Revenue Refunding Bonds, Public Works Issue 2002,
5.100%, 8/01/32 - MBIA Insured
2,000 La Mirada Redevelopment Agency, California, Community Facilities District No. 89-1, 1998 Refunding
Special Tax Bonds, Tax Increment Contribution, Civic Theatre Project, 5.700%, 10/01/20
6,170 City of Milpitas, Santa Clara County, California, Limited Obligation Improvement Bonds, Local
Improvement District No. 20, 1998 Series A, 5.700%, 9/02/18
1,040 County of Nevada, California, Certificates of Participation, Series 2001 Refunding,
5.250%, 10/01/13 - MBIA Insured
5,000 Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District
Redevelopment Project, Series 2003, 5.500%, 9/01/15 - FGIC Insured
805 City of Ontario, San Bernardino County, California, Limited Obligation Improvement Bonds, Assessment
District No. 100C, California Commerce Center Phase III, 8.000%, 9/02/11
2,250 County of Orange, California, Special Tax Bonds, Community Facilities District No. 99-1 - Ladera Ranch,
Series 1999A, 6.700%, 8/15/29
2,000 Poway Community Facilities District 88-1, California, Special Tax Refunding Bonds, Parkway Business
Centre, Series 1998, 6.750%, 8/15/15
1,645 City of Rancho, California, Limited Obligation Improvement Bonds, Cucamoga Assessment District
No. 93-1 - Masi Plaza, 6.250%, 9/02/22
2,000 Riverside County, California, Mobile Home Park Revenue Bonds, Bravo Mobile Home Park Project,
Series 1999A, 5.900%, 3/20/29
1,000 Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A,
5.400%, 11/01/20 - AMBAC Insured
500 Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B,
5.400%, 11/01/20
995 County of Sacramento, California, Improvement Area No. 1 Special Tax Refunding Bonds, Laguna Creek
Ranch/Elliott Ranch Community Facilities District No. 1, 5.700%, 12/01/20
2,000 San Dimas Housing Authority, California, Mobile Home Park Revenue Bonds, Charter Oak Mobile Home
Estates Acquisition Project, Series 1998A, 5.700%, 7/01/28
Optional Call
Description Provisions*
- -------------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
California Statewide Communities Development Authority, Certificates of Participation, Solheim 11/04 at 102.00
Lutheran Home, 6.500%, 11/01/17
Chico Redevelopment Agency, California, Insured Certificates of Participation, Sierra Sunrise Lodge, 2/04 at 100.00
Series 1991A, Walker Senior Housing Corporation VII, 6.750%, 2/01/21
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 11.3%
State of California, Various Purpose General Obligation Bonds, 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00
State of California, General Obligation Bonds, Derivative Tax Exempt Receipts, Series 245, No Opt. Call
13.530%, 2/01/15 (IF)
State of California, General Obligation Bonds, Series 2003, 5.250%, 2/01/15 8/13 at 100.00
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, 7/13 at 100.00
Series 2003A, 5.000%, 7/01/22 - FSA Insured
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, 7/13 at 100.00
Series 2003F, 4.750%, 7/01/24 - FGIC Insured
San Diego Unified School District, California, General Obligation Bonds, Election of 1998, Series 2000B, 7/10 at 100.00
5.125%, 7/01/22 - MBIA Insured
West Contra Costa Unified School District, Contra Costa County, California, General Obligation Bonds, 8/11 at 101.00
Series 2003B, 5.000%, 8/01/20 - FSA Insured
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 20.0%
City of Brea Community Facilities District No. 1997-1, California, 1998 Special Tax Bonds, Olinda 3/06 at 102.00
Heights Public Improvements, 5.875%, 9/01/28
Dinuba Financing Authority, California, Lease Revenue Refunding Bonds, Public Works Issue 2002, 8/12 at 102.00
5.100%, 8/01/32 - MBIA Insured
La Mirada Redevelopment Agency, California, Community Facilities District No. 89-1, 1998 Refunding 10/08 at 102.00
Special Tax Bonds, Tax Increment Contribution, Civic Theatre Project, 5.700%, 10/01/20
City of Milpitas, Santa Clara County, California, Limited Obligation Improvement Bonds, Local 9/03 at 103.00
Improvement District No. 20, 1998 Series A, 5.700%, 9/02/18
County of Nevada, California, Certificates of Participation, Series 2001 Refunding, 10/11 at 100.00
5.250%, 10/01/13 - MBIA Insured
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District 3/13 at 100.00
Redevelopment Project, Series 2003, 5.500%, 9/01/15 - FGIC Insured
City of Ontario, San Bernardino County, California, Limited Obligation Improvement Bonds, Assessment 9/03 at 103.00
District No. 100C, California Commerce Center Phase III, 8.000%, 9/02/11
County of Orange, California, Special Tax Bonds, Community Facilities District No. 99-1 - Ladera Ranch, 8/09 at 102.00
Series 1999A, 6.700%, 8/15/29
Poway Community Facilities District 88-1, California, Special Tax Refunding Bonds, Parkway Business 8/08 at 102.00
Centre, Series 1998, 6.750%, 8/15/15
City of Rancho, California, Limited Obligation Improvement Bonds, Cucamoga Assessment District 9/03 at 103.00
No. 93-1 - Masi Plaza, 6.250%, 9/02/22
Riverside County, California, Mobile Home Park Revenue Bonds, Bravo Mobile Home Park Project, 3/09 at 102.00
Series 1999A, 5.900%, 3/20/29
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, No Opt. Call
5.400%, 11/01/20 - AMBAC Insured
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, No Opt. Call
5.400%, 11/01/20
County of Sacramento, California, Improvement Area No. 1 Special Tax Refunding Bonds, Laguna Creek 12/07 at 102.00
Ranch/Elliott Ranch Community Facilities District No. 1, 5.700%, 12/01/20
San Dimas Housing Authority, California, Mobile Home Park Revenue Bonds, Charter Oak Mobile Home 7/08 at 102.00
Estates Acquisition Project, Series 1998A, 5.700%, 7/01/28
Market
Description Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
California Statewide Communities Development Authority, Certificates of Participation, Solheim BBB $2,664,775
Lutheran Home, 6.500%, 11/01/17
Chico Redevelopment Agency, California, Insured Certificates of Participation, Sierra Sunrise Lodge, BBB 2,007,320
Series 1991A, Walker Senior Housing Corporation VII, 6.750%, 2/01/21
- -----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 11.3%
State of California, Various Purpose General Obligation Bonds, 5.750%, 3/01/27 - MBIA Insured AAA 8,951,860
State of California, General Obligation Bonds, Derivative Tax Exempt Receipts, Series 245, AAA 4,813,139
13.530%, 2/01/15 (IF)
State of California, General Obligation Bonds, Series 2003, 5.250%, 2/01/15 A3 1,307,500
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, AAA 6,034,380
Series 2003A, 5.000%, 7/01/22 - FSA Insured
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, AAA 3,823,800
Series 2003F, 4.750%, 7/01/24 - FGIC Insured
San Diego Unified School District, California, General Obligation Bonds, Election of 1998, Series 2000B, AAA 2,022,860
5.125%, 7/01/22 - MBIA Insured
West Contra Costa Unified School District, Contra Costa County, California, General Obligation Bonds, AAA 2,035,220
Series 2003B, 5.000%, 8/01/20 - FSA Insured
- -----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 20.0%
City of Brea Community Facilities District No. 1997-1, California, 1998 Special Tax Bonds, Olinda N/R 979,480
Heights Public Improvements, 5.875%, 9/01/28
Dinuba Financing Authority, California, Lease Revenue Refunding Bonds, Public Works Issue 2002, AAA 1,397,214
5.100%, 8/01/32 - MBIA Insured
La Mirada Redevelopment Agency, California, Community Facilities District No. 89-1, 1998 Refunding N/R 1,970,080
Special Tax Bonds, Tax Increment Contribution, Civic Theatre Project, 5.700%, 10/01/20
City of Milpitas, Santa Clara County, California, Limited Obligation Improvement Bonds, Local N/R 6,251,444
Improvement District No. 20, 1998 Series A, 5.700%, 9/02/18
County of Nevada, California, Certificates of Participation, Series 2001 Refunding, Aaa 1,121,442
5.250%, 10/01/13 - MBIA Insured
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District AAA 5,507,150
Redevelopment Project, Series 2003, 5.500%, 9/01/15 - FGIC Insured
City of Ontario, San Bernardino County, California, Limited Obligation Improvement Bonds, Assessment N/R 841,499
District No. 100C, California Commerce Center Phase III, 8.000%, 9/02/11
County of Orange, California, Special Tax Bonds, Community Facilities District No. 99-1 - Ladera Ranch, N/R 2,401,965
Series 1999A, 6.700%, 8/15/29
Poway Community Facilities District 88-1, California, Special Tax Refunding Bonds, Parkway Business N/R 2,149,500
Centre, Series 1998, 6.750%, 8/15/15
City of Rancho, California, Limited Obligation Improvement Bonds, Cucamoga Assessment District N/R 1,678,361
No. 93-1 - Masi Plaza, 6.250%, 9/02/22
Riverside County, California, Mobile Home Park Revenue Bonds, Bravo Mobile Home Park Project, N/R 1,787,540
Series 1999A, 5.900%, 3/20/29
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, AAA 1,082,410
5.400%, 11/01/20 - AMBAC Insured
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, AA- 533,515
5.400%, 11/01/20
County of Sacramento, California, Improvement Area No. 1 Special Tax Refunding Bonds, Laguna Creek N/R 979,985
Ranch/Elliott Ranch Community Facilities District No. 1, 5.700%, 12/01/20
San Dimas Housing Authority, California, Mobile Home Park Revenue Bonds, Charter Oak Mobile Home N/R 1,869,120
Estates Acquisition Project, Series 1998A, 5.700%, 7/01/28
- ----
10
Principal
Amount (000) Description
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 7,090 Redevelopment Agency of the City of San Marcos, California, Tax Allocation Bonds, 1997 Affordable
Housing Project, Series 1977A, 6.000%, 10/01/27 (Alternative Minimum Tax)
3,200 Seal Beach Redevelopment Agency, California, Mobile Home Park Revenue Bonds, Series 2000A,
5.750%, 12/15/35 - ACA Insured
4,000 Shafter Joint Powers Financing Authority, California, Lease Revenue Bonds, Community Correctional
Facility Acquisition Project, Series 1997A, 6.050%, 1/01/17
2,555 City of Stockton, California, Limited Obligation Refunding Improvement Bonds, Weber/Sperry Ranches
Assessment District, Series 22, 5.650%, 9/02/13
2,000 Taft Public Financing Authority, California, Lease Revenue Bonds, 1997 Series A, Community
Correctional Facility Acquisition Project, 6.050%, 1/01/17
1,500 Vallejo Public Financing Authority, California, 1998 Limited Obligation Revenue Bonds, Fairgrounds
Drive Assessment District Refinancing, 5.700%, 9/02/11
- --------------------------------------------------------------------------------------------------------------------
Transportation - 10.1%
3,000 Bay Area Toll Authority, California, San Francisco Bay Area Toll Bridge Revenue Bonds, Series 2001D,
5.000%, 4/01/16
4,460 California Infrastructure and Economic Development Bank, Bay Area Toll Bridges Revenue Bonds, First
Lien, Series 2003A, 5.000%, 7/01/22 - FSA Insured
2,000 Foothill-Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A,
5.000%, 1/01/35
2,750 Foothill-Eastern Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds,
Series 1999, 0.000%, 1/15/28
Port of Oakland, California, Revenue Bonds, Series 2000K:
2,000 5.500%, 11/01/09 (Alternative Minimum Tax) - FGIC Insured
4,000 5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
5,500 Port of Oakland, California, Revenue Bonds, Series 2002M, 5.250%, 11/01/19 - FGIC Insured
2,475 San Francisco City and County Airports Commission, California, Revenue Refunding Bonds, San
Francisco International Airport, Second Series, Issue 28B, 5.250%, 5/01/22 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 5.6%
3,115 California Educational Facilities Authority, Revenue Bonds, Pooled College and University Projects,
Series 2000C, 6.750%, 6/01/30
2,505 Harbor Department of the City of Los Angeles, California, Revenue Bonds, Issue 1988, 7.600%, 10/01/18
6,225 Merced Irrigation District, California, Subordinated Revenue Certificates of Participation, Electric
System Project, Series 2000, 7.450%, 3/01/18 (Pre-refunded to 3/01/08)
- --------------------------------------------------------------------------------------------------------------------
Utilities - 15.0%
1,429 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, CanFibre of
Riverside Project, Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)#
4,500 California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%, 5/01/18
6,420 California Department of Water Resources, Power Supply Revenue Bonds, RITES PA-1120R,
Series 2003, 13.950%, 5/01/14 (IF) - AMBAC Insured
3,000 California Statewide Community Development Authority, Refunding Certificates of Participation,
Rio Bravo Fresno Project, Series 1999A, 6.300%, 12/01/18
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2001A-1:
5,000 5.250%, 7/01/15
10,000 5.250%, 7/01/21 - FSA Insured
3,405 Merced Irrigation District, California, Revenue Refunding Bonds, Electric System Project, Series 2001,
6.850%, 9/01/36
3,500 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing
Authority, Cogeneration Facility Revenue Bonds, 2000 Series A, 6.625%, 6/01/26 (Alternative
Minimum Tax)
Optional Call
Description Provisions* Ratings**
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
Redevelopment Agency of the City of San Marcos, California, Tax Allocation Bonds, 1997 Affordable 10/07 at 102.00 A
Housing Project, Series 1977A, 6.000%, 10/01/27 (Alternative Minimum Tax)
Seal Beach Redevelopment Agency, California, Mobile Home Park Revenue Bonds, Series 2000A, 12/11 at 102.00 A
5.750%, 12/15/35 - ACA Insured
Shafter Joint Powers Financing Authority, California, Lease Revenue Bonds, Community Correctional 1/07 at 101.00 A3
Facility Acquisition Project, Series 1997A, 6.050%, 1/01/17
City of Stockton, California, Limited Obligation Refunding Improvement Bonds, Weber/Sperry Ranches No Opt. Call N/R
Assessment District, Series 22, 5.650%, 9/02/13
Taft Public Financing Authority, California, Lease Revenue Bonds, 1997 Series A, Community 1/07 at 101.00 A3
Correctional Facility Acquisition Project, 6.050%, 1/01/17
Vallejo Public Financing Authority, California, 1998 Limited Obligation Revenue Bonds, Fairgrounds No Opt. Call N/R
Drive Assessment District Refinancing, 5.700%, 9/02/11
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation - 10.1%
Bay Area Toll Authority, California, San Francisco Bay Area Toll Bridge Revenue Bonds, Series 2001D, 4/11 at 100.00 AA
5.000%, 4/01/16
California Infrastructure and Economic Development Bank, Bay Area Toll Bridges Revenue Bonds, First 7/13 at 100.00 AAA
Lien, Series 2003A, 5.000%, 7/01/22 - FSA Insured
Foothill-Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 1/10 at 100.00 BBB-
5.000%, 1/01/35
Foothill-Eastern Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds, 1/14 at 101.00 BBB-
Series 1999, 0.000%, 1/15/28
Port of Oakland, California, Revenue Bonds, Series 2000K:
5.500%, 11/01/09 (Alternative Minimum Tax) - FGIC Insured No Opt. Call AAA
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured 5/10 at 100.00 AAA
Port of Oakland, California, Revenue Bonds, Series 2002M, 5.250%, 11/01/19 - FGIC Insured 11/12 at 100.00 AAA
San Francisco City and County Airports Commission, California, Revenue Refunding Bonds, San 5/12 at 100.00 AAA
Francisco International Airport, Second Series, Issue 28B, 5.250%, 5/01/22 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 5.6%
California Educational Facilities Authority, Revenue Bonds, Pooled College and University Projects, 6/10 at 101.00 Baa3***
Series 2000C, 6.750%, 6/01/30
Harbor Department of the City of Los Angeles, California, Revenue Bonds, Issue 1988, 7.600%, 10/01/18 No Opt. Call AAA
Merced Irrigation District, California, Subordinated Revenue Certificates of Participation, Electric 3/08 at 102.00 AAA
System Project, Series 2000, 7.450%, 3/01/18 (Pre-refunded to 3/01/08)
- ---------------------------------------------------------------------------------------------------------------------------------
Utilities - 15.0%
California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, CanFibre of 7/07 at 102.00 N/R
Riverside Project, Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)#
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%, 5/01/18 5/12 at 101.00 A3
California Department of Water Resources, Power Supply Revenue Bonds, RITES PA-1120R, 5/12 at 101.00 AAA
Series 2003, 13.950%, 5/01/14 (IF) - AMBAC Insured
California Statewide Community Development Authority, Refunding Certificates of Participation, 12/04 at 102.00 N/R
Rio Bravo Fresno Project, Series 1999A, 6.300%, 12/01/18
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2001A-1:
5.250%, 7/01/15 7/11 at 100.00 AA-
5.250%, 7/01/21 - FSA Insured 7/11 at 100.00 AAA
Merced Irrigation District, California, Revenue Refunding Bonds, Electric System Project, Series 2001, 9/05 at 102.00 Baa3
6.850%, 9/01/36
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing 6/10 at 101.00 Baa2
Authority, Cogeneration Facility Revenue Bonds, 2000 Series A, 6.625%, 6/01/26 (Alternative
Minimum Tax)
Market
Description Value
- ------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
Redevelopment Agency of the City of San Marcos, California, Tax Allocation Bonds, 1997 Affordable $ 7,383,172
Housing Project, Series 1977A, 6.000%, 10/01/27 (Alternative Minimum Tax)
Seal Beach Redevelopment Agency, California, Mobile Home Park Revenue Bonds, Series 2000A, 3,252,128
5.750%, 12/15/35 - ACA Insured
Shafter Joint Powers Financing Authority, California, Lease Revenue Bonds, Community Correctional 4,173,560
Facility Acquisition Project, Series 1997A, 6.050%, 1/01/17
City of Stockton, California, Limited Obligation Refunding Improvement Bonds, Weber/Sperry Ranches 2,629,555
Assessment District, Series 22, 5.650%, 9/02/13
Taft Public Financing Authority, California, Lease Revenue Bonds, 1997 Series A, Community 2,086,780
Correctional Facility Acquisition Project, 6.050%, 1/01/17
Vallejo Public Financing Authority, California, 1998 Limited Obligation Revenue Bonds, Fairgrounds 1,520,670
Drive Assessment District Refinancing, 5.700%, 9/02/11
- ------------------------------------------------------------------------------------------------------------------
Transportation - 10.1%
Bay Area Toll Authority, California, San Francisco Bay Area Toll Bridge Revenue Bonds, Series 2001D, 3,123,780
5.000%, 4/01/16
California Infrastructure and Economic Development Bank, Bay Area Toll Bridges Revenue Bonds, First 4,485,556
Lien, Series 2003A, 5.000%, 7/01/22 - FSA Insured
Foothill-Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 1,779,160
5.000%, 1/01/35
Foothill-Eastern Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds, 1,827,980
Series 1999, 0.000%, 1/15/28
Port of Oakland, California, Revenue Bonds, Series 2000K:
5.500%, 11/01/09 (Alternative Minimum Tax) - FGIC Insured 2,229,620
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured 4,155,480
Port of Oakland, California, Revenue Bonds, Series 2002M, 5.250%, 11/01/19 - FGIC Insured 5,758,390
San Francisco City and County Airports Commission, California, Revenue Refunding Bonds, San 2,541,602
Francisco International Airport, Second Series, Issue 28B, 5.250%, 5/01/22 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 5.6%
California Educational Facilities Authority, Revenue Bonds, Pooled College and University Projects, 3,723,266
Series 2000C, 6.750%, 6/01/30
Harbor Department of the City of Los Angeles, California, Revenue Bonds, Issue 1988, 7.600%, 10/01/18 3,103,545
Merced Irrigation District, California, Subordinated Revenue Certificates of Participation, Electric 7,514,322
System Project, Series 2000, 7.450%, 3/01/18 (Pre-refunded to 3/01/08)
- ------------------------------------------------------------------------------------------------------------------
Utilities - 15.0%
California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, CanFibre of 257,257
Riverside Project, Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)#
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%, 5/01/18 4,544,100
California Department of Water Resources, Power Supply Revenue Bonds, RITES PA-1120R, 8,305,618
Series 2003, 13.950%, 5/01/14 (IF) - AMBAC Insured
California Statewide Community Development Authority, Refunding Certificates of Participation, 2,454,810
Rio Bravo Fresno Project, Series 1999A, 6.300%, 12/01/18
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2001A-1:
5.250%, 7/01/15 5,357,300
5.250%, 7/01/21 - FSA Insured 10,317,500
Merced Irrigation District, California, Revenue Refunding Bonds, Electric System Project, Series 2001, 3,568,202
6.850%, 9/01/36
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing 3,606,995
Authority, Cogeneration Facility Revenue Bonds, 2000 Series A, 6.625%, 6/01/26 (Alternative
Minimum Tax)
- ----
11
Portfolio of Investments (Unaudited)
NUVEEN CALIFORNIA MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------
Water and Sewer - 7.5%
$ 2,500 City of Fresno, California, No Opt. Call AAA $ 2,495,500
Sewer System Revenue Bonds,
1993 Series A-1, 4.750%,
9/01/21 - AMBAC Insured
8,000 Los Angeles Department of 7/11 at 100.00 AA 7,802,400
Water and Power, California,
Waterworks Revenue Bonds,
Series 2001A Refunding,
5.125%, 7/01/41
3,500 Los Angeles, California, 6/08 at 101.00 AAA 3,443,580
Wastewater System Revenue
Bonds, Series 1998A, 5.000%,
6/01/28 - FGIC Insured
1,190 Pasadena, California, Water 6/13 at 100.00 AAA 1,212,455
Revenue Refunding Bonds,
Series 2003, 5.000%,
6/01/20 - FGIC Insured
1,670 Sacramento County Sanitation 12/10 at 101.00 AA 2,378,563
Districts Financing
Authority, California,
Residual Interest
Certificates, Sacramento
Regional County Sanitation
District, Series 694R-A,
14.740%, 12/01/10 (IF)
1,385 Sacramento County Sanitation 12/10 at 101.00 AA 1,792,508
Districts Financing
Authority, California,
Residual Interest
Certificates, Sacramento
Regional County Sanitation
District, Series 694R-B,
13.090%, 12/01/11 (IF)
- ----------------------------------------------------------------------------------
$243,379 Total Long-Term Investments 248,489,830
(cost $246,325,359) - 96.8%
- ----------------------------------------------------------------------------------
- ------------
Other Assets Less 8,098,733
Liabilities - 3.2%
--------------------------------------------------------------------
Net Assets - 100% $256,588,563
--------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities which
ensures the timely payment of principal and interest. Such
securities are normally considered to be equivalent to AAA rated
securities.
# Non-income producing security. On January 1, 2002, CFR Holdings,
Inc. (an entity formed by Nuveen for the benefit of the Nuveen
Funds owning various interests in CanFibre of Riverside) took
possession of the CanFibre of Riverside assets on behalf of the
various Nuveen Funds. CFR Holdings, Inc., has determined that a
sale of the facility is in the best interest of shareholders and
is proceeding accordingly.
N/R Investment is not rated.
(IF) Inverse floating rate security.
See accompanying notes to financial statements.
- ----
12
Portfolio of Investments (Unaudited)
NUVEEN CALIFORNIA INSURED MUNICIPAL BOND FUND
August 31, 2003
Principal
Amount (000) Description
- -------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.8%
$ 5,000 California Educational Facilities Authority, Student Loan Revenue Bonds, California Loan Program,
Series 2001A, 5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured
1,030 Foundation of California State University, Auxiliary Organization Bonds, Monterey Bay, Series 2001,
5.350%, 6/01/31 - MBIA Insured
5,000 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
4,100 University of California, Revenue Bonds, Multiple Purpose Projects, Series 2003A, 5.000%, 5/15/33
(WI, settling 9/09/03) - AMBAC Insured
- -------------------------------------------------------------------------------------------------------------------
Healthcare - 4.8%
2,000 Antelope Valley Healthcare District, California, Insured Refunding Revenue Bonds, Series 1997A,
5.200%, 1/01/27 - FSA Insured
4,000 California Statewide Communities Development Authority, Certificates of Participation, Members of the
Sutter Health Obligated Group, 5.500%, 8/15/31 - FSA Insured
6,000 Oakland, California, Insured Revenue Bonds, 1800 Harrison Foundation - Kaiser Permanente,
Series 1999A, 6.000%, 1/01/29 - AMBAC Insured
- -------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 10.2%
California Statewide Communities Development Authority, Multifamily Housing Revenue Senior Bonds,
Westgate Courtyards Apartments Project, Series 2001-X1:
1,000 5.200%, 12/01/16 - AMBAC Insured
4,180 5.420%, 12/01/34 - AMBAC Insured
1,220 California Statewide Communities Development Authority, Multifamily Revenue Bonds, Heritage Park
Apartments, Senior Lien, Series 2002-PP-1, 5.250%, 6/01/36 (Alternative Minimum Tax) - AMBAC
Insured
6,526 California Statewide Communities Development Authority, Residential Care Revenue Bonds, GNMA
Collateralized, Canoga Care Centre Project, 2000 Series A, 7.500%, 11/20/35
2,765 Los Angeles Community Redevelopment Agency, California, FNMA Collateralized Multifamily Housing
Revenue Refunding Bonds, Angelus Plaza Section 8 Project, Series 1995A, 7.400%, 6/15/10
3,865 Los Angeles, California, GNMA Multifamily Housing Revenue Bonds, Mortgage-Backed Securities
Program, Park Plaza West Senior Apartments Project, Series 2001B, 5.400%, 1/20/31
2,350 City of Napa, California, Mortgage Revenue Refunding Bonds, Series 1992A, FHA-Insured Mortgage
Loan - Creekside Park Apartments Project, 6.625%, 7/01/24 - MBIA Insured
2,000 City of Napa, California, Mortgage Revenue Refunding Bonds, Series 1994A, FHA-Insured Mortgage
Loan - Creekside Park II Apartments Project, 6.625%, 7/01/25 - MBIA Insured
1,285 Housing Authority of the County of Santa Cruz, California, Multifamily Housing Revenue Bonds, GNMA
Collateralized - Northgate Apartments, 1999 Series A, 5.500%, 7/20/40
- -------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 11.3%
3,840 California Housing Finance Agency, Single Family Mortgage Bonds II, 1997 Series A-1, 6.050%, 8/01/26
(Alternative Minimum Tax)
75 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1997 Series E, 6.100%, 8/01/29
(Alternative Minimum Tax) - AMBAC Insured
1,250 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2001 Series L, 5.150%, 8/01/17 -
FSA Insured
34,380 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2002 Series K, 0.000%, 2/01/22
(Alternative Minimum Tax) - MBIA Insured
3,985 California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds, Mortgage-
Backed Securities Program, 2002 Series D, 5.650%, 6/01/34 (Alternative Minimum Tax)
Department of Veterans Affairs of the State of California, Home Purchase Revenue Bonds,
Series 2002A:
3,500 5.300%, 12/01/21 - AMBAC Insured
5,000 5.350%, 12/01/27 - AMBAC Insured
Optional Call
Description Provisions* Ratings**
- --------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.8%
California Educational Facilities Authority, Student Loan Revenue Bonds, California Loan Program, 3/08 at 102.00 Aaa
Series 2001A, 5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured
Foundation of California State University, Auxiliary Organization Bonds, Monterey Bay, Series 2001, 6/11 at 100.00 AAA
5.350%, 6/01/31 - MBIA Insured
Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach 11/11 at 101.00 AAA
Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California, Revenue Bonds, Multiple Purpose Projects, Series 2003A, 5.000%, 5/15/33 5/13 at 100.00 AAA
(WI, settling 9/09/03) - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------------------
Healthcare - 4.8%
Antelope Valley Healthcare District, California, Insured Refunding Revenue Bonds, Series 1997A, 1/08 at 102.00 AAA
5.200%, 1/01/27 - FSA Insured
California Statewide Communities Development Authority, Certificates of Participation, Members of the 8/09 at 101.00 AAA
Sutter Health Obligated Group, 5.500%, 8/15/31 - FSA Insured
Oakland, California, Insured Revenue Bonds, 1800 Harrison Foundation - Kaiser Permanente, 1/10 at 100.00 AAA
Series 1999A, 6.000%, 1/01/29 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 10.2%
California Statewide Communities Development Authority, Multifamily Housing Revenue Senior Bonds,
Westgate Courtyards Apartments Project, Series 2001-X1:
5.200%, 12/01/16 - AMBAC Insured 12/11 at 100.00 AAA
5.420%, 12/01/34 - AMBAC Insured 12/11 at 100.00 AAA
California Statewide Communities Development Authority, Multifamily Revenue Bonds, Heritage Park 12/12 at 100.00 AAA
Apartments, Senior Lien, Series 2002-PP-1, 5.250%, 6/01/36 (Alternative Minimum Tax) - AMBAC
Insured
California Statewide Communities Development Authority, Residential Care Revenue Bonds, GNMA 11/10 at 105.00 Aaa
Collateralized, Canoga Care Centre Project, 2000 Series A, 7.500%, 11/20/35
Los Angeles Community Redevelopment Agency, California, FNMA Collateralized Multifamily Housing 6/05 at 105.00 AAA
Revenue Refunding Bonds, Angelus Plaza Section 8 Project, Series 1995A, 7.400%, 6/15/10
Los Angeles, California, GNMA Multifamily Housing Revenue Bonds, Mortgage-Backed Securities 7/11 at 102.00 AAA
Program, Park Plaza West Senior Apartments Project, Series 2001B, 5.400%, 1/20/31
City of Napa, California, Mortgage Revenue Refunding Bonds, Series 1992A, FHA-Insured Mortgage 1/04 at 101.00 AAA
Loan - Creekside Park Apartments Project, 6.625%, 7/01/24 - MBIA Insured
City of Napa, California, Mortgage Revenue Refunding Bonds, Series 1994A, FHA-Insured Mortgage 7/04 at 101.00 AAA
Loan - Creekside Park II Apartments Project, 6.625%, 7/01/25 - MBIA Insured
Housing Authority of the County of Santa Cruz, California, Multifamily Housing Revenue Bonds, GNMA 7/09 at 102.00 AAA
Collateralized - Northgate Apartments, 1999 Series A, 5.500%, 7/20/40
- --------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 11.3%
California Housing Finance Agency, Single Family Mortgage Bonds II, 1997 Series A-1, 6.050%, 8/01/26 2/07 at 102.00 AAA
(Alternative Minimum Tax)
California Housing Finance Agency, Home Mortgage Revenue Bonds, 1997 Series E, 6.100%, 8/01/29 8/07 at 102.00 AAA
(Alternative Minimum Tax) - AMBAC Insured
California Housing Finance Agency, Home Mortgage Revenue Bonds, 2001 Series L, 5.150%, 8/01/17 - 8/11 at 100.00 AAA
FSA Insured
California Housing Finance Agency, Home Mortgage Revenue Bonds, 2002 Series K, 0.000%, 2/01/22 2/12 at 54.57 AAA
(Alternative Minimum Tax) - MBIA Insured
California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds, Mortgage- No Opt. Call Aaa
Backed Securities Program, 2002 Series D, 5.650%, 6/01/34 (Alternative Minimum Tax)
Department of Veterans Affairs of the State of California, Home Purchase Revenue Bonds,
Series 2002A:
5.300%, 12/01/21 - AMBAC Insured 6/12 at 101.00 AAA
5.350%, 12/01/27 - AMBAC Insured 6/12 at 101.00 AAA
Market
Description Value
- ---------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.8%
California Educational Facilities Authority, Student Loan Revenue Bonds, California Loan Program, $ 5,143,450
Series 2001A, 5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured
Foundation of California State University, Auxiliary Organization Bonds, Monterey Bay, Series 2001, 1,055,647
5.350%, 6/01/31 - MBIA Insured
Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach 5,041,250
Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California, Revenue Bonds, Multiple Purpose Projects, Series 2003A, 5.000%, 5/15/33 4,034,195
(WI, settling 9/09/03) - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
Healthcare - 4.8%
Antelope Valley Healthcare District, California, Insured Refunding Revenue Bonds, Series 1997A, 2,005,740
5.200%, 1/01/27 - FSA Insured
California Statewide Communities Development Authority, Certificates of Participation, Members of the 4,045,960
Sutter Health Obligated Group, 5.500%, 8/15/31 - FSA Insured
Oakland, California, Insured Revenue Bonds, 1800 Harrison Foundation - Kaiser Permanente, 6,615,180
Series 1999A, 6.000%, 1/01/29 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 10.2%
California Statewide Communities Development Authority, Multifamily Housing Revenue Senior Bonds,
Westgate Courtyards Apartments Project, Series 2001-X1:
5.200%, 12/01/16 - AMBAC Insured 1,034,230
5.420%, 12/01/34 - AMBAC Insured 4,242,407
California Statewide Communities Development Authority, Multifamily Revenue Bonds, Heritage Park 1,167,040
Apartments, Senior Lien, Series 2002-PP-1, 5.250%, 6/01/36 (Alternative Minimum Tax) - AMBAC
Insured
California Statewide Communities Development Authority, Residential Care Revenue Bonds, GNMA 7,584,517
Collateralized, Canoga Care Centre Project, 2000 Series A, 7.500%, 11/20/35
Los Angeles Community Redevelopment Agency, California, FNMA Collateralized Multifamily Housing 2,961,951
Revenue Refunding Bonds, Angelus Plaza Section 8 Project, Series 1995A, 7.400%, 6/15/10
Los Angeles, California, GNMA Multifamily Housing Revenue Bonds, Mortgage-Backed Securities 3,944,348
Program, Park Plaza West Senior Apartments Project, Series 2001B, 5.400%, 1/20/31
City of Napa, California, Mortgage Revenue Refunding Bonds, Series 1992A, FHA-Insured Mortgage 2,375,850
Loan - Creekside Park Apartments Project, 6.625%, 7/01/24 - MBIA Insured
City of Napa, California, Mortgage Revenue Refunding Bonds, Series 1994A, FHA-Insured Mortgage 2,041,420
Loan - Creekside Park II Apartments Project, 6.625%, 7/01/25 - MBIA Insured
Housing Authority of the County of Santa Cruz, California, Multifamily Housing Revenue Bonds, GNMA 1,304,969
Collateralized - Northgate Apartments, 1999 Series A, 5.500%, 7/20/40
- ---------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 11.3%
California Housing Finance Agency, Single Family Mortgage Bonds II, 1997 Series A-1, 6.050%, 8/01/26 3,941,645
(Alternative Minimum Tax)
California Housing Finance Agency, Home Mortgage Revenue Bonds, 1997 Series E, 6.100%, 8/01/29 76,880
(Alternative Minimum Tax) - AMBAC Insured
California Housing Finance Agency, Home Mortgage Revenue Bonds, 2001 Series L, 5.150%, 8/01/17 - 1,278,750
FSA Insured
California Housing Finance Agency, Home Mortgage Revenue Bonds, 2002 Series K, 0.000%, 2/01/22 11,467,793
(Alternative Minimum Tax) - MBIA Insured
California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds, Mortgage- 4,089,048
Backed Securities Program, 2002 Series D, 5.650%, 6/01/34 (Alternative Minimum Tax)
Department of Veterans Affairs of the State of California, Home Purchase Revenue Bonds,
Series 2002A:
5.300%, 12/01/21 - AMBAC Insured 3,577,560
5.350%, 12/01/27 - AMBAC Insured 5,074,350
- ----
13
Portfolio of Investments (Unaudited)
NUVEEN CALIFORNIA INSURED MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal
Amount (000) Description
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.7%
$ 31,000 State of California, Various Purpose General Obligation Bonds, 5.750%, 3/01/27 - MBIA Insured
3,305 Centinela Valley Union High School District, Los Angeles County, California, General Obligation Bonds,
Election of 2002, Series C, 5.200%, 8/01/32 - FGIC Insured
Golden West Schools Financing Authority, California, 1998 Revenue Bonds, Series A, School District
General Obligation Refunding Program:
2,650 0.000%, 8/01/19 - MBIA Insured
2,755 0.000%, 8/01/20 - MBIA Insured
2,855 0.000%, 8/01/21 - MBIA Insured
5,000 Los Angeles Unified School District, California, General Obligation Bonds, Election of 1997,
Series 2002E, 5.125%, 1/01/27 - MBIA Insured
3,040 Sulphur Springs Union School District, Los Angeles County, California, General Obligation Bonds,
Election of 1991, Series A, 0.000%, 9/01/15 - MBIA Insured
4,900 West Covina Unified School District, Los Angeles County, California, General Obligation Bonds,
Series 2002A Refunding, 5.800%, 8/01/30 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 19.3%
1,225 Redevelopment Agency of the City of Barstow, California, Central Redevelopment Project Tax Allocation
Bonds, 1994 Series A, 7.000%, 9/01/14 - MBIA Insured
7,005 Big Bear Lake Financing Authority, San Bernardino County, California, 1995 Tax Allocation Refunding
Revenue Bonds, 6.300%, 8/01/25 - AMBAC Insured
5,285 Chino Unified School District, California, Certificates of Participation, Master Lease Program,
Series 1995, 6.125%, 9/01/26 - FSA Insured
850 Redevelopment Agency of the City of Concord, California, Tax Allocation Bonds, Central Concord
Redevelopment Project, Series 1988-2, 7.875%, 7/01/07 - MBIA Insured
4,150 Redevelopment Agency of the City of Moorpark, California, Tax Allocation Bonds, Moorpark
Redevelopment Project, Series 2001, 5.125%, 10/01/31 - AMBAC Insured
7,040 Norwalk Community Facilities Financing Authority, Los Angeles County, California, Tax Allocation
Revenue Refunding Bonds, Series 1995A, 6.050%, 9/01/25 - FSA Insured
5,120 Orange County, California, Recovery Certificates of Participation, Series 1996A, 6.000%, 7/01/26 -
MBIA Insured
14,050 Paramount Redevelopment Agency, Los Angeles County, California, Compound Interest Tax Allocation
Refunding Bonds, Redevelopment Project Area No. 1, Issue 1998, 0.000%, 8/01/26 - MBIA Insured
8,000 Riverside County, California, Asset Leasing Corporate Leasehold Revenue Bonds, Riverside County
Hospital Project, Series 1997B, 5.000%, 6/01/19 - MBIA Insured
Redevelopment Agency of the City and County of San Francisco, California, Lease Revenue Bonds,
Series 1994, George R. Moscone Convention Center:
2,250 6.800%, 7/01/19 - FSA Insured
1,000 6.750%, 7/01/24 - FSA Insured
1,490 Tulare Public Financing Authority, California, Lease Revenue Bonds, Series 1997, Capital Facilities
Project, 5.125%, 10/01/22 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------
Transportation - 9.1%
6,500 Foothill-Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A,
5.000%, 1/01/35 - MBIA Insured
3,255 Foothill-Eastern Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds,
Series 1999, 5.750%, 1/15/40 - MBIA Insured
2,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 11/01/29 (Alternative Minimum
Tax) - FGIC Insured
1,290 San Francisco City and County Airports Commission, California, San Francisco International Airport
Special Facilities Lease Revenue Bonds, SFO Fuel Company LLC, Series 1997A, 5.250%, 1/01/22
(Alternative Minimum Tax) - AMBAC Insured
Optional Call
Description Provisions* Ratings**
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.7%
State of California, Various Purpose General Obligation Bonds, 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00 AAA
Centinela Valley Union High School District, Los Angeles County, California, General Obligation Bonds, 8/10 at 102.00 AAA
Election of 2002, Series C, 5.200%, 8/01/32 - FGIC Insured
Golden West Schools Financing Authority, California, 1998 Revenue Bonds, Series A, School District
General Obligation Refunding Program:
0.000%, 8/01/19 - MBIA Insured 8/13 at 68.56 AAA
0.000%, 8/01/20 - MBIA Insured 8/13 at 63.85 AAA
0.000%, 8/01/21 - MBIA Insured 8/13 at 59.63 AAA
Los Angeles Unified School District, California, General Obligation Bonds, Election of 1997, 7/12 at 100.00 AAA
Series 2002E, 5.125%, 1/01/27 - MBIA Insured
Sulphur Springs Union School District, Los Angeles County, California, General Obligation Bonds, No Opt. Call AAA
Election of 1991, Series A, 0.000%, 9/01/15 - MBIA Insured
West Covina Unified School District, Los Angeles County, California, General Obligation Bonds, No Opt. Call AAA
Series 2002A Refunding, 5.800%, 8/01/30 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 19.3%
Redevelopment Agency of the City of Barstow, California, Central Redevelopment Project Tax Allocation No Opt. Call AAA
Bonds, 1994 Series A, 7.000%, 9/01/14 - MBIA Insured
Big Bear Lake Financing Authority, San Bernardino County, California, 1995 Tax Allocation Refunding 8/05 at 102.00 AAA
Revenue Bonds, 6.300%, 8/01/25 - AMBAC Insured
Chino Unified School District, California, Certificates of Participation, Master Lease Program, 9/05 at 102.00 AAA
Series 1995, 6.125%, 9/01/26 - FSA Insured
Redevelopment Agency of the City of Concord, California, Tax Allocation Bonds, Central Concord 1/04 at 100.00 AAA
Redevelopment Project, Series 1988-2, 7.875%, 7/01/07 - MBIA Insured
Redevelopment Agency of the City of Moorpark, California, Tax Allocation Bonds, Moorpark 10/12 at 102.00 AAA
Redevelopment Project, Series 2001, 5.125%, 10/01/31 - AMBAC Insured
Norwalk Community Facilities Financing Authority, Los Angeles County, California, Tax Allocation 9/05 at 102.00 AAA
Revenue Refunding Bonds, Series 1995A, 6.050%, 9/01/25 - FSA Insured
Orange County, California, Recovery Certificates of Participation, Series 1996A, 6.000%, 7/01/26 - 7/06 at 102.00 AAA
MBIA Insured
Paramount Redevelopment Agency, Los Angeles County, California, Compound Interest Tax Allocation No Opt. Call AAA
Refunding Bonds, Redevelopment Project Area No. 1, Issue 1998, 0.000%, 8/01/26 - MBIA Insured
Riverside County, California, Asset Leasing Corporate Leasehold Revenue Bonds, Riverside County 6/12 at 101.00 AAA
Hospital Project, Series 1997B, 5.000%, 6/01/19 - MBIA Insured
Redevelopment Agency of the City and County of San Francisco, California, Lease Revenue Bonds,
Series 1994, George R. Moscone Convention Center:
6.800%, 7/01/19 - FSA Insured 7/04 at 102.00 AAA
6.750%, 7/01/24 - FSA Insured 7/04 at 102.00 AAA
Tulare Public Financing Authority, California, Lease Revenue Bonds, Series 1997, Capital Facilities 10/07 at 102.00 AAA
Project, 5.125%, 10/01/22 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation - 9.1%
Foothill-Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 1/10 at 100.00 AAA
5.000%, 1/01/35 - MBIA Insured
Foothill-Eastern Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds, 1/10 at 101.00 AAA
Series 1999, 5.750%, 1/15/40 - MBIA Insured
Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 11/01/29 (Alternative Minimum 5/10 at 100.00 AAA
Tax) - FGIC Insured
San Francisco City and County Airports Commission, California, San Francisco International Airport 1/08 at 101.00 AAA
Special Facilities Lease Revenue Bonds, SFO Fuel Company LLC, Series 1997A, 5.250%, 1/01/22
(Alternative Minimum Tax) - AMBAC Insured
Market
Description Value
- ----------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.7%
State of California, Various Purpose General Obligation Bonds, 5.750%, 3/01/27 - MBIA Insured $ 32,647,960
Centinela Valley Union High School District, Los Angeles County, California, General Obligation Bonds, 3,331,143
Election of 2002, Series C, 5.200%, 8/01/32 - FGIC Insured
Golden West Schools Financing Authority, California, 1998 Revenue Bonds, Series A, School District
General Obligation Refunding Program:
0.000%, 8/01/19 - MBIA Insured 1,058,967
0.000%, 8/01/20 - MBIA Insured 1,014,419
0.000%, 8/01/21 - MBIA Insured 973,327
Los Angeles Unified School District, California, General Obligation Bonds, Election of 1997, 5,017,300
Series 2002E, 5.125%, 1/01/27 - MBIA Insured
Sulphur Springs Union School District, Los Angeles County, California, General Obligation Bonds, 1,711,064
Election of 1991, Series A, 0.000%, 9/01/15 - MBIA Insured
West Covina Unified School District, Los Angeles County, California, General Obligation Bonds, 5,510,099
Series 2002A Refunding, 5.800%, 8/01/30 - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 19.3%
Redevelopment Agency of the City of Barstow, California, Central Redevelopment Project Tax Allocation 1,521,732
Bonds, 1994 Series A, 7.000%, 9/01/14 - MBIA Insured
Big Bear Lake Financing Authority, San Bernardino County, California, 1995 Tax Allocation Refunding 7,667,043
Revenue Bonds, 6.300%, 8/01/25 - AMBAC Insured
Chino Unified School District, California, Certificates of Participation, Master Lease Program, 5,783,270
Series 1995, 6.125%, 9/01/26 - FSA Insured
Redevelopment Agency of the City of Concord, California, Tax Allocation Bonds, Central Concord 868,692
Redevelopment Project, Series 1988-2, 7.875%, 7/01/07 - MBIA Insured
Redevelopment Agency of the City of Moorpark, California, Tax Allocation Bonds, Moorpark 4,137,550
Redevelopment Project, Series 2001, 5.125%, 10/01/31 - AMBAC Insured
Norwalk Community Facilities Financing Authority, Los Angeles County, California, Tax Allocation 7,693,453
Revenue Refunding Bonds, Series 1995A, 6.050%, 9/01/25 - FSA Insured
Orange County, California, Recovery Certificates of Participation, Series 1996A, 6.000%, 7/01/26 - 5,622,835
MBIA Insured
Paramount Redevelopment Agency, Los Angeles County, California, Compound Interest Tax Allocation 3,826,939
Refunding Bonds, Redevelopment Project Area No. 1, Issue 1998, 0.000%, 8/01/26 - MBIA Insured
Riverside County, California, Asset Leasing Corporate Leasehold Revenue Bonds, Riverside County 8,156,240
Hospital Project, Series 1997B, 5.000%, 6/01/19 - MBIA Insured
Redevelopment Agency of the City and County of San Francisco, California, Lease Revenue Bonds,
Series 1994, George R. Moscone Convention Center:
6.800%, 7/01/19 - FSA Insured 2,386,530
6.750%, 7/01/24 - FSA Insured 1,060,260
Tulare Public Financing Authority, California, Lease Revenue Bonds, Series 1997, Capital Facilities 1,508,729
Project, 5.125%, 10/01/22 - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------------
Transportation - 9.1%
Foothill-Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 6,355,635
5.000%, 1/01/35 - MBIA Insured
Foothill-Eastern Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds, 3,482,557
Series 1999, 5.750%, 1/15/40 - MBIA Insured
Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 11/01/29 (Alternative Minimum 2,077,740
Tax) - FGIC Insured
San Francisco City and County Airports Commission, California, San Francisco International Airport 1,293,354
Special Facilities Lease Revenue Bonds, SFO Fuel Company LLC, Series 1997A, 5.250%, 1/01/22
(Alternative Minimum Tax) - AMBAC Insured
- ----
14
Principal
Amount (000) Description
- --------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$ 3,470 San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International
Airport, Second Series, Issue 16A, 5.375%, 5/01/16 (Alternative Minimum Tax) - FSA Insured
1,320 San Francisco City and County Airports Commission, California, San Francisco International Airport Special
Facilities Lease Revenue Bonds, SFO Fuel Company LLC, Series 2000A, 6.100%, 1/01/20 (Alternative
Minimum Tax) - FSA Insured
625 San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International
Airport, Second Series, Issue 26B, 5.000%, 5/01/21 - FGIC Insured
5,000 San Francisco City and County Airports Commission, California, Revenue Refunding Bonds, San Francisco
International Airport, Second Series, Issue 27A, 5.250%, 5/01/31 (Alternative Minimum Tax) -
MBIA Insured
- --------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 6.8%
1,705 Chino Unified School District, California, Certificates of Participation, Master Lease Program, Series 1995,
6.125%, 9/01/26 (Pre-refunded to 9/01/05) - FSA Insured
3,000 Gilroy Unified School District, Santa Clara County, California, Certificates of Participation, Series 1994,
6.250%, 9/01/12 (Pre-refunded to 9/01/04) - FSA Insured
2,500 Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A, 5.500%, 10/01/40
6,070 Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds,
Series 2000A, 6.000%, 7/01/29 (Pre-refunded to 7/01/09) - FGIC Insured
2,500 San Bernardino County Transportation Authority, California, Sales Tax Revenue Bonds, Limited Tax Bonds,
1992 Series A, 6.000%, 3/01/10 - FGIC Insured
- --------------------------------------------------------------------------------------------------------------------------
Utilities - 5.7%
5,000 California Pollution Control Financing Authority, Pollution Control Revenue Refunding Bonds, Pacific Gas
and Electric Company, Series 1996A Remarketed, 5.350%, 12/01/16 (Alternative Minimum Tax) -
MBIA Insured
1,000 California Pollution Control Financing Authority, Pollution Control Revenue Refunding Bonds, Southern
California Edison Company, Series 1999B, 5.450%, 9/01/29 - MBIA Insured
3,500 Northern California Power Agency, Revenue Refunding Bonds, Hydroelectric Project Number One,
Series 1998A, 5.125%, 7/01/23 - MBIA Insured
1,950 Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.250%, 8/01/27 (Alternative
Minimum Tax) - AMBAC Insured
3,000 City of Shasta Lake, California, 1996 Certificates of Participation, 6.000%, 4/01/16 - FSA Insured
- --------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 11.1%
3,070 California Special District Finance Program, Certificates of Participation, Series 2001NN, 5.250%, 9/01/32 -
MBIA Insured
4,350 Southern California Metropolitan Water District, Water Revenue Bonds, Series 1997A, 5.000%, 7/01/37 -
FGIC Insured
2,500 Southern California Metropolitan Water District, Water Revenue Refunding Bonds, Series 1996B,
4.750%, 7/01/21 - MBIA Insured
12,500 Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.000%, 2/01/33
(DD, settling 9/02/03) - FGIC Insured
Optional Call
Description Provisions*
- -----------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International 5/08 at 101.00
Airport, Second Series, Issue 16A, 5.375%, 5/01/16 (Alternative Minimum Tax) - FSA Insured
San Francisco City and County Airports Commission, California, San Francisco International Airport Special 1/08 at 102.00
Facilities Lease Revenue Bonds, SFO Fuel Company LLC, Series 2000A, 6.100%, 1/01/20 (Alternative
Minimum Tax) - FSA Insured
San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International 5/10 at 101.00
Airport, Second Series, Issue 26B, 5.000%, 5/01/21 - FGIC Insured
San Francisco City and County Airports Commission, California, Revenue Refunding Bonds, San Francisco 5/11 at 100.00
International Airport, Second Series, Issue 27A, 5.250%, 5/01/31 (Alternative Minimum Tax) -
MBIA Insured
- -----------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 6.8%
Chino Unified School District, California, Certificates of Participation, Master Lease Program, Series 1995, 9/05 at 102.00
6.125%, 9/01/26 (Pre-refunded to 9/01/05) - FSA Insured
Gilroy Unified School District, Santa Clara County, California, Certificates of Participation, Series 1994, 9/04 at 102.00
6.250%, 9/01/12 (Pre-refunded to 9/01/04) - FSA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A, 5.500%, 10/01/40 10/10 at 101.00
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, 7/09 at 102.00
Series 2000A, 6.000%, 7/01/29 (Pre-refunded to 7/01/09) - FGIC Insured
San Bernardino County Transportation Authority, California, Sales Tax Revenue Bonds, Limited Tax Bonds, 9/03 at 101.00
1992 Series A, 6.000%, 3/01/10 - FGIC Insured
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - 5.7%
California Pollution Control Financing Authority, Pollution Control Revenue Refunding Bonds, Pacific Gas 4/11 at 102.00
and Electric Company, Series 1996A Remarketed, 5.350%, 12/01/16 (Alternative Minimum Tax) -
MBIA Insured
California Pollution Control Financing Authority, Pollution Control Revenue Refunding Bonds, Southern 9/09 at 101.00
California Edison Company, Series 1999B, 5.450%, 9/01/29 - MBIA Insured
Northern California Power Agency, Revenue Refunding Bonds, Hydroelectric Project Number One, 7/08 at 101.00
Series 1998A, 5.125%, 7/01/23 - MBIA Insured
Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.250%, 8/01/27 (Alternative 8/12 at 100.00
Minimum Tax) - AMBAC Insured
City of Shasta Lake, California, 1996 Certificates of Participation, 6.000%, 4/01/16 - FSA Insured 4/05 at 102.00
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 11.1%
California Special District Finance Program, Certificates of Participation, Series 2001NN, 5.250%, 9/01/32 - 9/10 at 100.00
MBIA Insured
Southern California Metropolitan Water District, Water Revenue Bonds, Series 1997A, 5.000%, 7/01/37 - 1/08 at 101.00
FGIC Insured
Southern California Metropolitan Water District, Water Revenue Refunding Bonds, Series 1996B, 7/06 at 100.00
4.750%, 7/01/21 - MBIA Insured
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.000%, 2/01/33 8/13 at 100.00
(DD, settling 9/02/03) - FGIC Insured
Description Ratings**
- -----------------------------------------------------------------------------------------------------------------------
Transportation (continued)
San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International AAA
Airport, Second Series, Issue 16A, 5.375%, 5/01/16 (Alternative Minimum Tax) - FSA Insured
San Francisco City and County Airports Commission, California, San Francisco International Airport Special AAA
Facilities Lease Revenue Bonds, SFO Fuel Company LLC, Series 2000A, 6.100%, 1/01/20 (Alternative
Minimum Tax) - FSA Insured
San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International AAA
Airport, Second Series, Issue 26B, 5.000%, 5/01/21 - FGIC Insured
San Francisco City and County Airports Commission, California, Revenue Refunding Bonds, San Francisco AAA
International Airport, Second Series, Issue 27A, 5.250%, 5/01/31 (Alternative Minimum Tax) -
MBIA Insured
- -----------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 6.8%
Chino Unified School District, California, Certificates of Participation, Master Lease Program, Series 1995, AAA
6.125%, 9/01/26 (Pre-refunded to 9/01/05) - FSA Insured
Gilroy Unified School District, Santa Clara County, California, Certificates of Participation, Series 1994, AAA
6.250%, 9/01/12 (Pre-refunded to 9/01/04) - FSA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A, 5.500%, 10/01/40 AAA
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Aaa
Series 2000A, 6.000%, 7/01/29 (Pre-refunded to 7/01/09) - FGIC Insured
San Bernardino County Transportation Authority, California, Sales Tax Revenue Bonds, Limited Tax Bonds, AAA
1992 Series A, 6.000%, 3/01/10 - FGIC Insured
- -----------------------------------------------------------------------------------------------------------------------
Utilities - 5.7%
California Pollution Control Financing Authority, Pollution Control Revenue Refunding Bonds, Pacific Gas AAA
and Electric Company, Series 1996A Remarketed, 5.350%, 12/01/16 (Alternative Minimum Tax) -
MBIA Insured
California Pollution Control Financing Authority, Pollution Control Revenue Refunding Bonds, Southern AAA
California Edison Company, Series 1999B, 5.450%, 9/01/29 - MBIA Insured
Northern California Power Agency, Revenue Refunding Bonds, Hydroelectric Project Number One, AAA
Series 1998A, 5.125%, 7/01/23 - MBIA Insured
Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.250%, 8/01/27 (Alternative AAA
Minimum Tax) - AMBAC Insured
City of Shasta Lake, California, 1996 Certificates of Participation, 6.000%, 4/01/16 - FSA Insured AAA
- -----------------------------------------------------------------------------------------------------------------------
Water and Sewer - 11.1%
California Special District Finance Program, Certificates of Participation, Series 2001NN, 5.250%, 9/01/32 - AAA
MBIA Insured
Southern California Metropolitan Water District, Water Revenue Bonds, Series 1997A, 5.000%, 7/01/37 - AAA
FGIC Insured
Southern California Metropolitan Water District, Water Revenue Refunding Bonds, Series 1996B, AAA
4.750%, 7/01/21 - MBIA Insured
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.000%, 2/01/33 AAA
(DD, settling 9/02/03) - FGIC Insured
Market
Description Value
- ------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International $ 3,603,664
Airport, Second Series, Issue 16A, 5.375%, 5/01/16 (Alternative Minimum Tax) - FSA Insured
San Francisco City and County Airports Commission, California, San Francisco International Airport Special 1,433,956
Facilities Lease Revenue Bonds, SFO Fuel Company LLC, Series 2000A, 6.100%, 1/01/20 (Alternative
Minimum Tax) - FSA Insured
San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International 631,750
Airport, Second Series, Issue 26B, 5.000%, 5/01/21 - FGIC Insured
San Francisco City and County Airports Commission, California, Revenue Refunding Bonds, San Francisco 5,007,450
International Airport, Second Series, Issue 27A, 5.250%, 5/01/31 (Alternative Minimum Tax) -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 6.8%
Chino Unified School District, California, Certificates of Participation, Master Lease Program, Series 1995, 1,899,762
6.125%, 9/01/26 (Pre-refunded to 9/01/05) - FSA Insured
Gilroy Unified School District, Santa Clara County, California, Certificates of Participation, Series 1994, 3,216,540
6.250%, 9/01/12 (Pre-refunded to 9/01/04) - FSA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A, 5.500%, 10/01/40 2,642,650
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, 7,156,591
Series 2000A, 6.000%, 7/01/29 (Pre-refunded to 7/01/09) - FGIC Insured
San Bernardino County Transportation Authority, California, Sales Tax Revenue Bonds, Limited Tax Bonds, 2,863,175
1992 Series A, 6.000%, 3/01/10 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------
Utilities - 5.7%
California Pollution Control Financing Authority, Pollution Control Revenue Refunding Bonds, Pacific Gas 5,269,250
and Electric Company, Series 1996A Remarketed, 5.350%, 12/01/16 (Alternative Minimum Tax) -
MBIA Insured
California Pollution Control Financing Authority, Pollution Control Revenue Refunding Bonds, Southern 1,009,030
California Edison Company, Series 1999B, 5.450%, 9/01/29 - MBIA Insured
Northern California Power Agency, Revenue Refunding Bonds, Hydroelectric Project Number One, 3,529,890
Series 1998A, 5.125%, 7/01/23 - MBIA Insured
Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.250%, 8/01/27 (Alternative 1,957,079
Minimum Tax) - AMBAC Insured
City of Shasta Lake, California, 1996 Certificates of Participation, 6.000%, 4/01/16 - FSA Insured 3,233,940
- ------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 11.1%
California Special District Finance Program, Certificates of Participation, Series 2001NN, 5.250%, 9/01/32 - 3,100,976
MBIA Insured
Southern California Metropolitan Water District, Water Revenue Bonds, Series 1997A, 5.000%, 7/01/37 - 4,244,991
FGIC Insured
Southern California Metropolitan Water District, Water Revenue Refunding Bonds, Series 1996B, 2,419,475
4.750%, 7/01/21 - MBIA Insured
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.000%, 2/01/33 12,244,749
(DD, settling 9/02/03) - FGIC Insured
- ----
15
Portfolio of Investments (Unaudited)
NUVEEN CALIFORNIA INSURED MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
Water and Sewer (continued)
$ 5,000 Public Facilities Financing Authority of the City of San Diego, 5/05 at 101.00 AAA $ 4,963,599
California, Sewer Revenue Bonds, Series 1995, 5.000%, 5/15/25 - FGIC
Insured
2,000 San Francisco City and County Public Utilities Commission, California, 11/11 at 100.00 AAA 2,058,659
Water Revenue Bonds, Series 2001A, 5.000%, 11/01/18 - FSA Insured
- ---------------------------------------------------------------------------------------------------------------------------------
$300,426 Total Long-Term Investments (cost $258,045,860) - 103.8% 271,298,194
- ---------------------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - (3.8)% (10,055,884)
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 261,242,310
-------------------------------------------------------------------------------------------------------------------
All of the bonds in the portfolio are either covered by Original
Issue Insurance, Secondary Market Insurance or Portfolio
Insurance, or are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency securities,
any of which ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
- ----
16
Statement of Assets and Liabilities (Unaudited)
August 31, 2003
California
California Insured
- ----------------------------------------------------------------------------------------
Assets
Investments, at market value (cost $246,325,359 and
$258,045,860, respectively) $248,489,830 $271,298,194
Cash 4,649,057 --
Receivables:
Interest 4,397,516 3,681,305
Investments sold 121,350 3,284,281
Shares sold 510,978 1,164,977
Other assets 2,797 2,672
- ----------------------------------------------------------------------------------------
Total assets 258,171,528 279,431,429
- ----------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- 492,346
Payables:
Investments purchased -- 16,320,528
Shares redeemed 286,189 184,530
Accrued expenses:
Management fees 118,330 119,518
12b-1 distribution and service fees 34,277 37,894
Other 69,126 65,103
Dividends payable 1,075,043 969,200
- ----------------------------------------------------------------------------------------
Total liabilities 1,582,965 18,189,119
- ----------------------------------------------------------------------------------------
Net assets $256,588,563 $261,242,310
- ----------------------------------------------------------------------------------------
Class A Shares
Net assets $ 56,072,284 $ 77,265,466
Shares outstanding 5,613,284 7,179,843
Net asset value per share $ 9.99 $ 10.76
Offering price per share (net asset value per share plus
maximum sales charge of 4.20% of offering price) $ 10.43 $ 11.23
- ----------------------------------------------------------------------------------------
Class B Shares
Net assets $ 17,043,329 $ 20,623,657
Shares outstanding 1,707,008 1,914,424
Net asset value and offering price per share $ 9.98 $ 10.77
- ----------------------------------------------------------------------------------------
Class C Shares
Net assets $ 17,279,142 $ 12,940,031
Shares outstanding 1,731,769 1,209,784
Net asset value and offering price per share $ 9.98 $ 10.70
- ----------------------------------------------------------------------------------------
Class R Shares
Net assets $166,193,808 $150,413,156
Shares outstanding 16,630,724 13,980,980
Net asset value and offering price per share $ 9.99 $ 10.76
- ----------------------------------------------------------------------------------------
Net Assets Consist of:
- ----------------------------------------------------------------------------------------
Capital paid-in $262,145,972 $248,086,718
Undistributed (Over-distribution of) net investment income (107,001) 1,032
Accumulated net realized gain (loss) from investment
transactions (7,614,879) (97,774)
Net unrealized appreciation of investments 2,164,471 13,252,334
- ----------------------------------------------------------------------------------------
Net assets $256,588,563 $261,242,310
- ----------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
17
Statement of Operations (Unaudited)
Six Months Ended August 31, 2003
California
California Insured
- ---------------------------------------------------------------------------------------------
Investment Income $ 7,457,811 $ 7,124,816
- ---------------------------------------------------------------------------------------------
Expenses
Management fees 719,016 741,598
12b-1 service fees - Class A 53,487 79,599
12b-1 distribution and service fees - Class B 86,919 102,238
12b-1 distribution and service fees - Class C 66,129 52,286
Shareholders' servicing agent fees and expenses 77,273 71,583
Custodian's fees and expenses 38,084 34,137
Trustees' fees and expenses 1,543 1,765
Professional fees 19,870 8,937
Shareholders' reports - printing and mailing expenses 20,061 18,569
Federal and state registration fees 2,269 2,217
Portfolio insurance expense -- 3,955
Other expenses 5,197 5,486
- ---------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,089,848 1,122,370
Custodian fee credit (7,789) (3,018)
- ---------------------------------------------------------------------------------------------
Net expenses 1,082,059 1,119,352
- ---------------------------------------------------------------------------------------------
Net investment income 6,375,752 6,005,464
- ---------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investments 1,786,825 (148,464)
Net change in unrealized appreciation (depreciation) of investments (9,852,276) (7,363,943)
- ---------------------------------------------------------------------------------------------
Net gain (loss) from investments (8,065,451) (7,512,407)
- ---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $(1,689,699) $(1,506,943)
- ---------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
18
Statement of Changes in Net Assets (Unaudited)
California
------------------------------
Six Months Ended Year Ended
8/31/03 2/28/03
- ------------------------------------------------------------------- ---------------- ------------
Operations
Net investment income $ 6,375,752 $ 13,090,983
Net realized gain (loss) from investments 1,786,825 (9,401,703)
Net change in unrealized appreciation (depreciation) of investments (9,852,276) 11,059,494
- ------------------------------------------------------------------- ---------------- ------------
Net increase (decrease) in net assets from operations (1,689,699) 14,748,774
- ------------------------------------------------------------------- ---------------- ------------
Distributions to Shareholders
From net investment income:
Class A (1,272,396) (2,686,401)
Class B (363,970) (700,936)
Class C (379,607) (711,730)
Class R (4,385,860) (9,338,068)
From accumulated net realized gains from investments:
Class A -- (11,959)
Class B -- (3,897)
Class C -- (3,623)
Class R -- (39,655)
- ------------------------------------------------------------------- ---------------- ------------
Decrease in net assets from distributions to shareholders (6,401,833) (13,496,269)
- ------------------------------------------------------------------- ---------------- ------------
Fund Share Transactions
Net proceeds from sale of shares 15,950,364 21,118,278
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 3,593,347 7,658,825
- ------------------------------------------------------------------- ---------------- ------------
19,543,711 28,777,103
Cost of shares redeemed (20,741,217) (27,365,400)
- ------------------------------------------------------------------- ---------------- ------------
Net increase (decrease) in net assets from Fund share transactions (1,197,506) 1,411,703
- ------------------------------------------------------------------- ---------------- ------------
Net increase (decrease) in net assets (9,289,038) 2,664,208
Net assets at the beginning of period 265,877,601 263,213,393
- ----------------------------------------------------------------------------------------------------
Net assets at the end of period $256,588,563 $265,877,601
- ------------------------------------------------------------------- ---------------- ------------
Undistributed (Over-distribution of) net investment income at the
end of period $ (107,001) $ (80,920)
- ------------------------------------------------------------------- ---------------- ------------
California Insured
------------------------------
Six Months Ended Year Ended
8/31/03 2/28/03
- ------------------------------------------------------------------- ---------------- ------------
Operations
Net investment income $ 6,005,464 $ 12,049,539
Net realized gain (loss) from investments (148,464) 806,696
Net change in unrealized appreciation (depreciation) of investments (7,363,943) 4,586,709
- ------------------------------------------------------------------- ---------------- ------------
Net increase (decrease) in net assets from operations (1,506,943) 17,442,944
- ------------------------------------------------------------------- ---------------- ------------
Distributions to Shareholders
From net investment income:
Class A (1,716,203) (3,306,139)
Class B (383,378) (763,010)
Class C (260,585) (466,379)
Class R (3,552,354) (7,615,033)
From accumulated net realized gains from investments:
Class A -- (534,535)
Class B -- (148,438)
Class C -- (87,718)
Class R -- (1,156,255)
- ------------------------------------------------------------------- ---------------- ------------
Decrease in net assets from distributions to shareholders (5,912,520) (14,077,507)
- ------------------------------------------------------------------- ---------------- ------------
Fund Share Transactions
Net proceeds from sale of shares 15,564,491 29,597,898
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 3,250,910 8,276,583
- ------------------------------------------------------------------- ---------------- ------------
18,815,401 37,874,481
Cost of shares redeemed (22,826,819) (32,063,039)
- ------------------------------------------------------------------- ---------------- ------------
Net increase (decrease) in net assets from Fund share transactions (4,011,418) 5,811,442
- ------------------------------------------------------------------- ---------------- ------------
Net increase (decrease) in net assets (11,430,881) 9,176,879
Net assets at the beginning of period 272,673,191 263,496,312
- ---------------------------------------------------------------------------------------------------
Net assets at the end of period $261,242,310 $272,673,191
- ------------------------------------------------------------------- ---------------- ------------
Undistributed (Over-distribution of) net investment income at the
end of period $ 1,032 $ (91,912)
- ------------------------------------------------------------------- ---------------- ------------
See accompanying notes to financial statements.
- ----
19
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The Nuveen Multistate Trust II (the "Trust") is an open-end investment company
registered under the Investment Company Act of 1940, as amended. The Trust
comprises the Nuveen California Municipal Bond Fund ("California") and the
Nuveen California Insured Municipal Bond Fund ("California Insured")
(collectively, the "Funds"), among others. The Trust was organized as a
Massachusetts business trust on July 1, 1996. The Funds were organized as
series of predecessor trusts or corporations prior to that date.
The Funds seek to provide high tax-free income and preservation of capital
through investments in diversified portfolios of quality municipal bonds.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Trustees of the Funds, or its designee, may establish a fair value
for the security. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject
to market fluctuation during this period. The Funds have instructed the
custodian to segregate assets with a current value at least equal to the amount
of the when-issued and delayed delivery purchase commitments. At August 31,
2003, California Insured had outstanding when-issued and delayed delivery
purchase commitments of $16,320,528. There were no such outstanding purchase
commitments in California.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend. Generally,
payment is made or reinvestment is credited to shareholder accounts on the
first business day after month-end. Net realized capital gains and/or market
discount from investment transactions, if any, are distributed to shareholders
not less frequently than annually. Furthermore, capital gains are distributed
only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, 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 accounting principles
generally accepted in the United States.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will
enable interest from municipal securities, which is exempt from regular federal
and California state income taxes, to retain such tax-exempt status when
distributed to the shareholders of the Funds.
Insurance
California Insured invests in municipal securities which are either covered by
insurance or backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the
timely payment of principal and interest. Each insured municipal security is
covered by Original Issue Insurance, Secondary Market Insurance or Portfolio
Insurance. Such insurance does not guarantee the market value of the municipal
securities or the value of the Fund's shares. Original Issue Insurance and
Secondary Market Insurance remain in effect as long as the municipal securities
covered thereby remain outstanding and the insurer remains in business,
regardless of whether the Fund ultimately disposes of such municipal
securities. Consequently, the market value of the municipal securities covered
by Original Issue Insurance or Secondary Market Insurance may reflect value
attributable to the insurance. Portfolio Insurance is effective only while the
municipal securities are held by the Fund. Accordingly, neither the prices used
in determining the market value of the underlying municipal securities nor the
net asset value of the Fund's shares include value, if any, attributable to the
Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give
the Fund the right to obtain permanent insurance with respect to the municipal
security covered by the Portfolio Insurance policy at the time of its sale.
- ----
20
Flexible Sales Charge Program
Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a
sales charge and incur a .20% annual 12b-1 service fee. Class A Share purchases
of $1 million or more are sold at net asset value without an up-front sales
charge but may be subject to a contingent deferred sales charge ("CDSC") if
redeemed within 18 months of purchase. Class B Shares are sold without a sales
charge but incur a .75% annual 12b-1 distribution fee and a .20% annual 12b-1
service fee. An investor purchasing Class B Shares agrees to pay a CDSC of up
to 5% depending upon the length of time the shares are held by the investor
(CDSC is reduced to 0% at the end of six years). Class B Shares convert to
Class A Shares eight years after purchase. Class C Shares are sold without a
sales charge but incur a .55% annual 12b-1 distribution fee and a .20% annual
12b-1 service fee. An investor purchasing Class C Shares agrees to pay a CDSC
of 1% if Class C Shares are redeemed within one year of purchase. Class R
Shares are not subject to any sales charge or 12b-1 distribution or service
fees. Class R Shares are available only under limited circumstances.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics including inverse floating rate securities. During
the six months ended August 31, 2003, California invested in inverse floating
rate securities for the purpose of enhancing portfolio yield. Inverse floating
rate securities are identified in the Portfolio of Investments and are marked
to market daily. The interest rate of an inverse floating rate security has an
inverse relationship to the interest rate of a short-term floating rate
security. Consequently, as the interest rate of the floating rate security
rises, the interest rate on the inverse floating rate security declines.
Conversely, as the interest rate of the floating rate security declines, the
interest rate on the inverse floating rate security rises. The price of an
inverse floating rate security will be more volatile than that of an otherwise
comparable fixed rate security since the interest rate is dependent on an
underlying fixed coupon rate or the general level of long-term interest rates
as well as the short-term interest paid on the floating rate security, and
because the inverse floating rate security typically bears the risk of loss of
a greater face value of an underlying bond. California Insured did not invest
in any such securities during the six months ended August 31, 2003.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific class of
shares are prorated among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares, which presently
only include 12b-1 distribution and service fees, are recorded to the specific
class.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results may differ from those estimates.
- ----
21
Notes to Financial Statements (Unaudited) (continued)
2. Fund Shares
Transactions in Fund shares were as follows:
California
--------------------------------------------------
Six Months Ended Year Ended
8/31/03 2/28/03
------------------------ ------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------
Shares sold:
Class A 1,047,188 $ 10,671,686 718,657 $ 7,336,059
Class B 89,091 910,540 467,335 4,769,471
Class C 329,898 3,409,341 530,749 5,419,577
Class R 93,585 958,797 350,448 3,593,171
Shares issued to shareholders due to reinvestment
of distributions:
Class A 56,920 585,329 123,970 1,269,062
Class B 12,917 132,762 23,408 239,465
Class C 17,610 180,785 35,389 362,009
Class R 261,947 2,694,471 565,116 5,788,289
- ------------------------------------------------------------------------------------------------------
1,909,156 19,543,711 2,815,072 28,777,103
- ------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (679,110) (6,936,289) (832,306) (8,525,341)
Class B (185,590) (1,881,308) (165,813) (1,693,818)
Class C (298,380) (3,044,318) (339,374) (3,472,756)
Class R (869,279) (8,879,302) (1,335,481) (13,673,485)
- ------------------------------------------------------------------------------------------------------
(2,032,359) (20,741,217) (2,672,974) (27,365,400)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) (123,203) $ (1,197,506) 142,098 $ 1,411,703
- ------------------------------------------------------------------------------------------------------
California Insured
--------------------------------------------------
Six Months Ended Year Ended
8/31/03 2/28/03
------------------------ ------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------
Shares sold:
Class A 862,246 $ 9,579,119 1,450,651 $ 15,803,805
Class B 145,527 1,618,560 388,752 4,248,910
Class C 218,972 2,412,955 497,108 5,429,379
Class R 178,739 1,953,857 379,387 4,115,804
Shares issued to shareholders due to reinvestment
of distributions:
Class A 67,242 744,858 174,383 1,903,059
Class B 12,359 136,917 33,317 363,778
Class C 12,673 139,532 31,003 335,871
Class R 201,449 2,229,603 520,283 5,673,875
- ------------------------------------------------------------------------------------------------------
1,699,207 18,815,401 3,474,884 37,874,481
- ------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (740,693) (8,103,984) (1,048,611) (11,388,911)
Class B (194,757) (2,149,596) (206,883) (2,265,093)
Class C (212,100) (2,308,779) (424,309) (4,587,766)
Class R (935,366) (10,264,460) (1,265,107) (13,821,269)
- ------------------------------------------------------------------------------------------------------
(2,082,916) (22,826,819) (2,944,910) (32,063,039)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) (383,709) $ (4,011,418) 529,974 $ 5,811,442
- ------------------------------------------------------------------------------------------------------
- ----
22
3. Securities Transactions
Purchases and sales (including maturities) of investments in long-term
municipal securities for the six months ended August 31, 2003, were as follows:
California
California Insured
--------------------------------------------
Purchases $48,627,070 $19,793,039
Sales and maturities 53,682,576 10,893,413
--------------------------------------------
4. 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 income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At August 31, 2003, the cost of investments were as follows:
California
California Insured
---------------------------------------------
Cost of investments $246,244,710 $257,920,540
---------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2003, were as follows:
California
California Insured
--------------------------------------------------------------------
Gross unrealized:
Appreciation $ 8,998,776 $13,553,658
Depreciation (6,753,656) (176,004)
--------------------------------------------------------------------
Net unrealized appreciation of investments $ 2,245,120 $13,377,654
--------------------------------------------------------------------
The tax components of undistributed net investment income and net realized
gains at February 28, 2003, the Funds' last fiscal year end, were as follows:
California
California Insured
---------------------------------------------------------------
Undistributed net tax-exempt income $914,841 $789,618
Undistributed net ordinary income * -- 77,026
Undistributed net long-term capital gains -- --
---------------------------------------------------------------
*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 fiscal year ended February
28, 2003, was designated for purposes of the dividends paid deduction as
follows:
California
2003 California Insured
----------------------------------------------------------------------
Distributions from net tax-exempt income $13,491,094 $12,112,054
Distributions from net ordinary income * 1,755 77,346
Distributions from net long-term capital gains 59,134 1,918,030
----------------------------------------------------------------------
*Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At February 28, 2003, the Funds' last fiscal year end, California had an unused
capital loss carryforward of $1,920,794 available for federal income tax
purposes to be applied against future capital gains, if any. If not applied,
the carryforward will expire in the year 2011.
- ----
23
Notes to Financial Statements (Unaudited) (continued)
At February 28, 2003, the Funds' last fiscal year end, the Funds elected to
defer net realized losses from investments incurred from November 1, 2002
through February 28, 2003 ("post-October losses") in accordance with Federal
income tax regulations. The following post-October losses are treated as having
arisen on the first day of the current fiscal year:
California
California Insured
-----------------------
$7,480,908 $26,203
-----------------------
5. Management Fee and Other Transactions with Affiliates
Under the Trust's investment management agreement with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., each
Fund pays an annual management fee, payable monthly, at the rates set forth
below which are based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Management Fee
----------------------------------------------
For the first $125 million .5500%
For the next $125 million .5375
For the next $250 million .5250
For the next $500 million .5125
For the next $1 billion .5000
For the next $3 billion .4750
For net assets over $5 billion .4500
----------------------------------------------
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Trust pays 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 Trust from the Adviser or its affiliates.
The Adviser has agreed to waive part of its management fees or reimburse
certain expenses of each Fund in order to limit total expenses (excluding 12b-1
distribution and service fees and extraordinary expenses) from exceeding .75%
of the average daily net assets of California and .975% of the average daily
net assets of California Insured. The Adviser may also voluntarily agree to
reimburse additional expenses from time to time. Voluntary reimbursements may
be terminated at any time at the Adviser's discretion.
During the six months ended August 31, 2003, Nuveen Investments, LLC (the
"Distributor"), a wholly owned subsidiary of Nuveen Investments, Inc.,
collected sales charges on purchases of Class A Shares, the majority of which
were paid out as concessions to authorized dealers as follows:
California
California Insured
------------------------------------------------
Sales charges collected $49,592 $153,732
Paid to authorized dealers 42,536 153,732
------------------------------------------------
The Distributor also received 12b-1 service fees on Class A Shares,
substantially all of which were paid to compensate authorized dealers for
providing services to shareholders relating to their investments.
During the six months ended August 31, 2003, the Distributor compensated
authorized dealers directly with commission advances at the time of purchase as
follows:
California
California Insured
-----------------------------------------
Commission advances $66,231 $127,109
-----------------------------------------
To compensate for commissions advanced to authorized dealers, all 12b-1 service
fees collected on Class B Shares during the first year following a purchase,
all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service
and distribution fees collected on Class C Shares during the first year
following a purchase are retained by the Distributor. During the six months
ended August 31, 2003, the Distributor retained such 12b-1 fees as follows:
California
California Insured
-----------------------------------------
12b-1 fees retained $94,345 $106,362
-----------------------------------------
The remaining 12b-1 fees charged to the Funds were paid to compensate
authorized dealers for providing services to shareholders relating to their
investments.
- ----
24
The Distributor also collected and retained CDSC on share redemptions during
the six months ended August 31, 2003, as follows:
California
California Insured
-----------------------------------
CDSC retained $38,495 $48,194
-----------------------------------
6. Subsequent Event - Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on October 1, 2003, to shareholders of record on
September 9, 2003, as follows:
California
California Insured
-----------------------------------------
Dividend per share:
Class A $.0410 $.0400
Class B .0350 .0330
Class C .0365 .0345
Class R .0430 .0415
-----------------------------------------
- ----
25
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- -----------------------
CALIFORNIA
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended February 28/29, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- --------------------------------------- --------- --------- ---------- ----- ------- ------- ----- ------ ---------
Class A (9/94)
2004(e) $10.30 $.25 $(.31) $(.06) $(.25) $ -- $(.25) $ 9.99 (.65)%
2003 10.25 .50 .06 .56 (.51) -- (.51) 10.30 5.67
2002 10.42 .53 (.15) .38 (.53) (.02) (.55) 10.25 3.82
2001 10.01 .57 .41 .98 (.57) -- (.57) 10.42 9.99
2000 10.89 .55 (.89) (.34) (.54) -- (.54) 10.01 (3.12)
1999 10.91 .54 .03 .57 (.54) (.05) (.59) 10.89 5.28
Class B (3/97)
2004(e) 10.29 .21 (.31) (.10) (.21) -- (.21) 9.98 (1.03)
2003 10.24 .43 .06 .49 (.44) -- (.44) 10.29 4.88
2002 10.41 .45 (.15) .30 (.45) (.02) (.47) 10.24 3.04
2001 10.00 .49 .41 .90 (.49) -- (.49) 10.41 9.23
2000 10.89 .47 (.89) (.42) (.47) -- (.47) 10.00 (3.93)
1999 10.92 .47 .01 .48 (.46) (.05) (.51) 10.89 4.44
Class C (9/94)
2004(e) 10.29 .22 (.31) (.09) (.22) -- (.22) 9.98 (.91)
2003 10.25 .45 .05 .50 (.46) -- (.46) 10.29 5.02
2002 10.42 .47 (.14) .33 (.48) (.02) (.50) 10.25 3.28
2001 10.01 .51 .41 .92 (.51) -- (.51) 10.42 9.42
2000 10.90 .50 (.90) (.40) (.49) -- (.49) 10.01 (3.74)
1999 10.92 .49 .02 .51 (.48) (.05) (.53) 10.90 4.70
Class R (7/86)
2004(e) 10.31 .26 (.32) (.06) (.26) -- (.26) 9.99 (.63)
2003 10.26 .52 .07 .59 (.54) -- (.54) 10.31 5.92
2002 10.43 .55 (.15) .40 (.55) (.02) (.57) 10.26 4.06
2001 10.02 .59 .41 1.00 (.59) -- (.59) 10.43 10.23
2000 10.91 .57 (.89) (.32) (.57) -- (.57) 10.02 (2.98)
1999 10.93 .56 .03 .59 (.56) (.05) (.61) 10.91 5.50
- ----------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
---------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
CALIFORNIA ------------------ ------------------ ------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
- --------------------------------------- -------- -------- ------- -------- ------- -------- ------- ---------
Class A (9/94)
2004(e) $ 56,072 .86%* 4.75%* .86%* 4.75%* .86%* 4.75%* 19%
2003 53,441 .89 4.91 .89 4.91 .88 4.92 25
2002 53,078 .88 5.15 .88 5.15 .87 5.16 6
2001 52,540 .88 5.52 .88 5.52 .87 5.53 39
2000 48,560 .86 5.32 .86 5.32 .85 5.33 31
1999 36,568 .90 4.97 .90 4.97 .90 4.97 34
Class B (3/97)
2004(e) 17,043 1.61* 4.00* 1.61* 4.00* 1.61* 4.01* 19
2003 18,431 1.64 4.16 1.64 4.16 1.63 4.17 25
2002 15,012 1.63 4.41 1.63 4.41 1.62 4.42 6
2001 14,825 1.63 4.77 1.63 4.77 1.62 4.78 39
2000 10,318 1.61 4.56 1.61 4.56 1.60 4.56 31
1999 7,353 1.65 4.23 1.65 4.23 1.65 4.23 34
Class C (9/94)
2004(e) 17,279 1.41* 4.20* 1.41* 4.20* 1.41* 4.21* 19
2003 17,320 1.44 4.37 1.44 4.37 1.43 4.37 25
2002 14,918 1.43 4.60 1.43 4.60 1.42 4.61 6
2001 14,077 1.43 4.97 1.43 4.97 1.42 4.98 39
2000 15,132 1.41 4.75 1.41 4.75 1.40 4.76 31
1999 10,353 1.45 4.43 1.45 4.43 1.45 4.43 34
Class R (7/86)
2004(e) 166,194 .66* 4.95* .66* 4.95* .66* 4.96* 19
2003 176,687 .69 5.12 .69 5.12 .68 5.12 25
2002 180,205 .68 5.35 .68 5.35 .67 5.37 6
2001 187,532 .68 5.72 .68 5.72 .67 5.73 39
2000 188,512 .66 5.47 .66 5.47 .65 5.48 31
1999 220,109 .71 5.16 .71 5.16 .71 5.16 34
- ---------------------------------------------------------------------------------------------------------------------------
* Annualized.
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b)Total returns are calculated on net asset value without any sales charge and
are not annualized.
(c)After expense reimbursement from the Adviser, where applicable.
(d)After custodian fee credit and expense reimbursement, where applicable.
(e) For the six months ended August 31, 2003.
See accompanying notes to financial statements.
- ----
26
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- -------------------------
CALIFORNIA INSURED
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended February 28/29, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- ------------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $11.06 $.24 $(.30) $(.06) $(.24) $ -- $(.24) $10.76 (.57)%
2003 10.92 .49 .23 .72 (.50) (.08) (.58) 11.06 6.73
2002 10.85 .51 .12 .63 (.52) (.04) (.56) 10.92 5.90
2001 10.19 .52 .67 1.19 (.53) -- (.53) 10.85 11.98
2000 11.10 .53 (.92) (.39) (.52) -- (.52) 10.19 (3.52)
1999 11.06 .52 .06 .58 (.53) (.01)** (.54) 11.10 5.31
Class B (3/97)
2004(e) 11.07 .20 (.30) (.10) (.20) -- (.20) 10.77 (.95)
2003 10.94 .41 .21 .62 (.41) (.08) (.49) 11.07 5.82
2002 10.86 .43 .12 .55 (.43) (.04) (.47) 10.94 5.18
2001 10.20 .45 .66 1.11 (.45) -- (.45) 10.86 11.14
2000 11.11 .45 (.92) (.47) (.44) -- (.44) 10.20 (4.26)
1999 11.06 .44 .06 .50 (.44) (.01)** (.45) 11.11 4.61
Class C (9/94)
2004(e) 10.99 .21 (.29) (.08) (.21) -- (.21) 10.70 (.78)
2003 10.86 .43 .21 .64 (.43) (.08) (.51) 10.99 6.04
2002 10.78 .44 .13 .57 (.45) (.04) (.49) 10.86 5.42
2001 10.13 .46 .66 1.12 (.47) -- (.47) 10.78 11.32
2000 11.03 .47 (.91) (.44) (.46) -- (.46) 10.13 (4.03)
1999 10.98 .46 .06 .52 (.46) (.01)** (.47) 11.03 4.81
Class R (7/86)
2004(e) 11.05 .25 (.29) (.04) (.25) -- (.25) 10.76 (.40)
2003 10.91 .51 .22 .73 (.51) (.08) (.59) 11.05 6.91
2002 10.84 .53 .11 .64 (.53) (.04) (.57) 10.91 6.08
2001 10.18 .54 .67 1.21 (.55) -- (.55) 10.84 12.18
2000 11.08 .55 (.91) (.36) (.54) -- (.54) 10.18 (3.27)
1999 11.04 .54 .06 .60 (.55) (.01)** (.56) 11.08 5.49
- ------------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
---------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
CALIFORNIA INSURED ------------------ ------------------ ------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
- ---------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $ 77,265 .85%* 4.35%* .85%* 4.35%* .84%* 4.35%* 4%
2003 77,312 .86 4.47 .86 4.47 .86 4.48 25
2002 70,068 .87 4.64 .87 4.64 .85 4.66 40
2001 63,775 .88 4.97 .88 4.97 .87 4.98 16
2000 52,014 .88 5.02 .88 5.02 .88 5.02 44
1999 47,300 .93 4.72 .93 4.72 .93 4.72 25
Class B (3/97)
2004(e) 20,624 1.60* 3.60* 1.60* 3.60* 1.59* 3.60* 4
2003 21,602 1.61 3.72 1.61 3.72 1.61 3.73 25
2002 18,985 1.62 3.89 1.62 3.89 1.60 3.91 40
2001 13,487 1.63 4.22 1.63 4.22 1.62 4.23 16
2000 10,909 1.64 4.27 1.64 4.27 1.63 4.28 44
1999 8,825 1.68 3.96 1.68 3.96 1.68 3.96 25
Class C (9/94)
2004(e) 12,940 1.40* 3.80* 1.40* 3.80* 1.39* 3.80* 4
2003 13,082 1.41 3.93 1.41 3.93 1.41 3.93 25
2002 11,794 1.42 4.10 1.42 4.10 1.40 4.12 40
2001 7,489 1.43 4.42 1.43 4.42 1.42 4.43 16
2000 6,552 1.43 4.45 1.43 4.45 1.43 4.46 44
1999 6,994 1.48 4.17 1.48 4.17 1.48 4.17 25
Class R (7/86)
2004(e) 150,413 .65* 4.55* .65* 4.55* .65* 4.55* 4
2003 160,678 .66 4.67 .66 4.67 .66 4.68 25
2002 162,649 .67 4.84 .67 4.84 .65 4.86 40
2001 162,081 .68 5.18 .68 5.18 .67 5.18 16
2000 158,816 .68 5.20 .68 5.20 .68 5.20 44
1999 185,428 .74 4.92 .74 4.92 .74 4.92 25
- ---------------------------------------------------------------------------------------------------------------------------
* Annualized.
** The amounts shown include distributions in excess of capital gains of $.003
per share.
(a)Per share Net Investment Income is calculated using the average daily shares
method.
(b)Total returns are calculated on net asset value without any sales charge and
are not annualized.
(c)After expense reimbursement from the Adviser, where applicable.
(d)After custodian fee credit and expense reimbursement, where applicable.
(e) For the six months ended August 31, 2003.
See accompanying notes to financial statements.
- ----
27
Notes
- ----
28
- --------------------------------------------------------------------------------
Fund Information
================================================================================
Fund Manager Legal Counsel Transfer Agent and
Nuveen Advisory Corp. Chapman and Cutler LLP Shareholder Services
333 West Wacker Drive Chicago, IL Boston Financial
Chicago, IL 60606 Data Services, Inc.
Independent Auditors Nuveen Investor Services
PricewaterhouseCoopers LLP P.O. Box 8530
Chicago, IL Boston, MA 02266-8530
(800) 257-8787
Custodian
State Street Bank & Trust
Boston, MA
================================================================================
Glossary of Terms Used in this Report
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 (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Duration: Duration is a measure of a bond or bond fund's sensitivity to changes
in interest rates. Generally, the longer a bond or fund's duration, the more
the price of the bond or fund will change as interest rates change.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current offering price.
Net Asset Value (NAV): A fund's NAV is the dollar value of one share in the
fund. It is calculated by subtracting the liabilities of the fund from its
total assets and then dividing the remainder by the number of shares
outstanding. Fund NAVs are calculated at the end of each business day.
SEC Yield: A standardized measure of a fund's yield that accounts for the
future amortization of premiums or discounts of bonds held in the fund's
portfolio.
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.
================================================================================
NASD Regulation, Inc. provides a Public Disclosure Program which supplies
certain information regarding the disciplinary history of NASD members and
their associated persons in response to either telephone inquiries at (800)
289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also
provides an investor brochure that includes information describing the Public
Disclosure Program.
- ----
29
- --------------------------------------------------------------------------------
Serving
Investors
for Generations
- --------------------------------------------------------------------------------
Since 1898, financial advisors and their
clients have relied on Nuveen Investments to
provide dependable investment solutions. For
the past century, Nuveen Investments has
adhered to the belief that the best approach
to investing is to apply conservative
risk-management principles to help minimize
volatility.
Building on this tradition, we today offer a
range of high quality equity and fixed income
solutions that are integral to a
well-diversified core portfolio. Our clients
have come to appreciate this diversity, as
well as our continued adherence to proven,
long-term investing principles.
Managing $90 billion in assets, Nuveen
Investments offers access to a number of
different asset classes and investing
solutions through a variety of products.
Nuveen Investments markets its capabilities
under four distinct brands: Nuveen, a leader
in tax-free investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader
in growth-style equities; and Symphony, a
leading institutional manager of
market-neutral alternative investment
portfolios.
To learn more about the products and services
Nuveen Investments offers and for a
prospectus, where applicable, talk to your
financial advisor, or call us at (800)
257-8787. Please read the information
carefully before you invest.
Distributed by
Nuveen Investments, LLC 333 West Wacker Drive Chicago, Illinois 60606 www.nuveen.com
MSA-CA-0803D
- --------------------------------------------------------------------------------
Nuveen Investments
Municipal Bond Funds
- --------------------------------------------------------------------------------
Semiannual Report dated August
31, 2003
-----------------------------------
Dependable, tax-free income because it's not what you earn, it's what you
keep.(R)
[GRAPHIC]
Nuveen Connecticut Municipal Bond Fund
Nuveen New Jersey Municipal Bond Fund
Nuveen New York Municipal Bond Fund
Nuveen New York Insured Municipal Bond Fund
[LOGO] Nuveen Investments
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------------------------------
Must be preceded by or accompanied by a prospectus.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Dear Shareholder,
Once again, I am pleased to report that over the most recent reporting period
your Fund continued to provide you with attractive tax-free monthly income. For
more specific information about the performance of your Fund, please see the
Portfolio Manager's Comments and Fund Spotlight sections of this report.
With interest rates at historically low levels, many have begun to wonder
whether interest rates will rise, and whether that possibility should cause
them to adjust their holdings of fixed-income investments. No one knows what
the future will bring, which is why we think a well-balanced portfolio that is
structured and carefully monitored with the help of an investment professional
is an important component in achieving your long-term financial goals. A
well-diversified portfolio may actually help to reduce your overall investment
risk, and we believe that municipal bond investments like your Nuveen
Investments Fund can be important building blocks in a portfolio crafted to
perform well through a variety of market conditions.
I'd also like to direct your attention to the inside front cover of this
report, which explains the quick and easy process to begin receiving Fund
reports like this via e-mail and the internet. Thousands of Nuveen Investments
Fund shareholders already have signed-up, and they are getting their Fund
information faster and more conveniently than ever. I urge you to consider
joining them.
Since 1898, Nuveen Investments has offered financial products and solutions
that incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen
us as a partner as you pursue your financial goals. We look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 15, 2003
[PHOTO]
Timothy R. Schwertfeger
"No one knows what
the future will bring,
which is why we think
a well-balanced portfolio...
is an important
component in achieving
your long-term
financial goals."
Semiannual Report l Page 1
Portfolio Manager's Comments
Nuveen Connecticut Municipal Bond Fund
Portfolio manager Paul Brennan examines economic and market conditions, key
investment strategies, and the performance of the Fund. Paul, who has 12 years
of investment experience, assumed management of the Fund in 1999.
What was the general market environment during the six-month reporting period
ended August 31, 2003?
As has been the case for some time, we believe the two greatest influences on
the general economy and the municipal market continued to be historically low
interest rates and the slow pace of economic growth. In June 2003, the Federal
Reserve cut the fed funds rate to 1.0%, its lowest level since 1958. Growth
during the first half of 2003, as measured by the GDP, registered 2.3%, lagging
the 3% pace generally considered indicative of recovery. At the same time,
inflation remained dormant, with the 12-month advance in the core rate dropping
to 1.3% in August. Much of the concern about the economic recovery now centers
on the labor market.
The slow rate of economic recovery, low interest rates, and lack of
inflationary pressures created conditions that helped many municipal bonds
perform well during the early part of the year. However, during July 2003,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets.
During the first eight months of 2003, the municipal market followed up the
record issuance of 2002 with continued strong supply, issuing $254 billion in
new bonds, up 12.5% over the same period in 2002. However, the availability of
new bonds tightened somewhat during the month of August, with volume dropping
31% from August 2002 levels.
Meanwhile, during the first eight months of 2003, Connecticut was the nation's
sixteenth-most active bond issuer, with $4.3 billion in new supply. It
represented a 23% increase over the state's supply in the first eight months of
2002.
How did the Fund perform during the 12 months ended August 31, 2003?
The chart on the next page provides performance information for the Fund (Class
A shares at net asset value) for the year ended August 31, 2003. The chart also
compares the Fund's performance to those of its peers as measured by the Lipper
Connecticut Municipal Debt Funds category average (Lipper category average) and
to the overall municipal bond market as measured by the Lehman Brothers
Municipal Bond Index (Lehman Index).
The Fund outperformed its Lipper category average but trailed the Lehman Index.
There were two primary reasons for the Fund's underperformance relative to the
Lehman Index. First, the Fund's total return reflected the impact of management
fees, while the Lehman Index is unmanaged. Second, the Fund had a shorter
duration than the Lehman index. During periods of declining interest rates,
such as that experienced during most of this 12-month period, investments with
longer durations generally would be expected to outperform those with shorter
durations, assuming no special circumstances. As of August 31, 2003, the Nuveen
Connecticut Municipal Bond Fund had a duration of 6.97, compared to 8.20 for
the Lehman Index.
What strategies were underlying your management of the Fund during the
reporting period?
We strive to identify and invest in attractively valued municipal bonds that,
in our opinion, have above-average return potential. Conducting thorough
research is a very important part of our portfolio management process. In the
end, we are searching for bonds priced below their intrinsic worth, to
The views expressed reflect those of the portfolio manager and are subject to
change at any time, based on market and other conditions.
Semiannual Report l Page 2
enable us to manage risk while maximizing return potential for our shareholders.
Although there was increased issuance of Connecticut bonds during the reporting
period, there was not much diversity to the issuance. Accordingly, we declined
to participate in most of the new supply and kept portfolio turnover relatively
modest. We did, however, take advantage of several new water-related investment
opportunities. The first was a large water and sewer offering for a
Class A Shares--
One-Year Total Returns on NAV as of 8/31/03
- --------------------------------------------------------------------------------
Nuveen Connecticut Municipal Bond Fund/1/ 2.79%
Lipper Connecticut Municipal Debt Funds
category average/2/ 2.25%
Lehman Brothers Municipal Bond Index/3/ 3.13%
- --------------------------------------------------------------------------------
consortium of Connecticut municipalities. Because bonds of this type are
relatively rare in Connecticut, we decided to participate in this issue. A
related purchase involved a Connecticut clean-water bond issue; with this type
of offering, the state borrows money and lends the proceeds to various
municipalities for their clean-water projects. Matching funds from the federal
government provided an extra layer of security for the income payments.
Otherwise, we remained generally comfortable with the Fund's existing
structure. We continued to monitor the Fund's duration to avoid exposing our
shareholders to more interest-rate risk than we believed was appropriate.
- --------------------------------------------------------------------------------
1Return is for Class A shares at net asset value as of August 31, 2003. Current
performance may be more or less than the performance shown.
2The Lipper peer group return represents the average annualized total return of
the 22 funds in the Lipper Connecticut Municipal Debt Funds category for the
12 months ended August 31, 2003. The returns account for the effects of
management fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges.
3The Lehman Brothers Municipal Bond Index is composed of a broad range of
investment-grade municipal bonds and does not reflect any initial or ongoing
expenses. An index is not available for direct investment.
Semiannual Report l Page 3
- --------------------------------------------------------------------------------
Fund Spotlight as of 8/31/03 Nuveen Connecticut Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.55 $10.54 $10.54 $10.59
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0415 $0.0345 $0.0365 $0.0430
--------------------------------------------------------------
Latest Capital Gain/2/ $0.0418 $0.0418 $0.0418 $0.0418
--------------------------------------------------------------
Commencement Date 7/13/87 2/11/97 10/04/93 2/25/97
--------------------------------------------------------------
Average Annual Total Returns as of 8/31/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 2.79% -1.49%
---------------------------------------------
5-Year 4.46 3.56
---------------------------------------------
10-Year 5.09 4.64
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.01% -1.90%
---------------------------------------------
5-Year 3.71 3.54
---------------------------------------------
10-Year 4.52 4.52
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 2.22%
---------------------------------------------
5-Year 3.91
---------------------------------------------
10-Year 4.49
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 2.96%
---------------------------------------------
5-Year 4.68
---------------------------------------------
10-Year 5.25
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Market Yield/4/ 4.72% 4.52%
---------------------------------------------
SEC 30-Day Yield 3.81 3.65
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.56 5.33
---------------------------------------------
B Shares NAV
---------------------------------------------
Market Yield/4/ 3.93%
---------------------------------------------
SEC 30-Day Yield 3.23
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.72
---------------------------------------------
C Shares NAV
---------------------------------------------
Market Yield/4/ 4.16%
---------------------------------------------
SEC 30-Day Yield 3.43
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.01
---------------------------------------------
R Shares NAV
---------------------------------------------
Market Yield/4/ 4.87%
---------------------------------------------
SEC 30-Day Yield 4.17
---------------------------------------------
Taxable-Equivalent Yield/5/ 6.09
---------------------------------------------
Average Annual Total Returns as of 9/30/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 3.21% -1.10%
---------------------------------------------
5-Year 4.87 3.97
---------------------------------------------
10-Year 5.25 4.80
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.51% -1.42%
---------------------------------------------
5-Year 4.09 3.93
---------------------------------------------
10-Year 4.68 4.68
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 2.72%
---------------------------------------------
5-Year 4.30
---------------------------------------------
10-Year 4.66
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 3.55%
---------------------------------------------
5-Year 5.08
---------------------------------------------
10-Year 5.42
---------------------------------------------
Bond Credit Quality/6/
[CHART]
AAA/U.S. Guaranteed 58%
AA 23
A 7
BBB 10
NR 1
BB or lower 1
Top Five Sectors/6/
Education and Civic Organizations 20%
-------------------------------------------
Tax Obligation/General 17
-------------------------------------------
Tax Obligation/Limited 13
-------------------------------------------
U.S. Guaranteed 11
-------------------------------------------
Utilities 11
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $295,698
-------------------------------------------
Average Effective Maturity (Years) 18.10
-------------------------------------------
Duration 6.97
-------------------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. Income is generally exempt from
regular federal income taxes. Some income may be subject to state and local
taxes and to the federal alternative minimum tax. Capital gains, if any, are
subject to tax.
1Paid September 2, 2003. This is the latest monthly tax-exempt dividend
declared during the period ended August 31, 2003.
2Paid December 2, 2002. Capital gains and/or ordinary income distributions are
subject to federal taxation.
3Class A share returns are actual. Class B, C and R share returns are actual
for the period since class inception; returns prior to class inception are
Class A share returns adjusted for differences in sales charges and (in the
case of Classes B and C) expenses, which are primarily differences in
distribution and service fees. Class A shares have a 4.2% maximum sales
charge. Class B shares have a contingent deferred sales charge (CDSC), also
known as a back-end sales charge, that begins at 5% for redemptions during the
first year after purchase and declines periodically to 0% over the following
five years. Class B shares automatically convert to Class A shares eight years
after purchase. Class C shares have a 1% CDSC for redemptions within less than
one year, which is not reflected in the one-year total return.
4The Market Yield is an investment's current annualized dividend divided by its
current offering price while the SEC 30-Day Yield is a standardized measure of
a fund's yield that accounts for the future amortization of premiums or
discounts of bonds held in the fund's portfolio.
5The taxable equivalent yield represents the yield that must be earned on a
taxable alternative investment, other than an alternative investment that
generates qualified dividend income that is taxable at the maximum rate of
15%, in order to equal the yield on the Nuveen Investments Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's SEC
30-Day Yield on the indicated date and a combined federal and state income tax
rate of 31.5%.
6As a percentage of total holdings as of August 31, 2003. Holdings are subject
to change.
Semiannual Report l Page 4
Portfolio Manager's Comments
Nuveen New Jersey Municipal Bond Fund
Portfolio manager Paul Brennan examines economic and market conditions, key
investment strategies, and the performance of the Fund. Paul, who has 12 years
of investment experience, assumed management of the Fund in January 2003.
What was the general market environment during the six-month reporting period
ended August 31, 2003?
As has been the case for some time, we believe the two greatest influences on
the general economy and the municipal market continued to be historically low
interest rates and the slow pace of economic growth. In June 2003, the Federal
Reserve cut the fed funds rate to 1.0%, its lowest level since 1958. Growth
during the first half of 2003, as measured by the GDP, registered 2.3%, lagging
the 3% pace generally considered indicative of recovery. At the same time,
inflation remained dormant, with the
12-month advance in the core rate dropping to 1.3% in August. Much of the
concern about the economic recovery now centers on the labor market.
The slow rate of economic recovery, low interest rates, and lack of
inflationary pressures created conditions that helped many municipal bonds
perform well during the early part of the year. However, during July 2003,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets.
During the first eight months of 2003, the municipal market followed up the
record issuance of 2002 with continued strong supply, issuing $254 billion in
new bonds, up 12.5% over the same period in 2002. However, the availability of
new bonds tightened somewhat during the month of August, with volume dropping
31% from August 2002 levels.
Like many other states, New Jersey is grappling with budgetary stress brought
on by a drop in capital gains tax and personal income tax revenues. The
State responded to a Fiscal Year 2002 deficit by drawing down its reserves. The
Fiscal Year 2003 budget was enacted on the legally mandated July 1 deadline. It
addressed a projected $6 billion shortfall by restructuring corporate income
taxes to provide for a corporate alternative minimum tax, borrowing against
tobacco settlement proceeds, and expenditure reductions. On a percentage basis,
New Jersey's initial 2003 budget gap was among the worst in the nation.
Meanwhile, during the first eight months of 2003, New Jersey was the nation's
sixth-most active bond issuer, with $12.9 billion in new supply. This
represented a substantial 72% increase over the state's supply in the first
eight months of 2002.
How did the Fund perform during the
12 months ended August 31, 2003?
The chart on the next page provides performance information for the Fund (Class
A shares at net asset value) for the year ended August 31, 2003. The chart also
compares the Fund's performance to those of its peers as measured by the Lipper
New Jersey Municipal Debt Funds category average (Lipper category average) and
to the overall municipal bond market as measured by the Lehman Brothers
Municipal Bond Index (Lehman Index).
The Fund outperformed its Lipper category average but trailed the Lehman Index.
There were two primary reasons for the Fund's underperformance relative to the
Lehman Index. First, the Fund's total returns reflected the impact of
management fees, while the Lehman Index is unmanaged. Second, our effort to
lengthen the Fund's duration during the period occurred at an inopportune time
and is explained in more detail later in this commentary.
The views expressed reflect those of the portfolio manager and are subject to
change at any time, based on market and other conditions.
Semiannual Report l Page 5
What strategies were underlying your management of the Fund during the
reporting period?
We strive to identify and invest in attractively valued municipal bonds that,
in our opinion, have above-average return potential. Conducting thorough
research is a very important part of our portfolio management process. In the
end, we are searching for bonds priced below their intrinsic worth, to enable
us to manage risk while maximizing return potential for our shareholders.
Early in the reporting period, we observed that the Fund's duration, its
sensitivity to changes in interest rates, was shorter than we thought was
ideal. We gradually sought to lengthen duration, and much of this change was
effected during the summer, a
Class A Shares--
One-Year Total Returns on NAV as of 8/31/03
- --------------------------------------------------------------------------------
Nuveen New Jersey Municipal Bond Fund/1/ 1.96%
Lipper New Jersey Municipal Debt Funds
category average/2/ 1.84%
Lehman Brothers Municipal Bond Index/3/ 3.13%
- --------------------------------------------------------------------------------
period when market interest rates were rising. In hindsight, this was an
imperfect time to extend the Fund's duration because higher rates depress
municipal bond prices. Although this move had negative short-term consequences
on portfolio performance, we believed that this change would provide an
appropriate balance of future performance potential and stability.
Related to our effort to increase duration, we were fairly active buyers and
sellers of New Jersey securities during the past six months. The healthy supply
of new bonds available in the state gave us ample opportunities to add
attractive investments to the portfolio. Many of the new securities purchased
were high-quality bonds, generally insured or rated AA or higher. One such
opportunity we took advantage of was a voter-approved bond issue that allows
for the preservation of open spaces and is backed by tax revenues. We also
participated in a substantial bond issue that came out of the merger between
the New Jersey Turnpike Authority and the New Jersey Highway Authority, which
operated the Garden State Parkway.
1Performance figures are for Class A shares at net asset value as of August 31,
2003. Current performance may be more or less than the performance shown.
2Lipper peer group returns represent the average annualized total return of the
55 funds in the Lipper New Jersey Municipal Debt Funds category for the 12
months ended August 31, 2003. The returns account for the effects of
management fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges.
3The Lehman Brothers Municipal Bond Index is composed of a broad range of
investment-grade municipal bonds and does not reflect any initial or ongoing
expenses. An index is not available for direct investment.
Semiannual Report l Page 6
- --------------------------------------------------------------------------------
Fund Spotlight as of 8/31/03 Nuveen New Jersey Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.47 $10.47 $10.44 $10.48
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0380 $0.0310 $0.0330 $0.0395
--------------------------------------------------------------
Commencement Date 9/06/94 2/03/97 9/21/94 2/28/92
--------------------------------------------------------------
Average Annual Total Returns as of 8/31/03/2/
A Shares NAV Offer
---------------------------------------------
1-Year 1.96% -2.33%
---------------------------------------------
5-Year 4.38 3.48
---------------------------------------------
10-Year 5.09 4.64
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 1.30% -2.61%
---------------------------------------------
5-Year 3.60 3.43
---------------------------------------------
10-Year 4.48 4.48
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 1.49%
---------------------------------------------
5-Year 3.80
---------------------------------------------
10-Year 4.45
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 2.22%
---------------------------------------------
5-Year 4.57
---------------------------------------------
10-Year 5.32
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Market Yield/3/ 4.36% 4.17%
---------------------------------------------
SEC 30-Day Yield 3.91 3.75
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.79 5.56
---------------------------------------------
B Shares NAV
---------------------------------------------
Market Yield/3/ 3.55%
---------------------------------------------
SEC 30-Day Yield 3.34
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.95
---------------------------------------------
C Shares NAV
---------------------------------------------
Market Yield/3/ 3.79%
---------------------------------------------
SEC 30-Day Yield 3.54
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.24
---------------------------------------------
R Shares NAV
---------------------------------------------
Market Yield/3/ 4.52%
---------------------------------------------
SEC 30-Day Yield 4.29
---------------------------------------------
Taxable-Equivalent Yield/4/ 6.36
---------------------------------------------
Average Annual Total Returns as of 9/30/03/2/
A Shares NAV Offer
---------------------------------------------
1-Year 2.85% -1.48%
---------------------------------------------
5-Year 4.76 3.86
---------------------------------------------
10-Year 5.23 4.77
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.09% -1.86%
---------------------------------------------
5-Year 3.96 3.79
---------------------------------------------
10-Year 4.61 4.61
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 2.19%
---------------------------------------------
5-Year 4.16
---------------------------------------------
10-Year 4.58
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 3.02%
---------------------------------------------
5-Year 4.95
---------------------------------------------
10-Year 5.46
---------------------------------------------
Bond Credit Quality/5/
[CHART]
AAA/U.S. Guaranteed 63%
AA 13
A 7
BBB 13
NR 3
BB or lower 1
Top Five Sectors/5/
Tax Obligation/Limited 21%
-------------------------------------------
Transportation 17
-------------------------------------------
U.S. Guaranteed 13
-------------------------------------------
Healthcare 10
-------------------------------------------
Long-Term Care 8
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $166,540
-------------------------------------------
Average Effective Maturity (Years) 17.67
-------------------------------------------
Duration 7.49
-------------------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. Income is generally exempt from
regular federal income taxes. Some income may be subject to state and local
taxes and to the federal alternative minimum tax. Capital gains, if any, are
subject to tax.
1Paid September 2, 2003. This is the latest monthly tax-exempt dividend
declared during the period ended August 31, 2003.
2Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a contingent
deferred sales charge (CDSC), also known as a back-end sales charge, that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class B shares automatically
convert to Class A shares eight years after purchase. Class C shares have a 1%
CDSC for redemptions within less than one year, which is not reflected in the
one-year total return.
3The Market Yield is an investment's current annualized dividend divided by its
current offering price while the SEC 30-Day Yield is a standardized measure of
a fund's yield that accounts for the future amortization of premiums or
discounts of bonds held in the fund's portfolio.
4The taxable equivalent yield represents the yield that must be earned on a
taxable alternative investment, other than an alternative investment that
generates qualified dividend income that is taxable at the maximum rate of
15%, in order to equal the yield on the Nuveen Investments Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's SEC
30-Day Yield on the indicated date and a combined federal and state income tax
rate of 32.5%.
5As a percentage of total holdings as of August 31, 2003. Holdings are subject
to change.
Semiannual Report l Page 7
Portfolio Manager's Comments
Nuveen New York Municipal Bond Fund
Nuveen New York Insured Municipal Bond Fund
Portfolio manager Paul Brennan examines economic and market conditions, key
investment strategies, and the performance of the Funds. Paul, who has 12 years
of investment experience, has managed the Funds since 1999.
What was the general market environment during the six-month reporting period
ended August 31, 2003?
As has been the case for some time, we believe the two greatest influences on
the general economy and the municipal market continued to be historically low
interest rates and the slow pace of economic growth. In June 2003, the Federal
Reserve cut the fed funds rate to 1.0%, its lowest level since 1958. Growth
during the first half of 2003, as measured by the GDP, registered 2.3%, lagging
the 3% pace generally considered indicative of recovery. At the same time,
inflation remained dormant, with the 12-month advance in the core rate dropping
to 1.3% in August. Much of the concern about the economic recovery now centers
on the labor market.
The slow rate of economic recovery, low interest rates, and lack of
inflationary pressures created conditions that helped many municipal bonds
perform well during the early part of the year. However, during July 2003,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets.
During the first eight months of 2003, the municipal market followed up the
record issuance of 2002 with continued strong supply, issuing $254 billion in
new bonds, up 12.5% over the same period in 2002. However, the availability of
new bonds tightened somewhat during the month of August, with volume dropping
31% from August 2002 levels.
Like many other states, New York is grappling with budgetary stress brought on
by a drop in capital gains tax and personal income tax revenues. The State
responded in 2002 by drawing down on its substantial rainy day fund. The Fiscal
Year 2003 budget was enacted late and addressed a projected $5.8 billion
shortfall by again drawing on the State's rainy day reserves, and further
cutting expenses. Meanwhile, during the first two-thirds of 2003, New York was
the nation's second-leading issuer of municipal bonds. The state brought more
than $26 billion in new issue supply to market, though this represented a 16%
decline over its issuance in the first eight months of 2002.
How did the Funds perform during the 12 months ended August 31, 2003?
The chart on the next page provides performance information for both of the
Funds (Class A shares at net asset value) for the year ended August 31, 2003.
The chart also compares the Funds' performance to those of their peers, as
measured by the Lipper New York Municipal Debt Funds category average and the
Lipper New York Insured Municipal Debt Funds category average (Lipper category
averages), and to the corresponding overall New York municipal bond market, as
measured by the Lehman Brothers New York Municipal Bond Index and the Lehman
Brothers New York Insured Municipal Bond Index (Lehman Indexes).
Both Funds outperformed their Lipper category averages but slightly trailed
their corresponding Lehman Indexes. There were two primary reasons for the
Funds' underperformance relative to the Lehman Index. First, the Funds' total
returns reflected the impact of management fees, while the Lehman Index is
unmanaged. Second, the Funds had a shorter duration than the Lehman Index.
During periods of declining interest rates, such as that experienced during
most of this 12-month period, investments with longer durations generally
The views expressed reflect those of the portfolio manager and are subject to
change at any time, based on market and other conditions.
Semiannual Report l Page 8
would be expected to outperform those with shorter durations, assuming no
special circumstances. As of August 31, 2003, the Nuveen New York Municipal
Bond Fund had a duration of 6.98 compared to 7.81 for its Lehman Index, while
the Nuveen New York Insured Municipal Bond Fund had a duration of 6.59 compared
to 8.51 for its Lehman Index.
What strategies were underlying your management of the Funds during the
reporting period?
We strive to identify and invest in attractively valued municipal bonds that,
in our opinion, have above-average return potential. Conducting thorough
research is a very important part of our portfolio management process. In the
end, we are searching for bonds priced below their intrinsic worth, to enable
us to manage risk while maximizing return potential for our shareholders.
We were generally comfortable with how both Funds were positioned throughout
the period.
Class A Shares--
One-Year Total Returns on NAV as of 8/31/03
- --------------------------------------------------------------------------------
Nuveen New York Municipal Bond Fund/1/ 2.99%
Lipper New York Municipal Debt Funds
category average/2/ 2.21%
Lehman Brothers New York Municipal
Bond Index/3/ 3.26%
- --------------------------------------------------------------------------------
Nuveen New York Insured Municipal
Bond Fund/1/ 3.44%
Lipper New York Insured Municipal Debt
Funds category average/4/ 2.90%
Lehman Brothers New York Insured
Municipal Bond Index/5/ 3.92%
- --------------------------------------------------------------------------------
We made relatively few trades during the past six months. In our opinion,
historically low interest rates made it generally unattractive to exchange
older securities offering higher yields with newer bonds offering lower coupon
payments. When we did make new purchases in both Funds, we generally favored
long-intermediate bonds, defined as bonds maturing in 15 to 20 years, because
we believed that bonds on this part of the yield curve offered municipal
investors better relative value than longer-term bonds did.
In the uninsured New York Fund, we maintained a relatively high-quality
portfolio. Thirty-eight percent of the Fund's assets were invested in bonds
rated AAA/U.S. Guaranteed, the highest credit rating available. The Fund's
weighting in BBB-rated bonds rose slightly, to 16% from 12%, as of August 31,
2003, reflecting a credit-rating downgrade of certain tobacco holdings.
Despite limiting portfolio turnover during the period, in both Funds we took
advantage of a unique tobacco bond issue. Unlike conventional tobacco bonds,
backed by funds generated by a settlement between tobacco companies and the
state attorneys general, these securities are enhanced by a pledge from the
State of New York to cover any revenue shortfalls. This pledge, along with the
insurance on these bonds, provided an extra layer of security and gave us added
confidence in our decision to purchase them.
1Performance figures are for Class A shares at net asset value as of August 31,
2003. Current performance may be more or less than the performance shown.
2Lipper peer group returns represent the average annualized total return of the
106 funds in the Lipper New York Municipal Debt Funds category for the 12
months ended August 31, 2003. The returns account for the effects of
management fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges.
3The Lehman Brothers New York Municipal Bond Index is composed of a broad range
of New York investment-grade municipal bonds and does not reflect any initial
or ongoing expenses. An index is not available for direct investment.
4Lipper peer group returns represent the average annualized total return of the
9 funds in the Lipper New York Insured Municipal Debt Funds category for the
12 months ended August 31, 2003. The returns account for the effects of
management fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges.
5The Lehman Brothers New York Insured Municipal Bond Index is composed of a
broad range of New York insured municipal bonds and does not reflect any
initial or ongoing expenses. An index is not available for direct investment.
Semiannual Report l Page 9
- --------------------------------------------------------------------------------
Fund Spotlight as of 8/31/03 Nuveen New York Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.58 $10.59 $10.60 $10.61
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0430 $0.0365 $0.0385 $0.0450
--------------------------------------------------------------
Latest Capital Gain/2/ $0.0397 $0.0397 $0.0397 $0.0397
--------------------------------------------------------------
Commencement Date 9/07/94 2/03/97 9/14/94 12/22/86
--------------------------------------------------------------
Average Annual Total Returns as of 8/31/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 2.99% -1.29%
---------------------------------------------
5-Year 4.61 3.72
---------------------------------------------
10-Year 5.32 4.87
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.15% -1.75%
---------------------------------------------
5-Year 3.83 3.67
---------------------------------------------
10-Year 4.75 4.75
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 2.38%
---------------------------------------------
5-Year 4.02
---------------------------------------------
10-Year 4.73
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 3.21%
---------------------------------------------
5-Year 4.81
---------------------------------------------
10-Year 5.58
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Market Yield/4/ 4.88% 4.67%
---------------------------------------------
SEC 30-Day Yield 4.49 4.30
---------------------------------------------
Taxable-Equivalent Yield/5/ 6.75 6.47
---------------------------------------------
B Shares NAV
---------------------------------------------
Market Yield/4/ 4.14%
---------------------------------------------
SEC 30-Day Yield 3.93
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.91
---------------------------------------------
C Shares NAV
---------------------------------------------
Market Yield/4/ 4.36%
---------------------------------------------
SEC 30-Day Yield 4.14
---------------------------------------------
Taxable-Equivalent Yield/5/ 6.23
---------------------------------------------
R Shares NAV
---------------------------------------------
Market Yield/4/ 5.09%
---------------------------------------------
SEC 30-Day Yield 4.88
---------------------------------------------
Taxable-Equivalent Yield/5/ 7.34
---------------------------------------------
Average Annual Total Returns as of 9/30/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 3.69% -0.63%
---------------------------------------------
5-Year 5.00 4.10
---------------------------------------------
10-Year 5.53 5.08
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.95% -0.99%
---------------------------------------------
5-Year 4.23 4.06
---------------------------------------------
10-Year 4.95 4.95
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 3.07%
---------------------------------------------
5-Year 4.41
---------------------------------------------
10-Year 4.93
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 3.82%
---------------------------------------------
5-Year 5.19
---------------------------------------------
10-Year 5.78
---------------------------------------------
Bond Credit Quality/6/
[CHART]
AAA/U.S. Guaranteed 38%
AA 30
A 11
BBB 16
NR 4
BB or lower 1
Top Five Sectors/6/
Tax Obligation/Limited 26%
-------------------------------------------
Healthcare 13
-------------------------------------------
Utilities 11
-------------------------------------------
Education and Civic Organizations 10
-------------------------------------------
U.S. Guaranteed 9
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $330,536
-------------------------------------------
Average Effective Maturity (Years) 18.66
-------------------------------------------
Duration 6.98
-------------------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. Income is generally exempt from
regular federal income taxes. Some income may be subject to state and local
taxes and to the federal alternative minimum tax. Capital gains, if any, are
subject to tax.
1Paid September 2, 2003. This is the latest monthly tax-exempt dividend
declared during the period ended August 31, 2003.
2Paid December 2, 2002. Capital gains and/or ordinary income distributions are
subject to federal taxation.
3Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a contingent
deferred sales charge (CDSC), also known as a back-end sales charge, that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class B shares automatically
convert to Class A shares eight years after purchase. Class C shares have a 1%
CDSC for redemptions within less than one year, which is not reflected in the
one-year total return.
4The Market Yield is an investment's current annualized dividend divided by its
current offering price while the SEC 30-Day Yield is a standardized measure of
a fund's yield that accounts for the future amortization of premiums or
discounts of bonds held in the fund's portfolio.
5The taxable equivalent yield represents the yield that must be earned on a
taxable alternative investment, other than an alternative investment that
generates qualified dividend income that is taxable at the maximum rate of
15%, in order to equal the yield on the Nuveen Investment Fund on an after-tax
basis. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on
the indicated date and a combined federal and state income tax rate of 33.5%.
6As a percentage of total holdings as of August 31, 2003. Holdings are subject
to change.
Semiannual Report l Page 10
- --------------------------------------------------------------------------------
Fund Spotlight as of 8/31/03 Nuveen New York Insured Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.61 $10.62 $10.61 $10.63
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0395 $0.0325 $0.0345 $0.0410
--------------------------------------------------------------
Latest Capital Gain/2/ $0.0645 $0.0645 $0.0645 $0.0645
--------------------------------------------------------------
Commencement Date 9/07/94 2/11/97 9/14/94 12/22/86
--------------------------------------------------------------
Average Annual Total Returns as of 8/31/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 3.44% -0.89%
---------------------------------------------
5-Year 4.68 3.79
---------------------------------------------
10-Year 4.91 4.46
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.65% -1.29%
---------------------------------------------
5-Year 3.88 3.71
---------------------------------------------
10-Year 4.30 4.30
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 2.87%
---------------------------------------------
5-Year 4.11
---------------------------------------------
10-Year 4.28
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 3.60%
---------------------------------------------
5-Year 4.87
---------------------------------------------
10-Year 5.14
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Market Yield/4/ 4.47% 4.28%
---------------------------------------------
SEC 30-Day Yield 3.51 3.36
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.28 5.05
---------------------------------------------
B Shares NAV
---------------------------------------------
Market Yield/4/ 3.67%
---------------------------------------------
SEC 30-Day Yield 2.93
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.41
---------------------------------------------
C Shares NAV
---------------------------------------------
Market Yield/4/ 3.90%
---------------------------------------------
SEC 30-Day Yield 3.12
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.69
---------------------------------------------
R Shares NAV
---------------------------------------------
Market Yield/4/ 4.63%
---------------------------------------------
SEC 30-Day Yield 3.87
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.82
---------------------------------------------
Average Annual Total Returns as of 9/30/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 3.67% -0.64%
---------------------------------------------
5-Year 5.10 4.20
---------------------------------------------
10-Year 5.11 4.67
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.87% -1.07%
---------------------------------------------
5-Year 4.30 4.13
---------------------------------------------
10-Year 4.50 4.50
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 3.19%
---------------------------------------------
5-Year 4.53
---------------------------------------------
10-Year 4.49
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 3.93%
---------------------------------------------
5-Year 5.31
---------------------------------------------
10-Year 5.35
---------------------------------------------
Bond Credit Quality/6/
[CHART]
Insured 87%
Insured/U.S. Guaranteed 13
The Fund features a portfolio of primarily investment-grade, long-term
municipal securities. These securities are covered by insurance, guaranteeing
the timely payment of principal and interest, or by an escrow or trust account
containing enough U.S. government or U.S. government agency securities to
ensure timely payment of principal and interest.
Top Five Sectors/6/
Tax Obligation/Limited 22%
-------------------------------------------
Healthcare 17
-------------------------------------------
U.S. Guaranteed 13
-------------------------------------------
Transportation 11
-------------------------------------------
Tax Obligation/General 11
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $371,670
-------------------------------------------
Average Effective Maturity (Years) 18.41
-------------------------------------------
Duration 6.59
-------------------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. Income is generally exempt from
regular federal income taxes. Some income may be subject to state and local
taxes and to the federal alternative minimum tax. Capital gains, if any, are
subject to tax.
1Paid September 2, 2003. This is the latest monthly tax-exempt dividend
declared during the period ended August 31, 2003.
2Paid December 2, 2002. Capital gains and/or ordinary income distributions are
subject to federal taxation.
3Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a contingent
deferred sales charge (CDSC), also known as a back-end sales charge, that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class B shares automatically
convert to Class A shares eight years after purchase. Class C shares have a 1%
CDSC for redemptions within less than one year, which is not reflected in the
one-year total return.
4The Market Yield is an investment's current annualized dividend divided by its
current offering price while the SEC 30-Day Yield is a standardized measure of
a fund's yield that accounts for the future amortization of premiums or
discounts of bonds held in the fund's portfolio.
5The taxable equivalent yield represents the yield that must be earned on a
taxable alternative investment, other than an alternative investment that
generates qualified dividend income that is taxable at the maximum rate of
15%, in order to equal the yield on the Nuveen Investments Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's SEC
30-Day Yield on the indicated date and a combined federal and state income tax
rate of 33.5%.
6As a percentage of total holdings as of August 31, 2003. Holdings are subject
to change.
Semiannual Report l Page 11
Shareholder
Meeting Report
The annual shareholder meeting was held on July 28, 2003, at the Northern Trust
Bank, Chicago, Illinois.
- --------------------------------------------------------------------------------
Nuveen
Nuveen Nuveen Nuveen New York
Connecticut New Jersey New York Insured
Municipal Municipal Municipal Municipal
Bond Bond Bond Bond
Approval of the Board Members was reached as follows: Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------
William E. Bennett
For 18,595,457 9,544,105 17,889,020 21,564,689
Withhold 433,098 236,613 706,589 949,253
- --------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- --------------------------------------------------------------------------------------------------
Robert P. Bremner
For 18,611,015 9,514,960 17,916,848 21,564,181
Withhold 417,540 265,758 678,761 949,761
- --------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- --------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 18,607,107 9,528,317 17,933,474 21,560,515
Withhold 421,448 252,401 662,135 953,427
- --------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- --------------------------------------------------------------------------------------------------
Jack B. Evans
For 18,619,081 9,537,237 17,943,280 21,566,009
Withhold 409,474 243,481 652,329 947,933
- --------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- --------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 18,473,703 9,534,374 17,909,489 21,556,799
Withhold 554,852 246,344 686,120 957,143
- --------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- --------------------------------------------------------------------------------------------------
William L. Kissick
For 18,597,335 9,535,739 17,895,843 21,553,981
Withhold 431,220 244,979 699,766 959,961
- --------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- --------------------------------------------------------------------------------------------------
Thomas E. Leafstrand
For 18,589,556 9,527,695 17,887,984 21,560,349
Withhold 438,999 253,023 707,625 953,593
- --------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- --------------------------------------------------------------------------------------------------
Peter R. Sawers
For 18,604,156 9,535,311 17,900,096 21,557,387
Withhold 424,399 245,407 695,513 956,555
- --------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- --------------------------------------------------------------------------------------------------
- ----
12
- ---------------------------------------------------------------------------------------------------------------------------------
Nuveen
Nuveen Nuveen Nuveen New York
Connecticut New Jersey New York Insured
Municipal Municipal Municipal Municipal
Bond Bond Bond Bond
Approval of the Board Members was reached as follows: Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For 18,623,670 9,538,704 17,949,974 21,564,681
Withhold 404,885 242,014 645,635 949,261
- ---------------------------------------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- ---------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For 18,623,670 9,530,743 17,942,115 21,561,610
Withhold 404,885 249,975 653,494 952,332
- ---------------------------------------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- ---------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 18,442,675 9,525,517 17,949,313 21,567,020
Withhold 585,880 255,201 646,296 946,922
- ---------------------------------------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- ---------------------------------------------------------------------------------------------------------------------------------
Sheila W. Wellington
For 18,422,981 9,534,910 17,897,378 21,498,737
Withhold 605,574 245,808 698,231 1,015,205
- ---------------------------------------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 18,595,609 22,513,942
- ---------------------------------------------------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction with respect to lending*
For 12,803,073 6,687,810 13,667,851 16,163,514
Against 873,440 571,378 1,326,240 977,763
Abstain 1,026,981 359,903 1,361,284 2,145,349
Broker Non-Vote 4,325,061 2,161,627 3,984,564 4,380,485
- ---------------------------------------------------------------------------------------------------------------------------------
Total 19,028,555 9,780,718 20,339,939 23,667,111
- ---------------------------------------------------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction with respect to
borrowing*
For 13,176,108 6,640,585 13,692,884 16,065,635
Against 1,083,795 624,139 1,359,006 1,113,024
Abstain 1,084,014 354,367 1,303,485 2,107,967
Broker Non-Vote 4,111,892 2,161,627 3,984,564 4,380,485
- ---------------------------------------------------------------------------------------------------------------------------------
Total 19,455,809 9,780,718 20,339,939 23,667,111
- ---------------------------------------------------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction with respect to
investing in municipal securities*
For 13,133,740 6,753,216 13,775,865 16,159,451
Against 1,193,862 519,120 1,312,911 1,062,905
Abstain 1,016,315 346,755 1,266,599 2,064,270
Broker Non-Vote 4,111,892 2,161,627 3,984,564 4,380,485
- ---------------------------------------------------------------------------------------------------------------------------------
Total 19,455,809 9,780,718 20,339,939 23,667,111
- ---------------------------------------------------------------------------------------------------------------------------------
* For each Fund, the shareholder meetings were convened on July 28, 2003, but
were adjourned to September 10, 2003 for the Nuveen Connecticut Municipal
Bond Fund and the Nuveen New York Insured Municipal Bond Fund and to October
8, 2003 for the Nuveen New York Municipal Bond Fund with respect to the
proposals to amend the fundamental policies concerning lending, borrowing
and investing up to 5% of the Fund's assets in certain non-municipal
securities. At the July 28, 2003 meeting for the Nuveen New Jersey Municipal
Bond Fund, sufficient votes were received on all three proposals and all
three proposals passed. The vote totals shown reflect the totals received as
of July 28, 2003. At the September 10, 2003 reconvened meeting for the
Nuveen Connecticut Municipal Bond Fund and the Nuveen New York Insured
Municipal Bond Fund, sufficient votes were received on all three proposals
and all three proposals passed. The vote totals shown reflect the totals
received as of September 10, 2003. At the October 8, 2003 reconvened meeting
for the Nuveen New York Municipal Bond Fund, sufficient votes were received
on all three proposals and all three proposals passed. The vote totals shown
reflect the totals received as of October 8, 2003.
- ----
13
Portfolio of Investments (Unaudited)
NUVEEN CONNECTICUT MUNICIPAL BOND FUND
August 31, 2003
Principal
Amount (000) Description
- ---------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.4%
$ 5,005 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds,
Series 2002, 5.375%, 5/15/33
- ---------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 20.0%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Academy
Issue, Series A:
1,000 5.700%, 3/01/16 - FSA Insured
2,000 5.750%, 3/01/26 - FSA Insured
Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan
Program), 1996 Series A:
1,005 6.300%, 11/15/10 (Alternative Minimum Tax)
755 6.350%, 11/15/11 (Alternative Minimum Tax)
950 Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds, Family Education Loan
Program, 2001 Series A, 5.250%, 11/15/18 (Alternative Minimum Tax) - MBIA Insured
3,125 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart
University Issue, Series E, 5.000%, 7/01/28 - RAAI Insured
2,875 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac College
Issue, Series D, 6.000%, 7/01/23
1,500 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Kent School Issue,
Series B, 5.400%, 7/01/23 - MBIA Insured
500 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College Issue,
Series E, 5.875%, 7/01/26 - MBIA Insured
1,490 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Canterbury School
Issue, Series A, 5.000%, 7/01/18 - RAAI Insured
1,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Suffield Academy
Issue, Series A, 5.400%, 7/01/27 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Fairfield University,
Series I:
925 5.250%, 7/01/25 - MBIA Insured
2,755 5.500%, 7/01/29 - MBIA Insured
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Horace Bushnell
Memorial Hall Issue, Series A, 5.625%, 7/01/29 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut State
University System Issue, Series 1999C:
1,155 5.500%, 11/01/17 - FSA Insured
1,155 5.500%, 11/01/18 - FSA Insured
1,155 5.500%, 11/01/19 - FSA Insured
750 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut College
Issue, Series D, 5.750%, 7/01/30 - MBIA Insured
2,250 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College,
2001 Series G, 5.000%, 7/01/31 - AMBAC Insured
1,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Loomis Chaffee
School, Series D, 5.500%, 7/01/23
925 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Academy,
2001 Series B, 5.000%, 3/01/32 - FSA Insured
900 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Loomis Chaffee
School, 2001 Series E, 5.250%, 7/01/21
6,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, University of Hartford
Issue, 2002 Series E, 5.250%, 7/01/32 - RAAI Insured
4,500 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University Issue,
2002 Series W, 5.125%, 7/01/27
Optional Call
Description Provisions*
- ------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.4%
Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, 5/12 at 100.00
Series 2002, 5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 20.0%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Academy
Issue, Series A:
5.700%, 3/01/16 - FSA Insured 3/06 at 101.00
5.750%, 3/01/26 - FSA Insured 3/06 at 101.00
Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan
Program), 1996 Series A:
6.300%, 11/15/10 (Alternative Minimum Tax) 11/04 at 102.00
6.350%, 11/15/11 (Alternative Minimum Tax) 11/04 at 102.00
Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds, Family Education Loan 11/11 at 100.00
Program, 2001 Series A, 5.250%, 11/15/18 (Alternative Minimum Tax) - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart 7/08 at 101.00
University Issue, Series E, 5.000%, 7/01/28 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac College 1/04 at 102.00
Issue, Series D, 6.000%, 7/01/23
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Kent School Issue, 7/05 at 101.00
Series B, 5.400%, 7/01/23 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College Issue, 7/06 at 102.00
Series E, 5.875%, 7/01/26 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Canterbury School 7/08 at 101.00
Issue, Series A, 5.000%, 7/01/18 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Suffield Academy 7/07 at 102.00
Issue, Series A, 5.400%, 7/01/27 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Fairfield University,
Series I:
5.250%, 7/01/25 - MBIA Insured 7/09 at 101.00
5.500%, 7/01/29 - MBIA Insured 7/09 at 101.00
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Horace Bushnell 7/09 at 101.00
Memorial Hall Issue, Series A, 5.625%, 7/01/29 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut State
University System Issue, Series 1999C:
5.500%, 11/01/17 - FSA Insured 11/09 at 101.00
5.500%, 11/01/18 - FSA Insured 11/09 at 101.00
5.500%, 11/01/19 - FSA Insured 11/09 at 101.00
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut College 7/10 at 101.00
Issue, Series D, 5.750%, 7/01/30 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College, 7/11 at 101.00
2001 Series G, 5.000%, 7/01/31 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Loomis Chaffee 7/11 at 101.00
School, Series D, 5.500%, 7/01/23
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Academy, 3/11 at 101.00
2001 Series B, 5.000%, 3/01/32 - FSA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Loomis Chaffee 7/11 at 101.00
School, 2001 Series E, 5.250%, 7/01/21
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, University of Hartford 7/12 at 101.00
Issue, 2002 Series E, 5.250%, 7/01/32 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University Issue, 7/09 at 100.00
2002 Series W, 5.125%, 7/01/27
Description Ratings**
- ------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.4%
Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, BBB
Series 2002, 5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 20.0%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Academy
Issue, Series A:
5.700%, 3/01/16 - FSA Insured AAA
5.750%, 3/01/26 - FSA Insured AAA
Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan
Program), 1996 Series A:
6.300%, 11/15/10 (Alternative Minimum Tax) Aa3
6.350%, 11/15/11 (Alternative Minimum Tax) Aa3
Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds, Family Education Loan Aaa
Program, 2001 Series A, 5.250%, 11/15/18 (Alternative Minimum Tax) - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart AA
University Issue, Series E, 5.000%, 7/01/28 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac College Baa1
Issue, Series D, 6.000%, 7/01/23
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Kent School Issue, AAA
Series B, 5.400%, 7/01/23 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College Issue, AAA
Series E, 5.875%, 7/01/26 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Canterbury School AA
Issue, Series A, 5.000%, 7/01/18 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Suffield Academy AAA
Issue, Series A, 5.400%, 7/01/27 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Fairfield University,
Series I:
5.250%, 7/01/25 - MBIA Insured AAA
5.500%, 7/01/29 - MBIA Insured AAA
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Horace Bushnell Aaa
Memorial Hall Issue, Series A, 5.625%, 7/01/29 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut State
University System Issue, Series 1999C:
5.500%, 11/01/17 - FSA Insured AAA
5.500%, 11/01/18 - FSA Insured AAA
5.500%, 11/01/19 - FSA Insured AAA
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut College AAA
Issue, Series D, 5.750%, 7/01/30 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College, AAA
2001 Series G, 5.000%, 7/01/31 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Loomis Chaffee A2
School, Series D, 5.500%, 7/01/23
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Academy, AAA
2001 Series B, 5.000%, 3/01/32 - FSA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Loomis Chaffee A2
School, 2001 Series E, 5.250%, 7/01/21
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, University of Hartford AA
Issue, 2002 Series E, 5.250%, 7/01/32 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University Issue, AAA
2002 Series W, 5.125%, 7/01/27
Market
Description Value
- -----------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.4%
Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, $ 4,027,123
Series 2002, 5.375%, 5/15/33
- -----------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 20.0%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Academy
Issue, Series A:
5.700%, 3/01/16 - FSA Insured 1,083,390
5.750%, 3/01/26 - FSA Insured 2,129,400
Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan
Program), 1996 Series A:
6.300%, 11/15/10 (Alternative Minimum Tax) 1,035,713
6.350%, 11/15/11 (Alternative Minimum Tax) 770,289
Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds, Family Education Loan 965,438
Program, 2001 Series A, 5.250%, 11/15/18 (Alternative Minimum Tax) - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart 3,056,500
University Issue, Series E, 5.000%, 7/01/28 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac College 2,894,809
Issue, Series D, 6.000%, 7/01/23
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Kent School Issue, 1,551,975
Series B, 5.400%, 7/01/23 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College Issue, 540,845
Series E, 5.875%, 7/01/26 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Canterbury School 1,501,488
Issue, Series A, 5.000%, 7/01/18 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Suffield Academy 1,027,250
Issue, Series A, 5.400%, 7/01/27 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Fairfield University,
Series I:
5.250%, 7/01/25 - MBIA Insured 938,579
5.500%, 7/01/29 - MBIA Insured 2,854,373
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Horace Bushnell 2,078,400
Memorial Hall Issue, Series A, 5.625%, 7/01/29 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut State
University System Issue, Series 1999C:
5.500%, 11/01/17 - FSA Insured 1,251,050
5.500%, 11/01/18 - FSA Insured 1,242,665
5.500%, 11/01/19 - FSA Insured 1,231,646
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut College 803,370
Issue, Series D, 5.750%, 7/01/30 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College, 2,250,720
2001 Series G, 5.000%, 7/01/31 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Loomis Chaffee 1,048,770
School, Series D, 5.500%, 7/01/23
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Academy, 925,315
2001 Series B, 5.000%, 3/01/32 - FSA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Loomis Chaffee 927,198
School, 2001 Series E, 5.250%, 7/01/21
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, University of Hartford 6,056,400
Issue, 2002 Series E, 5.250%, 7/01/32 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University Issue, 4,519,035
2002 Series W, 5.125%, 7/01/27
- ----
14
Principal
Amount (000) Description
- ----------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
$ 2,250 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University,
Series 2003-X1, 5.000%, 7/01/42
1,540 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Brunswick School,
2003 Series B, 5.000%, 7/01/33 - MBIA Insured
2,160 The University of Connecticut, Special Obligation Student Fee Revenue Bonds, 2002 Series A,
5.250%, 5/15/18
3,120 The University of Connecticut, Student Fee Revenue Refunding Bonds, Series 2002A,
5.250%, 11/15/20 - FGIC Insured
135 The University of Connecticut, General Obligation Bonds, 2000 Series A, 5.550%, 3/01/18 -
FGIC Insured
1,500 The University of Connecticut, General Obligation Bonds, 2001 Series A, 5.250%, 4/01/20
The University of Connecticut, General Obligation Bonds, Series 2002A:
3,065 5.375%, 4/01/17
1,000 5.375%, 4/01/18
1,000 5.375%, 4/01/19
- ----------------------------------------------------------------------------------------------------------------------
Healthcare - 8.3%
800 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, New Britain General
Hospital Issue, Series B, 6.000%, 7/01/24 - AMBAC Insured
1,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Stamford Hospital
Issue, Series G, 5.000%, 7/01/18 - MBIA Insured
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital for Special Care
Issue, Series 1997B:
1,000 5.375%, 7/01/17
3,500 5.500%, 7/01/27
1,500 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Hospital
Issue, Series A, 5.800%, 7/01/26 - MBIA Insured
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The William W.
Backus Hospital Issue, Series D, 5.750%, 7/01/27 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Danbury Hospital
Issue, Series G:
500 5.700%, 7/01/22 - AMBAC Insured
1,000 5.625%, 7/01/25 - AMBAC Insured
1,500 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Catholic Health East
Issue, Series 1999F, 5.750%, 11/15/29 - MBIA Insured
2,725 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Waterbury Hospital
Issue, Series C, 5.750%, 7/01/20 - RAAI Insured
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut
Health Network Issue, Series A, 6.000%, 7/01/25 - RAAI Insured
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bristol Hospital Issue,
2002 Series B, 5.500%, 7/01/32 - RAAI Insured
900 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital of Raphael
Issue, Series D, 6.625%, 7/01/14 - AMBAC Insured
2,000 State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital
Issue, Series A, 6.625%, 7/01/18 - MBIA Insured
2,250 Connecticut Development Authority, Solid Waste Disposal Facilities Revenue Bonds, Pfizer Inc. Project,
1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.9%
1,965 Housing Authority of the City of Bridgeport, Connecticut, Multifamily Housing Revenue Bonds
(Stratfield Apartments Project), Series 1999, 7.250%, 12/01/24 (Alternative Minimum Tax)
Optional Call
Description Provisions*
- -------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University, 7/13 at 100.00
Series 2003-X1, 5.000%, 7/01/42
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Brunswick School, 7/13 at 100.00
2003 Series B, 5.000%, 7/01/33 - MBIA Insured
The University of Connecticut, Special Obligation Student Fee Revenue Bonds, 2002 Series A, 5/12 at 100.00
5.250%, 5/15/18
The University of Connecticut, Student Fee Revenue Refunding Bonds, Series 2002A, 11/12 at 101.00
5.250%, 11/15/20 - FGIC Insured
The University of Connecticut, General Obligation Bonds, 2000 Series A, 5.550%, 3/01/18 - 3/10 at 101.00
FGIC Insured
The University of Connecticut, General Obligation Bonds, 2001 Series A, 5.250%, 4/01/20 4/11 at 101.00
The University of Connecticut, General Obligation Bonds, Series 2002A:
5.375%, 4/01/17 4/12 at 100.00
5.375%, 4/01/18 4/12 at 100.00
5.375%, 4/01/19 4/12 at 100.00
- -------------------------------------------------------------------------------------------------------------------------
Healthcare - 8.3%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, New Britain General 7/04 at 102.00
Hospital Issue, Series B, 6.000%, 7/01/24 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Stamford Hospital 7/09 at 101.00
Issue, Series G, 5.000%, 7/01/18 - MBIA Insured
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital for Special Care
Issue, Series 1997B:
5.375%, 7/01/17 7/07 at 102.00
5.500%, 7/01/27 7/07 at 102.00
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Hospital 7/06 at 102.00
Issue, Series A, 5.800%, 7/01/26 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The William W. 7/07 at 102.00
Backus Hospital Issue, Series D, 5.750%, 7/01/27 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Danbury Hospital
Issue, Series G:
5.700%, 7/01/22 - AMBAC Insured 7/09 at 101.00
5.625%, 7/01/25 - AMBAC Insured 7/09 at 101.00
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Catholic Health East 11/09 at 101.00
Issue, Series 1999F, 5.750%, 11/15/29 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Waterbury Hospital 7/09 at 101.00
Issue, Series C, 5.750%, 7/01/20 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut 7/10 at 101.00
Health Network Issue, Series A, 6.000%, 7/01/25 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bristol Hospital Issue, 7/12 at 101.00
2002 Series B, 5.500%, 7/01/32 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital of Raphael 1/04 at 100.00
Issue, Series D, 6.625%, 7/01/14 - AMBAC Insured
State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital 1/04 at 101.00
Issue, Series A, 6.625%, 7/01/18 - MBIA Insured
Connecticut Development Authority, Solid Waste Disposal Facilities Revenue Bonds, Pfizer Inc. Project, 7/05 at 102.00
1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.9%
Housing Authority of the City of Bridgeport, Connecticut, Multifamily Housing Revenue Bonds 12/09 at 102.00
(Stratfield Apartments Project), Series 1999, 7.250%, 12/01/24 (Alternative Minimum Tax)
Description Ratings**
- -------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University, AAA
Series 2003-X1, 5.000%, 7/01/42
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Brunswick School, AAA
2003 Series B, 5.000%, 7/01/33 - MBIA Insured
The University of Connecticut, Special Obligation Student Fee Revenue Bonds, 2002 Series A, AA-
5.250%, 5/15/18
The University of Connecticut, Student Fee Revenue Refunding Bonds, Series 2002A, AAA
5.250%, 11/15/20 - FGIC Insured
The University of Connecticut, General Obligation Bonds, 2000 Series A, 5.550%, 3/01/18 - AAA
FGIC Insured
The University of Connecticut, General Obligation Bonds, 2001 Series A, 5.250%, 4/01/20 AA
The University of Connecticut, General Obligation Bonds, Series 2002A:
5.375%, 4/01/17 AA
5.375%, 4/01/18 AA
5.375%, 4/01/19 AA
- -------------------------------------------------------------------------------------------------------------------
Healthcare - 8.3%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, New Britain General AAA
Hospital Issue, Series B, 6.000%, 7/01/24 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Stamford Hospital Aaa
Issue, Series G, 5.000%, 7/01/18 - MBIA Insured
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital for Special Care
Issue, Series 1997B:
5.375%, 7/01/17 Ba1
5.500%, 7/01/27 Ba1
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Hospital AAA
Issue, Series A, 5.800%, 7/01/26 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The William W. AAA
Backus Hospital Issue, Series D, 5.750%, 7/01/27 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Danbury Hospital
Issue, Series G:
5.700%, 7/01/22 - AMBAC Insured AAA
5.625%, 7/01/25 - AMBAC Insured AAA
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Catholic Health East AAA
Issue, Series 1999F, 5.750%, 11/15/29 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Waterbury Hospital AA
Issue, Series C, 5.750%, 7/01/20 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut AA
Health Network Issue, Series A, 6.000%, 7/01/25 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bristol Hospital Issue, AA
2002 Series B, 5.500%, 7/01/32 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital of Raphael AAA
Issue, Series D, 6.625%, 7/01/14 - AMBAC Insured
State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital AAA
Issue, Series A, 6.625%, 7/01/18 - MBIA Insured
Connecticut Development Authority, Solid Waste Disposal Facilities Revenue Bonds, Pfizer Inc. Project, AAA
1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.9%
Housing Authority of the City of Bridgeport, Connecticut, Multifamily Housing Revenue Bonds N/R
(Stratfield Apartments Project), Series 1999, 7.250%, 12/01/24 (Alternative Minimum Tax)
Market
Description Value
- ------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University, $ 2,224,733
Series 2003-X1, 5.000%, 7/01/42
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Brunswick School, 1,540,493
2003 Series B, 5.000%, 7/01/33 - MBIA Insured
The University of Connecticut, Special Obligation Student Fee Revenue Bonds, 2002 Series A, 2,284,308
5.250%, 5/15/18
The University of Connecticut, Student Fee Revenue Refunding Bonds, Series 2002A, 3,279,650
5.250%, 11/15/20 - FGIC Insured
The University of Connecticut, General Obligation Bonds, 2000 Series A, 5.550%, 3/01/18 - 146,094
FGIC Insured
The University of Connecticut, General Obligation Bonds, 2001 Series A, 5.250%, 4/01/20 1,564,680
The University of Connecticut, General Obligation Bonds, Series 2002A:
5.375%, 4/01/17 3,293,710
5.375%, 4/01/18 1,067,960
5.375%, 4/01/19 1,061,360
- ------------------------------------------------------------------------------------------------------------------------
Healthcare - 8.3%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, New Britain General 841,088
Hospital Issue, Series B, 6.000%, 7/01/24 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Stamford Hospital 1,021,390
Issue, Series G, 5.000%, 7/01/18 - MBIA Insured
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital for Special Care
Issue, Series 1997B:
5.375%, 7/01/17 790,370
5.500%, 7/01/27 2,577,365
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Greenwich Hospital 1,587,045
Issue, Series A, 5.800%, 7/01/26 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The William W. 2,103,400
Backus Hospital Issue, Series D, 5.750%, 7/01/27 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Danbury Hospital
Issue, Series G:
5.700%, 7/01/22 - AMBAC Insured 527,685
5.625%, 7/01/25 - AMBAC Insured 1,044,050
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Catholic Health East 1,576,815
Issue, Series 1999F, 5.750%, 11/15/29 - MBIA Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Waterbury Hospital 2,880,924
Issue, Series C, 5.750%, 7/01/20 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut 2,107,680
Health Network Issue, Series A, 6.000%, 7/01/25 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bristol Hospital Issue, 2,060,800
2002 Series B, 5.500%, 7/01/32 - RAAI Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital of Raphael 939,420
Issue, Series D, 6.625%, 7/01/14 - AMBAC Insured
State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital 2,028,040
Issue, Series A, 6.625%, 7/01/18 - MBIA Insured
Connecticut Development Authority, Solid Waste Disposal Facilities Revenue Bonds, Pfizer Inc. Project, 2,464,718
1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.9%
Housing Authority of the City of Bridgeport, Connecticut, Multifamily Housing Revenue Bonds 1,976,181
(Stratfield Apartments Project), Series 1999, 7.250%, 12/01/24 (Alternative Minimum Tax)
- ----
15
Portfolio of Investments (Unaudited)
NUVEEN CONNECTICUT MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call
Amount (000) Description Provisions*
- --------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
$ 2,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1999 Series D2, 12/09 at 100.00
6.200%, 11/15/41 (Alternative Minimum Tax)
1,480 New Britain Senior Citizens Housing Development Corporation, Mortgage Revenue Refunding Bonds, 1/04 at 100.00
Series 1992A (FHA-Insured Mortgage Loan - Nathan Hale Apartments Section 8 Assisted Project),
6.875%, 7/01/24
- --------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.1%
4,625 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1997 Series B, 11/07 at 102.00
Subseries B-2, 5.850%, 11/15/28 (Alternative Minimum Tax)
1,360 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1997 Series F, 11/06 at 102.00
Subseries F-2, 6.000%, 11/15/27 (Alternative Minimum Tax)
1,500 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 2002 Series F, 11/12 at 100.00
Subseries F-3, 5.250%, 5/15/33 (Alternative Minimum Tax)
1,985 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 2001 Series A-1, 5/10 at 100.00
5.250%, 11/15/28
1,595 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 2001 Series C, 11/10 at 100.00
5.300%, 11/15/33 (Alternative Minimum Tax)
985 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 2001 Series D, 5/12 at 100.00
Subseries D-2, 5.350%, 11/15/32 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 5.5%
500 Connecticut Housing Finance Authority, Group Home Mortgage Finance Program, Special Obligation 6/10 at 102.00
Bonds, Series GH-5, 5.850%, 6/15/30 - AMBAC Insured
1,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hebrew Home and 8/08 at 102.00
Hospital Issue, Series B (FHA-Insured Mortgage), 5.200%, 8/01/38
Connecticut Development Authority, First Mortgage Gross Revenue Health Care Project Refunding
Bonds (Church Homes, Inc. - Congregational Avery Heights Project), 1997 Series:
1,700 5.700%, 4/01/12 4/07 at 102.00
2,610 5.800%, 4/01/21 4/07 at 102.00
1,875 Connecticut Development Authority, First Mortgage Gross Revenue Healthcare Project Refunding 12/06 at 103.00
Bonds, Elim Park Baptist Home, Inc. Project, Series 1998A, 5.375%, 12/01/18
Connecticut Development Authority, First Mortgage Gross Revenue Healthcare Project Refunding Bonds
(Connecticut Baptist Homes, Inc. Project), 1999 Series:
1,000 5.500%, 9/01/15 - RAAI Insured 9/09 at 102.00
500 5.625%, 9/01/22 - RAAI Insured 9/09 at 102.00
1,000 Connecticut Development Authority, First Mortgage Gross Revenue Healthcare Project Refunding Bonds 12/09 at 102.00
(The Mary Wade Home, Incorporated Project), 1999 Series A, 6.375%, 12/01/18
Connecticut Development Authority, Revenue Refunding Bonds (Duncaster Inc. Project), Series 1999A:
2,200 5.250%, 8/01/19 - RAAI Insured 2/10 at 102.00
3,910 5.375%, 8/01/24 - RAAI Insured 2/10 at 102.00
- --------------------------------------------------------------------------------------------------------------------------------
Materials - 0.3%
1,000 Town of Sprague, Connecticut Environmental Improvement Revenue Bonds, 1997 Series A (International 10/07 at 102.00
Paper Company Project), 5.700%, 10/01/21 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 16.7%
2,800 City of Bridgeport, Connecticut, General Obligation Bonds, 1997 Series A, 3/07 at 101.00
5.250%, 3/01/17 - AMBAC Insured
1,500 City of Bridgeport, Connecticut, General Obligation Bonds, Series 2002A Refunding, 8/12 at 100.00
5.375%, 8/15/19 - FGIC Insured
Town of Cheshire, Connecticut, General Obligation Bonds, Issue of 1999:
660 5.625%, 10/15/18 10/09 at 101.00
660 5.625%, 10/15/19 10/09 at 101.00
Market
Description Ratings** Value
- ----------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1999 Series D2, AAA $ 2,074,200
6.200%, 11/15/41 (Alternative Minimum Tax)
New Britain Senior Citizens Housing Development Corporation, Mortgage Revenue Refunding Bonds, AAA 1,485,624
Series 1992A (FHA-Insured Mortgage Loan - Nathan Hale Apartments Section 8 Assisted Project),
6.875%, 7/01/24
- ----------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.1%
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1997 Series B, AAA 4,755,749
Subseries B-2, 5.850%, 11/15/28 (Alternative Minimum Tax)
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1997 Series F, Aaa 1,398,991
Subseries F-2, 6.000%, 11/15/27 (Alternative Minimum Tax)
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 2002 Series F, AAA 1,490,940
Subseries F-3, 5.250%, 5/15/33 (Alternative Minimum Tax)
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 2001 Series A-1, AAA 2,004,393
5.250%, 11/15/28
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 2001 Series C, AAA 1,601,125
5.300%, 11/15/33 (Alternative Minimum Tax)
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 2001 Series D, AAA 989,137
Subseries D-2, 5.350%, 11/15/32 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 5.5%
Connecticut Housing Finance Authority, Group Home Mortgage Finance Program, Special Obligation AAA 525,075
Bonds, Series GH-5, 5.850%, 6/15/30 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hebrew Home and AAA 1,001,740
Hospital Issue, Series B (FHA-Insured Mortgage), 5.200%, 8/01/38
Connecticut Development Authority, First Mortgage Gross Revenue Health Care Project Refunding
Bonds (Church Homes, Inc. - Congregational Avery Heights Project), 1997 Series:
5.700%, 4/01/12 BBB 1,664,708
5.800%, 4/01/21 BBB 2,397,207
Connecticut Development Authority, First Mortgage Gross Revenue Healthcare Project Refunding BBB+ 1,846,462
Bonds, Elim Park Baptist Home, Inc. Project, Series 1998A, 5.375%, 12/01/18
Connecticut Development Authority, First Mortgage Gross Revenue Healthcare Project Refunding Bonds
(Connecticut Baptist Homes, Inc. Project), 1999 Series:
5.500%, 9/01/15 - RAAI Insured AA 1,065,560
5.625%, 9/01/22 - RAAI Insured AA 524,270
Connecticut Development Authority, First Mortgage Gross Revenue Healthcare Project Refunding Bonds N/R 1,071,310
(The Mary Wade Home, Incorporated Project), 1999 Series A, 6.375%, 12/01/18
Connecticut Development Authority, Revenue Refunding Bonds (Duncaster Inc. Project), Series 1999A:
5.250%, 8/01/19 - RAAI Insured AA 2,247,784
5.375%, 8/01/24 - RAAI Insured AA 3,983,000
- ----------------------------------------------------------------------------------------------------------------------------
Materials - 0.3%
Town of Sprague, Connecticut Environmental Improvement Revenue Bonds, 1997 Series A (International BBB 976,800
Paper Company Project), 5.700%, 10/01/21 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 16.7%
City of Bridgeport, Connecticut, General Obligation Bonds, 1997 Series A, AAA 2,954,532
5.250%, 3/01/17 - AMBAC Insured
City of Bridgeport, Connecticut, General Obligation Bonds, Series 2002A Refunding, Aaa 1,581,735
5.375%, 8/15/19 - FGIC Insured
Town of Cheshire, Connecticut, General Obligation Bonds, Issue of 1999:
5.625%, 10/15/18 Aa3 715,843
5.625%, 10/15/19 Aa3 710,536
- ----
16
Principal
Amount (000) Description
- -------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 395 Town of Colchester, Connecticut, General Obligation Bonds, Series 2001,
5.500%, 6/15/14 - FGIC Insured
500 State of Connecticut, General Obligation Bonds, Series 1999B, 5.500%, 11/01/18
State of Connecticut, General Obligation Bonds, Series 2002B:
1,000 5.500%, 6/15/19
2,000 5.500%, 6/15/21
5,000 State of Connecticut, General Obligation Bonds, Residual Certificates Series 514,
14.340%, 12/15/13 (IF)
1,000 State of Connecticut, General Obligation Bonds, Series 2002D, 5.375%, 11/15/21
1,000 State of Connecticut, General Obligation Bonds, Series 2001D, 5.000%, 11/15/20
2,500 State of Connecticut, General Obligation Bonds, Series 2002A, 5.375%, 4/15/19
1,015 Town of East Lyme, Connecticut, General Obligation Bonds, 5.000%, 7/15/16 - FGIC Insured
500 City of New Haven, Connecticut, General Obligation Bonds, Series 1999,
4.700%, 2/01/15 - FGIC Insured
1,630 City of New Haven, Connecticut, General Obligation Bonds, Series 2001A,
5.000%, 11/01/20 - FGIC Insured
975 Northern Mariana Islands, General Obligation Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured
Regional School District No. 16, Connecticut (Towns of Beacon Falls and Prospect), General Obligation
Bonds, Issue of 2000:
650 5.500%, 3/15/18 - FSA Insured
650 5.625%, 3/15/19 - FSA Insured
650 5.700%, 3/15/20 - FSA Insured
1,460 Regional School District No. 008, Towns of Andover, Hebron and Marlborough, County of Tolland,
Connecticut, General Obligation Bonds, Series 2002, 5.000%, 5/01/21 - FSA Insured
420 Regional School District No. 15, Connecticut, General Obligation Bonds, Series 2002,
5.000%, 8/15/22 - FSA Insured
Town of Stratford, Connecticut, General Obligation Bonds, Series 2002:
2,050 4.000%, 2/15/16 - FSA Insured
2,065 4.000%, 2/15/17 - FSA Insured
3,700 Commonwealth of Puerto Rico, Public Improvement Bonds, TICS, 11.280%, 7/01/19 - FSA Insured (IF)
City of Waterbury, Connecticut, General Obligation Bonds, Series 2002A:
1,500 5.375%, 4/01/16 - FSA Insured
1,090 5.375%, 4/01/17 - FSA Insured
City of Waterbury, Connecticut, General Obligation Tax Revenue Intercept Bonds, 2000 Issue:
910 6.000%, 2/01/18 - RAAI Insured
1,025 6.000%, 2/01/20 - RAAI Insured
1,630 Town of Westport, Connecticut, General Obligation Bonds, Series 2003, 4.875%, 2/01/20
325 Town of Canterbury, Connecticut, General Obligation Bonds, 7.200%, 5/01/09
Town of Glastonbury, Connecticut, General Obligation Bonds, Issue of 1988:
200 7.200%, 8/15/06
200 7.200%, 8/15/07
200 7.200%, 8/15/08
Town of Griswold, Connecticut, General Obligation Bonds, Issue of 1989:
200 7.500%, 4/01/04 - MBIA Insured
150 7.500%, 4/01/05 - MBIA Insured
340 City of Middletown, Connecticut, General Obligation Bonds, 6.900%, 4/15/06
City of New London, Connecticut, General Obligation Bonds, Water Department Revenue Bonds,
Series 20:
120 7.300%, 12/01/05
100 7.300%, 12/01/07
Optional Call
Description Provisions* Ratings**
- --------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Town of Colchester, Connecticut, General Obligation Bonds, Series 2001, 6/11 at 102.00 Aaa
5.500%, 6/15/14 - FGIC Insured
State of Connecticut, General Obligation Bonds, Series 1999B, 5.500%, 11/01/18 11/09 at 101.00 AA
State of Connecticut, General Obligation Bonds, Series 2002B:
5.500%, 6/15/19 6/12 at 100.00 AA
5.500%, 6/15/21 6/12 at 100.00 AA
State of Connecticut, General Obligation Bonds, Residual Certificates Series 514, No Opt. Call Aa2
14.340%, 12/15/13 (IF)
State of Connecticut, General Obligation Bonds, Series 2002D, 5.375%, 11/15/21 11/12 at 100.00 AA
State of Connecticut, General Obligation Bonds, Series 2001D, 5.000%, 11/15/20 11/11 at 100.00 AA
State of Connecticut, General Obligation Bonds, Series 2002A, 5.375%, 4/15/19 4/12 at 100.00 AA
Town of East Lyme, Connecticut, General Obligation Bonds, 5.000%, 7/15/16 - FGIC Insured 7/11 at 102.00 Aaa
City of New Haven, Connecticut, General Obligation Bonds, Series 1999, 2/08 at 101.00 AAA
4.700%, 2/01/15 - FGIC Insured
City of New Haven, Connecticut, General Obligation Bonds, Series 2001A, 11/10 at 101.00 AAA
5.000%, 11/01/20 - FGIC Insured
Northern Mariana Islands, General Obligation Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured 6/10 at 100.00 A
Regional School District No. 16, Connecticut (Towns of Beacon Falls and Prospect), General Obligation
Bonds, Issue of 2000:
5.500%, 3/15/18 - FSA Insured 3/10 at 101.00 Aaa
5.625%, 3/15/19 - FSA Insured 3/10 at 101.00 Aaa
5.700%, 3/15/20 - FSA Insured 3/10 at 101.00 Aaa
Regional School District No. 008, Towns of Andover, Hebron and Marlborough, County of Tolland, 5/11 at 101.00 Aaa
Connecticut, General Obligation Bonds, Series 2002, 5.000%, 5/01/21 - FSA Insured
Regional School District No. 15, Connecticut, General Obligation Bonds, Series 2002, 8/10 at 101.00 Aaa
5.000%, 8/15/22 - FSA Insured
Town of Stratford, Connecticut, General Obligation Bonds, Series 2002:
4.000%, 2/15/16 - FSA Insured 2/12 at 100.00 AAA
4.000%, 2/15/17 - FSA Insured 2/12 at 100.00 AAA
Commonwealth of Puerto Rico, Public Improvement Bonds, TICS, 11.280%, 7/01/19 - FSA Insured (IF) No Opt. Call AAA
City of Waterbury, Connecticut, General Obligation Bonds, Series 2002A:
5.375%, 4/01/16 - FSA Insured 4/12 at 100.00 AAA
5.375%, 4/01/17 - FSA Insured 4/12 at 100.00 AAA
City of Waterbury, Connecticut, General Obligation Tax Revenue Intercept Bonds, 2000 Issue:
6.000%, 2/01/18 - RAAI Insured 2/09 at 101.00 AA
6.000%, 2/01/20 - RAAI Insured 2/09 at 101.00 AA
Town of Westport, Connecticut, General Obligation Bonds, Series 2003, 4.875%, 2/01/20 2/12 at 100.00 Aaa
Town of Canterbury, Connecticut, General Obligation Bonds, 7.200%, 5/01/09 No Opt. Call A3
Town of Glastonbury, Connecticut, General Obligation Bonds, Issue of 1988:
7.200%, 8/15/06 No Opt. Call Aa1
7.200%, 8/15/07 No Opt. Call Aa1
7.200%, 8/15/08 No Opt. Call Aa1
Town of Griswold, Connecticut, General Obligation Bonds, Issue of 1989:
7.500%, 4/01/04 - MBIA Insured No Opt. Call AAA
7.500%, 4/01/05 - MBIA Insured No Opt. Call AAA
City of Middletown, Connecticut, General Obligation Bonds, 6.900%, 4/15/06 No Opt. Call AA
City of New London, Connecticut, General Obligation Bonds, Water Department Revenue Bonds,
Series 20:
7.300%, 12/01/05 No Opt. Call A+
7.300%, 12/01/07 No Opt. Call A+
Market
Description Value
- ----------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Town of Colchester, Connecticut, General Obligation Bonds, Series 2001, $ 440,259
5.500%, 6/15/14 - FGIC Insured
State of Connecticut, General Obligation Bonds, Series 1999B, 5.500%, 11/01/18 537,950
State of Connecticut, General Obligation Bonds, Series 2002B:
5.500%, 6/15/19 1,076,790
5.500%, 6/15/21 2,132,560
State of Connecticut, General Obligation Bonds, Residual Certificates Series 514, 6,812,500
14.340%, 12/15/13 (IF)
State of Connecticut, General Obligation Bonds, Series 2002D, 5.375%, 11/15/21 1,051,830
State of Connecticut, General Obligation Bonds, Series 2001D, 5.000%, 11/15/20 1,020,510
State of Connecticut, General Obligation Bonds, Series 2002A, 5.375%, 4/15/19 2,650,250
Town of East Lyme, Connecticut, General Obligation Bonds, 5.000%, 7/15/16 - FGIC Insured 1,078,783
City of New Haven, Connecticut, General Obligation Bonds, Series 1999, 511,290
4.700%, 2/01/15 - FGIC Insured
City of New Haven, Connecticut, General Obligation Bonds, Series 2001A, 1,657,775
5.000%, 11/01/20 - FGIC Insured
Northern Mariana Islands, General Obligation Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured 1,014,644
Regional School District No. 16, Connecticut (Towns of Beacon Falls and Prospect), General Obligation
Bonds, Issue of 2000:
5.500%, 3/15/18 - FSA Insured 700,109
5.625%, 3/15/19 - FSA Insured 704,587
5.700%, 3/15/20 - FSA Insured 705,445
Regional School District No. 008, Towns of Andover, Hebron and Marlborough, County of Tolland, 1,490,280
Connecticut, General Obligation Bonds, Series 2002, 5.000%, 5/01/21 - FSA Insured
Regional School District No. 15, Connecticut, General Obligation Bonds, Series 2002, 422,869
5.000%, 8/15/22 - FSA Insured
Town of Stratford, Connecticut, General Obligation Bonds, Series 2002:
4.000%, 2/15/16 - FSA Insured 1,994,015
4.000%, 2/15/17 - FSA Insured 1,976,659
Commonwealth of Puerto Rico, Public Improvement Bonds, TICS, 11.280%, 7/01/19 - FSA Insured (IF) 4,887,034
City of Waterbury, Connecticut, General Obligation Bonds, Series 2002A:
5.375%, 4/01/16 - FSA Insured 1,615,275
5.375%, 4/01/17 - FSA Insured 1,166,496
City of Waterbury, Connecticut, General Obligation Tax Revenue Intercept Bonds, 2000 Issue:
6.000%, 2/01/18 - RAAI Insured 970,743
6.000%, 2/01/20 - RAAI Insured 1,085,455
Town of Westport, Connecticut, General Obligation Bonds, Series 2003, 4.875%, 2/01/20 1,656,960
Town of Canterbury, Connecticut, General Obligation Bonds, 7.200%, 5/01/09 392,525
Town of Glastonbury, Connecticut, General Obligation Bonds, Issue of 1988:
7.200%, 8/15/06 230,510
7.200%, 8/15/07 236,574
7.200%, 8/15/08 241,390
Town of Griswold, Connecticut, General Obligation Bonds, Issue of 1989:
7.500%, 4/01/04 - MBIA Insured 207,544
7.500%, 4/01/05 - MBIA Insured 164,363
City of Middletown, Connecticut, General Obligation Bonds, 6.900%, 4/15/06 383,785
City of New London, Connecticut, General Obligation Bonds, Water Department Revenue Bonds,
Series 20:
7.300%, 12/01/05 135,215
7.300%, 12/01/07 119,285
- ----
17
Portfolio of Investments (Unaudited)
NUVEEN CONNECTICUT MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal
Amount (000) Description
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Town of Old Saybrook, Connecticut, General Obligation Bonds:
$ 160 7.400%, 5/01/08
160 7.400%, 5/01/09
275 6.500%, 2/15/10 - AMBAC Insured
270 6.500%, 2/15/11 - AMBAC Insured
Town of Winchester, Connecticut, General Obligation Bonds:
140 6.750%, 4/15/06
140 6.750%, 4/15/07
140 6.750%, 4/15/08
140 6.750%, 4/15/09
140 6.750%, 4/15/10
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 13.0%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (St. Camillus Health Center Project):
2,000 6.250%, 11/01/18
3,695 6.250%, 11/01/18 - AMBAC Insured
880 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Child Care Facilities
Program, Series A, 5.000%, 7/01/28 - AMBAC Insured
5,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (St. Joseph's Manor Project), 6.250%, 11/01/16 - AMBAC Insured
3,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (The Jewish Home for the Elderly of Fairfield County Project),
6.250%, 11/01/20 - AMBAC Insured
2,895 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, New Opportunities for
Waterbury, Inc. Issue, Series 1998A, 6.750%, 7/01/28
4,365 State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1996 (3030 Park Fairfield Health Center Project), 6.250%, 11/01/21
State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purposes,
2002 Series A:
1,500 5.375%, 7/01/18 - FSA Insured
1,780 5.375%, 7/01/19 - FSA Insured
4,000 State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purpose,
2002 Series B, 5.000%, 12/01/20 - AMBAC Insured
State of Connecticut, Certificates of Participation, Juvenile Training School, Series 2001:
1,275 5.000%, 12/15/20
1,000 5.000%, 12/15/30
1,150 State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purposes,
1992 Series B, 6.125%, 9/01/12
1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2000B,
5.750%, 7/01/19 - MBIA Insured
2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 1999A,
6.500%, 10/01/24
725 Town of Woodstock, Connecticut, Special Obligation Bonds (Woodstock Academy), 1990 Issue, General
Obligation Bonds, 6.900%, 3/01/06 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------
Transportation - 1.6%
2,100 State of Connecticut, General Airport Revenue Bonds, Series 2001A, Bradley International Airport,
5.125%, 10/01/26 (Alternative Minimum Tax) - FGIC Insured
1,000 City of Hartford, Connecticut, Parking System Revenue Bonds, 2000 Series A, 6.500%, 7/01/25
1,360 City of New Haven, Connecticut, Air Rights Parking Facility Revenue Bonds, Series 2002 Refunding,
5.375%, 12/01/14 - AMBAC Insured
Optional Call
Description Provisions* Ratings**
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Town of Old Saybrook, Connecticut, General Obligation Bonds:
7.400%, 5/01/08 No Opt. Call A1
7.400%, 5/01/09 No Opt. Call A1
6.500%, 2/15/10 - AMBAC Insured No Opt. Call AAA
6.500%, 2/15/11 - AMBAC Insured No Opt. Call AAA
Town of Winchester, Connecticut, General Obligation Bonds:
6.750%, 4/15/06 No Opt. Call A1
6.750%, 4/15/07 No Opt. Call A1
6.750%, 4/15/08 No Opt. Call A1
6.750%, 4/15/09 No Opt. Call A1
6.750%, 4/15/10 No Opt. Call A1
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 13.0%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (St. Camillus Health Center Project):
6.250%, 11/01/18 11/04 at 102.00 AA
6.250%, 11/01/18 - AMBAC Insured 11/04 at 102.00 AAA
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Child Care Facilities 7/08 at 102.00 AAA
Program, Series A, 5.000%, 7/01/28 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 11/04 at 102.00 AAA
Program Issue, Series 1994 (St. Joseph's Manor Project), 6.250%, 11/01/16 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 11/04 at 102.00 AAA
Program Issue, Series 1994 (The Jewish Home for the Elderly of Fairfield County Project),
6.250%, 11/01/20 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, New Opportunities for 7/08 at 105.00 A
Waterbury, Inc. Issue, Series 1998A, 6.750%, 7/01/28
State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 11/06 at 102.00 AA
Program Issue, Series 1996 (3030 Park Fairfield Health Center Project), 6.250%, 11/01/21
State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purposes,
2002 Series A:
5.375%, 7/01/18 - FSA Insured 7/12 at 100.00 AAA
5.375%, 7/01/19 - FSA Insured 7/12 at 100.00 AAA
State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purpose, 12/12 at 100.00 AAA
2002 Series B, 5.000%, 12/01/20 - AMBAC Insured
State of Connecticut, Certificates of Participation, Juvenile Training School, Series 2001:
5.000%, 12/15/20 12/11 at 101.00 AA-
5.000%, 12/15/30 12/11 at 101.00 AA-
State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purposes, No Opt. Call AA-
1992 Series B, 6.125%, 9/01/12
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2000B, 7/10 at 101.00 AAA
5.750%, 7/01/19 - MBIA Insured
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 1999A, 10/10 at 101.00 BBB-
6.500%, 10/01/24
Town of Woodstock, Connecticut, Special Obligation Bonds (Woodstock Academy), 1990 Issue, General 9/03 at 100.00 AAA
Obligation Bonds, 6.900%, 3/01/06 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation - 1.6%
State of Connecticut, General Airport Revenue Bonds, Series 2001A, Bradley International Airport, 4/11 at 101.00 AAA
5.125%, 10/01/26 (Alternative Minimum Tax) - FGIC Insured
City of Hartford, Connecticut, Parking System Revenue Bonds, 2000 Series A, 6.500%, 7/01/25 7/10 at 100.00 BBB
City of New Haven, Connecticut, Air Rights Parking Facility Revenue Bonds, Series 2002 Refunding, No Opt. Call AAA
5.375%, 12/01/14 - AMBAC Insured
Market
Description Value
- ------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Town of Old Saybrook, Connecticut, General Obligation Bonds:
7.400%, 5/01/08 $ 191,984
7.400%, 5/01/09 195,824
6.500%, 2/15/10 - AMBAC Insured 324,126
6.500%, 2/15/11 - AMBAC Insured 319,685
Town of Winchester, Connecticut, General Obligation Bonds:
6.750%, 4/15/06 157,321
6.750%, 4/15/07 161,333
6.750%, 4/15/08 164,233
6.750%, 4/15/09 166,348
6.750%, 4/15/10 167,331
- ------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 13.0%
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (St. Camillus Health Center Project):
6.250%, 11/01/18 2,074,420
6.250%, 11/01/18 - AMBAC Insured 3,957,123
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Child Care Facilities 865,550
Program, Series A, 5.000%, 7/01/28 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 5,354,700
Program Issue, Series 1994 (St. Joseph's Manor Project), 6.250%, 11/01/16 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 3,208,440
Program Issue, Series 1994 (The Jewish Home for the Elderly of Fairfield County Project),
6.250%, 11/01/20 - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, New Opportunities for 3,131,435
Waterbury, Inc. Issue, Series 1998A, 6.750%, 7/01/28
State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 4,542,481
Program Issue, Series 1996 (3030 Park Fairfield Health Center Project), 6.250%, 11/01/21
State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purposes,
2002 Series A:
5.375%, 7/01/18 - FSA Insured 1,604,355
5.375%, 7/01/19 - FSA Insured 1,891,766
State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purpose, 4,096,480
2002 Series B, 5.000%, 12/01/20 - AMBAC Insured
State of Connecticut, Certificates of Participation, Juvenile Training School, Series 2001:
5.000%, 12/15/20 1,297,198
5.000%, 12/15/30 987,450
State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purposes, 1,342,464
1992 Series B, 6.125%, 9/01/12
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2000B, 1,113,400
5.750%, 7/01/19 - MBIA Insured
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 1999A, 2,196,840
6.500%, 10/01/24
Town of Woodstock, Connecticut, Special Obligation Bonds (Woodstock Academy), 1990 Issue, General 728,335
Obligation Bonds, 6.900%, 3/01/06 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------
Transportation - 1.6%
State of Connecticut, General Airport Revenue Bonds, Series 2001A, Bradley International Airport, 2,071,923
5.125%, 10/01/26 (Alternative Minimum Tax) - FGIC Insured
City of Hartford, Connecticut, Parking System Revenue Bonds, 2000 Series A, 6.500%, 7/01/25 1,028,740
City of New Haven, Connecticut, Air Rights Parking Facility Revenue Bonds, Series 2002 Refunding, 1,510,457
5.375%, 12/01/14 - AMBAC Insured
- ----
18
Principal
Amount (000) Description
- -------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$ 250 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 Series A (American Airlines, Inc.
Project), 6.250%, 6/01/26 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 10.8%
1,000 City of Bridgeport, Connecticut, General Obligation Bonds, 2000 Series A, 6.000%, 7/15/19
(Pre-refunded to 7/15/10) - FGIC Insured
2,355 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2000,
5.750%, 7/01/20 (Pre-refunded to 7/01/10)
1,100 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (Wadsworth Glen Health Care Center Project), 7.200%, 11/01/10
(Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (Highland View Manor, Inc. Project):
1,500 7.200%, 11/01/10 (Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured
4,200 7.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured
1,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (Wadsworth Glen Health Care Center Project), 7.500%, 11/01/16
(Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994, AHF/Hartford, Inc. Project, 7.125%, 11/01/24
(Pre-refunded to 11/01/04) - AMBAC Insured
4,115 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1996 (Abbott Terrace Health Center Project), 5.750%, 11/01/13
(Pre-refunded to 11/01/06)
1,300 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lutheran General
Health Care System (Parkside Lodges Projects), 7.375%, 7/01/19
665 City of New Haven, Connecticut, General Obligation Bonds, Series 2000C, 6.000%, 11/01/19
(Pre-refunded to 11/01/09) - FSA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A:
2,540 5.500%, 10/01/32
4,500 5.500%, 10/01/40
2,105 City of Stamford, Connecticut, General Obligation Bonds, Series 2002, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
500 The University of Connecticut, Special Obligation Student Fee Revenue Bonds, 2000 Series A,
5.750%, 11/15/29 (Pre-refunded to 11/15/10) - FGIC Insured
- -------------------------------------------------------------------------------------------------------------------
Utilities - 10.4%
8,000 Bristol Resource Recovery Facility Operating Committee, Connecticut, Solid Waste Revenue Refunding
Bonds (Ogden Martin Systems of Bristol, Inc. Project), 1995 Series, 6.500%, 7/01/14
2,025 Connecticut Development Authority, Pollution Control Revenue Refunding Bonds, Connecticut Light and
Power Company, Series 1993A, 5.850%, 9/01/28
1,000 Connecticut Resources Recovery Authority, Corporate Credit Resource Recovery Revenue Bonds,
America Ref-Fuel Company of Southeastern Connecticut Project, II Series A, 5.500%, 11/15/15
(Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds (Wheelabrator Lisbon
Project), Series 1993A:
240 5.250%, 1/01/06 (Alternative Minimum Tax)
1,370 5.500%, 1/01/14 (Alternative Minimum Tax)
3,915 5.500%, 1/01/20 (Alternative Minimum Tax)
Connecticut Resource Recovery Authority, Wallingford Resource Recovery Project Revenue Bonds,
Subordinated Series 1991:
400 6.750%, 11/15/03
500 6.800%, 11/15/04
Optional Call
Description Provisions* Ratings**
- --------------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 Series A (American Airlines, Inc. 6/06 at 102.00 CCC
Project), 6.250%, 6/01/26 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 10.8%
City of Bridgeport, Connecticut, General Obligation Bonds, 2000 Series A, 6.000%, 7/15/19 7/10 at 101.00 AAA
(Pre-refunded to 7/15/10) - FGIC Insured
Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2000, 7/10 at 100.00 AAA
5.750%, 7/01/20 (Pre-refunded to 7/01/10)
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 11/04 at 102.00 AAA
Program Issue, Series 1994 (Wadsworth Glen Health Care Center Project), 7.200%, 11/01/10
(Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (Highland View Manor, Inc. Project):
7.200%, 11/01/10 (Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured 11/04 at 102.00 AAA
7.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured 11/04 at 102.00 AAA
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 11/04 at 102.00 AAA
Program Issue, Series 1994 (Wadsworth Glen Health Care Center Project), 7.500%, 11/01/16
(Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 11/04 at 102.00 AAA
Program Issue, Series 1994, AHF/Hartford, Inc. Project, 7.125%, 11/01/24
(Pre-refunded to 11/01/04) - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 11/06 at 102.00 AA***
Program Issue, Series 1996 (Abbott Terrace Health Center Project), 5.750%, 11/01/13
(Pre-refunded to 11/01/06)
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lutheran General 1/04 at 100.00 AAA
Health Care System (Parkside Lodges Projects), 7.375%, 7/01/19
City of New Haven, Connecticut, General Obligation Bonds, Series 2000C, 6.000%, 11/01/19 11/09 at 101.00 AAA
(Pre-refunded to 11/01/09) - FSA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A:
5.500%, 10/01/32 10/10 at 101.00 AAA
5.500%, 10/01/40 10/10 at 101.00 AAA
City of Stamford, Connecticut, General Obligation Bonds, Series 2002, 5.000%, 8/15/15 8/12 at 100.00 AAA
(Pre-refunded to 8/15/12)
The University of Connecticut, Special Obligation Student Fee Revenue Bonds, 2000 Series A, 11/10 at 101.00 AAA
5.750%, 11/15/29 (Pre-refunded to 11/15/10) - FGIC Insured
- --------------------------------------------------------------------------------------------------------------------------------
Utilities - 10.4%
Bristol Resource Recovery Facility Operating Committee, Connecticut, Solid Waste Revenue Refunding 7/05 at 102.00 A2
Bonds (Ogden Martin Systems of Bristol, Inc. Project), 1995 Series, 6.500%, 7/01/14
Connecticut Development Authority, Pollution Control Revenue Refunding Bonds, Connecticut Light and 10/08 at 102.00 A3
Power Company, Series 1993A, 5.850%, 9/01/28
Connecticut Resources Recovery Authority, Corporate Credit Resource Recovery Revenue Bonds, 12/11 at 102.00 Baa2
America Ref-Fuel Company of Southeastern Connecticut Project, II Series A, 5.500%, 11/15/15
(Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds (Wheelabrator Lisbon
Project), Series 1993A:
5.250%, 1/01/06 (Alternative Minimum Tax) 1/04 at 101.00 BBB
5.500%, 1/01/14 (Alternative Minimum Tax) 1/04 at 101.00 BBB
5.500%, 1/01/20 (Alternative Minimum Tax) 1/04 at 101.00 BBB
Connecticut Resource Recovery Authority, Wallingford Resource Recovery Project Revenue Bonds,
Subordinated Series 1991:
6.750%, 11/15/03 11/03 at 100.00 AA
6.800%, 11/15/04 11/03 at 100.00 AA
Market
Description Value
- ----------------------------------------------------------------------------------------------------------------
Transportation (continued)
Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 Series A (American Airlines, Inc. $ 112,503
Project), 6.250%, 6/01/26 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 10.8%
City of Bridgeport, Connecticut, General Obligation Bonds, 2000 Series A, 6.000%, 7/15/19 1,167,080
(Pre-refunded to 7/15/10) - FGIC Insured
Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2000, 2,629,310
5.750%, 7/01/20 (Pre-refunded to 7/01/10)
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 1,196,492
Program Issue, Series 1994 (Wadsworth Glen Health Care Center Project), 7.200%, 11/01/10
(Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home
Program Issue, Series 1994 (Highland View Manor, Inc. Project):
7.200%, 11/01/10 (Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured 1,631,580
7.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured 4,582,914
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 1,091,170
Program Issue, Series 1994 (Wadsworth Glen Health Care Center Project), 7.500%, 11/01/16
(Alternative Minimum Tax) (Pre-refunded to 11/01/04) - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 2,179,480
Program Issue, Series 1994, AHF/Hartford, Inc. Project, 7.125%, 11/01/24
(Pre-refunded to 11/01/04) - AMBAC Insured
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home 4,668,961
Program Issue, Series 1996 (Abbott Terrace Health Center Project), 5.750%, 11/01/13
(Pre-refunded to 11/01/06)
State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lutheran General 1,629,355
Health Care System (Parkside Lodges Projects), 7.375%, 7/01/19
City of New Haven, Connecticut, General Obligation Bonds, Series 2000C, 6.000%, 11/01/19 781,940
(Pre-refunded to 11/01/09) - FSA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A:
5.500%, 10/01/32 2,716,708
5.500%, 10/01/40 4,756,770
City of Stamford, Connecticut, General Obligation Bonds, Series 2002, 5.000%, 8/15/15 2,300,155
(Pre-refunded to 8/15/12)
The University of Connecticut, Special Obligation Student Fee Revenue Bonds, 2000 Series A, 578,825
5.750%, 11/15/29 (Pre-refunded to 11/15/10) - FGIC Insured
- ----------------------------------------------------------------------------------------------------------------
Utilities - 10.4%
Bristol Resource Recovery Facility Operating Committee, Connecticut, Solid Waste Revenue Refunding 8,314,880
Bonds (Ogden Martin Systems of Bristol, Inc. Project), 1995 Series, 6.500%, 7/01/14
Connecticut Development Authority, Pollution Control Revenue Refunding Bonds, Connecticut Light and 2,109,645
Power Company, Series 1993A, 5.850%, 9/01/28
Connecticut Resources Recovery Authority, Corporate Credit Resource Recovery Revenue Bonds, 1,014,390
America Ref-Fuel Company of Southeastern Connecticut Project, II Series A, 5.500%, 11/15/15
(Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds (Wheelabrator Lisbon
Project), Series 1993A:
5.250%, 1/01/06 (Alternative Minimum Tax) 245,119
5.500%, 1/01/14 (Alternative Minimum Tax) 1,370,260
5.500%, 1/01/20 (Alternative Minimum Tax) 3,740,039
Connecticut Resource Recovery Authority, Wallingford Resource Recovery Project Revenue Bonds,
Subordinated Series 1991:
6.750%, 11/15/03 404,244
6.800%, 11/15/04 505,110
- ----
19
Portfolio of Investments (Unaudited)
NUVEEN CONNECTICUT MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------
Utilities (continued)
$ 5,250 Connecticut Resources Recovery Authority, Corporate Credit 11/03 at 100.00 BBB $ 5,288,588
Bonds/Tax Exempt Interest (American REF-FUEL Company of
Southeastern Connecticut Project), 1992 Series A, 6.450%,
11/15/22
Guam Power Authority, Revenue Bonds, Series 1999A:
2,280 5.125%, 10/01/29 - MBIA Insured 10/09 at 101.00 AAA 2,301,751
1,000 5.125%, 10/01/29 - AMBAC Insured 10/09 at 101.00 AAA 1,007,750
4,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 4,495,360
Trust Series 2002-1, 9.180%, 7/01/20 - MBIA Insured (IF)
- ----------------------------------------------------------------------------------------------------------------
Water and Sewer - 4.2%
1,550 State of Connecticut, State Revolving Fund General Revenue 10/13 at 100.00 AAA 1,638,642
Bonds, Series 2003A, 5.000%, 10/01/16
2,000 Connecticut Development Authority, Water Facilities Revenue 12/03 at 102.00 AAA 2,068,920
Refunding Bonds (The Connecticut Water Company Project),
1993 Series, 6.650%, 12/15/20 - AMBAC Insured
1,750 Connecticut Development Authority, Water Facilities Revenue 4/07 at 102.00 A 1,836,800
Bonds (Bridgeport Hydraulic Company Project), 1995 Series,
6.150%, 4/01/35 (Alternative Minimum Tax)
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
3,000 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 3,067,020
3,955 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 3,927,510
- ----------------------------------------------------------------------------------------------------------------
$278,335 Total Long-Term Investments (cost $281,464,752) - 98.2% 290,451,693
- ----------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.8% 5,246,398
--------------------------------------------------------------------------------------------------
Net Assets - 100% $295,698,091
--------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities which
ensures the timely payment of principal and interest. Such
securities are normally considered to be equivalent to AAA rated
securities.
N/R Investment is not rated.
(IF) Inverse floating rate security.
See accompanying notes to financial statements.
- ----
20
Portfolio of Investments (Unaudited)
NUVEEN NEW JERSEY MUNICIPAL BOND FUND
August 31, 2003
Principal
Amount (000) Description
- --------------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.6%
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
Series 2002:
$ 5,000 5.750%, 6/01/32
1,000 6.000%, 6/01/37
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
Series 2003:
710 6.125%, 6/01/24
750 6.375%, 6/01/32
- --------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 6.6%
2,500 Bergen County Improvement Authority, New Jersey, Revenue Bonds, Yeshiva Ktana of Passaic Project,
Series 2002, 6.000%, 9/15/27
1,000 Housing Authority of the City of New Brunswick, New Jersey, Lease Revenue Refunding Bonds, Rutgers
University, Series 1998, 4.750%, 7/01/18 - FGIC Insured
885 New Jersey Economic Development Authority, Economic Development Bonds, Yeshiva Ktana of Passaic
1992 Project, 8.000%, 9/15/18
150 New Jersey Economic Development Authority, Insured Revenue Bonds (Educational Testing Service
Issue), Series 1995B, 5.500%, 5/15/05 - MBIA Insured
505 New Jersey Educational Facilities Authority, Revenue Bonds, Trenton State College Issue, Series
1976D, 6.750%, 7/01/08
410 New Jersey Educational Facilities Authority, Revenue Refunding Bonds (Monmouth College), Series
1993-A, 5.625%, 7/01/13
835 New Jersey Educational Facilities Authority, Princeton University Revenue Bonds, 1994 Series A,
5.875%, 7/01/11
650 New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo College, Series 2001D,
5.000%, 7/01/25 - AMBAC Insured
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, Fairleigh Dickinson University, Series
2002D, 5.250%, 7/01/32 - ACA Insured
35 New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, New Jersey Class
Loan Program, Series 1992A, 6.000%, 1/01/06 (Alternative Minimum Tax)
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing
Authority, Higher Education Revenue Bonds, Ana G. Mendez University System Project Refunding,
Series 2002, 5.500%, 12/01/31
- --------------------------------------------------------------------------------------------------------------------
Healthcare - 10.4%
500 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds, St. Elizabeth Hospital
Obligated Group, Series 1997, 6.000%, 7/01/27
1,200 New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, Holy Name
Hospital Issue, Series 1997, 5.250%, 7/01/20 - AMBAC Insured
250 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Dover General Hospital and
Medical Center Issue, Series 1994, 5.900%, 7/01/05 - MBIA Insured
4,875 New Jersey Health Care Facilities Financing Authority, FHA-Insured Mortgage Revenue Bonds, Jersey
City Medical Center Issue, Series 2001, 5.000%, 8/01/31 - AMBAC Insured
1,710 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds, Bayshore Community
Hospital, Series 2002, 5.000%, 7/01/22 - RAAI Insured
1,250 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, South Jersey Hospital System,
Series 2002, 5.875%, 7/01/21
1,125 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center,
Series 2003, 5.500%, 7/01/33
1,000 New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, AHS Hospital
Corporation Issue, Series 1997A, 5.000%, 7/01/27 - AMBAC Insured
Optional Call
Description Provisions* Ratings**
- ---------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.6%
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
Series 2002:
5.750%, 6/01/32 6/12 at 100.00 BBB
6.000%, 6/01/37 6/12 at 100.00 BBB
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
Series 2003:
6.125%, 6/01/24 6/13 at 100.00 BBB
6.375%, 6/01/32 6/13 at 100.00 BBB
- ---------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 6.6%
Bergen County Improvement Authority, New Jersey, Revenue Bonds, Yeshiva Ktana of Passaic Project, 9/12 at 101.00 N/R
Series 2002, 6.000%, 9/15/27
Housing Authority of the City of New Brunswick, New Jersey, Lease Revenue Refunding Bonds, Rutgers 1/09 at 101.00 AAA
University, Series 1998, 4.750%, 7/01/18 - FGIC Insured
New Jersey Economic Development Authority, Economic Development Bonds, Yeshiva Ktana of Passaic No Opt. Call N/R
1992 Project, 8.000%, 9/15/18
New Jersey Economic Development Authority, Insured Revenue Bonds (Educational Testing Service No Opt. Call AAA
Issue), Series 1995B, 5.500%, 5/15/05 - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds, Trenton State College Issue, Series 1/04 at 100.00 A-
1976D, 6.750%, 7/01/08
New Jersey Educational Facilities Authority, Revenue Refunding Bonds (Monmouth College), Series 1/04 at 102.00 Baa1
1993-A, 5.625%, 7/01/13
New Jersey Educational Facilities Authority, Princeton University Revenue Bonds, 1994 Series A, 7/04 at 100.00 AAA
5.875%, 7/01/11
New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo College, Series 2001D, 7/11 at 100.00 AAA
5.000%, 7/01/25 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, Fairleigh Dickinson University, Series 7/13 at 100.00 A
2002D, 5.250%, 7/01/32 - ACA Insured
New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, New Jersey Class 1/04 at 101.00 A+
Loan Program, Series 1992A, 6.000%, 1/01/06 (Alternative Minimum Tax)
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing 12/12 at 101.00 BBB
Authority, Higher Education Revenue Bonds, Ana G. Mendez University System Project Refunding,
Series 2002, 5.500%, 12/01/31
- ---------------------------------------------------------------------------------------------------------------------------------
Healthcare - 10.4%
New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds, St. Elizabeth Hospital 7/07 at 102.00 BBB-
Obligated Group, Series 1997, 6.000%, 7/01/27
New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, Holy Name 7/07 at 102.00 AAA
Hospital Issue, Series 1997, 5.250%, 7/01/20 - AMBAC Insured
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Dover General Hospital and 7/04 at 102.00 AAA
Medical Center Issue, Series 1994, 5.900%, 7/01/05 - MBIA Insured
New Jersey Health Care Facilities Financing Authority, FHA-Insured Mortgage Revenue Bonds, Jersey 8/11 at 100.00 AAA
City Medical Center Issue, Series 2001, 5.000%, 8/01/31 - AMBAC Insured
New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds, Bayshore Community 1/12 at 100.00 AA
Hospital, Series 2002, 5.000%, 7/01/22 - RAAI Insured
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, South Jersey Hospital System, 7/12 at 100.00 Baa1
Series 2002, 5.875%, 7/01/21
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center, 7/13 at 100.00 Baa2
Series 2003, 5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, AHS Hospital 7/07 at 102.00 AAA
Corporation Issue, Series 1997A, 5.000%, 7/01/27 - AMBAC Insured
Market
Description Value
- -----------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.6%
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
Series 2002:
5.750%, 6/01/32 $3,956,050
6.000%, 6/01/37 746,250
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
Series 2003:
6.125%, 6/01/24 612,297
6.375%, 6/01/32 632,888
- -----------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 6.6%
Bergen County Improvement Authority, New Jersey, Revenue Bonds, Yeshiva Ktana of Passaic Project, 2,483,875
Series 2002, 6.000%, 9/15/27
Housing Authority of the City of New Brunswick, New Jersey, Lease Revenue Refunding Bonds, Rutgers 1,009,480
University, Series 1998, 4.750%, 7/01/18 - FGIC Insured
New Jersey Economic Development Authority, Economic Development Bonds, Yeshiva Ktana of Passaic 939,870
1992 Project, 8.000%, 9/15/18
New Jersey Economic Development Authority, Insured Revenue Bonds (Educational Testing Service 160,269
Issue), Series 1995B, 5.500%, 5/15/05 - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds, Trenton State College Issue, Series 507,177
1976D, 6.750%, 7/01/08
New Jersey Educational Facilities Authority, Revenue Refunding Bonds (Monmouth College), Series 417,372
1993-A, 5.625%, 7/01/13
New Jersey Educational Facilities Authority, Princeton University Revenue Bonds, 1994 Series A, 865,962
5.875%, 7/01/11
New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo College, Series 2001D, 651,417
5.000%, 7/01/25 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, Fairleigh Dickinson University, Series 2,479,625
2002D, 5.250%, 7/01/32 - ACA Insured
New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, New Jersey Class 35,433
Loan Program, Series 1992A, 6.000%, 1/01/06 (Alternative Minimum Tax)
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing 1,496,655
Authority, Higher Education Revenue Bonds, Ana G. Mendez University System Project Refunding,
Series 2002, 5.500%, 12/01/31
- -----------------------------------------------------------------------------------------------------------------
Healthcare - 10.4%
New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds, St. Elizabeth Hospital 481,270
Obligated Group, Series 1997, 6.000%, 7/01/27
New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, Holy Name 1,233,648
Hospital Issue, Series 1997, 5.250%, 7/01/20 - AMBAC Insured
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Dover General Hospital and 264,025
Medical Center Issue, Series 1994, 5.900%, 7/01/05 - MBIA Insured
New Jersey Health Care Facilities Financing Authority, FHA-Insured Mortgage Revenue Bonds, Jersey 4,820,546
City Medical Center Issue, Series 2001, 5.000%, 8/01/31 - AMBAC Insured
New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds, Bayshore Community 1,694,439
Hospital, Series 2002, 5.000%, 7/01/22 - RAAI Insured
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, South Jersey Hospital System, 1,269,675
Series 2002, 5.875%, 7/01/21
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center, 1,071,923
Series 2003, 5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, AHS Hospital 994,140
Corporation Issue, Series 1997A, 5.000%, 7/01/27 - AMBAC Insured
- ----
21
Portfolio of Investments (Unaudited)
NUVEEN NEW JERSEY MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
New Jersey Health Care Facilities Financing Authority, Bayonne Hospital Obligated Group, Revenue
Bonds, Series 1994:
$ 215 6.400%, 7/01/07 - FSA Insured 7/04 at 102.00
175 6.250%, 7/01/12 - FSA Insured 7/04 at 102.00
2,000 New Jersey Health Facilities Financing Authority, Revenue Bonds, Robert Wood Johnson University 7/10 at 100.00
Hospital, Series 2000, 5.750%, 7/01/31
1,500 New Jersey Health Facilities Financing Authority, Revenue Bonds, St. Peter's University Hospital, 7/10 at 100.00
Series 2000A, 6.875%, 7/01/30
300 New Jersey Economic Development Authority, Revenue Bonds (RWJ Health Care Corp. at Hamilton 7/04 at 102.00
Obligated Group Project), Series 1994, 6.250%, 7/01/14 - FSA Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing 1/05 at 102.00
Authority, Hospital Revenue Bonds, 1995 Series A (Hospital Auxilio Mutuo Obligated Group Project),
6.250%, 7/01/16 - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 3.9%
1,000 Essex County Improvement Authority, New Jersey, Multifamily Housing Revenue Bonds, Ballantyne 11/12 at 100.00
Housing Project, FNMA Enhanced, Series 2002, 4.750%, 11/01/22 (Alternative Minimum Tax)
400 Hudson County Improvement Authority, New Jersey, Multifamily Housing Revenue Bonds, Conduit 6/04 at 100.00
Financing - Observer Park Project, Series 1992A, 6.900%, 6/01/22 (Alternative Minimum Tax)
1,500 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, 2000 Series, 3/10 at 100.00
6.350%, 11/01/31 (Alternative Minimum Tax) - FSA Insured
805 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, 2000 Series 8/10 at 100.00
E1, 5.750%, 5/01/25 - FSA Insured
1,500 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, Series 5/06 at 102.00
1996A, 6.200%, 11/01/18 (Alternative Minimum Tax) - AMBAC Insured
1,090 Newark Housing Authority, New Jersey, GNMA Collateralized Housing Revenue Bonds, Fairview 10/09 at 102.00
Apartments Project, Series 2000A, 6.300%, 10/20/19 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.4%
250 New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, 1994 Series K, 7/04 at 102.00
6.300%, 10/01/16 (Alternative Minimum Tax) - MBIA Insured
4,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, Series 1997U, 10/07 at 101.50
5.700%, 10/01/14 (Alternative Minimum Tax) - MBIA Insured
2,495 New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, Series 2000CC, 10/10 at 100.00
5.875%, 10/01/31 (Alternative Minimum Tax) - MBIA Insured
345 Virgin Islands Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, GNMA 3/05 at 102.00
Mortgage-Backed Securities Program, Series 1995A, 6.450%, 3/01/16 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
Industrials - 0.7%
100 New Jersey Economic Development Authority, District Heating and Cooling Revenue Bonds, Trigen- 12/03 at 102.00
Trenton Project, Series 1993B, 6.100%, 12/01/04 (Alternative Minimum Tax)
1,000 New Jersey Economic Development Authority, Economic Development Revenue Refunding Bonds, No Opt. Call
Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21
- ----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 8.1%
New Jersey Economic Development Authority, Economic Development Revenue Bonds (United
Methodist Homes of New Jersey Obligated Group Issue), Series 1998:
1,500 5.125%, 7/01/18 1/08 at 102.00
3,610 5.125%, 7/01/25 1/08 at 102.00
5,100 New Jersey Economic Development Authority, Economic Development Revenue Bonds (Jewish 12/09 at 101.00
Community Housing Corporation of Metropolitan New Jersey - 1999 Project), 5.900%, 12/01/31
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
New Jersey Health Care Facilities Financing Authority, Bayonne Hospital Obligated Group, Revenue
Bonds, Series 1994:
6.400%, 7/01/07 - FSA Insured AAA $ 228,304
6.250%, 7/01/12 - FSA Insured AAA 185,371
New Jersey Health Facilities Financing Authority, Revenue Bonds, Robert Wood Johnson University A+ 2,082,900
Hospital, Series 2000, 5.750%, 7/01/31
New Jersey Health Facilities Financing Authority, Revenue Bonds, St. Peter's University Hospital, Baa1 1,584,615
Series 2000A, 6.875%, 7/01/30
New Jersey Economic Development Authority, Revenue Bonds (RWJ Health Care Corp. at Hamilton AAA 316,968
Obligated Group Project), Series 1994, 6.250%, 7/01/14 - FSA Insured
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing AAA 1,074,480
Authority, Hospital Revenue Bonds, 1995 Series A (Hospital Auxilio Mutuo Obligated Group Project),
6.250%, 7/01/16 - MBIA Insured
- -------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 3.9%
Essex County Improvement Authority, New Jersey, Multifamily Housing Revenue Bonds, Ballantyne Aaa 957,440
Housing Project, FNMA Enhanced, Series 2002, 4.750%, 11/01/22 (Alternative Minimum Tax)
Hudson County Improvement Authority, New Jersey, Multifamily Housing Revenue Bonds, Conduit AA- 403,996
Financing - Observer Park Project, Series 1992A, 6.900%, 6/01/22 (Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, 2000 Series, AAA 1,568,265
6.350%, 11/01/31 (Alternative Minimum Tax) - FSA Insured
New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, 2000 Series AAA 837,780
E1, 5.750%, 5/01/25 - FSA Insured
New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, Series AAA 1,562,010
1996A, 6.200%, 11/01/18 (Alternative Minimum Tax) - AMBAC Insured
Newark Housing Authority, New Jersey, GNMA Collateralized Housing Revenue Bonds, Fairview Aaa 1,124,869
Apartments Project, Series 2000A, 6.300%, 10/20/19 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.4%
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, 1994 Series K, AAA 256,935
6.300%, 10/01/16 (Alternative Minimum Tax) - MBIA Insured
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, Series 1997U, AAA 4,155,840
5.700%, 10/01/14 (Alternative Minimum Tax) - MBIA Insured
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, Series 2000CC, AAA 2,575,763
5.875%, 10/01/31 (Alternative Minimum Tax) - MBIA Insured
Virgin Islands Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, GNMA AAA 352,459
Mortgage-Backed Securities Program, Series 1995A, 6.450%, 3/01/16 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------------
Industrials - 0.7%
New Jersey Economic Development Authority, District Heating and Cooling Revenue Bonds, Trigen- BBB- 100,293
Trenton Project, Series 1993B, 6.100%, 12/01/04 (Alternative Minimum Tax)
New Jersey Economic Development Authority, Economic Development Revenue Refunding Bonds, Baa3 1,000,500
Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21
- -------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 8.1%
New Jersey Economic Development Authority, Economic Development Revenue Bonds (United
Methodist Homes of New Jersey Obligated Group Issue), Series 1998:
5.125%, 7/01/18 BBB- 1,376,250
5.125%, 7/01/25 BBB- 3,057,201
New Jersey Economic Development Authority, Economic Development Revenue Bonds (Jewish Aa3 5,430,990
Community Housing Corporation of Metropolitan New Jersey - 1999 Project), 5.900%, 12/01/31
- ----
22
Principal Optional Call
Amount (000) Description Provisions*
- --------------------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, House of the Good Shepherd
Obligated Group, Series 2001:
$ 1,000 5.100%, 7/01/21 - RAAI Insured 7/11 at 100.00
1,350 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00
1,300 New Jersey Economic Development Authority, First Mortgage Revenue Fixed Rate Bonds (Cadbury 7/08 at 102.00
Corporation Project), Series 1998A, 5.500%, 7/01/18 - ACA Insured
- --------------------------------------------------------------------------------------------------------------------------------
Materials - 0.2%
250 Pollution Control Financing Authority of Union County, New Jersey, Pollution Control Revenue No Opt. Call
Refunding Bonds, American Cyanamid Company Issue, Series 1994, 5.800%, 9/01/09
- --------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 5.2%
200 Atlantic City, Atlantic County, New Jersey, General Obligation General Improvement Bonds, Series No Opt. Call
1994, 5.650%, 8/15/04
1,445 Clifton, New Jersey, General Obligation Bonds, Series 2002, 5.000%, 1/15/19 - FGIC Insured 1/11 at 100.00
500 The Board of Education of the Township of Hillsborough in the County of Somerset, State of New No Opt. Call
Jersey, General Obligation School Purpose Bonds, Series 1992, 5.875%, 8/01/11
3,500 Middletown Township Board of Education Monmouth County, New Jersey, Refunding School Bonds, 8/10 at 100.00
5.000%, 8/01/22 - FSA Insured
1,000 New Jersey, General Obligation Bonds, Series 1992D, 5.800%, 2/15/07 No Opt. Call
165 Parsippany-Troy Hills Township, New Jersey, General Obligation Bonds, Series 1992, 0.000%, 4/01/07 No Opt. Call
185 The Board of Education of the City of Perth Amboy in the County of Middlesex, New Jersey, School No Opt. Call
Bonds, 6.200%, 8/01/04 - MBIA Insured
1,000 Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 2001, 7/11 at 100.00
5.125%, 7/01/30 - FSA Insured
250 The City of Union City in the County of Hudson, State of New Jersey, General Obligation School No Opt. Call
Purpose Bonds, Series 1992, 6.375%, 11/01/10 - FSA Insured
- --------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 20.5%
1,550 Essex County Improvement Authority, New Jersey, General Obligation Lease Bonds, Correctional 10/13 at 100.00
Facilities Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
500 Essex County Improvement Authority, New Jersey, County Guaranteed Pooled Revenue Bonds, Series 12/03 at 101.00
1992A, 6.500%, 12/01/12
Garden State Preservation Trust, New Jersey, Open Space and Farmland Preservation Bonds,
Series 2003A:
750 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00
1,225 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00
1,625 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00
760 The Board of Education of the Borough of Little Ferry, Bergen County, New Jersey, Certificates of No Opt. Call
Participation, 6.300%, 1/15/08
250 The Mercer County Improvement Authority, New Jersey, Solid Waste Revenue Bonds, County No Opt. Call
Guaranteed Site and Disposal Facilities Project, Refunding Issue of 1992, 0.000%, 4/01/04
3,000 Middlesex County, New Jersey, Certificates of Participation, Series 2001, 8/11 at 100.00
5.000%, 8/01/22 - MBIA Insured
3,025 Middlesex County Improvement Authority, New Jersey, County Guaranteed Open Space Trust Fund 9/09 at 100.00
Revenue Bonds, Series 1999, 5.250%, 9/15/15
4,280 New Jersey Economic Development Authority, Lease Revenue Bonds, Bergen County Administration 11/08 at 101.00
Complex, Series 1998, 4.750%, 11/15/26 - MBIA Insured
300 New Jersey Economic Development Authority, Market Transition Facility Senior Lien Revenue Bonds, No Opt. Call
Series 1994A, 7.000%, 7/01/04 - MBIA Insured
Market
Description Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, House of the Good Shepherd
Obligated Group, Series 2001:
5.100%, 7/01/21 - RAAI Insured AA $1,005,900
5.200%, 7/01/31 - RAAI Insured AA 1,337,931
New Jersey Economic Development Authority, First Mortgage Revenue Fixed Rate Bonds (Cadbury A 1,320,241
Corporation Project), Series 1998A, 5.500%, 7/01/18 - ACA Insured
- -----------------------------------------------------------------------------------------------------------------------
Materials - 0.2%
Pollution Control Financing Authority of Union County, New Jersey, Pollution Control Revenue A3 283,580
Refunding Bonds, American Cyanamid Company Issue, Series 1994, 5.800%, 9/01/09
- -----------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 5.2%
Atlantic City, Atlantic County, New Jersey, General Obligation General Improvement Bonds, Series A 208,398
1994, 5.650%, 8/15/04
Clifton, New Jersey, General Obligation Bonds, Series 2002, 5.000%, 1/15/19 - FGIC Insured AAA 1,486,659
The Board of Education of the Township of Hillsborough in the County of Somerset, State of New AA 572,520
Jersey, General Obligation School Purpose Bonds, Series 1992, 5.875%, 8/01/11
Middletown Township Board of Education Monmouth County, New Jersey, Refunding School Bonds, AAA 3,545,815
5.000%, 8/01/22 - FSA Insured
New Jersey, General Obligation Bonds, Series 1992D, 5.800%, 2/15/07 AA 1,115,440
Parsippany-Troy Hills Township, New Jersey, General Obligation Bonds, Series 1992, 0.000%, 4/01/07 AA 149,673
The Board of Education of the City of Perth Amboy in the County of Middlesex, New Jersey, School AAA 193,786
Bonds, 6.200%, 8/01/04 - MBIA Insured
Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 2001, AAA 1,011,640
5.125%, 7/01/30 - FSA Insured
The City of Union City in the County of Hudson, State of New Jersey, General Obligation School AAA 295,783
Purpose Bonds, Series 1992, 6.375%, 11/01/10 - FSA Insured
- -----------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 20.5%
Essex County Improvement Authority, New Jersey, General Obligation Lease Bonds, Correctional Aaa 1,547,505
Facilities Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
Essex County Improvement Authority, New Jersey, County Guaranteed Pooled Revenue Bonds, Series Baa1 510,725
1992A, 6.500%, 12/01/12
Garden State Preservation Trust, New Jersey, Open Space and Farmland Preservation Bonds,
Series 2003A:
5.250%, 11/01/19 - FSA Insured AAA 791,385
5.000%, 11/01/20 - FSA Insured AAA 1,256,862
5.000%, 11/01/21 - FSA Insured AAA 1,655,388
The Board of Education of the Borough of Little Ferry, Bergen County, New Jersey, Certificates of N/R 809,446
Participation, 6.300%, 1/15/08
The Mercer County Improvement Authority, New Jersey, Solid Waste Revenue Bonds, County Aa2 248,253
Guaranteed Site and Disposal Facilities Project, Refunding Issue of 1992, 0.000%, 4/01/04
Middlesex County, New Jersey, Certificates of Participation, Series 2001, AAA 3,043,980
5.000%, 8/01/22 - MBIA Insured
Middlesex County Improvement Authority, New Jersey, County Guaranteed Open Space Trust Fund AAA 3,192,131
Revenue Bonds, Series 1999, 5.250%, 9/15/15
New Jersey Economic Development Authority, Lease Revenue Bonds, Bergen County Administration Aaa 4,142,270
Complex, Series 1998, 4.750%, 11/15/26 - MBIA Insured
New Jersey Economic Development Authority, Market Transition Facility Senior Lien Revenue Bonds, AAA 314,877
Series 1994A, 7.000%, 7/01/04 - MBIA Insured
- ----
23
Portfolio of Investments (Unaudited)
NUVEEN NEW JERSEY MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal
Amount (000) Description
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New Jersey Economic Development Authority, School Facilities Construction Financing Act Bonds,
Series 2002C:
$ 1,500 5.000%, 6/15/15 - MBIA Insured
1,750 5.000%, 6/15/20 - MBIA Insured
1,000 New Jersey Economic Development Authority, School Facilities Construction Bonds, Series 2003F,
5.250%, 6/15/21 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2003C:
1,000 5.500%, 6/15/17
1,000 5.500%, 6/15/18
170 Puerto Rico Aqueduct and Sewer Authority, Refunding Bonds, Series 1995, Guaranteed by the
Commonwealth of Puerto Rico, 5.000%, 7/01/15
5,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 1998A,
5.125%, 6/01/24 - AMBAC Insured
5,000 The Union County Utilities Authority, Union County, New Jersey, Solid Waste Bonds, County Deficiency
Agreement, Series 1998A, 5.000%, 6/15/28 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------
Transportation - 16.3%
2,150 Delaware River Port Authority, New Jersey and Pennsylvania, Port District Project Bonds, Series 1998B,
5.000%, 1/01/26 - MBIA Insured
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 1999,
5.750%, 1/01/22 - FSA Insured
1,750 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C, 6.500%, 1/01/08
3,400 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Residual Interest Series 835, 2003 Series A,
12.600%, 1/01/19 (IF) - FGIC Insured
125 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninety-Sixth Series 1994,
6.600%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured
3,000 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundredth Series 1995,
5.750%, 6/15/30 - MBIA Insured
200 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninth-Fifth Series 1994,
5.500%, 7/15/05 (Alternative Minimum Tax)
1,000 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Ninth Series
1997, 5.375%, 7/15/22
2,000 The Port Authority of New York and New Jersey, Consolidated Bonds, One Hundred Twelfth Series
1998, 5.250%, 12/01/13 (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC
Project, Series 6:
2,125 6.250%, 12/01/08 (Alternative Minimum Tax) - MBIA Insured
1,000 7.000%, 12/01/12 (Alternative Minimum Tax) - MBIA Insured
2,000 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured
3,100 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 12.5%
100 County of Atlantic, New Jersey, General Improvement Bonds, 6.000%, 1/01/07 (Pre-refunded to
1/01/04) - MBIA Insured
2,350 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2000,
5.750%, 7/01/20 (Pre-refunded to 7/01/10)
. Essex County Improvement Authority, New Jersey, City of Newark General Obligation Lease Revenue
Bonds, Series 1994:
620 6.350%, 4/01/07 (Pre-refunded to 4/01/04)
450 6.600%, 4/01/14 (Pre-refunded to 4/01/04)
100 Essex County Improvement Authority, New Jersey, General Obligation Lease Revenue Bonds,
Series 1994 (County Jail and Youth House Projects), 6.900%, 12/01/14 (Pre-refunded to
12/01/04) - AMBAC Insured
Optional Call
Description Provisions* Ratings**
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New Jersey Economic Development Authority, School Facilities Construction Financing Act Bonds,
Series 2002C:
5.000%, 6/15/15 - MBIA Insured 6/12 at 100.00 AAA
5.000%, 6/15/20 - MBIA Insured 6/12 at 100.00 AAA
New Jersey Economic Development Authority, School Facilities Construction Bonds, Series 2003F, 6/13 at 100.00 AAA
5.250%, 6/15/21 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2003C:
5.500%, 6/15/17 6/13 at 100.00 AA-
5.500%, 6/15/18 6/13 at 100.00 AA-
Puerto Rico Aqueduct and Sewer Authority, Refunding Bonds, Series 1995, Guaranteed by the 7/06 at 101.50 A-
Commonwealth of Puerto Rico, 5.000%, 7/01/15
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 1998A, No Opt. Call AAA
5.125%, 6/01/24 - AMBAC Insured
The Union County Utilities Authority, Union County, New Jersey, Solid Waste Bonds, County Deficiency 6/08 at 102.00 AA+
Agreement, Series 1998A, 5.000%, 6/15/28 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation - 16.3%
Delaware River Port Authority, New Jersey and Pennsylvania, Port District Project Bonds, Series 1998B, 1/08 at 101.00 AAA
5.000%, 1/01/26 - MBIA Insured
Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 1999, 1/10 at 100.00 AAA
5.750%, 1/01/22 - FSA Insured
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C, 6.500%, 1/01/08 No Opt. Call A
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Residual Interest Series 835, 2003 Series A, 7/13 at 100.00 Aaa
12.600%, 1/01/19 (IF) - FGIC Insured
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninety-Sixth Series 1994, 10/04 at 101.00 AAA
6.600%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundredth Series 1995, 6/05 at 101.00 AAA
5.750%, 6/15/30 - MBIA Insured
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninth-Fifth Series 1994, 7/04 at 101.00 AA-
5.500%, 7/15/05 (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Ninth Series 1/07 at 101.00 AA-
1997, 5.375%, 7/15/22
The Port Authority of New York and New Jersey, Consolidated Bonds, One Hundred Twelfth Series 6/05 at 101.00 AA-
1998, 5.250%, 12/01/13 (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC
Project, Series 6:
6.250%, 12/01/08 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA
7.000%, 12/01/12 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA
5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA
5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 12.5%
County of Atlantic, New Jersey, General Improvement Bonds, 6.000%, 1/01/07 (Pre-refunded to 1/04 at 101.00 AAA
1/01/04) - MBIA Insured
Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2000, 7/10 at 100.00 AAA
5.750%, 7/01/20 (Pre-refunded to 7/01/10)
Essex County Improvement Authority, New Jersey, City of Newark General Obligation Lease Revenue
Bonds, Series 1994:
6.350%, 4/01/07 (Pre-refunded to 4/01/04) 4/04 at 102.00 BBB+***
6.600%, 4/01/14 (Pre-refunded to 4/01/04) 4/04 at 102.00 BBB+***
Essex County Improvement Authority, New Jersey, General Obligation Lease Revenue Bonds, 12/04 at 102.00 AAA
Series 1994 (County Jail and Youth House Projects), 6.900%, 12/01/14 (Pre-refunded to
12/01/04) - AMBAC Insured
Market
Description Value
- -----------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New Jersey Economic Development Authority, School Facilities Construction Financing Act Bonds,
Series 2002C:
5.000%, 6/15/15 - MBIA Insured $1,582,305
5.000%, 6/15/20 - MBIA Insured 1,787,975
New Jersey Economic Development Authority, School Facilities Construction Bonds, Series 2003F, 1,035,950
5.250%, 6/15/21 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2003C:
5.500%, 6/15/17 1,076,380
5.500%, 6/15/18 1,071,480
Puerto Rico Aqueduct and Sewer Authority, Refunding Bonds, Series 1995, Guaranteed by the 173,167
Commonwealth of Puerto Rico, 5.000%, 7/01/15
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 1998A, 5,221,750
5.125%, 6/01/24 - AMBAC Insured
The Union County Utilities Authority, Union County, New Jersey, Solid Waste Bonds, County Deficiency 4,873,400
Agreement, Series 1998A, 5.000%, 6/15/28 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------
Transportation - 16.3%
Delaware River Port Authority, New Jersey and Pennsylvania, Port District Project Bonds, Series 1998B, 2,151,355
5.000%, 1/01/26 - MBIA Insured
Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 1999, 3,781,365
5.750%, 1/01/22 - FSA Insured
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C, 6.500%, 1/01/08 2,023,193
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Residual Interest Series 835, 2003 Series A, 3,726,060
12.600%, 1/01/19 (IF) - FGIC Insured
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninety-Sixth Series 1994, 132,679
6.600%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundredth Series 1995, 3,208,770
5.750%, 6/15/30 - MBIA Insured
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninth-Fifth Series 1994, 207,810
5.500%, 7/15/05 (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Ninth Series 1,020,320
1997, 5.375%, 7/15/22
The Port Authority of New York and New Jersey, Consolidated Bonds, One Hundred Twelfth Series 2,041,540
1998, 5.250%, 12/01/13 (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC
Project, Series 6:
6.250%, 12/01/08 (Alternative Minimum Tax) - MBIA Insured 2,405,564
7.000%, 12/01/12 (Alternative Minimum Tax) - MBIA Insured 1,182,050
5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 2,102,340
5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 3,245,886
- -----------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 12.5%
County of Atlantic, New Jersey, General Improvement Bonds, 6.000%, 1/01/07 (Pre-refunded to 102,698
1/01/04) - MBIA Insured
Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2000, 2,623,728
5.750%, 7/01/20 (Pre-refunded to 7/01/10)
Essex County Improvement Authority, New Jersey, City of Newark General Obligation Lease Revenue
Bonds, Series 1994:
6.350%, 4/01/07 (Pre-refunded to 4/01/04) 651,614
6.600%, 4/01/14 (Pre-refunded to 4/01/04) 473,603
Essex County Improvement Authority, New Jersey, General Obligation Lease Revenue Bonds, 109,211
Series 1994 (County Jail and Youth House Projects), 6.900%, 12/01/14 (Pre-refunded to
12/01/04) - AMBAC Insured
- ----
24
Principal
Amount (000) Description
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
$ 1,680 Lafayette Yard Community Development Corporation, Hotel/Conference Center Project Revenue Bonds,
Series 2000, City of Trenton, New Jersey, Guaranteed, 6.000%, 4/01/29 (Pre-refunded to
4/01/10) - MBIA Insured
2,645 The Board of Education of the Township of Middletown in the County of Monmouth, New Jersey,
School Bonds, 5.800%, 8/01/21 (Pre-refunded to 8/01/07) - MBIA Insured
880 New Jersey Health Care Facilities Financing Authority (Hackensack Hospital), Revenue Bonds,
Series 1979A, 8.750%, 7/01/09
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Newark Beth Israel Medical
Center Issue, Series 1994:
200 5.800%, 7/01/07 (Pre-refunded to 7/01/04) - FSA Insured
200 6.000%, 7/01/16 (Pre-refunded to 7/01/04) - FSA Insured
250 New Jersey Health Care Facilities Financing Authority, Refunding Revenue Bonds, Irvington General
Hospital Issue (FHA-Insured Mortgage), Series 1994, 6.375%, 8/01/15 (Pre-refunded to 8/01/04)
New Jersey Health Care Facilities Financing Authority, Bayonne Hospital Obligated Group, Revenue
Bonds, Series 1994:
35 6.400%, 7/01/07 (Pre-refunded to 7/01/04) - FSA Insured
25 6.250%, 7/01/12 (Pre-refunded to 7/01/04) - FSA Insured
625 New Jersey Economic Development Authority, Insured Revenue Bonds (Educational Testing Service
Issue), Series 1995B, 6.125%, 5/15/15 (Pre-refunded to 5/15/05) - MBIA Insured
650 New Jersey Economic Development Authority, Market Transition Facility Senior Lien Revenue Bonds,
Series 1994A, 5.875%, 7/01/11 (Pre-refunded to 7/01/04) - MBIA Insured
200 New Jersey Wastewater Treatment Trust, Wastewater Treatment Bonds, Series 1994A,
6.500%, 4/01/14 (Pre-refunded to 4/01/04)
2,000 Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 1997, 5.375%, 7/01/21
(Pre-refunded to 7/01/07) - MBIA Insured
2,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds of 1995, General Obligation
Bonds, 5.750%, 7/01/24 (Pre-refunded to 7/01/05) - MBIA Insured
3,900 Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A,
5.375%, 10/01/24
- --------------------------------------------------------------------------------------------------------------------
Utilities - 3.6%
950 Camden County Pollution Control Financing Authority, New Jersey, Solid Waste Disposal and Resource
Recovery System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
2,500 New Jersey Economic Development Authority, Pollution Control Revenue Refunding Bonds, PSEG Power
LLC Project, Series 2001A, 5.000%, 3/01/12
200 The Port Authority of New York and New Jersey, Special Project Bonds, Series 4, KIAC Partners Project,
7.000%, 10/01/07 (Alternative Minimum Tax)
790 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series S, 7.000%, 7/01/07
1,500 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series Z, 5.250%, 7/01/21
- --------------------------------------------------------------------------------------------------------------------
Water and Sewer - 3.1%
1,380 Bayonne Municipal Utilities Authority, New Jersey, Water System Revenue Bonds, Series 2003A
Refunding, 5.000%, 4/01/18 - XLCA Insured
1,000 New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water Works
Company Project, Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax) - FGIC Insured
Optional Call
Description Provisions* Ratings**
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
Lafayette Yard Community Development Corporation, Hotel/Conference Center Project Revenue Bonds, 4/10 at 101.00 Aaa
Series 2000, City of Trenton, New Jersey, Guaranteed, 6.000%, 4/01/29 (Pre-refunded to
4/01/10) - MBIA Insured
The Board of Education of the Township of Middletown in the County of Monmouth, New Jersey, 8/07 at 100.00 AAA
School Bonds, 5.800%, 8/01/21 (Pre-refunded to 8/01/07) - MBIA Insured
New Jersey Health Care Facilities Financing Authority (Hackensack Hospital), Revenue Bonds, No Opt. Call AAA
Series 1979A, 8.750%, 7/01/09
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Newark Beth Israel Medical
Center Issue, Series 1994:
5.800%, 7/01/07 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA
6.000%, 7/01/16 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA
New Jersey Health Care Facilities Financing Authority, Refunding Revenue Bonds, Irvington General 8/04 at 102.00 AAA
Hospital Issue (FHA-Insured Mortgage), Series 1994, 6.375%, 8/01/15 (Pre-refunded to 8/01/04)
New Jersey Health Care Facilities Financing Authority, Bayonne Hospital Obligated Group, Revenue
Bonds, Series 1994:
6.400%, 7/01/07 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA
6.250%, 7/01/12 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA
New Jersey Economic Development Authority, Insured Revenue Bonds (Educational Testing Service 5/05 at 102.00 AAA
Issue), Series 1995B, 6.125%, 5/15/15 (Pre-refunded to 5/15/05) - MBIA Insured
New Jersey Economic Development Authority, Market Transition Facility Senior Lien Revenue Bonds, 7/04 at 102.00 AAA
Series 1994A, 5.875%, 7/01/11 (Pre-refunded to 7/01/04) - MBIA Insured
New Jersey Wastewater Treatment Trust, Wastewater Treatment Bonds, Series 1994A, 4/04 at 102.00 Aa1***
6.500%, 4/01/14 (Pre-refunded to 4/01/04)
Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 1997, 5.375%, 7/01/21 7/07 at 101.50 AAA
(Pre-refunded to 7/01/07) - MBIA Insured
Commonwealth of Puerto Rico, Public Improvement Refunding Bonds of 1995, General Obligation 7/05 at 101.50 AAA
Bonds, 5.750%, 7/01/24 (Pre-refunded to 7/01/05) - MBIA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A, 10/10 at 101.00 AAA
5.375%, 10/01/24
- ---------------------------------------------------------------------------------------------------------------------------------
Utilities - 3.6%
Camden County Pollution Control Financing Authority, New Jersey, Solid Waste Disposal and Resource 12/03 at 100.00 B2
Recovery System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
New Jersey Economic Development Authority, Pollution Control Revenue Refunding Bonds, PSEG Power No Opt. Call Baa1
LLC Project, Series 2001A, 5.000%, 3/01/12
The Port Authority of New York and New Jersey, Special Project Bonds, Series 4, KIAC Partners Project, No Opt. Call N/R
7.000%, 10/01/07 (Alternative Minimum Tax)
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series S, 7.000%, 7/01/07 No Opt. Call A-
Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series Z, 5.250%, 7/01/21 7/05 at 100.00 A-
- ---------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 3.1%
Bayonne Municipal Utilities Authority, New Jersey, Water System Revenue Bonds, Series 2003A 4/13 at 100.00 Aaa
Refunding, 5.000%, 4/01/18 - XLCA Insured
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water Works 7/08 at 102.00 AAA
Company Project, Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax) - FGIC Insured
Market
Description Value
- -----------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
Lafayette Yard Community Development Corporation, Hotel/Conference Center Project Revenue Bonds, $1,953,084
Series 2000, City of Trenton, New Jersey, Guaranteed, 6.000%, 4/01/29 (Pre-refunded to
4/01/10) - MBIA Insured
The Board of Education of the Township of Middletown in the County of Monmouth, New Jersey, 2,990,781
School Bonds, 5.800%, 8/01/21 (Pre-refunded to 8/01/07) - MBIA Insured
New Jersey Health Care Facilities Financing Authority (Hackensack Hospital), Revenue Bonds, 1,038,347
Series 1979A, 8.750%, 7/01/09
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Newark Beth Israel Medical
Center Issue, Series 1994:
5.800%, 7/01/07 (Pre-refunded to 7/01/04) - FSA Insured 211,954
6.000%, 7/01/16 (Pre-refunded to 7/01/04) - FSA Insured 212,288
New Jersey Health Care Facilities Financing Authority, Refunding Revenue Bonds, Irvington General 267,185
Hospital Issue (FHA-Insured Mortgage), Series 1994, 6.375%, 8/01/15 (Pre-refunded to 8/01/04)
New Jersey Health Care Facilities Financing Authority, Bayonne Hospital Obligated Group, Revenue
Bonds, Series 1994:
6.400%, 7/01/07 (Pre-refunded to 7/01/04) - FSA Insured 37,267
6.250%, 7/01/12 (Pre-refunded to 7/01/04) - FSA Insured 26,588
New Jersey Economic Development Authority, Insured Revenue Bonds (Educational Testing Service 688,144
Issue), Series 1995B, 6.125%, 5/15/15 (Pre-refunded to 5/15/05) - MBIA Insured
New Jersey Economic Development Authority, Market Transition Facility Senior Lien Revenue Bonds, 689,371
Series 1994A, 5.875%, 7/01/11 (Pre-refunded to 7/01/04) - MBIA Insured
New Jersey Wastewater Treatment Trust, Wastewater Treatment Bonds, Series 1994A, 210,460
6.500%, 4/01/14 (Pre-refunded to 4/01/04)
Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 1997, 5.375%, 7/01/21 2,258,860
(Pre-refunded to 7/01/07) - MBIA Insured
Commonwealth of Puerto Rico, Public Improvement Refunding Bonds of 1995, General Obligation 2,190,640
Bonds, 5.750%, 7/01/24 (Pre-refunded to 7/01/05) - MBIA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A, 4,063,293
5.375%, 10/01/24
- -----------------------------------------------------------------------------------------------------------------
Utilities - 3.6%
Camden County Pollution Control Financing Authority, New Jersey, Solid Waste Disposal and Resource 895,328
Recovery System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
New Jersey Economic Development Authority, Pollution Control Revenue Refunding Bonds, PSEG Power 2,458,400
LLC Project, Series 2001A, 5.000%, 3/01/12
The Port Authority of New York and New Jersey, Special Project Bonds, Series 4, KIAC Partners Project, 208,958
7.000%, 10/01/07 (Alternative Minimum Tax)
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series S, 7.000%, 7/01/07 911,020
Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series Z, 5.250%, 7/01/21 1,505,355
- -----------------------------------------------------------------------------------------------------------------
Water and Sewer - 3.1%
Bayonne Municipal Utilities Authority, New Jersey, Water System Revenue Bonds, Series 2003A 1,420,735
Refunding, 5.000%, 4/01/18 - XLCA Insured
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water Works 1,000,210
Company Project, Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax) - FGIC Insured
- ----
25
Portfolio of Investments (Unaudited)
NUVEEN NEW JERSEY MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Water and Sewer (continued)
$ 2,675 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/06 at 101.00 AAA $ 2,708,513
Bonds, Series 1996, 5.125%, 8/01/22 - FGIC Insured
- ---------------------------------------------------------------------------------------------------------------
$161,310 Total Long-Term Investments (cost $161,366,707) - 99.1% 165,056,677
- ---------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 0.9% 1,483,678
-------------------------------------------------------------------------------------------------
Net Assets - 100% $166,540,355
-------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities which
ensures the timely payment of principal and interest. Such
securities are normally considered to be equivalent to AAA rated
securities.
N/R Investment is not rated.
(IF) Inverse floating rate security.
See accompanying notes to financial statements.
- ----
26
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK MUNICIPAL BOND FUND
August 31, 2003
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 4.0%
$ 1,455 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, 5/12 at 100.00
Series 2002, 5.375%, 5/15/33
1,120 Erie County Tobacco Asset Securitization Corporation, New York, Senior Tobacco Settlement 7/10 at 101.00
Asset-Backed Bonds, Series 2000, 6.000%, 7/15/20
Monroe Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds,
Series 2000:
250 6.000%, 6/01/15 6/10 at 101.00
1,085 6.150%, 6/01/25 6/10 at 101.00
1,605 New York Counties Tobacco Trust I, Tobacco Settlement Pass-Through Bonds, Series 2000, 6/10 at 101.00
5.800%, 6/01/23
1,305 New York Counties Tobacco Trust II, Tobacco Settlement Pass-Through Bonds, Series 2001, 6/11 at 101.00
5.250%, 6/01/25
1,500 Nassau County Tobacco Settlement Corporation, New York, Tobacco Settlement Asset-Backed Bonds 7/09 at 101.00
Series A, 6.500%, 7/15/27
730 Rensselaer Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed 6/12 at 100.00
Bonds, Series 2001A, 5.200%, 6/01/25
2,750 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, Series 1999-1, 6.250%, 7/15/27 7/09 at 101.00
2,500 Westchester Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed 7/10 at 101.00
Bonds, Series 1999, 6.750%, 7/15/29
- ----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.0%
2,000 Albany Industrial Development Agency, New York, Revenue Bonds, Albany Law School Project, 10/10 at 100.00
Series 2000A, 5.750%, 10/01/30 - RAAI Insured
1,750 Brookhaven Industrial Development Agency, New York, Revenue Bonds, Dowling College, Series 1993, 9/03 at 102.00
6.750%, 3/01/23
1,000 Cattaraugus County Industrial Development Agency, New York, Revenue Bonds, Jamestown 7/10 at 102.00
Community College Project, Series 2000A, 6.500%, 7/01/30
2,470 Dutchess County Industrial Development Agency, New York, Civic Facility Revenue Bonds 11/03 at 102.00
(The Bard College Project), Series 1992, 7.000%, 11/01/17
700 The Trust for Cultural Resources for the City of New York, New York, Revenue Bonds, Series 2000, 7/10 at 101.00
The Museum of American Folk Art, 6.000%, 7/01/22 - ACA Insured
1,000 The Trust for Cultural Resources of the City of New York, New York, Revenue Bonds, Series 2001D, 7/12 at 100.00
Museum of Modern Art, 5.125%, 7/01/31 - AMBAC Insured
1,725 New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, 7/12 at 100.00
American Council of Learned Societies Project, Series 2002, 5.250%, 7/01/27
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds (College of
New Rochelle Project), Series 1995:
1,000 6.200%, 9/01/10 9/05 at 102.00
1,000 6.300%, 9/01/15 9/05 at 102.00
750 Dormitory Authority of the State of New York, City University System Consolidated, Second General No Opt. Call
Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10
1,500 Dormitory Authority of the State of New York, City University System Consolidated Second General No Opt. Call
Resolution Revenue Bonds, Series 1993A, 5.750%, 7/01/07
1,000 Dormitory Authority of the State of New York, State University Educational Facilities Revenue Bonds, 5/14 at 100.00
Series 1993B, 5.250%, 5/15/19
500 Dormitory Authority of the State of New York, Upstate Community Colleges Revenue Bonds, Series 7/10 at 101.00
2000A, 5.750%, 7/01/29 - FSA Insured
1,750 Dormitory Authority of the State of New York, University of Rochester Revenue Bonds, Series 1999B, 7/09 at 101.00
5.625%, 7/01/24
1,250 Dormitory Authority of the State of New York, Pratt Institute Revenue Bonds, Series 1999, 7/09 at 102.00
6.000%, 7/01/24 - RAAI Insured
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 4.0%
Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, BBB $1,170,722
Series 2002, 5.375%, 5/15/33
Erie County Tobacco Asset Securitization Corporation, New York, Senior Tobacco Settlement BBB 1,037,635
Asset-Backed Bonds, Series 2000, 6.000%, 7/15/20
Monroe Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds,
Series 2000:
6.000%, 6/01/15 BBB 239,430
6.150%, 6/01/25 BBB 1,012,923
New York Counties Tobacco Trust I, Tobacco Settlement Pass-Through Bonds, Series 2000, BBB 1,564,715
5.800%, 6/01/23
New York Counties Tobacco Trust II, Tobacco Settlement Pass-Through Bonds, Series 2001, BBB 1,085,212
5.250%, 6/01/25
Nassau County Tobacco Settlement Corporation, New York, Tobacco Settlement Asset-Backed Bonds Baa2 1,458,270
Series A, 6.500%, 7/15/27
Rensselaer Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed BBB 606,542
Bonds, Series 2001A, 5.200%, 6/01/25
TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, Series 1999-1, 6.250%, 7/15/27 A2 2,592,425
Westchester Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed BBB 2,459,225
Bonds, Series 1999, 6.750%, 7/15/29
- -------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.0%
Albany Industrial Development Agency, New York, Revenue Bonds, Albany Law School Project, AA 2,081,860
Series 2000A, 5.750%, 10/01/30 - RAAI Insured
Brookhaven Industrial Development Agency, New York, Revenue Bonds, Dowling College, Series 1993, BBB- 1,730,383
6.750%, 3/01/23
Cattaraugus County Industrial Development Agency, New York, Revenue Bonds, Jamestown Baa1 1,060,910
Community College Project, Series 2000A, 6.500%, 7/01/30
Dutchess County Industrial Development Agency, New York, Civic Facility Revenue Bonds A3 2,540,346
(The Bard College Project), Series 1992, 7.000%, 11/01/17
The Trust for Cultural Resources for the City of New York, New York, Revenue Bonds, Series 2000, A 754,551
The Museum of American Folk Art, 6.000%, 7/01/22 - ACA Insured
The Trust for Cultural Resources of the City of New York, New York, Revenue Bonds, Series 2001D, AAA 1,007,000
Museum of Modern Art, 5.125%, 7/01/31 - AMBAC Insured
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, A1 1,732,745
American Council of Learned Societies Project, Series 2002, 5.250%, 7/01/27
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds (College of
New Rochelle Project), Series 1995:
6.200%, 9/01/10 Baa2 1,056,920
6.300%, 9/01/15 Baa2 1,040,000
Dormitory Authority of the State of New York, City University System Consolidated, Second General A3 894,855
Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10
Dormitory Authority of the State of New York, City University System Consolidated Second General AA- 1,677,045
Resolution Revenue Bonds, Series 1993A, 5.750%, 7/01/07
Dormitory Authority of the State of New York, State University Educational Facilities Revenue Bonds, AA- 1,069,760
Series 1993B, 5.250%, 5/15/19
Dormitory Authority of the State of New York, Upstate Community Colleges Revenue Bonds, Series AAA 535,705
2000A, 5.750%, 7/01/29 - FSA Insured
Dormitory Authority of the State of New York, University of Rochester Revenue Bonds, Series 1999B, A+ 1,822,748
5.625%, 7/01/24
Dormitory Authority of the State of New York, Pratt Institute Revenue Bonds, Series 1999, AA 1,344,125
6.000%, 7/01/24 - RAAI Insured
- ----
27
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
$ 2,700 Dormitory Authority of the State of New York, Marymount Manhattan College Insured Revenue Bonds, 7/09 at 101.00
Series 1999, 6.250%, 7/01/29 - RAAI Insured
685 Dormitory Authority of the State of New York, D'Youville College Insured Revenue Bonds, Series 2001, 7/11 at 102.00
5.250%, 7/01/20 - RAAI Insured
3,000 Industrial Development Agency of Niagara County, New York, Civic Facility Revenue Bonds, 11/11 at 101.00
Niagara University Project, Series 2001A, 5.500%, 11/01/16 - RAAI Insured
3,515 Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Bonds (Dowling 6/04 at 102.00
College Civic Facility), Series 1994, 6.625%, 6/01/24
1,000 Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Refunding Bonds 12/06 at 102.00
(Dowling College Civic Facility), Series 1996, 6.700%, 12/01/20
City of Utica Industrial Development Agency, New York, Civic Facility Revenue Bonds (Utica College
Project), Series 1998A:
415 5.300%, 8/01/08 No Opt. Call
1,000 5.750%, 8/01/28 8/08 at 102.00
- ----------------------------------------------------------------------------------------------------------------------------------
Healthcare - 12.6%
2,550 New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, 2/13 at 100.00
Series 2003A, 5.250%, 2/15/22 - AMBAC Insured
995 New York City Industrial Development Agency, New York, Civic Facility Revenue Bond, Staten Island 7/12 at 101.00
University Hospital Project, Series 2002C, 6.450%, 7/01/32
745 New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Staten Island 7/12 at 100.00
University Hospital Project, Series 2001B, 6.375%, 7/01/31
3,300 Dormitory Authority of the State of New York, Menorah Campus, Inc., FHA-Insured Mortgage Nursing 2/07 at 102.00
Home Revenue Bonds, Series 1997, 5.950%, 2/01/17
630 Dormitory Authority of the State of New York, NYACK Hospital, Revenue Bonds, Series 1996, 7/06 at 102.00
6.000%, 7/01/06
2,250 Dormitory Authority of the State of New York, The Rosalind and Joseph Gurwin Jewish Geriatric Center 2/07 at 102.00
of Long Island, Inc., FHA-Insured Mortgage Nursing Home Revenue Bonds, Series 1997,
5.700%, 2/01/37 - AMBAC Insured
1,000 Dormitory Authority of the State of New York, Revenue Bonds, Winthrop-South Nassau University 7/13 at 100.00
Hospital Association, Series 2003A, 5.500%, 7/01/32
1,500 Dormitory Authority of the State of New York, Revenue Bonds, South Nassau Communities Hospital, 7/13 at 100.00
Series 2003B, 5.500%, 7/01/23
1,250 Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish Group, 5/13 at 100.00
Series 2003, 5.375%, 5/01/23
1,650 Dormitory Authority of the State of New York, Mount Sinai NYU Health Obligated Group Revenue 7/10 at 101.00
Bonds, Series 2000A, 6.500%, 7/01/25
3,000 Dormitory Authority of the State of New York, Catholic Health Services of Long Island Revenue Bonds, 7/10 at 101.00
Series 2000A, St. Catherine of Sienna Medical Center, 6.500%, 7/01/20
2,900 Dormitory Authority of the State of New York, Revenue Bonds, Lenox Hill Hospital Obligated Group, 7/11 at 101.00
Series 2001, 5.500%, 7/01/30
505 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured 2/04 at 101.00
Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22
5,000 New York State Medical Care Facilities Finance Agency, Hospital Insured Mortgage Revenue Bonds, 2/04 at 102.00
1994 Series A Refunding, 5.375%, 2/15/25 - MBIA Insured
305 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home Insured Mortgage 2/04 at 100.00
Revenue Bonds, 1989 Series B, 7.350%, 2/15/29
1,000 New York State Medical Care Facilities Finance Agency, FHA-Insured Mortgage Project Revenue Bonds, 2/05 at 102.00
1995 Series B, 6.100%, 2/15/15
960 New York State Medical Care Facilities Finance Agency, Health Center Projects Revenue Bonds 11/05 at 102.00
(Secured Mortgage Program), Series 1995A, 6.375%, 11/15/19
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
Dormitory Authority of the State of New York, Marymount Manhattan College Insured Revenue Bonds, AA $2,911,140
Series 1999, 6.250%, 7/01/29 - RAAI Insured
Dormitory Authority of the State of New York, D'Youville College Insured Revenue Bonds, Series 2001, AA 706,461
5.250%, 7/01/20 - RAAI Insured
Industrial Development Agency of Niagara County, New York, Civic Facility Revenue Bonds, AA 3,184,980
Niagara University Project, Series 2001A, 5.500%, 11/01/16 - RAAI Insured
Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Bonds (Dowling BBB- 3,425,684
College Civic Facility), Series 1994, 6.625%, 6/01/24
Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Refunding Bonds BBB- 989,290
(Dowling College Civic Facility), Series 1996, 6.700%, 12/01/20
City of Utica Industrial Development Agency, New York, Civic Facility Revenue Bonds (Utica College
Project), Series 1998A:
5.300%, 8/01/08 N/R 418,826
5.750%, 8/01/28 N/R 948,670
- -------------------------------------------------------------------------------------------------------------------------
Healthcare - 12.6%
New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, AAA 2,617,856
Series 2003A, 5.250%, 2/15/22 - AMBAC Insured
New York City Industrial Development Agency, New York, Civic Facility Revenue Bond, Staten Island Baa3 1,043,665
University Hospital Project, Series 2002C, 6.450%, 7/01/32
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Staten Island Baa3 771,880
University Hospital Project, Series 2001B, 6.375%, 7/01/31
Dormitory Authority of the State of New York, Menorah Campus, Inc., FHA-Insured Mortgage Nursing AAA 3,520,968
Home Revenue Bonds, Series 1997, 5.950%, 2/01/17
Dormitory Authority of the State of New York, NYACK Hospital, Revenue Bonds, Series 1996, Ba3 603,685
6.000%, 7/01/06
Dormitory Authority of the State of New York, The Rosalind and Joseph Gurwin Jewish Geriatric Center AAA 2,334,713
of Long Island, Inc., FHA-Insured Mortgage Nursing Home Revenue Bonds, Series 1997,
5.700%, 2/01/37 - AMBAC Insured
Dormitory Authority of the State of New York, Revenue Bonds, Winthrop-South Nassau University Baa1 1,001,800
Hospital Association, Series 2003A, 5.500%, 7/01/32
Dormitory Authority of the State of New York, Revenue Bonds, South Nassau Communities Hospital, Baa1 1,509,510
Series 2003B, 5.500%, 7/01/23
Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish Group, A3 1,259,750
Series 2003, 5.375%, 5/01/23
Dormitory Authority of the State of New York, Mount Sinai NYU Health Obligated Group Revenue Ba1 1,666,946
Bonds, Series 2000A, 6.500%, 7/01/25
Dormitory Authority of the State of New York, Catholic Health Services of Long Island Revenue Bonds, BBB+ 3,245,610
Series 2000A, St. Catherine of Sienna Medical Center, 6.500%, 7/01/20
Dormitory Authority of the State of New York, Revenue Bonds, Lenox Hill Hospital Obligated Group, A3 2,912,847
Series 2001, 5.500%, 7/01/30
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured AAA 525,680
Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22
New York State Medical Care Facilities Finance Agency, Hospital Insured Mortgage Revenue Bonds, AAA 5,125,650
1994 Series A Refunding, 5.375%, 2/15/25 - MBIA Insured
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home Insured Mortgage AA 306,376
Revenue Bonds, 1989 Series B, 7.350%, 2/15/29
New York State Medical Care Facilities Finance Agency, FHA-Insured Mortgage Project Revenue Bonds, AA 1,071,290
1995 Series B, 6.100%, 2/15/15
New York State Medical Care Facilities Finance Agency, Health Center Projects Revenue Bonds Aa1 1,016,371
(Secured Mortgage Program), Series 1995A, 6.375%, 11/15/19
- ----
28
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
$ 1,020 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured 2/04 at 102.00
Mortgage Revenue Bonds, 1994 Series A, 6.200%, 2/15/21
280 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home Insured Mortgage 2/04 at 100.00
Revenue Bonds, 1991 Series A, 7.450%, 8/15/31
2,350 Dormitory Authority of the State of New York, Revenue Bonds, Mount Sinai NYU Health Obligated 2/05 at 100.00
Group, Series 2002C, 6.000%, 7/01/26
1,825 Newark-Wayne Community Hospital, Inc., New York, Hospital Revenue Improvement and Refunding 9/03 at 102.00
Bonds, Series 1993A, 7.600%, 9/01/15
Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Huntington
Hospital Project Bonds, Series 2002C:
850 6.000%, 11/01/22 11/12 at 100.00
1,220 5.875%, 11/01/32 11/12 at 100.00
2,000 New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds (1992 Jewish 12/03 at 101.00
Board of Family and Children's Services, Inc. Project), 6.750%, 12/15/12
1,000 City of Yonkers Industrial Development Authority, New York, Civic Facility Revenue Bonds, St. John's 7/11 at 101.00
Riverside Hospital Project, Series 2001A, 7.125%, 7/01/31
- ----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 6.1%
335 East Syracuse Housing Authority, New York, FHA-Insured Mortgage Loan - Section 8 Revenue 4/10 at 102.00
Refunding Bonds, Bennett Project, Series 2001A, 6.700%, 4/01/21
2,000 New York City Housing Development Corporation, New York, Multifamily Mortgage Revenue Bonds 10/03 at 102.00
(FHA-Insured Mortgage Loan), 1993 Series A, 6.550%, 10/01/15
New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds,
Series 2001A:
2,000 5.500%, 11/01/31 5/11 at 101.00
2,000 5.600%, 11/01/42 5/11 at 101.00
2,000 New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, 11/11 at 100.00
Series 2001C2, 5.400%, 11/01/33 (Alternative Minimum Tax)
New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds,
Series 2002A:
910 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00
450 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00
2,045 New York State Housing Finance Agency, Housing Project Mortgage Revenue Bonds, 1996 Series A 5/06 at 102.00
Refunding, 6.125%, 11/01/20 - FSA Insured
New York State Housing Finance Agency, Insured Multifamily Mortgage Housing Revenue Bonds,
1992 Series A:
1,470 6.950%, 8/15/12 2/04 at 101.00
480 7.000%, 8/15/22 2/04 at 101.00
1,000 New York State Housing Finance Agency, Multifamily Housing Revenue Bonds, Secured Mortgage 2/04 at 102.00
Program, 1994 Series C, 6.450%, 8/15/14
1,000 New York State Housing Finance Agency, Multifamily Housing Revenue Bonds, Secured Mortgage 8/11 at 100.00
Program, 2001 Series G, 5.400%, 8/15/33
1,280 Tonawanda Housing Authority, New York, Housing Revenue Bonds (Kibler Senior Housing, L.P. Project), 9/09 at 103.00
Series 1999B, 7.750%, 9/01/31
3,030 County of Westchester Industrial Development Agency, New York, Civic Facility Revenue Bonds, Series 8/11 at 102.00
2001A, GNMA Collateralized Mortgage Loan, Living Independently for the Elderly Inc. Project,
5.400%, 8/20/32
- ----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.6%
1,890 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 82, 10/09 at 100.00
5.650%, 4/01/30 (Alternative Minimum Tax)
1,470 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 95, 4/10 at 100.00
5.625%, 4/01/22
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured AA $1,059,790
Mortgage Revenue Bonds, 1994 Series A, 6.200%, 2/15/21
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home Insured Mortgage AA 292,026
Revenue Bonds, 1991 Series A, 7.450%, 8/15/31
Dormitory Authority of the State of New York, Revenue Bonds, Mount Sinai NYU Health Obligated BBB- 2,375,333
Group, Series 2002C, 6.000%, 7/01/26
Newark-Wayne Community Hospital, Inc., New York, Hospital Revenue Improvement and Refunding N/R 1,761,983
Bonds, Series 1993A, 7.600%, 9/01/15
Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Huntington
Hospital Project Bonds, Series 2002C:
6.000%, 11/01/22 Baa1 886,244
5.875%, 11/01/32 Baa1 1,246,328
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds (1992 Jewish BBB 2,008,140
Board of Family and Children's Services, Inc. Project), 6.750%, 12/15/12
City of Yonkers Industrial Development Authority, New York, Civic Facility Revenue Bonds, St. John's BB 998,420
Riverside Hospital Project, Series 2001A, 7.125%, 7/01/31
- -------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 6.1%
East Syracuse Housing Authority, New York, FHA-Insured Mortgage Loan - Section 8 Revenue AAA 355,566
Refunding Bonds, Bennett Project, Series 2001A, 6.700%, 4/01/21
New York City Housing Development Corporation, New York, Multifamily Mortgage Revenue Bonds AAA 2,052,000
(FHA-Insured Mortgage Loan), 1993 Series A, 6.550%, 10/01/15
New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds,
Series 2001A:
5.500%, 11/01/31 AA 2,026,660
5.600%, 11/01/42 AA 2,027,100
New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, AA 2,000,880
Series 2001C2, 5.400%, 11/01/33 (Alternative Minimum Tax)
New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds,
Series 2002A:
5.375%, 11/01/23 (Alternative Minimum Tax) AA 928,573
5.500%, 11/01/34 (Alternative Minimum Tax) AA 457,722
New York State Housing Finance Agency, Housing Project Mortgage Revenue Bonds, 1996 Series A AAA 2,132,649
Refunding, 6.125%, 11/01/20 - FSA Insured
New York State Housing Finance Agency, Insured Multifamily Mortgage Housing Revenue Bonds,
1992 Series A:
6.950%, 8/15/12 AA 1,486,787
7.000%, 8/15/22 AA 495,720
New York State Housing Finance Agency, Multifamily Housing Revenue Bonds, Secured Mortgage Aa1 1,025,260
Program, 1994 Series C, 6.450%, 8/15/14
New York State Housing Finance Agency, Multifamily Housing Revenue Bonds, Secured Mortgage Aa1 1,010,150
Program, 2001 Series G, 5.400%, 8/15/33
Tonawanda Housing Authority, New York, Housing Revenue Bonds (Kibler Senior Housing, L.P. Project), N/R 1,261,299
Series 1999B, 7.750%, 9/01/31
County of Westchester Industrial Development Agency, New York, Civic Facility Revenue Bonds, Series Aaa 3,057,179
2001A, GNMA Collateralized Mortgage Loan, Living Independently for the Elderly Inc. Project,
5.400%, 8/20/32
- -------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.6%
State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 82, Aa1 1,968,133
5.650%, 4/01/30 (Alternative Minimum Tax)
State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 95, Aa1 1,528,491
5.625%, 4/01/22
- ----
29
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 280 State of New York Mortgage Agency, Mortgage Revenue Bonds, Twenty-Ninth Series, 5.450%, 4/01/31 10/10 at 100.00
(Alternative Minimum Tax)
1,660 State of New York Mortgage Agency, Mortgage Revenue Bonds, Thirty-Third Series A, 4.750%, 4/01/23 4/13 at 101.00
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 5.4%
1,320 East Rochester Housing Authority, New York, GNMA Secured Revenue Refunding Bonds, Genesee 12/11 at 101.00
Valley Presbyterian Nursing Center Project, Series 2001, 5.200%, 12/20/24
965 Nassau County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs 7/11 at 101.00
Facilities Pooled Program, Series 2001-B1, 7.250%, 7/01/16
1,230 New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs 7/10 at 102.00
Facilities Pooled Program, Series 2000, 8.125%, 7/01/19
2,000 Dormitory Authority of the State of New York, Bishop Henry R. Hucles Nursing Home, Inc., Revenue 7/06 at 102.00
Bonds, Series 1996, 6.000%, 7/01/24
2,130 Dormitory Authority of the State of New York, W.K. Nursing Home Corporation, FHA-Insured Mortgage 8/06 at 102.00
Revenue Bonds, Series 1996, 5.950%, 2/01/16
1,000 Dormitory Authority of the State of New York, The Miriam Osborn Memorial Home Association Revenue 7/10 at 102.00
Bonds, Series 2000B, 6.375%, 7/01/29 - ACA Insured
1,500 Dormitory Authority of the State of New York, Concord Nursing Home, Inc. Revenue Bonds, Series 2000, 7/10 at 101.00
6.500%, 7/01/29
300 Dormitory Authority of the State of New York, Augustana Lutheran Home for the Aged Inc., FHA-Insured 2/12 at 101.00
Mortgage Nursing Home Revenue Bonds, Series 2001, 5.400%, 2/01/31 - MBIA Insured
1,520 Dormitory Authority of the State of New York, Shorefront Jewish Geriatric Center Inc., FHA-Insured 2/13 at 102.00
Mortgage Nursing Home Revenue Bonds, Series 2002, 5.200%, 2/01/32
250 Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs 7/11 at 101.00
Facilities Pooled Program, Series 2001-C1, 7.250%, 7/01/16
5,000 Syracuse Housing Authority, New York, FHA-Insured Mortgage Revenue Bonds (Loretto Rest Residential 2/08 at 102.00
Health Care Facility Project), Series 1997A, 5.800%, 8/01/37
- ----------------------------------------------------------------------------------------------------------------------------------
Materials - 0.4%
700 Essex County Industrial Development Agency, New York, Environmental Improvement Revenue Bonds, 11/09 at 101.00
Series A (International Paper Company Projects), 6.450%, 11/15/23 (Alternative Minimum Tax)
750 Jefferson County Industrial Development Agency, New York, Solid Waste Disposal Revenue Bonds 11/03 at 101.50
(Champion International Corporation Project - Multi-Modal Interchangeable), Series 1990,
7.200%, 12/01/20 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 2.7%
The City of New York, New York, General Obligation Bonds, Fiscal 1996 Series G:
2,000 5.750%, 2/01/17 2/06 at 101.50
2,500 5.750%, 2/01/20 2/06 at 101.50
1,750 The City of New York, New York, General Obligation Bonds, Fiscal 1997 Series D, 5.875%, 11/01/11 11/06 at 101.50
435 The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series B, 7.500%, 2/01/06 2/04 at 100.00
950 Northern Mariana Islands, General Obligation Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured 6/10 at 100.00
South Orangetown Central School District, Rockland County, New York, Serial General Obligation
Bonds, Series 1990:
390 6.875%, 10/01/08 No Opt. Call
390 6.875%, 10/01/09 No Opt. Call
- ----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 25.9%
300 Albany Housing Authority, City of Albany, New York, Limited Obligation Bonds, Series 1995, 10/05 at 102.00
5.850%, 10/01/07
1,500 Albany Parking Authority, New York, Revenue Refunding Bonds, Series 1992A, 0.000%, 11/01/17 No Opt. Call
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
State of New York Mortgage Agency, Mortgage Revenue Bonds, Twenty-Ninth Series, 5.450%, 4/01/31 Aaa $ 283,497
(Alternative Minimum Tax)
State of New York Mortgage Agency, Mortgage Revenue Bonds, Thirty-Third Series A, 4.750%, 4/01/23 Aaa 1,594,447
(Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 5.4%
East Rochester Housing Authority, New York, GNMA Secured Revenue Refunding Bonds, Genesee Aaa 1,335,127
Valley Presbyterian Nursing Center Project, Series 2001, 5.200%, 12/20/24
Nassau County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs N/R 958,592
Facilities Pooled Program, Series 2001-B1, 7.250%, 7/01/16
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs N/R 1,280,442
Facilities Pooled Program, Series 2000, 8.125%, 7/01/19
Dormitory Authority of the State of New York, Bishop Henry R. Hucles Nursing Home, Inc., Revenue Aa1 2,100,260
Bonds, Series 1996, 6.000%, 7/01/24
Dormitory Authority of the State of New York, W.K. Nursing Home Corporation, FHA-Insured Mortgage AAA 2,261,932
Revenue Bonds, Series 1996, 5.950%, 2/01/16
Dormitory Authority of the State of New York, The Miriam Osborn Memorial Home Association Revenue A 1,071,720
Bonds, Series 2000B, 6.375%, 7/01/29 - ACA Insured
Dormitory Authority of the State of New York, Concord Nursing Home, Inc. Revenue Bonds, Series 2000, A1 1,601,370
6.500%, 7/01/29
Dormitory Authority of the State of New York, Augustana Lutheran Home for the Aged Inc., FHA-Insured AAA 305,148
Mortgage Nursing Home Revenue Bonds, Series 2001, 5.400%, 2/01/31 - MBIA Insured
Dormitory Authority of the State of New York, Shorefront Jewish Geriatric Center Inc., FHA-Insured AAA 1,497,519
Mortgage Nursing Home Revenue Bonds, Series 2002, 5.200%, 2/01/32
Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs N/R 248,340
Facilities Pooled Program, Series 2001-C1, 7.250%, 7/01/16
Syracuse Housing Authority, New York, FHA-Insured Mortgage Revenue Bonds (Loretto Rest Residential AAA 5,253,850
Health Care Facility Project), Series 1997A, 5.800%, 8/01/37
- -------------------------------------------------------------------------------------------------------------------------
Materials - 0.4%
Essex County Industrial Development Agency, New York, Environmental Improvement Revenue Bonds, BBB 719,649
Series A (International Paper Company Projects), 6.450%, 11/15/23 (Alternative Minimum Tax)
Jefferson County Industrial Development Agency, New York, Solid Waste Disposal Revenue Bonds BBB 767,325
(Champion International Corporation Project - Multi-Modal Interchangeable), Series 1990,
7.200%, 12/01/20 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 2.7%
The City of New York, New York, General Obligation Bonds, Fiscal 1996 Series G:
5.750%, 2/01/17 A 2,133,900
5.750%, 2/01/20 A 2,645,700
The City of New York, New York, General Obligation Bonds, Fiscal 1997 Series D, 5.875%, 11/01/11 A 1,853,093
The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series B, 7.500%, 2/01/06 A 446,571
Northern Mariana Islands, General Obligation Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured A 988,627
South Orangetown Central School District, Rockland County, New York, Serial General Obligation
Bonds, Series 1990:
6.875%, 10/01/08 A2 465,797
6.875%, 10/01/09 A2 471,179
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 25.9%
Albany Housing Authority, City of Albany, New York, Limited Obligation Bonds, Series 1995, A3 323,052
5.850%, 10/01/07
Albany Parking Authority, New York, Revenue Refunding Bonds, Series 1992A, 0.000%, 11/01/17 Baa1 726,150
- ----
30
Principal
Amount (000) Description
- -------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
Canton Human Services Initiative Inc., New York, Facility Revenue Bonds, Series 2001:
$ 1,000 5.700%, 9/01/24
1,260 5.750%, 9/01/32
2,500 New York Housing Corporation, Senior Revenue Refunding Bonds, Series 1993, 5.000%, 11/01/13
Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series
2002A:
1,825 5.750%, 7/01/18
4,400 5.125%, 1/01/29
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A:
4,400 5.250%, 11/15/25 - FSA Insured
2,000 5.000%, 11/15/30
1,680 Monroe Newpower Corporation, New York, Power Facilities Revenue Bonds, Series 2003,
5.500%, 1/01/34
1,000 Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2000A,
5.750%, 11/15/16 - MBIA Insured
1,700 New York City Transit Authority, New York, Metropolitan Transportation Authority, Triborough Bridge
and Tunnel Authority, Certificates of Participation, Series 2000A, 5.875%, 1/01/30 - AMBAC Insured
1,915 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Residual Interest
Certificates, Series 319, 15.490%, 11/01/17 (IF)
2,665 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003
Series E, 5.000%, 2/01/23
220 Dormitory Authority of the State of New York, Judicial Facilities Lease Revenue Bonds (Suffolk County
Issue), Series 1991A, 9.500%, 4/15/14
1,000 Dormitory Authority of the State of New York, Revenue Bonds, Department of Education of the State of
New York, Series 1994A, 6.250%, 7/01/24
2,900 Dormitory Authority of the State of New York, Department of Health of the State of New York, Revenue
Bonds, Series 1994, 5.500%, 7/01/23
1,000 Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue
Bonds, Series 1997A, 5.750%, 8/15/22 - MBIA Insured
2,485 Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue
Bonds, Series 1997B, 5.625%, 2/15/21
1,545 New York State Environmental Facilities Corporation, State Park Infrastructure Special Obligation
Bonds, Series 1993 A, 5.750%, 3/15/13
1,000 New York State Housing Finance Agency, Health Facilities Revenue Bonds, 1996 Series A Refunding,
6.000%, 11/01/08
2,520 New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1993 Series C
Refunding, 5.875%, 9/15/14 (Pre-refunded to 9/30/03)
10 New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1995 Series A,
6.375%, 9/15/15
160 State of New York Municipal Bond Bank Agency, Special Program Revenue Bonds, City of Buffalo Issue,
1991 Series A, 6.875%, 3/15/06
1,200 Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds,
Series 2003A, 5.375%, 3/15/22
3,335 New York State Thruway Authority, Highway and Bridge Trust Fund, Residual Interest Certificates
Series 368, 15.100%, 4/01/16 (IF) - FGIC Insured
1,500 New York State Thruway Authority, Highway and Bridge Trust Fund, Series 2003A, Second General,
5.250%, 4/01/23 - MBIA Insured
3,000 New York State Thruway Authority, Local Highway and Bridge Service Contract Bonds, Series 2001,
5.250%, 4/01/17
Optional Call
Description Provisions* Ratings**
- --------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
Canton Human Services Initiative Inc., New York, Facility Revenue Bonds, Series 2001:
5.700%, 9/01/24 9/11 at 102.00 Baa2
5.750%, 9/01/32 9/11 at 102.00 Baa2
New York Housing Corporation, Senior Revenue Refunding Bonds, Series 1993, 5.000%, 11/01/13 11/03 at 102.00 AAA
Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series
2002A:
5.750%, 7/01/18 No Opt. Call AA-
5.125%, 1/01/29 7/12 at 100.00 AA-
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A:
5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA
5.000%, 11/15/30 11/12 at 100.00 AA-
Monroe Newpower Corporation, New York, Power Facilities Revenue Bonds, Series 2003, 1/13 at 102.00 BBB+
5.500%, 1/01/34
Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2000A, 11/10 at 100.00 AAA
5.750%, 11/15/16 - MBIA Insured
New York City Transit Authority, New York, Metropolitan Transportation Authority, Triborough Bridge 1/10 at 101.00 AAA
and Tunnel Authority, Certificates of Participation, Series 2000A, 5.875%, 1/01/30 - AMBAC Insured
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Residual Interest 5/10 at 101.00 Aa3
Certificates, Series 319, 15.490%, 11/01/17 (IF)
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003 2/13 at 100.00 AA+
Series E, 5.000%, 2/01/23
Dormitory Authority of the State of New York, Judicial Facilities Lease Revenue Bonds (Suffolk County 10/03 at 114.14 Baa1
Issue), Series 1991A, 9.500%, 4/15/14
Dormitory Authority of the State of New York, Revenue Bonds, Department of Education of the State of 7/04 at 102.00 AA-
New York, Series 1994A, 6.250%, 7/01/24
Dormitory Authority of the State of New York, Department of Health of the State of New York, Revenue 7/04 at 102.00 AA-
Bonds, Series 1994, 5.500%, 7/01/23
Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue 2/07 at 102.00 AAA
Bonds, Series 1997A, 5.750%, 8/15/22 - MBIA Insured
Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue 2/07 at 102.00 AA-
Bonds, Series 1997B, 5.625%, 2/15/21
New York State Environmental Facilities Corporation, State Park Infrastructure Special Obligation 9/03 at 101.00 AA-
Bonds, Series 1993 A, 5.750%, 3/15/13
New York State Housing Finance Agency, Health Facilities Revenue Bonds, 1996 Series A Refunding, 5/06 at 101.50 A
6.000%, 11/01/08
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1993 Series C 9/03 at 102.00 A3
Refunding, 5.875%, 9/15/14 (Pre-refunded to 9/30/03)
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1995 Series A, 9/05 at 102.00 AA-
6.375%, 9/15/15
State of New York Municipal Bond Bank Agency, Special Program Revenue Bonds, City of Buffalo Issue, 9/03 at 100.00 BBB-
1991 Series A, 6.875%, 3/15/06
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, 3/13 at 100.00 AA
Series 2003A, 5.375%, 3/15/22
New York State Thruway Authority, Highway and Bridge Trust Fund, Residual Interest Certificates 4/10 at 101.00 Aaa
Series 368, 15.100%, 4/01/16 (IF) - FGIC Insured
New York State Thruway Authority, Highway and Bridge Trust Fund, Series 2003A, Second General, 4/13 at 100.00 AAA
5.250%, 4/01/23 - MBIA Insured
New York State Thruway Authority, Local Highway and Bridge Service Contract Bonds, Series 2001, 4/11 at 100.00 AA-
5.250%, 4/01/17
Market
Description Value
- ----------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
Canton Human Services Initiative Inc., New York, Facility Revenue Bonds, Series 2001:
5.700%, 9/01/24 $1,014,080
5.750%, 9/01/32 1,274,805
New York Housing Corporation, Senior Revenue Refunding Bonds, Series 1993, 5.000%, 11/01/13 2,562,675
Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series
2002A:
5.750%, 7/01/18 2,022,775
5.125%, 1/01/29 4,362,688
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A:
5.250%, 11/15/25 - FSA Insured 4,494,732
5.000%, 11/15/30 1,943,360
Monroe Newpower Corporation, New York, Power Facilities Revenue Bonds, Series 2003, 1,663,956
5.500%, 1/01/34
Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2000A, 1,115,180
5.750%, 11/15/16 - MBIA Insured
New York City Transit Authority, New York, Metropolitan Transportation Authority, Triborough Bridge 1,852,541
and Tunnel Authority, Certificates of Participation, Series 2000A, 5.875%, 1/01/30 - AMBAC Insured
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Residual Interest 2,605,147
Certificates, Series 319, 15.490%, 11/01/17 (IF)
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003 2,671,849
Series E, 5.000%, 2/01/23
Dormitory Authority of the State of New York, Judicial Facilities Lease Revenue Bonds (Suffolk County 274,472
Issue), Series 1991A, 9.500%, 4/15/14
Dormitory Authority of the State of New York, Revenue Bonds, Department of Education of the State of 1,053,120
New York, Series 1994A, 6.250%, 7/01/24
Dormitory Authority of the State of New York, Department of Health of the State of New York, Revenue 2,953,679
Bonds, Series 1994, 5.500%, 7/01/23
Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue 1,112,710
Bonds, Series 1997A, 5.750%, 8/15/22 - MBIA Insured
Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue 2,573,367
Bonds, Series 1997B, 5.625%, 2/15/21
New York State Environmental Facilities Corporation, State Park Infrastructure Special Obligation 1,577,522
Bonds, Series 1993 A, 5.750%, 3/15/13
New York State Housing Finance Agency, Health Facilities Revenue Bonds, 1996 Series A Refunding, 1,085,570
6.000%, 11/01/08
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1993 Series C 2,580,934
Refunding, 5.875%, 9/15/14 (Pre-refunded to 9/30/03)
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1995 Series A, 10,959
6.375%, 9/15/15
State of New York Municipal Bond Bank Agency, Special Program Revenue Bonds, City of Buffalo Issue, 164,872
1991 Series A, 6.875%, 3/15/06
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, 1,246,260
Series 2003A, 5.375%, 3/15/22
New York State Thruway Authority, Highway and Bridge Trust Fund, Residual Interest Certificates 4,458,695
Series 368, 15.100%, 4/01/16 (IF) - FGIC Insured
New York State Thruway Authority, Highway and Bridge Trust Fund, Series 2003A, Second General, 1,542,615
5.250%, 4/01/23 - MBIA Insured
New York State Thruway Authority, Local Highway and Bridge Service Contract Bonds, Series 2001, 3,177,390
5.250%, 4/01/17
- ----
31
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal
Amount (000) Description
- ----------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 5,500 New York State Urban Development Corporation, Correctional Facilities Capital Facilities Revenue
Bonds, Series 1994A, 5.250%, 1/01/21
1,000 New York State Urban Development Corporation, Project Revenue Bonds (Onondaga County Convention
Center), Refunding Series 1995, 6.250%, 1/01/20
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds,
Series 2002A, State Facilities and Equipment:
1,500 5.375%, 3/15/18
3,500 5.125%, 3/15/27
2,000 New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, State
Facilities and Equipment, Series 2002C-1, 5.000%, 3/15/33
3,500 New York State Urban Development Corporation, Correctional and Youth Facilities Service Contract
Revenue Bonds, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
2,000 City School District of the City of Niagara Falls, New York, Certificates of Participation (High School
Facility), Series 1998, 5.375%, 6/15/28 - MBIA Insured
1,420 Niagara Falls City School District, Niagara County, New York, Certificates of Participation, High School
Facility, Series 2000, 6.625%, 6/15/28
1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2000B,
5.750%, 7/01/19 - MBIA Insured
Tobacco Settlement Financing Corporation of New York State, Asset-Backed Bonds, Series 2003-A1:
4,200 5.250%, 6/01/21 - AMBAC Insured
2,000 5.250%, 6/01/22 - AMBAC Insured
765 Triborough Bridge and Tunnel Authority, New York, Convention Center Bonds, Series E,
7.250%, 1/01/10
1,250 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 1999A,
6.500%, 10/01/24
1,960 City of Yonkers Industrial Development Agency, New York, Civic Facility Revenue Bonds, Community
Development Properties, Yonkers, Inc. Project, Series 2001A, 6.625%, 2/01/26
- ----------------------------------------------------------------------------------------------------------------------
Transportation - 5.4%
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2002A
Refunding:
1,500 5.500%, 11/15/19 - AMBAC Insured
1,000 5.125%, 11/15/22 - FGIC Insured
1,500 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2003A,
5.000%, 11/15/15
500 New York City Industrial Development Agency, New York, Special Facility Revenue Bonds, Series 1998
(1998 British Airways PLC Project), 5.250%, 12/01/32 (Alternative Minimum Tax)
1,000 Niagara Frontier Transportation Authority, New York (Buffalo Niagara International Airport), Airport
Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
1,500 Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC
Project, Series 6, 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured
250 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 Series A (American Airlines, Inc.
Project), 6.250%, 6/01/26 (Alternative Minimum Tax)
1,500 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series 2001A,
5.000%, 1/01/19
5,000 Triborough Bridge and Tunnel Authority, New York, General Revenue ROLS II-R 194 Bonds,
11.510%, 11/15/19 (IF)
Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Refunding Bonds,
Series 2002E:
780 5.500%, 11/15/20 - MBIA Insured
2,300 5.250%, 11/15/22 - MBIA Insured
Optional Call
Description Provisions*
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New York State Urban Development Corporation, Correctional Facilities Capital Facilities Revenue 1/04 at 102.00
Bonds, Series 1994A, 5.250%, 1/01/21
New York State Urban Development Corporation, Project Revenue Bonds (Onondaga County Convention 1/06 at 102.00
Center), Refunding Series 1995, 6.250%, 1/01/20
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds,
Series 2002A, State Facilities and Equipment:
5.375%, 3/15/18 3/12 at 100.00
5.125%, 3/15/27 3/12 at 100.00
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, State 3/13 at 100.00
Facilities and Equipment, Series 2002C-1, 5.000%, 3/15/33
New York State Urban Development Corporation, Correctional and Youth Facilities Service Contract No Opt. Call
Revenue Bonds, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
City School District of the City of Niagara Falls, New York, Certificates of Participation (High School 6/08 at 101.00
Facility), Series 1998, 5.375%, 6/15/28 - MBIA Insured
Niagara Falls City School District, Niagara County, New York, Certificates of Participation, High School 6/09 at 101.00
Facility, Series 2000, 6.625%, 6/15/28
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2000B, 7/10 at 101.00
5.750%, 7/01/19 - MBIA Insured
Tobacco Settlement Financing Corporation of New York State, Asset-Backed Bonds, Series 2003-A1:
5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00
5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00
Triborough Bridge and Tunnel Authority, New York, Convention Center Bonds, Series E, No Opt. Call
7.250%, 1/01/10
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 1999A, 10/10 at 101.00
6.500%, 10/01/24
City of Yonkers Industrial Development Agency, New York, Civic Facility Revenue Bonds, Community 2/11 at 100.00
Development Properties, Yonkers, Inc. Project, Series 2001A, 6.625%, 2/01/26
- -------------------------------------------------------------------------------------------------------------------------
Transportation - 5.4%
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2002A
Refunding:
5.500%, 11/15/19 - AMBAC Insured 11/12 at 100.00
5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2003A, No Opt. Call
5.000%, 11/15/15
New York City Industrial Development Agency, New York, Special Facility Revenue Bonds, Series 1998 12/08 at 102.00
(1998 British Airways PLC Project), 5.250%, 12/01/32 (Alternative Minimum Tax)
Niagara Frontier Transportation Authority, New York (Buffalo Niagara International Airport), Airport 4/09 at 101.00
Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC 12/07 at 100.00
Project, Series 6, 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured
Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 Series A (American Airlines, Inc. 6/06 at 102.00
Project), 6.250%, 6/01/26 (Alternative Minimum Tax)
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series 2001A, 1/12 at 100.00
5.000%, 1/01/19
Triborough Bridge and Tunnel Authority, New York, General Revenue ROLS II-R 194 Bonds, 11/12 at 100.00
11.510%, 11/15/19 (IF)
Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Refunding Bonds,
Series 2002E:
5.500%, 11/15/20 - MBIA Insured No Opt. Call
5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00
Market
Description Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New York State Urban Development Corporation, Correctional Facilities Capital Facilities Revenue AA- $5,621,165
Bonds, Series 1994A, 5.250%, 1/01/21
New York State Urban Development Corporation, Project Revenue Bonds (Onondaga County Convention AA- 1,094,720
Center), Refunding Series 1995, 6.250%, 1/01/20
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds,
Series 2002A, State Facilities and Equipment:
5.375%, 3/15/18 AA 1,591,665
5.125%, 3/15/27 AA 3,507,105
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, State AA 1,962,100
Facilities and Equipment, Series 2002C-1, 5.000%, 3/15/33
New York State Urban Development Corporation, Correctional and Youth Facilities Service Contract AA- 3,836,665
Revenue Bonds, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
City School District of the City of Niagara Falls, New York, Certificates of Participation (High School AAA 2,042,720
Facility), Series 1998, 5.375%, 6/15/28 - MBIA Insured
Niagara Falls City School District, Niagara County, New York, Certificates of Participation, High School BBB- 1,508,423
Facility, Series 2000, 6.625%, 6/15/28
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2000B, AAA 1,113,400
5.750%, 7/01/19 - MBIA Insured
Tobacco Settlement Financing Corporation of New York State, Asset-Backed Bonds, Series 2003-A1:
5.250%, 6/01/21 - AMBAC Insured AAA 4,314,240
5.250%, 6/01/22 - AMBAC Insured AAA 2,043,500
Triborough Bridge and Tunnel Authority, New York, Convention Center Bonds, Series E, AA- 884,814
7.250%, 1/01/10
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 1999A, BBB- 1,373,025
6.500%, 10/01/24
City of Yonkers Industrial Development Agency, New York, Civic Facility Revenue Bonds, Community BBB- 2,060,509
Development Properties, Yonkers, Inc. Project, Series 2001A, 6.625%, 2/01/26
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - 5.4%
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2002A
Refunding:
5.500%, 11/15/19 - AMBAC Insured AAA 1,613,745
5.125%, 11/15/22 - FGIC Insured AAA 1,019,040
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2003A, AAA 1,605,480
5.000%, 11/15/15
New York City Industrial Development Agency, New York, Special Facility Revenue Bonds, Series 1998 Ba2 328,665
(1998 British Airways PLC Project), 5.250%, 12/01/32 (Alternative Minimum Tax)
Niagara Frontier Transportation Authority, New York (Buffalo Niagara International Airport), Airport AAA 1,042,900
Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC AAA 1,570,590
Project, Series 6, 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured
Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 Series A (American Airlines, Inc. CCC 112,503
Project), 6.250%, 6/01/26 (Alternative Minimum Tax)
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series 2001A, AA- 1,530,135
5.000%, 1/01/19
Triborough Bridge and Tunnel Authority, New York, General Revenue ROLS II-R 194 Bonds, AA- 5,649,900
11.510%, 11/15/19 (IF)
Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Refunding Bonds,
Series 2002E:
5.500%, 11/15/20 - MBIA Insured AAA 861,307
5.250%, 11/15/22 - MBIA Insured AAA 2,373,554
- ----
32
Principal
Amount (000) Description
- -------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 8.4%
$ 2,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997B,
5.000%, 7/01/20 - AMBAC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1999A:
1,000 5.250%, 4/01/23 (Pre-refunded to 10/01/14) - FSA Insured
2,000 5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured
1,500 Dormitory Authority of the State of New York, Department of Health of the State of New York, Revenue
Bonds, Series 1995, Roswell Park Cancer Center, 6.625%, 7/01/24 (Pre-refunded to 7/01/05)
15 Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue
Bonds, Series 1997B, 5.625%, 2/15/21 (Pre-refunded to 2/15/07)
Dormitory Authority of the State of New York, State University Educational Facilities Revenue Bonds,
1999 Resolution, Series A-D, RITES Series PA-781R:
835 14.780%, 5/15/14 (Pre-refunded to 5/15/10) (IF) - FSA Insured
500 14.780%, 5/15/16 (Pre-refunded to 5/15/10) (IF) - FSA Insured
1,335 14.780%, 5/15/16 (Pre-refunded to 5/15/10) (IF) - FSA Insured
670 14.780%, 5/15/17 (Pre-refunded to 5/15/10) (IF) - FSA Insured
200 New York State Housing Finance Agency, State University Construction Bonds, 1986 Series A,
8.000%, 5/01/11
470 New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1993 Series C
Refunding, 5.875%, 9/15/14 (Pre-refunded to 9/15/03)
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1995 Series A:
205 6.375%, 9/15/15 (Pre-refunded to 9/15/05)
1,785 6.375%, 9/15/15 (Pre-refunded to 9/15/07)
15 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement
Revenue Bonds, 1994 Series E, 6.500%, 8/15/24 (Pre-refunded to 8/15/04)
1,420 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured
Mortgage Revenue Bonds, 1994 Series A, 6.200%, 2/15/21 (Pre-refunded to 2/15/04)
5,745 New York State Thruway Authority, Local Highway and Bridge Service Contract Bonds, Drivers Series
145, 12.780%, 10/01/08 (IF) - AMBAC Insured
3,000 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series 1999B,
5.500%, 1/01/30 (Pre-refunded to 1/01/22)
- -------------------------------------------------------------------------------------------------------------------
Utilities - 10.6%
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A:
3,000 5.125%, 12/01/22 - FSA Insured
1,000 5.250%, 12/01/26
1,000 5.250%, 12/01/26 - AMBAC Insured
1,500 5.250%, 12/01/26 - MBIA Insured
2,350 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A,
0.000%, 6/01/20 - FSA Insured
2,000 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A,
5.375%, 9/01/25
1,000 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000L,
5.375%, 5/01/33
5,000 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2003C,
5.000%, 9/01/16 - CIFG Insured
4,950 New York City Industrial Development Agency, New York, Industrial Development Revenue Bonds
(Brooklyn Navy Yard Cogeneration Partners, L.P. Project), Series 1997, 5.750%, 10/01/36 (Alternative
Minimum Tax)
2,435 New York State Energy Research and Development Authority, Pollution Control Revenue Bonds, New
York State Electric and Gas Corporation Project, Series 1987A, 6.150%, 7/01/26
(Alternative Minimum Tax) - MBIA Insured
Optional Call
Description Provisions* Ratings**
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 8.4%
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997B, 7/07 at 102.00 AAA
5.000%, 7/01/20 - AMBAC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1999A:
5.250%, 4/01/23 (Pre-refunded to 10/01/14) - FSA Insured 10/14 at 100.00 AAA
5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 10/14 at 100.00 AAA
Dormitory Authority of the State of New York, Department of Health of the State of New York, Revenue 7/05 at 102.00 AAA
Bonds, Series 1995, Roswell Park Cancer Center, 6.625%, 7/01/24 (Pre-refunded to 7/01/05)
Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue 2/07 at 102.00 AA-***
Bonds, Series 1997B, 5.625%, 2/15/21 (Pre-refunded to 2/15/07)
Dormitory Authority of the State of New York, State University Educational Facilities Revenue Bonds,
1999 Resolution, Series A-D, RITES Series PA-781R:
14.780%, 5/15/14 (Pre-refunded to 5/15/10) (IF) - FSA Insured 5/10 at 101.00 AAA
14.780%, 5/15/16 (Pre-refunded to 5/15/10) (IF) - FSA Insured 5/10 at 101.00 AAA
14.780%, 5/15/16 (Pre-refunded to 5/15/10) (IF) - FSA Insured 5/10 at 101.00 AAA
14.780%, 5/15/17 (Pre-refunded to 5/15/10) (IF) - FSA Insured 5/10 at 101.00 AAA
New York State Housing Finance Agency, State University Construction Bonds, 1986 Series A, No Opt. Call AAA
8.000%, 5/01/11
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1993 Series C 9/03 at 102.00 AAA
Refunding, 5.875%, 9/15/14 (Pre-refunded to 9/15/03)
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1995 Series A:
6.375%, 9/15/15 (Pre-refunded to 9/15/05) 9/05 at 102.00 AA-***
6.375%, 9/15/15 (Pre-refunded to 9/15/07) 9/07 at 100.00 AAA
New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement 8/04 at 102.00 AA-***
Revenue Bonds, 1994 Series E, 6.500%, 8/15/24 (Pre-refunded to 8/15/04)
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured 2/04 at 102.00 AA***
Mortgage Revenue Bonds, 1994 Series A, 6.200%, 2/15/21 (Pre-refunded to 2/15/04)
New York State Thruway Authority, Local Highway and Bridge Service Contract Bonds, Drivers Series No Opt. Call AAA
145, 12.780%, 10/01/08 (IF) - AMBAC Insured
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series 1999B, 1/22 at 100.00 AAA
5.500%, 1/01/30 (Pre-refunded to 1/01/22)
- --------------------------------------------------------------------------------------------------------------------------------
Utilities - 10.6%
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A:
5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA
5.250%, 12/01/26 6/08 at 101.00 A-
5.250%, 12/01/26 - AMBAC Insured 6/08 at 101.00 AAA
5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A, No Opt. Call AAA
0.000%, 6/01/20 - FSA Insured
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A, 9/11 at 100.00 A-
5.375%, 9/01/25
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000L, 5/11 at 100.00 A-
5.375%, 5/01/33
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2003C, 9/13 at 100.00 AAA
5.000%, 9/01/16 - CIFG Insured
New York City Industrial Development Agency, New York, Industrial Development Revenue Bonds 10/08 at 102.00 BBB-
(Brooklyn Navy Yard Cogeneration Partners, L.P. Project), Series 1997, 5.750%, 10/01/36 (Alternative
Minimum Tax)
New York State Energy Research and Development Authority, Pollution Control Revenue Bonds, New 7/05 at 102.00 AAA
York State Electric and Gas Corporation Project, Series 1987A, 6.150%, 7/01/26
(Alternative Minimum Tax) - MBIA Insured
Market
Description Value
- ----------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 8.4%
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997B, $2,033,520
5.000%, 7/01/20 - AMBAC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1999A:
5.250%, 4/01/23 (Pre-refunded to 10/01/14) - FSA Insured 1,108,670
5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 2,172,980
Dormitory Authority of the State of New York, Department of Health of the State of New York, Revenue 1,674,075
Bonds, Series 1995, Roswell Park Cancer Center, 6.625%, 7/01/24 (Pre-refunded to 7/01/05)
Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue 16,976
Bonds, Series 1997B, 5.625%, 2/15/21 (Pre-refunded to 2/15/07)
Dormitory Authority of the State of New York, State University Educational Facilities Revenue Bonds,
1999 Resolution, Series A-D, RITES Series PA-781R:
14.780%, 5/15/14 (Pre-refunded to 5/15/10) (IF) - FSA Insured 1,215,192
14.780%, 5/15/16 (Pre-refunded to 5/15/10) (IF) - FSA Insured 727,660
14.780%, 5/15/16 (Pre-refunded to 5/15/10) (IF) - FSA Insured 1,892,496
14.780%, 5/15/17 (Pre-refunded to 5/15/10) (IF) - FSA Insured 975,064
New York State Housing Finance Agency, State University Construction Bonds, 1986 Series A, 250,824
8.000%, 5/01/11
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1993 Series C 480,415
Refunding, 5.875%, 9/15/14 (Pre-refunded to 9/15/03)
New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, 1995 Series A:
6.375%, 9/15/15 (Pre-refunded to 9/15/05) 229,477
6.375%, 9/15/15 (Pre-refunded to 9/15/07) 2,058,391
New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement 16,080
Revenue Bonds, 1994 Series E, 6.500%, 8/15/24 (Pre-refunded to 8/15/04)
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured 1,482,281
Mortgage Revenue Bonds, 1994 Series A, 6.200%, 2/15/21 (Pre-refunded to 2/15/04)
New York State Thruway Authority, Local Highway and Bridge Service Contract Bonds, Drivers Series 8,326,975
145, 12.780%, 10/01/08 (IF) - AMBAC Insured
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series 1999B, 3,265,500
5.500%, 1/01/30 (Pre-refunded to 1/01/22)
- ----------------------------------------------------------------------------------------------------------------
Utilities - 10.6%
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A:
5.125%, 12/01/22 - FSA Insured 3,033,900
5.250%, 12/01/26 1,005,850
5.250%, 12/01/26 - AMBAC Insured 1,011,530
5.250%, 12/01/26 - MBIA Insured 1,517,295
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A, 1,029,817
0.000%, 6/01/20 - FSA Insured
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A, 2,018,120
5.375%, 9/01/25
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000L, 1,005,540
5.375%, 5/01/33
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2003C, 5,226,250
5.000%, 9/01/16 - CIFG Insured
New York City Industrial Development Agency, New York, Industrial Development Revenue Bonds 4,374,513
(Brooklyn Navy Yard Cogeneration Partners, L.P. Project), Series 1997, 5.750%, 10/01/36 (Alternative
Minimum Tax)
New York State Energy Research and Development Authority, Pollution Control Revenue Bonds, New 2,613,656
York State Electric and Gas Corporation Project, Series 1987A, 6.150%, 7/01/26
(Alternative Minimum Tax) - MBIA Insured
- ----
33
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------
Utilities (continued)
$ 1,500 New York State Energy Research and Development Authority, 7/05 at 102.00 AAA $ 1,630,905
Facilities Refunding Revenue Bonds, Series 1995 A
(Consolidated Edison Company of New York, Inc. Project),
6.100%, 8/15/20 - AMBAC Insured
3,000 Power Authority of the State of New York, Series 2000A, 11/10 at 100.00 Aa2 3,018,900
Revenue Bonds, 5.250%, 11/15/40
1,500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa1 1,554,825
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara, Series 2001A, 5.450%,
11/15/26 (Alternative Minimum Tax) (Mandatory put 11/15/12)
750 Onondaga County Resource Recovery Agency, New York, System 11/03 at 101.00 Ba3 650,835
Revenue Bonds (Development Costs), 1992 Series, 7.000%,
5/01/15 (Alternative Minimum Tax)
Suffolk County Industrial Development Agency, New York,
1998 Industrial Development Revenue Bonds (Nissequogue
Cogen Partners Facility):
1,800 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 1,703,376
4,000 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 3,585,120
- ----------------------------------------------------------------------------------------------------------------
Water and Sewer - 4.5%
Monroe County Water Authority, New York, Water Revenue
Bonds, Series 2001:
850 5.150%, 8/01/22 8/11 at 101.00 AA 865,487
2,250 5.250%, 8/01/36 8/11 at 101.00 AA 2,270,970
2,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 2,189,260
Water and Sewer System Revenue Bonds, Fiscal 1996 Series
B, 5.750%, 6/15/26 - MBIA Insured
250 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 258,663
Water and Sewer System Revenue Bonds, Fiscal 2000 Series
A, 5.500%, 6/15/32 - FGIC Insured
2,750 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA 2,852,190
Water and Sewer System Revenue Bonds, Fiscal 2001 Series
A, 5.500%, 6/15/33
2,225 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA 2,352,533
Water and Sewer System Revenue Bonds, Fiscal 2003 Series
A, 5.375%, 6/15/19
4,000 New York State Environmental Facilities Corporation, State 11/12 at 100.00 AAA 4,234,720
Clean Water and Drinking Water Revolving Funds Revenue
Bonds, Pooled Loan Issue, Series 2002F, 5.250%, 11/15/18
- ----------------------------------------------------------------------------------------------------------------
$310,725 Total Long-Term Investments (cost $309,139,522) - 97.6% 322,460,074
- ----------------------------------------------------------------------------------------------------------------
- ------------
Short-Term Investments - 0.9%
3,000 New York City Municipal Water Finance Authority, Water and A-1+ 3,000,000
Sewer System Variable Revenue Bonds, Fiscal 1994 Series C,
0.850%, 6/15/23 - FGIC Insured+
- ----------------------------------------------------------------------------------------------------------------
$ 3,000 Total Short-Term Investments (cost $3,000,000) 3,000,000
- ----------------------------------------------------------------------------------------------------------------
- ------------
Total Investments (cost $312,139,522) - 98.5% 325,460,074
---------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 5,076,318
---------------------------------------------------------------------------------------------------
Net Assets - 100% $330,536,392
---------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities which
ensures the timely payment of principal and interest. Such
securities are normally considered to be equivalent to AAA rated
securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term
security. The rate disclosed is that currently in effect. This
rate changes periodically based on market conditions or a
specified market index.
(IF) Inverse floating rate security.
See accompanying notes to financial statements.
- ----
34
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK INSURED MUNICIPAL BOND FUND
August 31, 2003
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.0%
$ 1,000 Allegany County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Series 1998 8/08 at 102.00
(Alfred University Civic Facility), 5.000%, 8/01/28 - MBIA Insured
3,095 Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty-Student Housing 8/10 at 102.00
Corporation, University of Buffalo Project, Series 2000A, 5.750%, 8/01/30 - AMBAC Insured
1,110 Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty-Student 8/12 at 101.00
Housing Corporation, University of Buffalo Creekside Project, Series 2002A,
5.000%, 8/01/22 - AMBAC Insured
1,350 Town of Hempstead Industrial Development Agency, New York, Civic Facility Revenue Bonds (Hofstra 7/06 at 102.00
University Project), Series 1996, 5.800%, 7/01/15 - MBIA Insured
1,750 The Trust for Cultural Resources of the City of New York, New York, Revenue Bonds, Series 1997A 4/07 at 101.00
(American Museum of Natural History), 5.650%, 4/01/27 - MBIA Insured
1,000 New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds (USTA National 11/04 at 102.00
Tennis Center Incorporated Project), 6.375%, 11/15/14 - FSA Insured
1,145 New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds 6/07 at 102.00
(Anti-Defamation League Foundation Project), Series 1997A, 5.600%, 6/01/17 - MBIA Insured
4,000 Dormitory Authority of the State of New York, City University System Consolidated Revenue Bonds, No Opt. Call
Series 1993A, 5.750%, 7/01/13 - MBIA Insured
2,925 Dormitory Authority of the State of New York, Siena College Insured Revenue Bonds, Series 1997, 7/07 at 102.00
5.750%, 7/01/26 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Fordham University Insured Revenue Bonds, Series 1998, 7/08 at 101.00
5.000%, 7/01/28 - MBIA Insured
3,000 Dormitory Authority of the State of New York, Ithaca College Insured Revenue Bonds, Series 1998, 7/08 at 101.00
5.000%, 7/01/21 - AMBAC Insured
3,250 Dormitory Authority of the State of New York, Upstate Community Colleges Revenue Bonds, 7/10 at 101.00
Series 2000A, 5.750%, 7/01/29 - FSA Insured
5,280 Dormitory Authority of the State of New York, University of Rochester, Revenue Bonds, Series 2000A 7/10 at 101.00
0.000%, 7/01/25 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Pace University Insured Revenue Bonds, Series 2000, 7/10 at 101.00
6.000%, 7/01/29 - MBIA Insured
1,000 Dormitory Authority of the State of New York, City University System Consolidated, Fourth General 7/10 at 100.00
Resolution Revenue Bonds, 2000 Series A, 5.125%, 7/01/22 - FGIC Insured
1,000 Dormitory Authority of the State of New York, Canisius College Revenue Bonds, Series 2000, 7/11 at 101.00
5.250%, 7/01/30 - MBIA Insured
1,000 Dormitory Authority of the State of New York, New York University Revenue Bonds, Series 2001-1, No Opt. Call
5.500%, 7/01/40 - AMBAC Insured
1,500 Dormitory Authority of the State of New York, Yeshiva University Insured Revenue Bonds, Series 2001, 7/11 at 100.00
5.000%, 7/01/30 - AMBAC Insured
1,490 Dormitory Authority of the State of New York, Fordham University Insured Revenue Bonds, Series 2002, 7/12 at 100.00
5.000%, 7/01/21 - FGIC Insured
- ----------------------------------------------------------------------------------------------------------------------------------
Healthcare - 16.3%
New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds,
Series 2003A:
2,000 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00
1,750 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00
6,460 Dormitory Authority of the State of New York, St. Vincent's Hospital and Medical Center of New York, 8/05 at 102.00
FHA-Insured Mortgage Revenue Bonds, Series 1995, 5.800%, 8/01/25 - AMBAC Insured
3,305 Dormitory Authority of the State of New York, Millard Fillmore Hospitals, FHA-Insured Mortgage 8/04 at 105.00
Hospital Revenue Bonds, Series 1997, 5.375%, 2/01/32 - AMBAC Insured
3,730 Dormitory Authority of the State of New York, Maimonides Medical Center, FHA-Insured Mortgage 2/06 at 102.00
Hospital Revenue Bonds, Series 1996A, 5.750%, 8/01/24 - MBIA Insured
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.0%
Allegany County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Series 1998 Aaa $ 990,540
(Alfred University Civic Facility), 5.000%, 8/01/28 - MBIA Insured
Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty-Student Housing AAA 3,321,337
Corporation, University of Buffalo Project, Series 2000A, 5.750%, 8/01/30 - AMBAC Insured
Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty-Student AAA 1,121,644
Housing Corporation, University of Buffalo Creekside Project, Series 2002A,
5.000%, 8/01/22 - AMBAC Insured
Town of Hempstead Industrial Development Agency, New York, Civic Facility Revenue Bonds (Hofstra AAA 1,486,053
University Project), Series 1996, 5.800%, 7/01/15 - MBIA Insured
The Trust for Cultural Resources of the City of New York, New York, Revenue Bonds, Series 1997A AAA 1,852,690
(American Museum of Natural History), 5.650%, 4/01/27 - MBIA Insured
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds (USTA National AAA 1,074,420
Tennis Center Incorporated Project), 6.375%, 11/15/14 - FSA Insured
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds Aaa 1,251,519
(Anti-Defamation League Foundation Project), Series 1997A, 5.600%, 6/01/17 - MBIA Insured
Dormitory Authority of the State of New York, City University System Consolidated Revenue Bonds, AAA 4,547,080
Series 1993A, 5.750%, 7/01/13 - MBIA Insured
Dormitory Authority of the State of New York, Siena College Insured Revenue Bonds, Series 1997, AAA 3,139,929
5.750%, 7/01/26 - MBIA Insured
Dormitory Authority of the State of New York, Fordham University Insured Revenue Bonds, Series 1998, AAA 990,800
5.000%, 7/01/28 - MBIA Insured
Dormitory Authority of the State of New York, Ithaca College Insured Revenue Bonds, Series 1998, Aaa 3,028,350
5.000%, 7/01/21 - AMBAC Insured
Dormitory Authority of the State of New York, Upstate Community Colleges Revenue Bonds, AAA 3,482,083
Series 2000A, 5.750%, 7/01/29 - FSA Insured
Dormitory Authority of the State of New York, University of Rochester, Revenue Bonds, Series 2000A AAA 3,688,186
0.000%, 7/01/25 - MBIA Insured
Dormitory Authority of the State of New York, Pace University Insured Revenue Bonds, Series 2000, AAA 1,100,530
6.000%, 7/01/29 - MBIA Insured
Dormitory Authority of the State of New York, City University System Consolidated, Fourth General AAA 1,014,910
Resolution Revenue Bonds, 2000 Series A, 5.125%, 7/01/22 - FGIC Insured
Dormitory Authority of the State of New York, Canisius College Revenue Bonds, Series 2000, AAA 1,014,400
5.250%, 7/01/30 - MBIA Insured
Dormitory Authority of the State of New York, New York University Revenue Bonds, Series 2001-1, AAA 1,085,680
5.500%, 7/01/40 - AMBAC Insured
Dormitory Authority of the State of New York, Yeshiva University Insured Revenue Bonds, Series 2001, AAA 1,481,340
5.000%, 7/01/30 - AMBAC Insured
Dormitory Authority of the State of New York, Fordham University Insured Revenue Bonds, Series 2002, AAA 1,509,564
5.000%, 7/01/21 - FGIC Insured
- -------------------------------------------------------------------------------------------------------------------------
Healthcare - 16.3%
New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds,
Series 2003A:
5.250%, 2/15/21 - AMBAC Insured AAA 2,060,840
5.250%, 2/15/22 - AMBAC Insured AAA 1,796,568
Dormitory Authority of the State of New York, St. Vincent's Hospital and Medical Center of New York, AAA 6,852,057
FHA-Insured Mortgage Revenue Bonds, Series 1995, 5.800%, 8/01/25 - AMBAC Insured
Dormitory Authority of the State of New York, Millard Fillmore Hospitals, FHA-Insured Mortgage AAA 3,363,465
Hospital Revenue Bonds, Series 1997, 5.375%, 2/01/32 - AMBAC Insured
Dormitory Authority of the State of New York, Maimonides Medical Center, FHA-Insured Mortgage AAA 3,880,804
Hospital Revenue Bonds, Series 1996A, 5.750%, 8/01/24 - MBIA Insured
- ----
35
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK INSURED MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal
Amount (000) Description
- ---------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
$ 2,500 Dormitory Authority of the State of New York, Secured Hospital Insured Revenue Bonds (Southside
Hospital), Series 1998, 5.000%, 2/15/25 - MBIA Insured
4,000 Dormitory Authority of the State of New York (United Health Services), FHA-Insured Mortgage Revenue
Refunding Bonds, Series 1997, 5.375%, 8/01/27 - AMBAC Insured
6,115 Dormitory Authority of the State of New York (The New York and Presbyterian Hospital), FHA-Insured
Mortgage Hospital Revenue Bonds, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
3,000 Dormitory Authority of the State of New York (North Shore Health System Obligated Group), North
Shore University Hospital Revenue Bonds, Series 1998, 5.000%, 11/01/23 - MBIA Insured
2,000 Dormitory Authority of the State of New York (Memorial Sloan Kettering Cancer Center), Revenue
Bonds, 2003 Series 1, 5.000%, 7/01/21 - MBIA Insured
2,000 Dormitory Authority of the State of New York, Montefiore Medical Center FHA-Insured Mortgage
Hospital Revenue Bonds, Series 1999, 5.500%, 8/01/38 - AMBAC Insured
3,105 Dormitory Authority of the State of New York (Catholic Health Services of Long Island Obligated
Group), St. Charles Hospital and Rehabilitation Center Revenue Bonds, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
2,260 Dormitory Authority of the State of New York (Catholic Health Services of Long Island Obligated Group),
St. Francis Hospital Revenue Bonds, Series 1999A, 5.500%, 7/01/29 - MBIA Insured
1,000 Dormitory Authority of the State of New York, New Island Hospital Insured Revenue Bonds,
Series 1999A, 5.750%, 7/01/19 - AMBAC Insured
5,000 Dormitory Authority of the State of New York (Winthrop South Nassau University Health System
Obligated Group), Withrop University Hospital Association Revenue Bonds, Series 2001A,
5.250%, 7/01/31 - AMBAC Insured
1,600 New York State Medical Care Facilities Finance Agency, Our Lady of Victory Hospital Project Revenue
Bonds, 1991 Series A, 6.625%, 11/01/16 - AMBAC Insured
4,000 New York State Medical Care Facilities Finance Agency, Hospital Insured Mortgage Revenue Bonds,
1994 Series A Refunding, 5.375%, 2/15/25 - MBIA Insured
610 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured
Mortgage Revenue Bonds, 1989 Series B, 7.350%, 2/15/29
2,890 New York State Medical Care Facilities Finance Agency, Montefiore Medical Center FHA-Insured
Mortgage Revenue Bonds, 1995 Series A, 5.750%, 2/15/15 - AMBAC Insured
1,910 Dormitory Authority of the State of New York, FHA-Insured Mortgage Hospital Revenue Bonds,
St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.3%
4,816 New York City Housing Development Corporation, New York, Multifamily Housing Limited Obligation
Bonds, Series 1991C, Pass-Through Certificates, 6.500%, 2/20/19 - AMBAC Insured
New York State Housing Finance Agency, Housing Project Mortgage Revenue Bonds, 1996 Series A
Refunding:
5,075 6.100%, 11/01/15 - FSA Insured
4,535 6.125%, 11/01/20 - FSA Insured
610 New York State Housing Finance Agency, Multifamily Housing Revenue Bonds, 1989 Series A,
7.450%, 11/01/28 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.0%
4,250 East Rochester Housing Authority, New York, FHA-Insured Mortgage Revenue Bonds, St. John's
Meadow Project, Series 1997A, 5.700%, 8/01/27 - MBIA Insured
1,000 Dormitory Authority of the State of New York, United Cerebral Palsy Association of Westchester
County, Inc., Insured Revenue Bonds, Series 1992, 6.200%, 7/01/12 - MBIA Insured
2,000 Dormitory Authority of the State of New York, The Augustana Lutheran Home for the Aged Inc., FHA-
Insured Mortgage Nursing Home Revenue Bonds, Series 2000A, 5.500%, 8/01/38 - MBIA Insured
3,665 Dormitory Authority of the State of New York, Norwegian Christian Home and Health Center, FHA-
Insured Mortgage Nursing Home Revenue Bonds, Series 2001, 5.200%, 8/01/36 - MBIA Insured
Optional Call
Description Provisions*
- ------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
Dormitory Authority of the State of New York, Secured Hospital Insured Revenue Bonds (Southside 2/08 at 101.50
Hospital), Series 1998, 5.000%, 2/15/25 - MBIA Insured
Dormitory Authority of the State of New York (United Health Services), FHA-Insured Mortgage Revenue 2/08 at 102.00
Refunding Bonds, Series 1997, 5.375%, 8/01/27 - AMBAC Insured
Dormitory Authority of the State of New York (The New York and Presbyterian Hospital), FHA-Insured 2/08 at 101.00
Mortgage Hospital Revenue Bonds, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
Dormitory Authority of the State of New York (North Shore Health System Obligated Group), North 11/08 at 101.00
Shore University Hospital Revenue Bonds, Series 1998, 5.000%, 11/01/23 - MBIA Insured
Dormitory Authority of the State of New York (Memorial Sloan Kettering Cancer Center), Revenue 7/13 at 100.00
Bonds, 2003 Series 1, 5.000%, 7/01/21 - MBIA Insured
Dormitory Authority of the State of New York, Montefiore Medical Center FHA-Insured Mortgage 8/09 at 101.00
Hospital Revenue Bonds, Series 1999, 5.500%, 8/01/38 - AMBAC Insured
Dormitory Authority of the State of New York (Catholic Health Services of Long Island Obligated 7/09 at 101.00
Group), St. Charles Hospital and Rehabilitation Center Revenue Bonds, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
Dormitory Authority of the State of New York (Catholic Health Services of Long Island Obligated Group), 7/09 at 101.00
St. Francis Hospital Revenue Bonds, Series 1999A, 5.500%, 7/01/29 - MBIA Insured
Dormitory Authority of the State of New York, New Island Hospital Insured Revenue Bonds, 7/09 at 101.00
Series 1999A, 5.750%, 7/01/19 - AMBAC Insured
Dormitory Authority of the State of New York (Winthrop South Nassau University Health System 7/11 at 101.00
Obligated Group), Withrop University Hospital Association Revenue Bonds, Series 2001A,
5.250%, 7/01/31 - AMBAC Insured
New York State Medical Care Facilities Finance Agency, Our Lady of Victory Hospital Project Revenue 11/03 at 100.00
Bonds, 1991 Series A, 6.625%, 11/01/16 - AMBAC Insured
New York State Medical Care Facilities Finance Agency, Hospital Insured Mortgage Revenue Bonds, 2/04 at 102.00
1994 Series A Refunding, 5.375%, 2/15/25 - MBIA Insured
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured 2/04 at 100.00
Mortgage Revenue Bonds, 1989 Series B, 7.350%, 2/15/29
New York State Medical Care Facilities Finance Agency, Montefiore Medical Center FHA-Insured 2/05 at 102.00
Mortgage Revenue Bonds, 1995 Series A, 5.750%, 2/15/15 - AMBAC Insured
Dormitory Authority of the State of New York, FHA-Insured Mortgage Hospital Revenue Bonds, 8/12 at 100.00
St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.3%
New York City Housing Development Corporation, New York, Multifamily Housing Limited Obligation 9/03 at 105.00
Bonds, Series 1991C, Pass-Through Certificates, 6.500%, 2/20/19 - AMBAC Insured
New York State Housing Finance Agency, Housing Project Mortgage Revenue Bonds, 1996 Series A
Refunding:
6.100%, 11/01/15 - FSA Insured 5/06 at 102.00
6.125%, 11/01/20 - FSA Insured 5/06 at 102.00
New York State Housing Finance Agency, Multifamily Housing Revenue Bonds, 1989 Series A, 11/03 at 100.00
7.450%, 11/01/28 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.0%
East Rochester Housing Authority, New York, FHA-Insured Mortgage Revenue Bonds, St. John's 8/07 at 102.00
Meadow Project, Series 1997A, 5.700%, 8/01/27 - MBIA Insured
Dormitory Authority of the State of New York, United Cerebral Palsy Association of Westchester 1/04 at 101.00
County, Inc., Insured Revenue Bonds, Series 1992, 6.200%, 7/01/12 - MBIA Insured
Dormitory Authority of the State of New York, The Augustana Lutheran Home for the Aged Inc., FHA- 8/10 at 101.00
Insured Mortgage Nursing Home Revenue Bonds, Series 2000A, 5.500%, 8/01/38 - MBIA Insured
Dormitory Authority of the State of New York, Norwegian Christian Home and Health Center, FHA- 8/11 at 101.00
Insured Mortgage Nursing Home Revenue Bonds, Series 2001, 5.200%, 8/01/36 - MBIA Insured
Market
Description Ratings** Value
- ----------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
Dormitory Authority of the State of New York, Secured Hospital Insured Revenue Bonds (Southside AAA $2,498,300
Hospital), Series 1998, 5.000%, 2/15/25 - MBIA Insured
Dormitory Authority of the State of New York (United Health Services), FHA-Insured Mortgage Revenue AAA 4,084,680
Refunding Bonds, Series 1997, 5.375%, 8/01/27 - AMBAC Insured
Dormitory Authority of the State of New York (The New York and Presbyterian Hospital), FHA-Insured AAA 5,761,308
Mortgage Hospital Revenue Bonds, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
Dormitory Authority of the State of New York (North Shore Health System Obligated Group), North AAA 3,006,060
Shore University Hospital Revenue Bonds, Series 1998, 5.000%, 11/01/23 - MBIA Insured
Dormitory Authority of the State of New York (Memorial Sloan Kettering Cancer Center), Revenue AAA 2,020,780
Bonds, 2003 Series 1, 5.000%, 7/01/21 - MBIA Insured
Dormitory Authority of the State of New York, Montefiore Medical Center FHA-Insured Mortgage AAA 2,067,980
Hospital Revenue Bonds, Series 1999, 5.500%, 8/01/38 - AMBAC Insured
Dormitory Authority of the State of New York (Catholic Health Services of Long Island Obligated AAA 3,253,202
Group), St. Charles Hospital and Rehabilitation Center Revenue Bonds, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
Dormitory Authority of the State of New York (Catholic Health Services of Long Island Obligated Group), AAA 2,340,931
St. Francis Hospital Revenue Bonds, Series 1999A, 5.500%, 7/01/29 - MBIA Insured
Dormitory Authority of the State of New York, New Island Hospital Insured Revenue Bonds, AAA 1,071,470
Series 1999A, 5.750%, 7/01/19 - AMBAC Insured
Dormitory Authority of the State of New York (Winthrop South Nassau University Health System AAA 5,054,250
Obligated Group), Withrop University Hospital Association Revenue Bonds, Series 2001A,
5.250%, 7/01/31 - AMBAC Insured
New York State Medical Care Facilities Finance Agency, Our Lady of Victory Hospital Project Revenue AAA 1,613,056
Bonds, 1991 Series A, 6.625%, 11/01/16 - AMBAC Insured
New York State Medical Care Facilities Finance Agency, Hospital Insured Mortgage Revenue Bonds, AAA 4,100,520
1994 Series A Refunding, 5.375%, 2/15/25 - MBIA Insured
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured AA 612,751
Mortgage Revenue Bonds, 1989 Series B, 7.350%, 2/15/29
New York State Medical Care Facilities Finance Agency, Montefiore Medical Center FHA-Insured AAA 3,085,942
Mortgage Revenue Bonds, 1995 Series A, 5.750%, 2/15/15 - AMBAC Insured
Dormitory Authority of the State of New York, FHA-Insured Mortgage Hospital Revenue Bonds, AAA 1,930,361
St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured
- ----------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.3%
New York City Housing Development Corporation, New York, Multifamily Housing Limited Obligation AAA 5,062,614
Bonds, Series 1991C, Pass-Through Certificates, 6.500%, 2/20/19 - AMBAC Insured
New York State Housing Finance Agency, Housing Project Mortgage Revenue Bonds, 1996 Series A
Refunding:
6.100%, 11/01/15 - FSA Insured AAA 5,404,571
6.125%, 11/01/20 - FSA Insured AAA 4,729,370
New York State Housing Finance Agency, Multifamily Housing Revenue Bonds, 1989 Series A, AAA 610,848
7.450%, 11/01/28 - AMBAC Insured
- ----------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.0%
East Rochester Housing Authority, New York, FHA-Insured Mortgage Revenue Bonds, St. John's AAA 4,436,278
Meadow Project, Series 1997A, 5.700%, 8/01/27 - MBIA Insured
Dormitory Authority of the State of New York, United Cerebral Palsy Association of Westchester AAA 1,013,700
County, Inc., Insured Revenue Bonds, Series 1992, 6.200%, 7/01/12 - MBIA Insured
Dormitory Authority of the State of New York, The Augustana Lutheran Home for the Aged Inc., FHA- AAA 2,067,980
Insured Mortgage Nursing Home Revenue Bonds, Series 2000A, 5.500%, 8/01/38 - MBIA Insured
Dormitory Authority of the State of New York, Norwegian Christian Home and Health Center, FHA- AAA 3,664,267
Insured Mortgage Nursing Home Revenue Bonds, Series 2001, 5.200%, 8/01/36 - MBIA Insured
- ----
36
Principal
Amount (000) Description
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 10.4%
Camden Central School District, Oneida County, New York, School District (Serial) Bonds, Series 1991:
$ 500 7.100%, 6/15/07 - AMBAC Insured
600 7.100%, 6/15/08 - AMBAC Insured
600 7.100%, 6/15/09 - AMBAC Insured
275 7.100%, 6/15/10 - AMBAC Insured
Erie County, New York, General Obligation Bonds, Series 2003A:
1,000 5.250%, 3/15/15 - FGIC Insured
1,000 5.250%, 3/15/16 - FGIC Insured
1,000 5.250%, 3/15/17 - FGIC Insured
1,000 5.250%, 3/15/18 - FGIC Insured
500 Greece Central School District, Monroe County, New York, General Obligation Bonds, School District
Bonds, Series 1992, 6.000%, 6/15/09 - FGIC Insured
Town of Halfmoon, Saratoga County, New York, Public Improvement (Serial) Bonds, Series 1991:
385 6.500%, 6/01/09 - AMBAC Insured
395 6.500%, 6/01/10 - AMBAC Insured
395 6.500%, 6/01/11 - AMBAC Insured
2,295 Harborsfield Central School District, Suffolk County, New York, General Obligation Bonds, Series 2001,
5.000%, 6/01/19 - FSA Insured
Middle County Central School District at Centereach, Brookhaven, Suffolk County, New York, General
Obligation Bonds, Series 1991A:
475 6.900%, 12/15/07 - AMBAC Insured
475 6.900%, 12/15/08 - AMBAC Insured
2,250 County of Monroe, New York, General Obligation Public Improvement Bonds, Series 2002,
5.000%, 3/01/16 - FGIC Insured
Mount Sinai Union Free School District, County of Suffolk, New York, School District Refunding (Serial)
Bonds, Series 1992:
500 6.200%, 2/15/15 - AMBAC Insured
1,035 6.200%, 2/15/16 - AMBAC Insured
1,125 County of Nassau, New York, General Improvement Bonds, Series E, 6.000%, 3/01/20 - FSA Insured
1,000 County of Nassau, New York, General Obligations, General Improvement (Serial) Bonds, Series B,
5.250%, 6/01/23 - AMBAC Insured
1,020 City of New Rochelle, Westchester County, New York, General Obligations, Public Improvement Bonds,
1994 Series B, 6.200%, 8/15/22 - MBIA Insured
60 The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series C,
6.250%, 8/01/10 - FSA Insured
The City of New York, New York, General Obligation Bonds, Fiscal 2001 Series D:
3,000 5.250%, 8/01/15 - MBIA Insured
2,000 5.000%, 8/01/16 - FGIC Insured
2,460 The City of New York, New York, General Obligation Bonds, Fiscal 2002 Series A,
5.250%, 11/01/15 - MBIA Insured
1,590 City of Niagara Falls, Niagara County, New York, Public Improvement (Serial) Bonds, Series 1994,
6.900%, 3/01/21 - MBIA Insured
1,505 Town of North Hempstead, Nassau County, New York, General Obligation Refunding (Serial) Bonds,
Series 1992B, 6.400%, 4/01/14 - FGIC Insured
Rensselaer County, New York, General Obligation (Serial) Bonds, Series 1991:
960 6.700%, 2/15/13 - AMBAC Insured
960 6.700%, 2/15/14 - AMBAC Insured
960 6.700%, 2/15/15 - AMBAC Insured
Optional Call
Description Provisions*
- ------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 10.4%
Camden Central School District, Oneida County, New York, School District (Serial) Bonds, Series 1991:
7.100%, 6/15/07 - AMBAC Insured No Opt. Call
7.100%, 6/15/08 - AMBAC Insured No Opt. Call
7.100%, 6/15/09 - AMBAC Insured No Opt. Call
7.100%, 6/15/10 - AMBAC Insured No Opt. Call
Erie County, New York, General Obligation Bonds, Series 2003A:
5.250%, 3/15/15 - FGIC Insured 3/13 at 100.00
5.250%, 3/15/16 - FGIC Insured 3/13 at 100.00
5.250%, 3/15/17 - FGIC Insured 3/13 at 100.00
5.250%, 3/15/18 - FGIC Insured 3/13 at 100.00
Greece Central School District, Monroe County, New York, General Obligation Bonds, School District No Opt. Call
Bonds, Series 1992, 6.000%, 6/15/09 - FGIC Insured
Town of Halfmoon, Saratoga County, New York, Public Improvement (Serial) Bonds, Series 1991:
6.500%, 6/01/09 - AMBAC Insured No Opt. Call
6.500%, 6/01/10 - AMBAC Insured No Opt. Call
6.500%, 6/01/11 - AMBAC Insured No Opt. Call
Harborsfield Central School District, Suffolk County, New York, General Obligation Bonds, Series 2001, 6/11 at 100.00
5.000%, 6/01/19 - FSA Insured
Middle County Central School District at Centereach, Brookhaven, Suffolk County, New York, General
Obligation Bonds, Series 1991A:
6.900%, 12/15/07 - AMBAC Insured No Opt. Call
6.900%, 12/15/08 - AMBAC Insured No Opt. Call
County of Monroe, New York, General Obligation Public Improvement Bonds, Series 2002, 3/12 at 100.00
5.000%, 3/01/16 - FGIC Insured
Mount Sinai Union Free School District, County of Suffolk, New York, School District Refunding (Serial)
Bonds, Series 1992:
6.200%, 2/15/15 - AMBAC Insured No Opt. Call
6.200%, 2/15/16 - AMBAC Insured No Opt. Call
County of Nassau, New York, General Improvement Bonds, Series E, 6.000%, 3/01/20 - FSA Insured 3/10 at 100.00
County of Nassau, New York, General Obligations, General Improvement (Serial) Bonds, Series B, 6/09 at 102.00
5.250%, 6/01/23 - AMBAC Insured
City of New Rochelle, Westchester County, New York, General Obligations, Public Improvement Bonds, 8/04 at 102.00
1994 Series B, 6.200%, 8/15/22 - MBIA Insured
The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series C, 2/04 at 100.75
6.250%, 8/01/10 - FSA Insured
The City of New York, New York, General Obligation Bonds, Fiscal 2001 Series D:
5.250%, 8/01/15 - MBIA Insured 8/10 at 101.00
5.000%, 8/01/16 - FGIC Insured 8/10 at 101.00
The City of New York, New York, General Obligation Bonds, Fiscal 2002 Series A, 11/11 at 101.00
5.250%, 11/01/15 - MBIA Insured
City of Niagara Falls, Niagara County, New York, Public Improvement (Serial) Bonds, Series 1994, 3/04 at 102.00
6.900%, 3/01/21 - MBIA Insured
Town of North Hempstead, Nassau County, New York, General Obligation Refunding (Serial) Bonds, No Opt. Call
Series 1992B, 6.400%, 4/01/14 - FGIC Insured
Rensselaer County, New York, General Obligation (Serial) Bonds, Series 1991:
6.700%, 2/15/13 - AMBAC Insured No Opt. Call
6.700%, 2/15/14 - AMBAC Insured No Opt. Call
6.700%, 2/15/15 - AMBAC Insured No Opt. Call
Market
Description Ratings** Value
- ----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 10.4%
Camden Central School District, Oneida County, New York, School District (Serial) Bonds, Series 1991:
7.100%, 6/15/07 - AMBAC Insured AAA $ 587,500
7.100%, 6/15/08 - AMBAC Insured AAA 720,636
7.100%, 6/15/09 - AMBAC Insured AAA 731,268
7.100%, 6/15/10 - AMBAC Insured AAA 336,751
Erie County, New York, General Obligation Bonds, Series 2003A:
5.250%, 3/15/15 - FGIC Insured Aaa 1,079,810
5.250%, 3/15/16 - FGIC Insured Aaa 1,072,490
5.250%, 3/15/17 - FGIC Insured Aaa 1,065,240
5.250%, 3/15/18 - FGIC Insured Aaa 1,057,260
Greece Central School District, Monroe County, New York, General Obligation Bonds, School District AAA 580,885
Bonds, Series 1992, 6.000%, 6/15/09 - FGIC Insured
Town of Halfmoon, Saratoga County, New York, Public Improvement (Serial) Bonds, Series 1991:
6.500%, 6/01/09 - AMBAC Insured AAA 455,209
6.500%, 6/01/10 - AMBAC Insured AAA 469,039
6.500%, 6/01/11 - AMBAC Insured AAA 472,981
Harborsfield Central School District, Suffolk County, New York, General Obligation Bonds, Series 2001, Aaa 2,346,638
5.000%, 6/01/19 - FSA Insured
Middle County Central School District at Centereach, Brookhaven, Suffolk County, New York, General
Obligation Bonds, Series 1991A:
6.900%, 12/15/07 - AMBAC Insured AAA 560,215
6.900%, 12/15/08 - AMBAC Insured AAA 568,946
County of Monroe, New York, General Obligation Public Improvement Bonds, Series 2002, AAA 2,353,860
5.000%, 3/01/16 - FGIC Insured
Mount Sinai Union Free School District, County of Suffolk, New York, School District Refunding (Serial)
Bonds, Series 1992:
6.200%, 2/15/15 - AMBAC Insured AAA 587,675
6.200%, 2/15/16 - AMBAC Insured AAA 1,219,530
County of Nassau, New York, General Improvement Bonds, Series E, 6.000%, 3/01/20 - FSA Insured AAA 1,253,374
County of Nassau, New York, General Obligations, General Improvement (Serial) Bonds, Series B, AAA 1,023,900
5.250%, 6/01/23 - AMBAC Insured
City of New Rochelle, Westchester County, New York, General Obligations, Public Improvement Bonds, AAA 1,082,057
1994 Series B, 6.200%, 8/15/22 - MBIA Insured
The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series C, AAA 60,685
6.250%, 8/01/10 - FSA Insured
The City of New York, New York, General Obligation Bonds, Fiscal 2001 Series D:
5.250%, 8/01/15 - MBIA Insured AAA 3,206,940
5.000%, 8/01/16 - FGIC Insured AAA 2,077,440
The City of New York, New York, General Obligation Bonds, Fiscal 2002 Series A, AAA 2,636,407
5.250%, 11/01/15 - MBIA Insured
City of Niagara Falls, Niagara County, New York, Public Improvement (Serial) Bonds, Series 1994, AAA 1,661,852
6.900%, 3/01/21 - MBIA Insured
Town of North Hempstead, Nassau County, New York, General Obligation Refunding (Serial) Bonds, AAA 1,786,887
Series 1992B, 6.400%, 4/01/14 - FGIC Insured
Rensselaer County, New York, General Obligation (Serial) Bonds, Series 1991:
6.700%, 2/15/13 - AMBAC Insured AAA 1,155,427
6.700%, 2/15/14 - AMBAC Insured AAA 1,161,197
6.700%, 2/15/15 - AMBAC Insured AAA 1,169,376
- ----
37
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK INSURED MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Rondout Valley Central School District at Accord, Ulster County, New York, General Obligation School
District (Serial) Bonds, Series 1991:
$ 550 6.800%, 6/15/06 - FGIC Insured No Opt. Call
550 6.850%, 6/15/07 - FGIC Insured No Opt. Call
550 6.850%, 6/15/08 - FGIC Insured No Opt. Call
550 6.850%, 6/15/09 - FGIC Insured No Opt. Call
550 6.850%, 6/15/10 - FGIC Insured No Opt. Call
1,000 Smithtown Central School District, Suffolk County, New York, General Obligation Bonds, Series 2002, 10/11 at 100.00
4.400%, 10/15/21 - FSA Insured
- ----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 21.7%
Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds,
Series 2002A:
2,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00
1,350 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00
3,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A:
5,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00
3,000 5.000%, 11/15/32 - FSA Insured 11/12 at 100.00
4,625 New York City Transit Authority, Metropolitan Transportation Authority, Triborough Bridge and Tunnel 1/10 at 101.00
Authority, Certificates of Participation, New York, Series 2000A, 5.875%, 1/01/30 - AMBAC Insured
1,700 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2002 11/11 at 101.00
Series B, 5.000%, 5/01/30 - MBIA Insured
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003
Series C:
2,000 5.250%, 8/01/20 - AMBAC Insured 8/12 at 100.00
1,700 5.250%, 8/01/22 - AMBAC Insured 8/12 at 100.00
2,000 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003 2/13 at 100.00
Series D Refunding, 5.000%, 2/01/22 - MBIA Insured
1,330 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003 2/13 at 100.00
Series E, 5.250%, 2/01/22 - MBIA Insured
3,750 Dormitory Authority of the State of New York, Court Facilities Lease Revenue Bonds (The City of New 5/10 at 101.00
York Issue), Series 1999, 5.750%, 5/15/30 - AMBAC Insured
3,400 Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue 8/09 at 101.00
Bonds, Series 1999D, 5.250%, 2/15/29 - FSA Insured
3,000 Dormitory Authority of the State of New York, Mental Health Facilities Improvement Revenue Bonds, 8/10 at 100.00
Series 2000D, 5.250%, 8/15/30 - FSA Insured
State of New York Municipal Bond Bank Agency, Special Program Revenue Bonds, City of Buffalo, 2001
Series A:
1,185 5.250%, 5/15/25 - AMBAC Insured 5/11 at 100.00
1,250 5.250%, 5/15/26 - AMBAC Insured 5/11 at 100.00
2,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement 2/04 at 102.00
Revenue Bonds, 1993 Series F Refunding, 5.250%, 2/15/19 - MBIA Insured
2,000 Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, 3/13 at 100.00
Series 2003A, 5.000%, 3/15/32 - FGIC Insured
Dormitory Authority of the State of New York, School Districts Financing Program Revenue Bonds,
Series 2002D:
6,275 5.250%, 10/01/23 - MBIA Insured 10/12 at 100.00
875 5.000%, 10/01/30 - MBIA Insured 10/12 at 100.00
2,000 New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002B, 4/12 at 100.00
5.000%, 4/01/20 - AMBAC Insured
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Rondout Valley Central School District at Accord, Ulster County, New York, General Obligation School
District (Serial) Bonds, Series 1991:
6.800%, 6/15/06 - FGIC Insured AAA $ 622,122
6.850%, 6/15/07 - FGIC Insured AAA 637,582
6.850%, 6/15/08 - FGIC Insured AAA 648,934
6.850%, 6/15/09 - FGIC Insured AAA 657,074
6.850%, 6/15/10 - FGIC Insured AAA 659,824
Smithtown Central School District, Suffolk County, New York, General Obligation Bonds, Series 2002, Aaa 936,340
4.400%, 10/15/21 - FSA Insured
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 21.7%
Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds,
Series 2002A:
5.500%, 1/01/20 - MBIA Insured AAA 2,134,620
5.000%, 7/01/25 - FGIC Insured AAA 1,349,015
5.000%, 7/01/30 - AMBAC Insured AAA 2,962,680
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A:
5.250%, 11/15/25 - FSA Insured AAA 5,107,650
5.000%, 11/15/32 - FSA Insured AAA 2,961,180
New York City Transit Authority, Metropolitan Transportation Authority, Triborough Bridge and Tunnel AAA 5,040,001
Authority, Certificates of Participation, New York, Series 2000A, 5.875%, 1/01/30 - AMBAC Insured
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2002 AAA 1,674,024
Series B, 5.000%, 5/01/30 - MBIA Insured
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003
Series C:
5.250%, 8/01/20 - AMBAC Insured AAA 2,081,560
5.250%, 8/01/22 - AMBAC Insured AAA 1,753,057
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003 AAA 2,020,140
Series D Refunding, 5.000%, 2/01/22 - MBIA Insured
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2003 AAA 1,373,358
Series E, 5.250%, 2/01/22 - MBIA Insured
Dormitory Authority of the State of New York, Court Facilities Lease Revenue Bonds (The City of New AAA 4,021,913
York Issue), Series 1999, 5.750%, 5/15/30 - AMBAC Insured
Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue AAA 3,436,278
Bonds, Series 1999D, 5.250%, 2/15/29 - FSA Insured
Dormitory Authority of the State of New York, Mental Health Facilities Improvement Revenue Bonds, AAA 3,026,910
Series 2000D, 5.250%, 8/15/30 - FSA Insured
State of New York Municipal Bond Bank Agency, Special Program Revenue Bonds, City of Buffalo, 2001
Series A:
5.250%, 5/15/25 - AMBAC Insured AAA 1,207,088
5.250%, 5/15/26 - AMBAC Insured AAA 1,270,100
New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement AAA 2,069,920
Revenue Bonds, 1993 Series F Refunding, 5.250%, 2/15/19 - MBIA Insured
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, AAA 1,974,500
Series 2003A, 5.000%, 3/15/32 - FGIC Insured
Dormitory Authority of the State of New York, School Districts Financing Program Revenue Bonds,
Series 2002D:
5.250%, 10/01/23 - MBIA Insured AAA 6,445,805
5.000%, 10/01/30 - MBIA Insured AAA 864,089
New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002B, AAA 2,036,960
5.000%, 4/01/20 - AMBAC Insured
- ----
38
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002A:
$ 2,000 5.250%, 4/01/18 - FSA Insured 4/12 at 100.00
1,000 5.250%, 4/01/19 - FSA Insured 4/12 at 100.00
1,500 New York State Thruway Authority, Highway and Bridge Trust Fund, Series 2003A, Second General 4/13 at 100.00
Revenue Bonds, 5.250%, 4/01/23 - MBIA Insured
4,000 New York State Urban Development Corporation, Revenue Bonds (Sports Facility Assistance Program), 4/06 at 102.00
1996 Series A, 5.500%, 4/01/19 - MBIA Insured
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, State
Facilities and Equipment, Series 2002C-1:
1,000 5.500%, 3/15/20 - FGIC Insured 3/13 at 100.00
1,000 5.500%, 3/15/21 - FGIC Insured 3/13 at 100.00
Puerto Rico Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series 2002E:
1,525 5.500%, 7/01/14 - FSA Insured No Opt. Call
4,000 5.500%, 7/01/18 - FSA Insured No Opt. Call
Tobacco Settlement Financing Corporation of New York State, Asset-Backed Bonds, Series 2003-A1:
4,900 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00
3,400 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
Transportation - 10.4%
2,500 Albany County Airport Authority, Airport Revenue Bonds, Series 1997, 5.500%, 12/15/19 (Alternative 12/07 at 102.00
Minimum Tax) - FSA Insured
3,000 Buffalo and Fort Erie Public Bridge Authority, New York, Revenue Bonds, Series 1995, 1/05 at 101.00
5.750%, 1/01/25 - MBIA Insured
4,250 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2002A 11/12 at 100.00
Refunding, 5.500%, 11/15/18 - AMBAC Insured
3,450 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, DRIVERS, Series 267, 11/12 at 100.00
12.130%, 11/15/18 (IF) - MBIA Insured
1,500 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2003A, No Opt. Call
5.000%, 11/15/15 - FGIC Insured
Niagara Frontier Transportation Authority, New York (Buffalo Niagara International Airport), Airport
Revenue Bonds, Series 1998:
1,000 5.000%, 4/01/18 (Alternative Minimum Tax) - FGIC Insured 4/08 at 101.00
1,500 5.000%, 4/01/28 (Alternative Minimum Tax) - FGIC Insured 4/08 at 101.00
3,000 Niagara Frontier Transportation Authority, New York (Buffalo Niagara International Airport), Airport 4/09 at 101.00
Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
4,000 The Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Twentieth 10/07 at 101.00
Series 2000, 5.750%, 10/15/26 (Alternative Minimum Tax) - MBIA Insured
3,000 Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC 12/07 at 100.00
Project, Series 6, 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured
2,500 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series 2002A, 1/12 at 100.00
5.250%, 1/01/19 - FGIC Insured
Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Refunding Bonds,
Series 2002E:
780 5.500%, 11/15/20 - MBIA Insured No Opt. Call
2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00
3,535 Triborough Bridge and Tunnel Authority, New York, General Revenue Bonds, DRIVERS Series 342, 11/13 at 100.00
11.430%, 11/15/20 (IF) - AMBAC Insured
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 13.0%
1,000 Erie County Water Authority, New York, Water Works System Revenue Bonds, Series 1990B, 12/09 at 100.00
6.750%, 12/01/14 - AMBAC Insured
3,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997A, 1/08 at 101.50
5.750%, 7/01/21 (Pre-refunded to 1/01/08) - MBIA Insured
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002A:
5.250%, 4/01/18 - FSA Insured AAA $2,105,080
5.250%, 4/01/19 - FSA Insured AAA 1,046,010
New York State Thruway Authority, Highway and Bridge Trust Fund, Series 2003A, Second General AAA 1,542,615
Revenue Bonds, 5.250%, 4/01/23 - MBIA Insured
New York State Urban Development Corporation, Revenue Bonds (Sports Facility Assistance Program), AAA 4,278,960
1996 Series A, 5.500%, 4/01/19 - MBIA Insured
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, State
Facilities and Equipment, Series 2002C-1:
5.500%, 3/15/20 - FGIC Insured AAA 1,071,660
5.500%, 3/15/21 - FGIC Insured AAA 1,065,290
Puerto Rico Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series 2002E:
5.500%, 7/01/14 - FSA Insured AAA 1,720,917
5.500%, 7/01/18 - FSA Insured AAA 4,463,920
Tobacco Settlement Financing Corporation of New York State, Asset-Backed Bonds, Series 2003-A1:
5.250%, 6/01/21 - AMBAC Insured AAA 5,033,280
5.250%, 6/01/22 - AMBAC Insured AAA 3,473,950
- -------------------------------------------------------------------------------------------------------------------------
Transportation - 10.4%
Albany County Airport Authority, Airport Revenue Bonds, Series 1997, 5.500%, 12/15/19 (Alternative AAA 2,602,850
Minimum Tax) - FSA Insured
Buffalo and Fort Erie Public Bridge Authority, New York, Revenue Bonds, Series 1995, AAA 3,164,070
5.750%, 1/01/25 - MBIA Insured
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2002A AAA 4,595,610
Refunding, 5.500%, 11/15/18 - AMBAC Insured
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, DRIVERS, Series 267, AAA 3,980,127
12.130%, 11/15/18 (IF) - MBIA Insured
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2003A, AAA 1,605,480
5.000%, 11/15/15 - FGIC Insured
Niagara Frontier Transportation Authority, New York (Buffalo Niagara International Airport), Airport
Revenue Bonds, Series 1998:
5.000%, 4/01/18 (Alternative Minimum Tax) - FGIC Insured AAA 1,011,420
5.000%, 4/01/28 (Alternative Minimum Tax) - FGIC Insured AAA 1,434,510
Niagara Frontier Transportation Authority, New York (Buffalo Niagara International Airport), Airport AAA 3,128,700
Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
The Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Twentieth AAA 4,191,920
Series 2000, 5.750%, 10/15/26 (Alternative Minimum Tax) - MBIA Insured
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC AAA 3,141,180
Project, Series 6, 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series 2002A, AAA 2,612,225
5.250%, 1/01/19 - FGIC Insured
Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Refunding Bonds,
Series 2002E:
5.500%, 11/15/20 - MBIA Insured AAA 861,307
5.250%, 11/15/22 - MBIA Insured AAA 2,373,554
Triborough Bridge and Tunnel Authority, New York, General Revenue Bonds, DRIVERS Series 342, AAA 4,040,364
11.430%, 11/15/20 (IF) - AMBAC Insured
- -------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 13.0%
Erie County Water Authority, New York, Water Works System Revenue Bonds, Series 1990B, AAA 1,196,620
6.750%, 12/01/14 - AMBAC Insured
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997A, AAA 3,434,160
5.750%, 7/01/21 (Pre-refunded to 1/01/08) - MBIA Insured
- ----
39
Portfolio of Investments (Unaudited)
NUVEEN NEW YORK INSURED MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal
Amount (000) Description
- -------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
$ 3,040 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997B,
5.125%, 7/01/24 - AMBAC Insured
3,500 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997E,
5.000%, 7/01/21 (Pre-refunded to 7/01/13) - AMBAC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1998A:
2,865 4.500%, 4/01/18 (Pre-refunded to 10/01/15) - FGIC Insured
2,500 4.750%, 4/01/28 (Pre-refunded to 10/01/15) - FGIC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1999A:
1,000 5.000%, 4/01/17 (Pre-refunded to 10/01/14) - FSA Insured
500 5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured
2,000 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2000A,
6.000%, 4/01/30 (Pre-refunded to 4/01/10) - FGIC Insured
The City of New York, New York, General Obligation Bonds, Fiscal 1990 Series B:
1,300 7.000%, 10/01/15 - FSA Insured
2,000 7.000%, 10/01/16 - MBIA Insured
1,025 7.000%, 10/01/17 - FSA Insured
310 7.000%, 10/01/18 - FSA Insured
3,000 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2000
Series B, 6.000%, 11/15/24 (Pre-refunded to 5/15/10) - FGIC Insured
5,000 Dormitory Authority of the State of New York, State University Educational Facilities, Revenue Bonds,
Series 1996, 5.500%, 5/15/26 (Pre-refunded to 5/15/06) - MBIA Insured
New York State Medical Care Facilities Finance Agency, Sisters of Charity Hospital of Buffalo Project
Revenue Bonds, 1991 Series A:
500 6.600%, 11/01/10 (Alternative Minimum Tax) (Pre-refunded to 11/01/03) - AMBAC Insured
1,550 6.625%, 11/01/18 (Pre-refunded to 11/01/03) - AMBAC Insured
1,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement
Revenue Bonds, 1994 Series A, 5.250%, 8/15/23 (Pre-refunded to 2/15/04) - MBIA Insured
Dormitory Authority of the State of New York, Revenue Bonds, State University Educational Facilities,
Series 2002A:
2,225 5.125%, 5/15/21 (Pre-refunded to 5/15/12) - FGIC Insured
1,000 5.000%, 5/15/27 (Pre-refunded to 5/15/12) - FGIC Insured
5,000 New York State Urban Development Corporation, Correctional Facilities Service Contract Revenue
Bonds, Series C, 6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured
800 Puerto Rico Public Improvement General Obligation Bonds, Series 2000, 5.750%, 7/01/26 (Pre-refunded
to 7/01/10) - MBIA Insured
- -------------------------------------------------------------------------------------------------------------------
Utilities - 5.7%
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A:
6,520 0.000%, 12/01/19 - FSA Insured
4,035 5.125%, 12/01/22 - FSA Insured
1,000 5.750%, 12/01/24 - FSA Insured
3,380 5.250%, 12/01/26 - AMBAC Insured
2,000 5.250%, 12/01/26 - MBIA Insured
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A:
2,000 0.000%, 6/01/24 - FSA Insured
2,000 0.000%, 6/01/25 - FSA Insured
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A:
1,500 5.000%, 9/01/27 - FSA Insured
1,500 5.250%, 9/01/28 - FSA Insured
1,000 New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds,
Long Island Lighting Company Project, 1995 Series A, 5.300%, 8/01/25 (Alternative Minimum
Tax) - MBIA Insured
Optional Call
Description Provisions* Ratings**
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997B, 7/07 at 102.00 AAA
5.125%, 7/01/24 - AMBAC Insured
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997E, 7/13 at 100.00 AAA
5.000%, 7/01/21 (Pre-refunded to 7/01/13) - AMBAC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1998A:
4.500%, 4/01/18 (Pre-refunded to 10/01/15) - FGIC Insured 10/15 at 100.00 AAA
4.750%, 4/01/28 (Pre-refunded to 10/01/15) - FGIC Insured 10/15 at 100.00 AAA
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1999A:
5.000%, 4/01/17 (Pre-refunded to 10/01/14) - FSA Insured 10/14 at 100.00 AAA
5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 10/14 at 100.00 AAA
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2000A, 4/10 at 100.00 AAA
6.000%, 4/01/30 (Pre-refunded to 4/01/10) - FGIC Insured
The City of New York, New York, General Obligation Bonds, Fiscal 1990 Series B:
7.000%, 10/01/15 - FSA Insured 10/03 at 100.00 AAA
7.000%, 10/01/16 - MBIA Insured 10/03 at 100.00 AAA
7.000%, 10/01/17 - FSA Insured 10/03 at 100.00 AAA
7.000%, 10/01/18 - FSA Insured 10/03 at 100.00 AAA
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2000 5/10 at 101.00 AAA
Series B, 6.000%, 11/15/24 (Pre-refunded to 5/15/10) - FGIC Insured
Dormitory Authority of the State of New York, State University Educational Facilities, Revenue Bonds, 5/06 at 102.00 AAA
Series 1996, 5.500%, 5/15/26 (Pre-refunded to 5/15/06) - MBIA Insured
New York State Medical Care Facilities Finance Agency, Sisters of Charity Hospital of Buffalo Project
Revenue Bonds, 1991 Series A:
6.600%, 11/01/10 (Alternative Minimum Tax) (Pre-refunded to 11/01/03) - AMBAC Insured 11/03 at 100.00 AAA
6.625%, 11/01/18 (Pre-refunded to 11/01/03) - AMBAC Insured 11/03 at 100.00 AAA
New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement 2/04 at 102.00 AAA
Revenue Bonds, 1994 Series A, 5.250%, 8/15/23 (Pre-refunded to 2/15/04) - MBIA Insured
Dormitory Authority of the State of New York, Revenue Bonds, State University Educational Facilities,
Series 2002A:
5.125%, 5/15/21 (Pre-refunded to 5/15/12) - FGIC Insured 5/12 at 101.00 AAA
5.000%, 5/15/27 (Pre-refunded to 5/15/12) - FGIC Insured 5/12 at 101.00 AAA
New York State Urban Development Corporation, Correctional Facilities Service Contract Revenue 1/09 at 101.00 AAA
Bonds, Series C, 6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured
Puerto Rico Public Improvement General Obligation Bonds, Series 2000, 5.750%, 7/01/26 (Pre-refunded 7/10 at 100.00 AAA
to 7/01/10) - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------------------
Utilities - 5.7%
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A:
0.000%, 12/01/19 - FSA Insured No Opt. Call AAA
5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA
5.750%, 12/01/24 - FSA Insured 6/08 at 101.00 AAA
5.250%, 12/01/26 - AMBAC Insured 6/08 at 101.00 AAA
5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A:
0.000%, 6/01/24 - FSA Insured No Opt. Call AAA
0.000%, 6/01/25 - FSA Insured No Opt. Call AAA
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A:
5.000%, 9/01/27 - FSA Insured 9/11 at 100.00 AAA
5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA
New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds, 3/09 at 102.00 AAA
Long Island Lighting Company Project, 1995 Series A, 5.300%, 8/01/25 (Alternative Minimum
Tax) - MBIA Insured
Market
Description Value
- ----------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997B, $3,082,894
5.125%, 7/01/24 - AMBAC Insured
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997E, 3,810,415
5.000%, 7/01/21 (Pre-refunded to 7/01/13) - AMBAC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1998A:
4.500%, 4/01/18 (Pre-refunded to 10/01/15) - FGIC Insured 2,960,834
4.750%, 4/01/28 (Pre-refunded to 10/01/15) - FGIC Insured 2,642,600
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1999A:
5.000%, 4/01/17 (Pre-refunded to 10/01/14) - FSA Insured 1,086,490
5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 543,245
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2000A, 2,312,880
6.000%, 4/01/30 (Pre-refunded to 4/01/10) - FGIC Insured
The City of New York, New York, General Obligation Bonds, Fiscal 1990 Series B:
7.000%, 10/01/15 - FSA Insured 1,308,047
7.000%, 10/01/16 - MBIA Insured 2,009,460
7.000%, 10/01/17 - FSA Insured 1,029,848
7.000%, 10/01/18 - FSA Insured 311,466
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 2000 3,500,070
Series B, 6.000%, 11/15/24 (Pre-refunded to 5/15/10) - FGIC Insured
Dormitory Authority of the State of New York, State University Educational Facilities, Revenue Bonds, 5,586,200
Series 1996, 5.500%, 5/15/26 (Pre-refunded to 5/15/06) - MBIA Insured
New York State Medical Care Facilities Finance Agency, Sisters of Charity Hospital of Buffalo Project
Revenue Bonds, 1991 Series A:
6.600%, 11/01/10 (Alternative Minimum Tax) (Pre-refunded to 11/01/03) - AMBAC Insured 522,600
6.625%, 11/01/18 (Pre-refunded to 11/01/03) - AMBAC Insured 1,615,100
New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement 1,039,500
Revenue Bonds, 1994 Series A, 5.250%, 8/15/23 (Pre-refunded to 2/15/04) - MBIA Insured
Dormitory Authority of the State of New York, Revenue Bonds, State University Educational Facilities,
Series 2002A:
5.125%, 5/15/21 (Pre-refunded to 5/15/12) - FGIC Insured 2,468,459
5.000%, 5/15/27 (Pre-refunded to 5/15/12) - FGIC Insured 1,100,200
New York State Urban Development Corporation, Correctional Facilities Service Contract Revenue 5,800,150
Bonds, Series C, 6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured
Puerto Rico Public Improvement General Obligation Bonds, Series 2000, 5.750%, 7/01/26 (Pre-refunded 913,552
to 7/01/10) - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------
Utilities - 5.7%
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A:
0.000%, 12/01/19 - FSA Insured 2,970,577
5.125%, 12/01/22 - FSA Insured 4,080,596
5.750%, 12/01/24 - FSA Insured 1,072,180
5.250%, 12/01/26 - AMBAC Insured 3,418,971
5.250%, 12/01/26 - MBIA Insured 2,023,060
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A:
0.000%, 6/01/24 - FSA Insured 685,640
0.000%, 6/01/25 - FSA Insured 644,300
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A:
5.000%, 9/01/27 - FSA Insured 1,488,600
5.250%, 9/01/28 - FSA Insured 1,517,085
New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds, 1,008,800
Long Island Lighting Company Project, 1995 Series A, 5.300%, 8/01/25 (Alternative Minimum
Tax) - MBIA Insured
- ----
40
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Utilities (continued)
$ 2,000 New York State Energy Research and Development Authority, 7/05 at 102.00 AAA $ 2,146,740
Pollution Control Revenue Bonds, New York State Electric
and Gas Corporation Project, Series 1987A, 6.150%, 7/01/26
(Alternative Minimum Tax) - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------
Water and Sewer - 4.1%
2,955 Buffalo Municipal Water Finance Authority, New York, Water 7/08 at 101.00 AAA 2,927,814
System Revenue Bonds, Series 1998A, 5.000%, 7/01/28 - FGIC
Insured
8,120 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 8,888,396
Water and Sewer System Revenue Bonds, Fiscal 1996 Series
B, 5.750%, 6/15/26 - MBIA Insured
3,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 3,039,000
Water and Sewer System Revenue Bonds, Fiscal 2002 Series
A, 5.250%, 6/15/33 - FGIC Insured
405 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 461,728
Water and Sewer System Revenue Bonds, Fiscal 2000 Series
B, 6.000%, 6/15/33 - MBIA Insured
65 New York State Environmental Facilities Corporation, State 9/03 at 100.00 AAA 65,292
Water Pollution Control Revolving Fund Revenue Bonds,
Pooled Loan Issue, Series 1990C, 7.200%, 3/15/11 - MBIA
Insured
- ---------------------------------------------------------------------------------------------------------------
$356,826 Total Long-Term Investments (cost $348,403,554) - 98.9% 367,398,775
- ---------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.1% 4,271,255
-------------------------------------------------------------------------------------------------
Net Assets - 100% $371,670,030
-------------------------------------------------------------------------------------------------
All of the bonds in the portfolio are either covered by Original
Issue Insurance, Secondary Market Insurance or Portfolio
Insurance, or are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency securities,
any of which ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(IF) Inverse floating rate security.
See accompanying notes to financial statements.
- ----
41
Statement of Assets and Liabilities (Unaudited)
August 31, 2003
Connecticut New Jersey New York
- ----------------------------------------------------------------------------------------------------------------------
Assets
Investments, at market value (cost $281,464,752, $161,366,707, $312,139,522
and $348,403,554, respectively) $ 290,451,693 $165,056,677 $325,460,074
Cash -- -- 1,638,918
Receivables:
Interest 4,314,257 2,180,890 4,862,356
Investments sold 2,075,289 176,500 247,930
Shares sold 1,104,435 252,191 401,741
Other assets 4,075 1,584 7,047
- ----------------------------------------------------------------------------------------------------------------------
Total assets 297,949,749 167,667,842 332,618,066
- ----------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 702,214 188,702 --
Payable for shares redeemed 125,430 172,076 466,481
Accrued expenses:
Management fees 135,554 76,969 150,820
12b-1 distribution and service fees 87,404 48,891 71,751
Other 70,121 59,550 60,972
Dividends payable 1,130,935 581,299 1,331,650
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 2,251,658 1,127,487 2,081,674
- ----------------------------------------------------------------------------------------------------------------------
Net assets $295,698,091 $166,540,355 $330,536,392
- ----------------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $221,954,625 $ 72,132,675 $112,559,646
Shares outstanding 21,032,132 6,888,269 10,638,371
Net asset value per share $ 10.55 $ 10.47 $ 10.58
Offering price per share (net asset value per share plus
maximum sales charge of 4.20% of offering price) $ 11.01 $ 10.93 $ 11.04
- ----------------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 30,970,656 $ 26,428,656 $ 40,442,915
Shares outstanding 2,938,796 2,525,354 3,818,847
Net asset value and offering price per share $ 10.54 $ 10.47 $ 10.59
- ----------------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 38,903,744 $ 24,090,908 $ 31,971,678
Shares outstanding 3,690,509 2,307,641 3,014,931
Net asset value and offering price per share $ 10.54 $ 10.44 $ 10.60
- ----------------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $ 3,869,066 $ 43,888,116 $145,562,153
Shares outstanding 365,222 4,187,117 13,722,063
Net asset value and offering price per share $ 10.59 $ 10.48 $ 10.61
- ----------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- ----------------------------------------------------------------------------------------------------------------------
Capital paid-in $285,475,902 $164,416,824 $320,026,806
Undistributed (Over-distribution of) net investment income 71,607 (59,709) (223,416)
Accumulated net realized gain (loss) from investments 1,163,641 (1,506,730) (2,587,550)
Net unrealized appreciation of investments 8,986,941 3,689,970 13,320,552
- ----------------------------------------------------------------------------------------------------------------------
Net assets $295,698,091 $166,540,355 $330,536,392
- ----------------------------------------------------------------------------------------------------------------------
New York
Insured
- ----------------------------------------------------------------------------------------
Assets
Investments, at market value (cost $281,464,752, $161,366,707, $312,139,522
and $348,403,554, respectively) $367,398,775
Cash 498,145
Receivables:
Interest 4,415,408
Investments sold 780,971
Shares sold 454,176
Other assets 20,022
- ----------------------------------------------------------------------------------------
Total assets 373,567,497
- ----------------------------------------------------------------------------------------
Liabilities
Cash overdraft --
Payable for shares redeemed 154,631
Accrued expenses:
Management fees 168,652
12b-1 distribution and service fees 46,083
Other 136,053
Dividends payable 1,392,048
- ----------------------------------------------------------------------------------------
Total liabilities 1,897,467
- ----------------------------------------------------------------------------------------
Net assets $371,670,030
- ----------------------------------------------------------------------------------------
Class A Shares
Net assets $ 74,071,532
Shares outstanding 6,980,489
Net asset value per share $ 10.61
Offering price per share (net asset value per share plus
maximum sales charge of 4.20% of offering price) $ 11.08
- ----------------------------------------------------------------------------------------
Class B Shares
Net assets $ 28,117,965
Shares outstanding 2,646,552
Net asset value and offering price per share $ 10.62
- ----------------------------------------------------------------------------------------
Class C Shares
Net assets $ 17,723,498
Shares outstanding 1,670,555
Net asset value and offering price per share $ 10.61
- ----------------------------------------------------------------------------------------
Class R Shares
Net assets $251,757,035
Shares outstanding 23,682,058
Net asset value and offering price per share $ 10.63
- ----------------------------------------------------------------------------------------
Net Assets Consist of:
- ----------------------------------------------------------------------------------------
Capital paid-in $347,760,733
Undistributed (Over-distribution of) net investment income 25,800
Accumulated net realized gain (loss) from investments 4,888,276
Net unrealized appreciation of investments 18,995,221
- ----------------------------------------------------------------------------------------
Net assets $371,670,030
- ----------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
42
Statement of Operations (Unaudited)
Six Months Ended August 31, 2003
New York
Connecticut New Jersey New York Insured
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income $ 8,433,248 $ 4,373,679 $ 9,489,457 $ 9,860,141
- ---------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 840,020 467,871 906,115 1,032,736
12b-1 service fees - Class A 233,963 74,937 115,294 75,291
12b-1 distribution and service fees - Class B 154,659 130,006 198,295 136,286
12b-1 distribution and service fees - Class C 151,932 88,470 115,579 63,262
Shareholders' servicing agent fees and expenses 66,834 65,022 102,822 128,410
Custodian's fees and expenses 44,450 28,582 49,611 53,794
Trustees' fees and expenses 2,370 1,310 2,874 2,378
Professional fees 9,805 6,909 21,181 11,365
Shareholders' reports - printing and mailing expenses 18,232 13,138 25,691 24,664
Federal and state registration fees 2,773 1,765 2,521 2,672
Portfolio insurance expense -- -- -- 618
Other expenses 6,035 4,164 6,650 7,107
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,531,073 882,174 1,546,633 1,538,583
Custodian fee credit (6,650) (12,392) (8,113) (4,115)
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses 1,524,423 869,782 1,538,520 1,534,468
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income 6,908,825 3,503,897 7,950,937 8,325,673
- ---------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain from investments 731,044 272,513 1,141,276 2,200,626
Net change in unrealized appreciation (depreciation) of investments (10,101,474) (5,396,812) (10,797,050) (12,931,073)
- ---------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (9,370,430) (5,124,299) (9,655,774) (10,730,447)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ (2,461,605) $(1,620,402) $ (1,704,837) $ (2,404,774)
- ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
43
Statement of Changes in Net Assets (Unaudited)
Connecticut
------------------------------
Six Months Ended Year Ended
8/31/03 2/28/03
- ------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 6,908,825 $ 13,684,980
Net realized gain (loss) from investments 731,044 1,913,479
Net change in unrealized appreciation (depreciation) of investments (10,101,474) 5,451,651
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (2,461,605) 21,050,110
- ------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (5,377,408) (11,259,124)
Class B (622,987) (1,181,284)
Class C (811,347) (1,378,917)
Class R (94,515) (195,235)
From accumulated net realized gains from investments:
Class A -- (853,097)
Class B -- (113,978)
Class C -- (123,072)
Class R -- (14,929)
- ------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (6,906,257) (15,119,636)
- ------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 16,583,654 55,744,457
Net proceeds from shares issued to shareholders due
to reinvestment of distributions 3,022,827 6,728,802
- ------------------------------------------------------------------------------------------------------
19,606,481 62,473,259
Cost of shares redeemed (22,850,327) (30,886,208)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions (3,243,846) 31,587,051
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (12,611,708) 37,517,525
Net assets at the beginning of period 308,309,799 270,792,274
- ------------------------------------------------------------------------------------------------------
Net assets at the end of period $295,698,091 $308,309,799
- ------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the end
of period $ 71,607 $ 69,039
- ------------------------------------------------------------------------------------------------------
New Jersey
------------------------------
Six Months Ended Year Ended
8/31/03 2/28/03
- -----------------------------------------------------------------------------------------------------
Operations
Net investment income $ 3,503,897 $ 6,317,566
Net realized gain (loss) from investments 272,513 (31,860)
Net change in unrealized appreciation (depreciation) of investments (5,396,812) 3,048,625
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (1,620,402) 9,334,331
- -----------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (1,588,769) (2,858,325)
Class B (474,429) (913,210)
Class C (431,991) (667,685)
Class R (991,009) (2,007,749)
From accumulated net realized gains from investments:
Class A -- --
Class B -- --
Class C -- --
Class R -- --
- -----------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (3,486,198) (6,446,969)
- -----------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 17,493,632 38,363,391
Net proceeds from shares issued to shareholders due
to reinvestment of distributions 2,035,080 3,812,535
- -----------------------------------------------------------------------------------------------------
19,528,712 42,175,926
Cost of shares redeemed (15,109,868) (19,963,018)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions 4,418,844 22,212,908
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (687,756) 25,100,270
Net assets at the beginning of period 167,228,111 142,127,841
- -----------------------------------------------------------------------------------------------------
Net assets at the end of period $166,540,355 $167,228,111
- -----------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the end
of period $ (59,709) $ (77,408)
- -----------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
44
New York
------------------------------
Six Months Ended Year Ended
8/31/03 2/28/03
- ----------------------------------------------------------------------------------------------------
Operations
Net investment income $ 7,950,937 $ 15,505,106
Net realized gain (loss) from investments 1,141,276 (1,689,660)
Net change in unrealized appreciation (depreciation) of investments (10,797,050) 8,437,978
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (1,704,837) 22,253,424
- ----------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (2,763,541) (5,718,196)
Class B (852,309) (1,610,776)
Class C (659,479) (1,138,000)
Class R (3,723,156) (7,667,833)
From accumulated net realized gains from investments:
Class A -- (401,917)
Class B -- (135,649)
Class C -- (91,237)
Class R -- (508,041)
- ----------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (7,998,485) (17,271,649)
- ----------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 31,701,550 50,156,346
Net proceeds from shares issued to shareholders due
to reinvestment of distributions 4,589,067 10,250,119
- ----------------------------------------------------------------------------------------------------
36,290,617 60,406,465
Cost of shares redeemed (24,644,780) (45,842,477)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions 11,645,837 14,563,988
- ----------------------------------------------------------------------------------------------------
Net (decrease) increase in net assets 1,942,515 19,545,763
Net assets at the beginning of period 328,593,877 309,048,114
- ----------------------------------------------------------------------------------------------------
Net assets at the end of period $330,536,392 $328,593,877
- ----------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the
end of period $ (223,416) $ (175,868)
- ----------------------------------------------------------------------------------------------------
New York Insured
------------------------------
Six Months Ended Year Ended
8/31/03 2/28/03
- ---------------------------------------------------------------------------------------------------
Operations
Net investment income $ 8,325,673 $ 16,333,993
Net realized gain (loss) from investments 2,200,626 4,732,249
Net change in unrealized appreciation (depreciation) of investments (12,931,073) 8,867,380
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (2,404,774) 29,933,622
- ---------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (1,623,348) (3,040,942)
Class B (508,755) (915,032)
Class C (317,371) (485,115)
Class R (5,908,166) (12,035,109)
From accumulated net realized gains from investments:
Class A -- (416,024)
Class B -- (155,481)
Class C -- (81,635)
Class R -- (1,544,981)
- ---------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (8,357,640) (18,674,319)
- ---------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 19,075,594 34,875,349
Net proceeds from shares issued to shareholders due
to reinvestment of distributions 5,457,604 12,582,356
- ---------------------------------------------------------------------------------------------------
24,533,198 47,457,705
Cost of shares redeemed (21,840,395) (35,932,729)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions 2,692,803 11,524,976
- ---------------------------------------------------------------------------------------------------
Net (decrease) increase in net assets (8,069,611) 22,784,279
Net assets at the beginning of period 379,739,641 356,955,362
- ---------------------------------------------------------------------------------------------------
Net assets at the end of period $371,670,030 $379,739,641
- ---------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the
end of period $ 25,800 $ 57,767
- ---------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
45
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The Nuveen Multistate Trust II (the "Trust") is an open-end investment company
registered under the Investment Company Act of 1940, as amended. The Trust
comprises the Nuveen Connecticut Municipal Bond Fund ("Connecticut"), Nuveen
New Jersey Municipal Bond Fund ("New Jersey"), Nuveen New York Municipal Bond
Fund ("New York") and the Nuveen New York Insured Municipal Bond Fund ("New
York Insured") (collectively, the "Funds"), among others. The Trust was
organized as a Massachusetts business trust on July 1, 1996. The Funds were
organized as series of predecessor trusts or corporations prior to that date.
The Funds seek to provide high tax-free income and preservation of capital
through investments in diversified portfolios of quality municipal bonds.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Trustees of the Funds, or its
designee, may establish a fair value for the security. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject
to market fluctuation during this period. The Funds have instructed the
custodian to segregate assets with a current value at least equal to the amount
of the when-issued and delayed delivery purchase commitments. At August 31,
2003, there were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend. Generally,
payment is made or reinvestment is credited to shareholder accounts on the
first business day after month-end. Net realized capital gains and/or market
discount from investment transactions, if any, are distributed to shareholders
not less frequently than annually. Furthermore, capital gains are distributed
only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, 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 accounting principles
generally accepted in the United States.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which 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 the shareholders of the Funds.
- ----
46
Insurance
New York Insured invests in municipal securities which are either covered by
insurance or backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the
timely payment of principal and interest. Each insured municipal security is
covered by Original Issue Insurance, Secondary Market Insurance or Portfolio
Insurance. Such insurance does not guarantee the market value of the municipal
securities or the value of the Fund's shares. Original Issue Insurance and
Secondary Market Insurance remain in effect as long as the municipal securities
covered thereby remain outstanding and the insurer remains in business,
regardless of whether the Fund ultimately disposes of such municipal
securities. Consequently, the market value of the municipal securities covered
by Original Issue Insurance or Secondary Market Insurance may reflect value
attributable to the insurance. Portfolio Insurance is effective only while the
municipal securities are held by the Fund. Accordingly, neither the prices used
in determining the market value of the underlying municipal securities nor the
net asset value of the Fund's shares include value, if any, attributable to the
Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give
the Fund the right to obtain permanent insurance with respect to the municipal
security covered by the Portfolio Insurance policy at the time of its sale.
Flexible Sales Charge Program
Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a
sales charge and incur a .20% annual 12b-1 service fee. Class A Share purchases
of $1 million or more are sold at net asset value without an up-front sales
charge but may be subject to a contingent deferred sales charge ("CDSC") if
redeemed within 18 months of purchase. Class B Shares are sold without a sales
charge but incur a .75% annual 12b-1 distribution fee and a .20% annual 12b-1
service fee. An investor purchasing Class B Shares agrees to pay a CDSC of up
to 5% depending upon the length of time the shares are held by the investor
(CDSC is reduced to 0% at the end of six years). Class B Shares convert to
Class A Shares eight years after purchase. Class C Shares are sold without a
sales charge but incur a .55% annual 12b-1 distribution fee and a .20% annual
12b-1 service fee. An investor purchasing Class C Shares agrees to pay a CDSC
of 1% if Class C Shares are redeemed within one year of purchase. Class R
Shares are not subject to any sales charge or 12b-1 distribution or service
fees. Class R Shares are available only under limited circumstances.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics including inverse floating rate securities. During
the six months ended August 31, 2003, Connecticut, New Jersey, New York and New
York Insured invested in inverse floating rate securities for the purpose of
enhancing portfolio yield. Inverse floating rate securities are identified in
the Portfolio of Investments and are marked to market daily. The interest rate
of an inverse floating rate security has an inverse relationship to the
interest rate of a short-term floating rate security. Consequently, as the
interest rate of the floating rate security rises, the interest rate on the
inverse floating rate security declines. Conversely, as the interest rate of
the floating rate security declines, the interest rate on the inverse floating
rate security rises. The price of an inverse floating rate security will be
more volatile than that of an otherwise comparable fixed rate security since
the interest rate is dependent on an underlying fixed coupon rate or the
general level of long-term interest rates as well as the short-term interest
paid on the floating rate security, and because the inverse floating rate
security typically bears the risk of loss of a greater face value of an
underlying bond.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific class of
shares are prorated among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares, which presently
only include 12b-1 distribution and service fees, are recorded to the specific
class.
Custodian Fee Credit
Each Fund has an agreement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results may differ from those estimates.
- ----
47
Notes to Financial Statements (Unaudited) (continued)
2. Fund Shares
Transactions in Fund shares were as follows:
Connecticut New Jersey
-------------------------------------------------- --------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
8/31/03 2/28/03 8/31/03 2/28/03
------------------------ ------------------------ ------------------------ ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A 775,582 $ 8,388,774 2,952,046 $ 31,576,915 830,099 $ 8,933,254 1,849,867 $ 19,681,528
Class B 220,797 2,408,559 907,804 9,666,272 192,213 2,072,264 636,836 6,748,591
Class C 497,564 5,427,447 1,272,075 13,615,371 498,398 5,377,825 848,949 9,003,631
Class R 32,783 358,874 82,366 885,899 104,380 1,110,289 275,047 2,929,641
Shares issued to
shareholders due to
reinvestment of
distributions:
Class A 207,667 2,261,054 488,068 5,217,472 84,754 912,246 158,371 1,681,767
Class B 24,267 263,823 52,430 559,577 17,189 184,822 32,365 343,496
Class C 39,305 427,429 74,396 794,535 19,854 212,926 32,373 342,763
Class R 6,453 70,521 14,663 157,218 67,317 725,086 135,990 1,444,509
- -------------------------------------------------------------------------------------------------------------------------------
1,804,418 19,606,481 5,843,848 62,473,259 1,814,204 19,528,712 3,969,798 42,175,926
- -------------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (1,465,864) (15,848,062) (2,267,039) (24,217,100) (891,391) (9,590,385) (884,012) (9,393,409)
Class B (249,804) (2,698,408) (205,136) (2,185,919) (181,302) (1,941,612) (386,083) (4,083,836)
Class C (371,201) (3,988,162) (345,057) (3,676,038) (180,809) (1,912,227) (271,890) (2,887,121)
Class R (29,053) (315,695) (75,396) (807,151) (156,234) (1,665,644) (339,391) (3,598,652)
- -------------------------------------------------------------------------------------------------------------------------------
(2,115,922) (22,850,327) (2,892,628) (30,886,208) (1,409,736) (15,109,868) (1,881,376) (19,963,018)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (311,504) $ (3,243,846) 2,951,220 $ 31,587,051 404,468 $ 4,418,844 2,088,422 $ 22,212,908
- -------------------------------------------------------------------------------------------------------------------------------
New York New York Insured
-------------------------------------------------- --------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
8/31/03 2/28/03 8/31/03 2/28/03
------------------------ ------------------------ ------------------------ ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A 1,277,271 $ 13,836,153 2,639,623 $ 28,306,594 825,604 $ 9,008,357 1,588,387 $ 16,906,525
Class B 370,926 4,035,348 1,016,439 10,925,054 271,336 2,984,324 667,505 7,175,849
Class C 669,918 7,300,686 696,437 7,518,894 468,814 5,138,746 478,649 5,093,305
Class R 588,374 6,529,363 317,357 3,405,804 178,121 1,944,167 532,426 5,699,670
Shares issued to
shareholders due to
reinvestment of
distributions:
Class A 124,266 1,349,844 289,679 3,106,566 83,346 910,064 193,842 2,065,294
Class B 32,010 348,068 68,924 739,876 20,643 225,561 48,200 514,091
Class C 24,004 261,382 51,289 551,136 14,253 155,490 26,893 286,842
Class R 241,424 2,629,773 544,327 5,852,541 380,901 4,166,489 910,490 9,716,129
- ----------------------------------------------------------------------------------------------------------------------------
3,328,193 36,290,617 5,624,075 60,406,465 2,243,018 24,533,198 4,446,392 47,457,705
- ----------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (1,163,124) (12,531,696) (2,389,957) (25,672,049) (700,209) (7,633,879) (962,728) (10,258,244)
Class B (342,246) (3,725,887) (519,698) (5,590,493) (187,391) (2,031,637) (382,396) (4,052,225)
Class C (216,413) (2,372,142) (490,159) (5,265,519) (135,813) (1,480,839) (119,627) (1,267,526)
Class R (553,932) (6,015,055) (866,009) (9,314,416) (978,737) (10,694,040) (1,912,727) (20,354,734)
- ----------------------------------------------------------------------------------------------------------------------------
(2,275,715) (24,644,780) (4,265,823) (45,842,477) (2,002,150) (21,840,395) (3,377,478) (35,932,729)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase 1,052,478 $ 11,645,837 1,358,252 $ 14,563,988 240,868 $ 2,692,803 1,068,914 $ 11,524,976
- ----------------------------------------------------------------------------------------------------------------------------
- ----
48
3. Securities Transactions
Purchases and sales (including maturities) of investments in long-term
municipal securities for the six months ended August 31, 2003, were as follows:
New York
Connecticut New Jersey New York Insured
--------------------------------------------------------------------
Purchases $13,135,275 $27,976,404 $26,741,765 $26,419,113
Sales and maturities 16,587,165 18,151,884 17,075,741 32,906,487
--------------------------------------------------------------------
4. 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 income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At August 31, 2003, the cost of investments were as follows:
New York
Connecticut New Jersey New York Insured
-----------------------------------------------------------------------
Cost of investments $281,304,647 $161,318,298 $311,791,087 $348,289,605
-----------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2003, were as follows:
New York
Connecticut New Jersey New York Insured
- ----------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,506,046 $ 6,300,565 $17,184,069 $20,609,517
Depreciation (3,359,000) (2,562,186) (3,515,082) (1,500,347)
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $ 9,147,046 $ 3,738,379 $13,668,987 $19,109,170
- ----------------------------------------------------------------------------------------------
The tax components of undistributed net investment income and net realized
gains at February 28, 2003, the Fund's last fiscal year end, were as follows:
New York
Connecticut New Jersey New York Insured
- ------------------------------------------------------------------------------------
Undistributed net tax-exempt income $1,055,751 $456,283 $734,290 $1,199,031
Undistributed net ordinary income* 9,159 -- 83,227 519,891
Undistributed net long-term capital gains 432,596 -- -- 2,209,016
- ------------------------------------------------------------------------------------
* 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 fiscal year ended February
28, 2003, was designated for purposes of the dividends paid deduction as
follows:
New York
2003 Connecticut New Jersey New York Insured
- ---------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $13,879,850 $6,384,916 $16,005,842 $16,430,800
Distributions from net ordinary income* 64,311 -- 68,648 99,678
Distributions from net long-term capital gains 1,105,077 -- 1,136,843 2,131,798
- ---------------------------------------------------------------------------------------------
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
- ----
49
Notes to Financial Statements (Unaudited) (continued)
At February 28, 2003, the Funds' last fiscal year end, New Jersey 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:
---------------------------
Expiration year:
2004 $ 116,050
2005 --
2006 238,550
2007 --
2008 132,876
2009 1,212,021
---------------------------
Total $1,699,497
---------------------------
At February 28, 2003, the Funds' last fiscal year end, the following Funds
elected to defer net realized losses from investments incurred from November 1,
2002 through February 28, 2003 ("post-October losses") in accordance with
Federal income tax regulations. The following post-October losses are treated
as having arisen on the first day of the current fiscal year:
New Jersey New York
-----------------------
$79,746 $3,730,598
-----------------------
5. Management Fee and Other Transactions with Affiliates
Under the Trust's investment management agreement with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., each
Fund pays an annual management fee, payable monthly, at the rates set forth
below which are based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Management Fee
----------------------------------------------
For the first $125 million .5500%
For the next $125 million .5375
For the next $250 million .5250
For the next $500 million .5125
For the next $1 billion .5000
For the next $3 billion .4750
For net assets over $5 billion .4500
----------------------------------------------
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Trust pays 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 Trust from the Adviser or its affiliates.
The Adviser has agreed to waive part of its management fees or reimburse
certain expenses of New York and New York Insured in order to limit total
expenses (excluding 12b-1 distribution and service fees and extraordinary
expenses) from exceeding .75% of the average daily net assets of New York and
..975% of the average daily net assets of New York Insured. The Adviser may also
voluntarily agree to reimburse additional expenses from time to time in any of
the Funds. Voluntary reimbursements may be terminated at any time at the
Adviser's discretion.
During the six months ended August 31, 2003, Nuveen Investments, LLC (the
"Distributor"), a wholly owned subsidiary of Nuveen Investments, Inc.,
collected sales charges on purchases of Class A Shares, the majority of which
were paid out as concessions to authorized dealers as follows:
New York
Connecticut New Jersey New York Insured
-------------------------------------------------------------------
Sales charges collected $178,634 $93,589 $132,998 $122,455
Paid to authorized dealers 157,187 93,589 115,313 110,740
-------------------------------------------------------------------
The Distributor also received 12b-1 service fees on Class A Shares,
substantially all of which were paid to compensate authorized dealers for
providing services to shareholders relating to their investments.
During the six months ended August 31, 2003, the Distributor compensated
authorized dealers directly with commission advances at the time of purchase as
follows:
New York
Connecticut New Jersey New York Insured
------------------------------------------------------------
Commission advances $161,753 $174,225 $223,345 $179,607
------------------------------------------------------------
- ----
50
To compensate for commissions advanced to authorized dealers, all 12b-1 service
fees collected on Class B Shares during the first year following a purchase,
all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service
and distribution fees collected on Class C Shares during the first year
following a purchase are retained by the Distributor. During the six months
ended August 31, 2003, the Distributor retained such 12b-1 fees as follows:
New York
Connecticut New Jersey New York Insured
------------------------------------------------------------
12b-1 fees retained $182,348 $150,781 $203,191 $137,099
------------------------------------------------------------
The remaining 12b-1 fees charged to the Funds were paid to compensate
authorized dealers for providing services to shareholders relating to their
investments.
The Distributor also collected and retained CDSC on share redemptions during
the six months ended August 31, 2003, as follows:
New York
Connecticut New Jersey New York Insured
------------------------------------------------------
CDSC retained $87,121 $70,572 $89,727 $30,750
------------------------------------------------------
6. Subsequent Event - Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on October 1, 2003, to shareholders of record on
September 9, 2003, as follows:
New York
Connecticut New Jersey New York Insured
------------------------------------------------------------
Dividend per share:
Class A $.0415 $.0380 $.0430 $.0395
Class B .0345 .0310 .0365 .0325
Class C .0365 .0330 .0385 .0345
Class R .0430 .0395 .0450 .0410
------------------------------------------------------------
- ----
51
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- -----------------------
CONNECTICUT
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended February 28/29, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- --------------------------------------------------------------------------------------------------------------------------------
Class A (7/87)
2004(e) $10.88 $.25 $(.33) $(.08) $(.25) $ -- $(.25) $10.55 (.76)%
2003 10.67 .52 .26 .78 (.53) (.04) (.57) 10.88 7.51
2002 10.51 .53 .16 .69 (.53) -- (.53) 10.67 6.66
2001 9.96 .53 .55 1.08 (.53) -- (.53) 10.51 11.14
2000 10.90 .53 (.94) (.41) (.53) -- (.53) 9.96 (3.84)
1999 10.85 .53 .06 .59 (.54) -- (.54) 10.90 5.51
Class B (2/97)
2004(e) 10.87 .21 (.33) (.12) (.21) -- (.21) 10.54 (1.15)
2003 10.65 .43 .27 .70 (.44) (.04) (.48) 10.87 6.78
2002 10.49 .45 .15 .60 (.44) -- (.44) 10.65 5.84
2001 9.94 .45 .55 1.00 (.45) -- (.45) 10.49 10.31
2000 10.88 .45 (.94) (.49) (.45) -- (.45) 9.94 (4.57)
1999 10.83 .46 .05 .51 (.46) -- (.46) 10.88 4.77
Class C (10/93)
2004(e) 10.87 .22 (.33) (.11) (.22) -- (.22) 10.54 (1.05)
2003 10.66 .46 .26 .72 (.47) (.04) (.51) 10.87 6.92
2002 10.50 .47 .16 .63 (.47) -- (.47) 10.66 6.07
2001 9.95 .47 .55 1.02 (.47) -- (.47) 10.50 10.50
2000 10.88 .47 (.93) (.46) (.47) -- (.47) 9.95 (4.31)
1999 10.83 .48 .05 .53 (.48) -- (.48) 10.88 4.94
Class R (2/97)
2004(e) 10.92 .26 (.33) (.07) (.26) -- (.26) 10.59 (.68)
2003 10.70 .54 .27 .81 (.55) (.04) (.59) 10.92 7.76
2002 10.54 .56 .14 .70 (.54) -- (.54) 10.70 6.82
2001 9.99 .55 .55 1.10 (.55) -- (.55) 10.54 11.30
2000 10.93 .55 (.94) (.39) (.55) -- (.55) 9.99 (3.63)
1999 10.87 .56 .06 .62 (.56) -- (.56) 10.93 5.83
- --------------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
---------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
CONNECTICUT ------------------ ------------------ ------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
- -------------------------------------------------------------------------------------------------------------------------------
Class A (7/87)
2004(e) $221,955 .83%* 4.57%* .83%* 4.57%* .83%* 4.58%* 4%
2003 234,133 .85 4.82 .85 4.82 .84 4.82 19
2002 217,024 .85 5.01 .85 5.01 .84 5.02 20
2001 204,442 .87 5.20 .87 5.20 .86 5.21 7
2000 196,416 .88 5.09 .88 5.09 .87 5.10 22
1999 220,721 .90 4.88 .86 4.92 .86 4.92 7
Class B (2/97)
2004(e) 30,971 1.58* 3.83* 1.58* 3.83* 1.58* 3.83* 4
2003 31,987 1.60 4.06 1.60 4.06 1.59 4.07 19
2002 23,310 1.60 4.26 1.60 4.26 1.59 4.27 20
2001 19,794 1.62 4.45 1.62 4.45 1.61 4.46 7
2000 15,931 1.63 4.37 1.63 4.37 1.63 4.38 22
1999 11,223 1.64 4.14 1.62 4.16 1.61 4.17 7
Class C (10/93)
2004(e) 38,904 1.38* 4.02* 1.38* 4.02* 1.38* 4.03* 4
2003 38,312 1.40 4.26 1.40 4.26 1.39 4.27 19
2002 26,890 1.40 4.47 1.40 4.47 1.39 4.48 20
2001 18,460 1.42 4.65 1.42 4.65 1.41 4.66 7
2000 16,181 1.43 4.54 1.43 4.54 1.42 4.55 22
1999 16,198 1.45 4.33 1.41 4.37 1.41 4.37 7
Class R (2/97)
2004(e) 3,869 .64* 4.77* .64* 4.77* .63* 4.78* 4
2003 3,878 .65 5.01 .65 5.01 .64 5.02 19
2002 3,568 .65 5.23 .65 5.23 .64 5.24 20
2001 1,992 .67 5.40 .67 5.40 .66 5.41 7
2000 1,337 .68 5.31 .68 5.31 .67 5.32 22
1999 979 .69 5.09 .66 5.12 .66 5.13 7
- -------------------------------------------------------------------------------------------------------------------------------
* Annualized.
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(c) After expense reimbursement from the Adviser, where applicable.
(d) After custodian fee credit and expense reimbursement, where applicable.
(e) For the six months ended August 31, 2003.
See accompanying notes to financial statements.
- ----
52
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------
NEW JERSEY
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended February 28/29, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- -----------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $10.79 $.23 $(.32) $(.09) $(.23) $-- $(.23) $10.47 (.88)%
2003 10.60 .46 .20 .66 (.47) -- (.47) 10.79 6.36
2002 10.45 .47 .15 .62 (.47) -- (.47) 10.60 6.04
2001 9.73 .48 .72 1.20 (.48) -- (.48) 10.45 12.59
2000 10.60 .49 (.87) (.38) (.49) -- (.49) 9.73 (3.67)
1999 10.61 .53 (.01) .52 (.53) -- (.53) 10.60 5.00
Class B (2/97)
2004(e) 10.78 .19 (.31) (.12) (.19) -- (.19) 10.47 (1.17)
2003 10.59 .38 .20 .58 (.39) -- (.39) 10.78 5.58
2002 10.44 .39 .15 .54 (.39) -- (.39) 10.59 5.26
2001 9.72 .40 .72 1.12 (.40) -- (.40) 10.44 11.74
2000 10.60 .41 (.88) (.47) (.41) -- (.41) 9.72 (4.51)
1999 10.61 .45 (.01) .44 (.45) -- (.45) 10.60 4.23
Class C (9/94)
2004(e) 10.76 .20 (.32) (.12) (.20) -- (.20) 10.44 (1.16)
2003 10.56 .40 .21 .61 (.41) -- (.41) 10.76 5.88
2002 10.41 .41 .15 .56 (.41) -- (.41) 10.56 5.46
2001 9.70 .42 .71 1.13 (.42) -- (.42) 10.41 11.92
2000 10.58 .43 (.88) (.45) (.43) -- (.43) 9.70 (4.29)
1999 10.59 .47 (.01) .46 (.47) -- (.47) 10.58 4.48
Class R (2/92)
2004(e) 10.80 .24 (.32) (.08) (.24) -- (.24) 10.48 (.80)
2003 10.60 .48 .21 .69 (.49) -- (.49) 10.80 6.63
2002 10.45 .49 .15 .64 (.49) -- (.49) 10.60 6.22
2001 9.73 .50 .72 1.22 (.50) -- (.50) 10.45 12.79
2000 10.60 .51 (.87) (.36) (.51) -- (.51) 9.73 (3.47)
1999 10.62 .55 (.02) .53 (.55) -- (.55) 10.60 5.13
- -----------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
NEW JERSEY ------------------ ------------------ ------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
- ----------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $72,133 .89%* 4.21%* .89%* 4.21%* .87%* 4.22%* 11%
2003 74,067 .91 4.29 .91 4.29 .90 4.30 6
2002 60,835 .90 4.45 .90 4.45 .89 4.46 7
2001 52,277 1.00 4.73 1.00 4.73 .98 4.74 12
2000 46,235 .99 4.74 .93 4.80 .91 4.82 26
1999 53,442 1.02 4.62 .66 4.98 .66 4.98 10
Class B (2/97)
2004(e) 26,429 1.63* 3.46* 1.63* 3.46* 1.62* 3.48* 11
2003 26,926 1.66 3.54 1.66 3.54 1.65 3.55 6
2002 23,451 1.65 3.70 1.65 3.70 1.64 3.71 7
2001 15,979 1.75 3.98 1.75 3.98 1.73 3.99 12
2000 13,681 1.74 4.01 1.69 4.06 1.67 4.08 26
1999 11,368 1.76 3.88 1.39 4.25 1.39 4.25 10
Class C (9/94)
2004(e) 24,091 1.43* 3.66* 1.43* 3.66* 1.42* 3.68* 11
2003 21,192 1.46 3.74 1.46 3.74 1.45 3.75 6
2002 14,376 1.45 3.89 1.45 3.89 1.44 3.90 7
2001 12,757 1.55 4.17 1.55 4.17 1.53 4.19 12
2000 10,007 1.54 4.20 1.48 4.26 1.47 4.27 26
1999 10,290 1.57 4.07 1.21 4.43 1.21 4.43 10
Class R (2/92)
2004(e) 43,888 .69* 4.41* .69* 4.41* .67* 4.42* 11
2003 45,043 .71 4.49 .71 4.49 .70 4.50 6
2002 43,465 .70 4.64 .70 4.64 .69 4.65 7
2001 41,916 .80 4.93 .80 4.93 .78 4.94 12
2000 40,058 .79 4.94 .73 5.00 .71 5.02 26
1999 46,033 .82 4.82 .47 5.17 .47 5.17 10
- ----------------------------------------------------------------------------------------------------------------------------
* Annualized.
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(c) After expense reimbursement from the Adviser, where applicable.
(d) After custodian fee credit and expense reimbursement, where applicable.
(e) For the six months ended August 31, 2003.
See accompanying notes to financial statements.
- ----
53
Financial Highlights (Unaudited) (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- -----------------------
NEW YORK
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended February 28/29, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- ----------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $10.88 $.26 $(.30) $(.04) $(.26) $ -- $(.26) $10.58 (.47)%
2003 10.72 .52 .22 .74 (.54) (.04) (.58) 10.88 7.11
2002 10.66 .58 .04 .62 (.56) -- (.56) 10.72 5.94
2001 10.17 .57 .52 1.09 (.60) -- (.60) 10.66 10.97
2000 11.03 .58 (.85) (.27) (.57) (.02) (.59) 10.17 (2.44)
1999 10.97 .55 .06 .61 (.55) -- (.55) 11.03 5.69
Class B (2/97)
2004(e) 10.90 .22 (.31) (.09) (.22) -- (.22) 10.59 (.92)
2003 10.73 .44 .23 .67 (.46) (.04) (.50) 10.90 6.43
2002 10.68 .50 .03 .53 (.48) -- (.48) 10.73 5.07
2001 10.18 .49 .53 1.02 (.52) -- (.52) 10.68 10.24
2000 11.04 .51 (.86) (.35) (.49) (.02) (.51) 10.18 (3.18)
1999 10.98 .47 .06 .53 (.47) -- (.47) 11.04 4.88
Class C (9/94)
2004(e) 10.91 .23 (.30) (.07) (.24) -- (.24) 10.60 (.81)
2003 10.75 .46 .23 .69 (.49) (.04) (.53) 10.91 6.56
2002 10.70 .52 .03 .55 (.50) -- (.50) 10.75 5.29
2001 10.20 .51 .53 1.04 (.54) -- (.54) 10.70 10.47
2000 11.06 .52 (.85) (.33) (.51) (.02) (.53) 10.20 (2.97)
1999 11.01 .49 .05 .54 (.49) -- (.49) 11.06 5.00
Class R (12/86)
2004(e) 10.91 .27 (.30) (.03) (.27) -- (.27) 10.61 (.45)
2003 10.75 .55 .22 .77 (.57) (.04) (.61) 10.91 7.33
2002 10.69 .60 .04 .64 (.58) -- (.58) 10.75 6.16
2001 10.20 .59 .52 1.11 (.62) -- (.62) 10.69 11.19
2000 11.06 .60 (.84) (.24) (.60) (.02) (.62) 10.20 (2.21)
1999 11.00 .58 .05 .63 (.57) -- (.57) 11.06 5.88
- ----------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
---------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
NEW YORK ------------------ ------------------ ------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
- ---------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $112,560 .86%* 4.77%* .86%* 4.77%* .86%* 4.77%* 5%
2003 113,197 .88 4.87 .88 4.87 .87 4.87 23
2002 105,700 .89 5.16 .66 5.39 .65 5.39 11
2001 102,144 .91 5.26 .70 5.47 .69 5.48 28
2000 81,857 .89 5.21 .61 5.49 .60 5.50 19
1999 80,549 .94 4.88 .79 5.03 .79 5.03 28
Class B (2/97)
2004(e) 40,443 1.61* 4.02* 1.61* 4.02* 1.61* 4.02* 5
2003 40,951 1.63 4.11 1.63 4.11 1.62 4.12 23
2002 34,262 1.64 4.41 1.41 4.64 1.41 4.65 11
2001 25,992 1.66 4.51 1.45 4.72 1.44 4.73 28
2000 19,803 1.64 4.50 1.33 4.81 1.32 4.82 19
1999 12,121 1.68 4.16 1.57 4.27 1.57 4.27 28
Class C (9/94)
2004(e) 31,972 1.41* 4.22* 1.41* 4.22* 1.41* 4.22* 5
2003 27,687 1.43 4.31 1.43 4.31 1.42 4.32 23
2002 24,505 1.44 4.61 1.21 4.84 1.21 4.85 11
2001 17,757 1.46 4.72 1.26 4.92 1.25 4.92 28
2000 10,374 1.44 4.67 1.16 4.96 1.15 4.96 19
1999 8,858 1.49 4.34 1.35 4.47 1.35 4.47 28
Class R (12/86)
2004(e) 145,562 .66* 4.97* .66* 4.97* .66* 4.97* 5
2003 146,759 .68 5.07 .68 5.07 .67 5.07 23
2002 144,581 .69 5.36 .46 5.59 .46 5.59 11
2001 144,950 .71 5.46 .49 5.67 .49 5.68 28
2000 138,303 .69 5.40 .42 5.67 .41 5.68 19
1999 157,209 .74 5.08 .59 5.23 .59 5.23 28
- ---------------------------------------------------------------------------------------------------------------------------
* Annualized.
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(c) After expense reimbursement from the Adviser, where applicable.
(d) After custodian fee credit and expense reimbursement, where applicable.
(e) For the six months ended August 31, 2003.
See accompanying notes to financial statements.
- ----
54
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------- --------
NEW YORK INSURED
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending Ending
Net Invest- ment Invest- Net Net
Asset ment Gain ment Capital Asset Total Assets
Year Ended February 28/29, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000)
- ---------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $10.92 $.23 $(.30) $ .07 $(.24) $ -- $(.24) $10.61 (.70)% $ 74,072
2003 10.59 .47 .40 .87 (.48) (.06) (.54) 10.92 8.46 73,936
2002 10.50 .49 .10 .59 (.50) -- (.50) 10.59 5.75 63,043
2001 9.95 .51 .55 1.06 (.51) -- (.51) 10.50 10.97 56,936
2000 10.73 .52 (.79) (.27) (.51) -- (.51) 9.95 (2.50) 54,364
1999 10.76 .51 .01 .52 (.52) (.03) (.55) 10.73 4.91 52,448
Class B (2/97)
2004(e) 10.93 .19 (.30) (.11) (.20) -- (.20) 10.62 (1.08) 28,118
2003 10.60 .39 .40 .79 (.40) (.06) (.46) 10.93 7.64 27,786
2002 10.51 .41 .10 .51 (.42) -- (.42) 10.60 4.97 23,418
2001 9.96 .43 .56 .99 (.44) -- (.44) 10.51 10.12 16,965
2000 10.74 .44 (.79) (.35) (.43) -- (.43) 9.96 (3.26) 15,893
1999 10.76 .44 -- .44 (.43) (.03) (.46) 10.74 4.19 13,374
Class C (9/94)
2004(e) 10.92 .20 (.30) (.10) (.21) -- (.21) 10.61 (.97) 17,723
2003 10.59 .41 .40 .81 (.42) (.06) (.48) 10.92 7.85 14,446
2002 10.49 .43 .11 .54 (.44) -- (.44) 10.59 5.26 9,926
2001 9.94 .45 .55 1.00 (.45) -- (.45) 10.49 10.33 5,131
2000 10.73 .46 (.80) (.34) (.45) -- (.45) 9.94 (3.17) 4,627
1999 10.74 .46 .02 .48 (.46) (.03) (.49) 10.73 4.53 4,103
Class R (12/86)
2004(e) 10.94 .25 (.31) (.06) (.25) -- (.25) 10.63 (.62) 251,757
2003 10.60 .49 .41 .90 (.50) (.06) (.56) 10.94 8.72 263,572
2002 10.50 .51 .11 .62 (.52) -- (.52) 10.60 6.03 260,568
2001 9.95 .53 .55 1.08 (.53) -- (.53) 10.50 11.16 259,651
2000 10.74 .54 (.80) (.26) (.53) -- (.53) 9.95 (2.43) 260,469
1999 10.76 .53 .02 .55 (.54) (.03) (.57) 10.74 5.18 301,805
- ---------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
----------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
NEW YORK INSURED ------------------- ------------------- -------------------
Ratio of Ratio of Ratio of
Net Net Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
to to to to to to
Average Average Average Average Average Average Portfolio
Net Net Net Net Net Net Turnover
Year Ended February 28/29, Assets Assets Assets Assets Assets Assets Rate
- -----------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) .85%* 4.26%* .85%* 4.26%* .85%* 4.26%* 7%
2003 .88 4.40 .88 4.40 .87 4.40 21
2002 .89 4.67 .89 4.67 .88 4.68 17
2001 .91 4.98 .91 4.98 .90 4.99 15
2000 .90 5.02 .90 5.02 .90 5.02 16
1999 .92 4.78 .92 4.78 .92 4.78 16
Class B (2/97)
2004(e) 1.60* 3.51* 1.60* 3.51* 1.60* 3.52* 7
2003 1.63 3.65 1.63 3.65 1.62 3.66 21
2002 1.64 3.92 1.64 3.92 1.63 3.93 17
2001 1.66 4.23 1.66 4.23 1.65 4.24 15
2000 1.65 4.28 1.65 4.28 1.65 4.28 16
1999 1.67 4.04 1.67 4.04 1.67 4.04 16
Class C (9/94)
2004(e) 1.40* 3.71* 1.40* 3.71* 1.40* 3.71* 7
2003 1.43 3.84 1.43 3.84 1.42 3.85 21
2002 1.44 4.12 1.44 4.12 1.43 4.13 17
2001 1.46 4.43 1.46 4.43 1.45 4.44 15
2000 1.45 4.48 1.45 4.48 1.45 4.48 16
1999 1.47 4.25 1.47 4.25 1.47 4.25 16
Class R (12/86)
2004(e) .66* 4.46* .66* 4.46* .65* 4.46* 7
2003 .68 4.60 .68 4.60 .67 4.61 21
2002 .69 4.87 .69 4.87 .68 4.88 17
2001 .71 5.18 .71 5.18 .70 5.19 15
2000 .70 5.21 .70 5.21 .70 5.21 16
1999 .72 4.97 .72 4.97 .72 4.98 16
- -----------------------------------------------------------------------------------------------------------
* Annualized.
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(c) After expense reimbursement from the Adviser, where applicable.
(d) After custodian fee credit and expense reimbursement, where applicable.
(e) For the six months ended August 31, 2003.
See accompanying notes to financial statements.
- ----
55
Notes
- ----
56
- --------------------------------------------------------------------------------
Fund Information
================================================================================
Fund Manager Legal Counsel Transfer Agent and
Nuveen Advisory Corp. Chapman and Cutler LLP Shareholder Services
333 West Wacker Drive Chicago, IL Boston Financial
Chicago, IL 60606 Data Services, Inc.
Independent Auditors Nuveen Investor Services
PricewaterhouseCoopers LLP P.O. Box 8530
Chicago, IL Boston, MA 02266-8530
(800) 257-8787
Custodian
State Street Bank & Trust
Boston, MA
================================================================================
Glossary of Terms Used in this Report
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 (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Duration: Duration is a measure of a bond or bond fund's sensitivity to changes
in interest rates. Generally, the longer a bond or fund's duration, the more
the price of the bond or fund will change as interest rates change.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current offering price.
Net Asset Value (NAV): A fund's NAV is the dollar value of one share in the
fund. It is calculated by subtracting the liabilities of the fund from its
total assets and then dividing the remainder by the number of shares
outstanding. Fund NAVs are calculated at the end of each business day.
SEC Yield: A standardized measure of a fund's yield that accounts for the
future amortization of premiums or discounts of bonds held in the fund's
portfolio.
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.
================================================================================
NASD Regulation, Inc. provides a Public Disclosure Program which supplies
certain information regarding the disciplinary history of NASD members and
their associated persons in response to either telephone inquiries at (800)
289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also
provides an investor brochure that includes information describing the Public
Disclosure Program.
- ----
57
- --------------------------------------------------------------------------------
Serving
Investors
for Generations
- --------------------------------------------------------------------------------
Since 1898, financial advisors and their
clients have relied on Nuveen Investments to
provide dependable investment solutions. For
the past century, Nuveen Investments has
adhered to the belief that the best approach
to investing is to apply conservative
risk-management principles to help minimize
volatility.
Building on this tradition, we today offer a
range of high quality equity and fixed income
solutions that are integral to a
well-diversified core portfolio. Our clients
have come to appreciate this diversity, as
well as our continued adherence to proven,
long-term investing principles.
Managing $90 billion in assets, Nuveen
Investments offers access to a number of
different asset classes and investing
solutions through a variety of products.
Nuveen Investments markets its capabilities
under four distinct brands: Nuveen, a leader
in tax-free investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader
in growth-style equities; and Symphony, a
leading institutional manager of
market-neutral alternative investment
portfolios.
To learn more about the products and services
Nuveen Investments offers and for a
prospectus, where applicable, talk to your
financial advisor, or call us at (800)
257-8787. Please read the information
carefully before you invest.
Distributed by
Nuveen Investments, LLC 333 West Wacker Drive Chicago, Illinois 60606 www.nuveen.com
MSA-MS3-0803D
- --------------------------------------------------------------------------------
Nuveen Investments
Municipal Bond Funds
- --------------------------------------------------------------------------------
Semiannual Report dated August
31, 2003
-----------------------------------
Dependable, tax-free income because it's not what you earn, it's what you
keep.(R)
[GRAPHIC]
Nuveen Massachusetts Municipal Bond Fund
Nuveen Massachusetts Insured Municipal Bond Fund
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COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
follow the steps
outlined below:
1 Go to
www.investordelivery.com
2 Refer to the address sheet that accompanied this report. Enter the personal
13-character Enrollment Number
imprinted near your name.
3 You'll be taken to a page with
several options. Select the New Enrollment-Create screen. Once there, enter
your e-mail address
(e.g. yourID@providerID.com),
and a personal, 4-digit PIN number of your choice. (Pick a
number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then click
Submit again.
5 You should get a confirmation e-mail within 24 hours. If you do not, go back
through these steps to make sure all the information is correct.
6 Use this same process if you need to change your registration information
or cancel internet viewing.
If your Nuveen Investments Fund dividends and statements
COME DIRECTLY TO
YOU FROM NUVEEN INVESTMENTS,
follow the steps
outlined below:
1 Go to
www.nuveen.com
2 Select Access Your Account.
Select the E-Report
Enrollment section.
Click on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address.
Fill in this information,
then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go back
through these steps to make sure all the information is correct.
5 Use this same process if
you need to change your registration information or cancel internet viewing.
------------------------------
Must be preceded by or accompanied by a prospectus.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Dear Shareholder,
Once again, I am pleased to report that over the most recent reporting period
your Fund continued to provide you with attractive tax-free monthly income. For
more specific information about the performance of your Fund, please see the
Portfolio Manager's Comments and Fund Spotlight sections of this report.
With interest rates at historically low levels, many have begun to wonder
whether interest rates will rise, and whether that possibility should cause
them to adjust their holdings of fixed-income investments. No one knows what
the future will bring, which is why we think a well-balanced portfolio that is
structured and carefully monitored with the help of an investment professional
is an important component in achieving your long-term financial goals. A
well-diversified portfolio may actually help to reduce your overall investment
risk, and we believe that municipal bond investments like your Nuveen
Investments Fund can be important building blocks in a portfolio crafted to
perform well through a variety of market conditions.
I'd also like to direct your attention to the inside front cover of this
report, which explains the quick and easy process to begin receiving Fund
reports like this via e-mail and the internet. Thousands of Nuveen Investments
Fund shareholders already have signed-up, and they are getting their Fund
information faster and more conveniently than ever. I urge you to consider
joining them.
Since 1898, Nuveen Investments has offered financial products and solutions
that incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen
us as a partner as you pursue your financial goals. We look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 15, 2003
[PHOTO]
Timothy R. Schwertfeger
"No one knows what
the future will bring,
which is why we think
a well-balanced portfolio...
is an important
component in achieving
your long-term
financial goals."
Semiannual Report l Page 1
Portfolio Managers' Comments
Nuveen Massachusetts Municipal Bond Fund
Nuveen Massachusetts Insured Municipal Bond Fund
Portfolio managers Paul Brennan and Tom O'Shaughnessy examine economic and
market conditions, key investment strategies, and the performance of the Funds.
Paul, who has 12 years of investment experience, assumed management
responsibility for the Nuveen Massachusetts Municipal Bond Fund earlier in
2003. Tom, with 20 years of investment experience, also began managing the
Nuveen Massachusetts Insured Municipal Bond Fund in 2003.
What was the general market environment during the six-month reporting period
ended August 31, 2003?
As has been the case for some time, we believe the two greatest influences on
the general economy and the municipal market continued to be historically low
interest rates and the slow pace of economic growth. In June 2003, the Federal
Reserve cut the fed funds rate to 1.0%, its lowest level since 1958. Growth
during the first half of 2003, as measured by the GDP, registered 2.3%, lagging
the 3% pace generally considered indicative of recovery. At the same time,
inflation remained dormant, with the 12-month advance in the core rate dropping
to 1.3% in August. Much of the concern about the economic recovery now centers
on the labor market.
The slow rate of economic recovery, low interest rates, and lack of
inflationary pressures created conditions that helped many municipal bonds
perform well during the early part of the year. However, during July 2003,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets.
During the first eight months of 2003, the municipal market followed up the
record issuance of 2002 with continued strong supply, issuing $254 billion in
new bonds, up 12.5% over the same period in 2002. However, the availability of
new bonds tightened somewhat during the month of August, with volume dropping
31% from August 2002 levels.
Massachusetts, like many other states, is grappling with budgetary stress
brought on by a drop in tax revenues, aggravated by cuts in the personal income
tax approved by voters in 2000. On a percentage basis, Massachusetts' fiscal
year 2002 revenue decline was among the worst in the nation. The Commonwealth
responded by cutting expenditures and drawing down on its substantial rainy day
fund. The Fiscal Year 2003 budget was enacted late and addressed a projected
$2.3 billion shortfall by freezing a scheduled tax cut, re-instating taxes on
capital gains, again drawing on the Commonwealth's rainy day reserves, and
further cutting expenses. Meanwhile, Massachusetts was the nation's eighth-most
active bond issuer during the first two-thirds of 2003, bringing $7.8 billion
in supply to market. It was an 18% decline over the first eight months of the
previous year.
How did the Funds perform during the 12 months ended August 31, 2003?
The chart on the next page provides performance information for both of the
Funds (Class A shares at net asset value) for the year ended August 31, 2003.
The chart also compares the Funds' performance to those of their peers as
measured by the Lipper Massachusetts Municipal Debt Funds category average
(Lipper category average) and to the overall municipal bond market as measured
by the Lehman Brothers Municipal Bond Index (Lehman Index).
The uninsured Fund outperformed the Lipper category average while the insured
Fund lagged behind. Both Funds trailed the Lehman Index.
The views expressed reflect those of the portfolio managers and are subject to
change at any time, based on market and other conditions.
Semiannual Report l Page 2
There were two primary reasons for the uninsured Fund's underperformance
relative to the Lehman Index. First, the Fund's total return reflected the
impact of management fees, while the Lehman Index is unmanaged. Second, the
Fund had a shorter duration than the Lehman index. During periods of declining
interest rates, such as that experienced during most of this 12-month period,
investments with longer durations generally would be expected to outperform
those with shorter durations, assuming no special circumstances. As of August
31, 2003, the Nuveen Massachusetts Municipal Bond Fund had a duration of 7.68
compared to 8.20 for the Lehman Index.
For the insured Fund, the management fees also impacted total return.
Additionally, while seeking to lengthen the Fund's duration during the period,
we encountered a period when interest rates were rising. In hindsight, this was
an imperfect time to extend the Fund's duration because higher rates depress
municipal bond prices. Although this move had negative short-term consequences
on portfolio performance, we believed this change would provide an appropriate
balance of future performance potential and stability.
What strategies were underlying your management of the Funds during the
reporting period?
We strive to identify and invest in attractively valued municipal bonds that,
in our opinion, have above-
Class A Shares--
One-Year Total Returns on NAV as of 8/31/03
- --------------------------------------------------------------------------------
Nuveen Massachusetts Municipal Bond Fund/1/ 2.69%
Lipper Massachusetts Municipal Debt Funds
category average/2/ 2.18%
Lehman Brothers Municipal Bond Index/3/ 3.13%
-------------------------------------------------
Nuveen Massachusetts Insured Municipal
Bond Fund/1/ 1.35%
Lipper Massachusetts Municipal Debt Funds
category average/2/ 2.18%
Lehman Brothers Municipal Bond Index/3/ 3.13%
- --------------------------------------------------------------------------------
average return potential. Conducting thorough research is a very important part
of our portfolio management process. In the end, we are searching for bonds we
believe to be priced below their intrinsic worth, to enable us to manage risk
while maximizing return potential for our shareholders.
Nuveen Massachusetts Municipal Bond Fund
We sought to increase the Fund's duration during the period, as we believed it
had become somewhat shorter than desired. Thus, we were active buyers and
sellers of bonds during the period. Much of our trading activity involved bond
swaps; we traded some of the Fund's existing holdings for longer-term bonds in
a variety of areas. For example, we identified a handful of new opportunities
in the higher-education sector. We also bought some new general obligation (GO)
debt issued by the Commonwealth of Massachusetts. Although we believed that a
slightly longer duration would benefit the Fund over the long run, it did have
a somewhat negative effect on recent performance when market interest rates
rose late in the reporting period.
Another management focus was to improve the Fund's credit quality. Breaking
with recent trends, high-quality municipal securities underperformed late in
the reporting period, as investors, increasingly confident about an improving
economy, looked instead to lower-grade bonds. We took advantage of this market
shift to sell some of our A-rated holdings and increase our weighting in
AA-rated bonds, which we believed offered better relative value. As evidence of
this shift, the Fund's exposure to AA-rated bonds rose to 18% from 12% during
the past six months.
By period's end, we were reasonably comfortable with the uninsured
Massachusetts Fund's duration and credit-quality allocation. If lower-grade
securities continue to perform well, we may look for
1Performance figures are for Class A shares at net asset value as of August 31,
2003. Current performance may be more or less than the performance shown.
2Lipper peer group returns represent the average annualized total return of the
52 funds in the Lipper Massachusetts Municipal Debt Funds category for the 12
months ended August 31, 2003. The returns account for the effects of
management fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges.
3The Lehman Brothers Municipal Bond Index is composed of a broad range of
investment-grade municipal bonds and does not reflect any initial or ongoing
expenses. An index is not available for direct investment.
Semiannual Report l Page 3
further opportunities to sell bonds rated BBB and A and replace them with
higher-quality investments.
Nuveen Massachusetts Insured Municipal Bond Fund
During the period we made relatively few trades. With interest rates near
historic lows, we believed that selling older securities offering higher yields
to buy newer securities offering lower yields would not generally be in our
shareholders' best interest.
One of the biggest challenges we faced in managing the insured Massachusetts
Fund, and that we face on a regular basis, is finding enough appropriate bonds
to invest in. Although Massachusetts issued nearly $8 billion in new debt, much
of it was concentrated in the general obligation (GO) sector. Taking advantage
of too much GO debt can make a portfolio excessively concentrated in that
single area. Accordingly, our investment approach for this Fund was to monitor
the Massachusetts market and take advantage of as many appropriate
opportunities as possible, seeking to develop a diversified portfolio of bonds.
We also looked to the Puerto Rico municipal market as needed. Bonds issued by
Puerto Rico and other U.S. territories are generally exempt from federal and
state income taxes. Going forward, we would like to lessen the Fund's
dependence on GO debt, representing 35% of the portfolio as of August 31, 2003.
Semiannual Report l Page 4
- --------------------------------------------------------------------------------
Fund Spotlight as of 8/31/03 Nuveen Massachusetts Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $9.69 $9.72 $9.63 $9.67
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0360 $0.0300 $0.0315 $0.0375
--------------------------------------------------------------
Commencement Date 9/07/94 3/07/97 10/06/94 12/22/86
--------------------------------------------------------------
Average Annual Total Returns as of 8/31/03/2/
A Shares NAV Offer
---------------------------------------------
1-Year 2.69% -1.60%
---------------------------------------------
5-Year 4.15 3.27
---------------------------------------------
10-Year 4.79 4.35
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.05% -1.88%
---------------------------------------------
5-Year 3.40 3.23
---------------------------------------------
10-Year 4.19 4.19
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 2.25%
---------------------------------------------
5-Year 3.60
---------------------------------------------
10-Year 4.14
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 2.98%
---------------------------------------------
5-Year 4.37
---------------------------------------------
10-Year 5.00
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Market Yield/3/ 4.46% 4.27%
---------------------------------------------
SEC 30-Day Yield 3.86 3.70
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.68 5.44
---------------------------------------------
B Shares NAV
---------------------------------------------
Market Yield/3/ 3.70%
---------------------------------------------
SEC 30-Day Yield 3.28
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.82
---------------------------------------------
C Shares NAV
---------------------------------------------
Market Yield/3/ 3.93%
---------------------------------------------
SEC 30-Day Yield 3.48
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.12
---------------------------------------------
R Shares NAV
---------------------------------------------
Market Yield/3/ 4.65%
---------------------------------------------
SEC 30-Day Yield 4.23
---------------------------------------------
Taxable-Equivalent Yield/4/ 6.22
---------------------------------------------
Average Annual Total Returns as of 9/30/03/2/
A Shares NAV Offer
---------------------------------------------
1-Year 3.12% -1.20%
---------------------------------------------
5-Year 4.57 3.67
---------------------------------------------
10-Year 4.96 4.51
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 2.37% -1.57%
---------------------------------------------
5-Year 3.79 3.62
---------------------------------------------
10-Year 4.35 4.35
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 2.58%
---------------------------------------------
5-Year 4.01
---------------------------------------------
10-Year 4.31
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 3.31%
---------------------------------------------
5-Year 4.79
---------------------------------------------
10-Year 5.17
---------------------------------------------
Bond Credit Quality/5/
[CHART]
AAA/U.S. Guaranteed 57%
AA 18
A 7
BBB 15
NR 3
Top Five Sectors/5/
Tax Obligation/General 20%
-------------------------------------------
Healthcare 16
-------------------------------------------
Education and Civic Organizations 12
-------------------------------------------
U.S. Guaranteed 12
-------------------------------------------
Long-Term Care 11
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $106,251
-------------------------------------------
Average Effective Maturity (Years) 18.90
-------------------------------------------
Duration 7.68
-------------------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. Income is generally exempt from
regular federal income taxes. Some income may be subject to state and local
taxes and to the federal alternative minimum tax. Capital gains, if any, are
subject to tax.
1Paid September 2, 2003. This is the latest monthly tax-exempt dividend
declared during the period ended August 31, 2003.
2Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a contingent
deferred sales charge (CDSC), also known as a back-end sales charge, that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class B shares automatically
convert to Class A shares eight years after purchase. Class C shares have a 1%
CDSC for redemptions within less than one year, which is not reflected in the
one-year total return.
3The Market Yield is an investment's current annualized dividend divided by its
current offering price while the SEC 30-Day Yield is a standardized measure of
a fund's yield that accounts for the future amortization of premiums or
discounts of bonds held in the fund's portfolio.
4The taxable equivalent yield represents the yield that must be earned on a
taxable alternative investment, other than an alternative investment that
generates qualified dividend income that is taxable at the maximum rate of
15%, in order to equal the yield on the Nuveen Investments Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's SEC
30-Day Yield on the indicated date and a combined federal and state income tax
rate of 32%.
5As a percentage of total holdings as of August 31, 2003. Holdings are subject
to change.
Semiannual Report l Page 5
- --------------------------------------------------------------------------------
Fund Spotlight as of 8/31/03 Nuveen Massachusetts Insured Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.19 $10.20 $10.18 $10.21
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0360 $0.0295 $0.0310 $0.0375
--------------------------------------------------------------
Latest Capital Gain/2/ $0.0268 $0.0268 $0.0268 $0.0268
--------------------------------------------------------------
Commencement Date 9/07/94 3/06/97 9/15/94 12/22/86
--------------------------------------------------------------
Average Annual Total Returns as of 8/31/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 1.35% -2.90%
---------------------------------------------
5-Year 4.10 3.21
---------------------------------------------
10-Year 4.60 4.15
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 0.60% -3.27%
---------------------------------------------
5-Year 3.32 3.15
---------------------------------------------
10-Year 4.00 4.00
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 0.77%
---------------------------------------------
5-Year 3.55
---------------------------------------------
10-Year 3.96
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 1.52%
---------------------------------------------
5-Year 4.30
---------------------------------------------
10-Year 4.83
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Market Yield/4/ 4.24% 4.06%
---------------------------------------------
SEC 30-Day Yield 3.74 3.58
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.50 5.26
---------------------------------------------
B Shares NAV
---------------------------------------------
Market Yield/4/ 3.47%
---------------------------------------------
SEC 30-Day Yield 3.17
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.66
---------------------------------------------
C Shares NAV
---------------------------------------------
Market Yield/4/ 3.65%
---------------------------------------------
SEC 30-Day Yield 3.37
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.96
---------------------------------------------
R Shares NAV
---------------------------------------------
Market Yield/4/ 4.41%
---------------------------------------------
SEC 30-Day Yield 4.11
---------------------------------------------
Taxable-Equivalent Yield/5/ 6.04
---------------------------------------------
Average Annual Total Returns as of 9/30/03/3/
A Shares NAV Offer
---------------------------------------------
1-Year 2.17% -2.11%
---------------------------------------------
5-Year 4.58 3.69
---------------------------------------------
10-Year 4.83 4.38
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 1.41% -2.49%
---------------------------------------------
5-Year 3.81 3.64
---------------------------------------------
10-Year 4.23 4.23
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 1.69%
---------------------------------------------
5-Year 4.02
---------------------------------------------
10-Year 4.19
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 2.34%
---------------------------------------------
5-Year 4.80
---------------------------------------------
10-Year 5.06
---------------------------------------------
Bond Credit Quality/6/
[CHART]
AAA/U.S. Guaranteed 93%
Insured/U.S. Guaranteed 5
U.S. Guaranteed 2
The Fund features a portfolio of primarily investment-grade, long-term
municipal securities. These securities are covered by insurance, guaranteeing
the timely payment of principal and interest, or by an escrow or trust account
containing enough U.S. government or U.S. government agency securities to
ensure timely payment of principal and interest.
Top Five Sectors/6/
Tax Obligation/General 35%
------------------------------------------
Housing/Multifamily 15
------------------------------------------
Education and Civic Organizations 11
------------------------------------------
Healthcare 10
------------------------------------------
Transportation 7
------------------------------------------
Portfolio Statistics
Net Assets ($000) $94,142
------------------------------------------
Average Effective Maturity (Years) 18.97
------------------------------------------
Duration 8.12
------------------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. Income is generally exempt from
regular federal income taxes. Some income may be subject to state and local
taxes and to the federal alternative minimum tax. Capital gains, if any, are
subject to tax.
1Paid September 2, 2003. This is the latest monthly tax-exempt dividend
declared during the period ended August 31, 2003.
2Paid December 2, 2002. Capital gains and/or ordinary income distributions are
subject to federal taxation.
3Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a contingent
deferred sales charge (CDSC), also known as a back-end sales charge, that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class B shares automatically
convert to Class A shares eight years after purchase. Class C shares have a 1%
CDSC for redemptions within less than one year, which is not reflected in the
one-year total return.
4The Market Yield is an investment's current annualized dividend divided by its
current offering price while the SEC 30-Day Yield is a standardized measure of
a fund's yield that accounts for the future amortization of premiums or
discounts of bonds held in the fund's portfolio.
5The taxable equivalent yield represents the yield that must be earned on a
taxable alternative investment, other than an alternative investment that
generates qualified dividend income that is taxable at the maximum rate of
15%, in order to equal the yield on the Nuveen Investments Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's SEC
30-Day Yield on the indicated date and a combined federal and state income tax
rate of 32%.
6As a percentage of total holdings as of August 31, 2003. Holdings are subject
to change.
Semiannual Report l Page 6
Shareholder
Meeting Report
The annual shareholder meeting was held on July 28, 2003, at the Northern Trust
Bank, Chicago, Illinois.
- ---------------------------------------------------------------------------------
Nuveen
Nuveen Massachusetts
Massachusetts Insured
Municipal Municipal
Approval of the Board Members was reached as follows: Bond Fund Bond Fund
- ---------------------------------------------------------------------------------
William E. Bennett
For 7,339,606 5,722,500
Withhold 186,061 278,915
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
Robert P. Bremner
For 7,343,494 5,736,213
Withhold 182,173 265,202
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
Lawrence H. Brown
For 7,343,494 5,738,893
Withhold 182,173 262,522
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
Jack B. Evans
For 7,342,467 5,735,969
Withhold 183,200 265,446
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
Anne E. Impellizzeri
For 7,339,154 5,739,040
Withhold 186,513 262,375
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
William L. Kissick
For 7,343,494 5,734,091
Withhold 182,173 267,324
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
Thomas E. Leafstrand
For 7,339,154 5,735,969
Withhold 186,513 265,446
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
Peter R. Sawers
For 7,343,494 5,737,015
Withhold 182,173 264,400
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
William J. Schneider
For 7,339,489 5,738,893
Withhold 186,178 262,522
- ---------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------
- ----
7
- ---------------------------------------------------------------------------------------
Nuveen
Nuveen Massachusetts
Massachusetts Insured
Municipal Municipal
Approval of the Board Members was reached as follows: Bond Fund Bond Fund
- ---------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For 7,337,779 5,736,213
Withhold 187,888 265,202
- ---------------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------------
Judith M. Stockdale
For 7,342,890 5,735,418
Withhold 182,777 265,997
- ---------------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------------
Sheila W. Wellington
For 7,343,401 5,734,238
Withhold 182,266 267,177
- ---------------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction
with respect to lending*
For 5,789,762 4,279,883
Against 228,301 440,887
Abstain 331,578 341,000
Broker Non-Vote 1,176,026 939,645
- ---------------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction
with respect to borrowing*
For 5,768,553 4,263,183
Against 238,753 407,056
Abstain 342,335 391,531
Broker Non-Vote 1,176,026 939,645
- ---------------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------------
To approve a change to a fundamental investment restriction
with respect to investing in municipal securities*
For 5,719,226 4,245,769
Against 286,227 427,550
Abstain 344,188 388,451
Broker Non-Vote 1,176,026 939,645
- ---------------------------------------------------------------------------------------
Total 7,525,667 6,001,415
- ---------------------------------------------------------------------------------------
* For each Fund, the shareholder meetings convened on July 28, 2003 with
respect to the proposals to amend the fundamental policies concerning
lending, borrowing and investing up to 5% of the Fund's assets in certain
non-municipal securities. At the July 28, 2003 meeting for each Fund,
sufficient votes were received on all three proposals and all three
proposals passed. The vote totals shown reflect the totals received as of
July 28, 2003.
- ----
8
Portfolio of Investments (Unaudited)
NUVEEN MASSACHUSETTS MUNICIPAL BOND FUND
August 31, 2003
Principal Optional Call
Amount (000) Description Provisions*
- ----------------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 1.4%
$ 1,500 Boston Industrial Development Financing Authority, Massachusetts, Senior Revenue Bonds, Crosstown 9/12 at 102.00
Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 0.7%
970 The Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed Refunding Bonds, 5/12 at 100.00
Series 2002, 5.375%, 5/15/33
- ----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 11.9%
1,000 Massachusetts Educational Financing Authority, Educational Loan Revenue Bonds, 1/12 at 100.00
2002 Series E, 5.000%, 1/01/13 (Alternative Minimum Tax) - AMBAC Insured
3,000 Massachusetts Development Finance Agency, Revenue Bonds, Curry College Issue, 3/09 at 101.00
1999 Series A, 5.500%, 3/01/29 - ACA Insured
2,000 Massachusetts Development Finance Agency, Revenue Bonds, Massachusetts College of Pharmacy and 1/10 at 101.00
Allied Health Sciences Issue, 1999 Series B, 6.625%, 7/01/20
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston College Issue, No Opt. Call
Series K, 5.375%, 6/01/14
30 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston College Issue, 12/03 at 100.00
Series J, 6.625%, 7/01/21 (Pre-refunded to 12/05/03) - FGIC Insured
500 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Williams College Project, 7/13 at 100.00
Series 2003H, 5.000%, 7/01/21
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Wellesley College Project,
Series 2003H:
500 5.000%, 7/01/26 7/13 at 100.00
500 5.000%, 7/01/33 7/13 at 100.00
2,290 Massachusetts Industrial Finance Agency, Revenue Bonds, Lesley College Project, Series 1995A, 7/05 at 102.00
6.300%, 7/01/25 - CONNIE LEE/AMBAC Insured
1,200 University of Massachusetts Building Authority, Project Revenue Bonds, Senior Lien Series 2003-1, 11/13 at 100.00
5.250%, 11/01/18 - AMBAC Insured
- ----------------------------------------------------------------------------------------------------------------------------------
Healthcare - 15.7%
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Clinic Medical 1/04 at 102.00
Center Issue, Series B, 5.625%, 7/01/15 - MBIA Insured
1,500 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard Pilgrim Health 7/08 at 101.00
Care Issue, Series A, 4.750%, 7/01/22 - FSA Insured
3,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Winchester Hospital Issue, 7/10 at 101.00
Series E, 6.750%, 7/01/30
600 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Medical 5/12 at 100.00
Center Hospitals, Series 2002H, 5.375%, 5/15/19 - FGIC Insured
2,785 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Partners Healthcare System 7/11 at 101.00
Issue, Series C, 5.750%, 7/01/32
1,710 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Issue, 7/08 at 102.00
Series A, 5.000%, 7/01/25 - MBIA Insured
3,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cape Cod Health Care Inc., 11/11 at 101.00
Series 2001C, 5.250%, 11/15/31 - RAAI Insured
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Covenant Health Systems 1/12 at 101.00
Obligated Group, Series 2002, 6.000%, 7/01/31
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Dartmouth-Hitchcock 8/12 at 100.00
Obligated Group, Series 2002, 5.125%, 8/01/22 - FSA Insured
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caritas Christi Obligated 7/12 at 101.00
Group, Series 2002B, 6.250%, 7/01/22
Market
Description Ratings** Value
- -------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 1.4%
Boston Industrial Development Financing Authority, Massachusetts, Senior Revenue Bonds, Crosstown Baa3 $1,467,405
Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 0.7%
The Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed Refunding Bonds, BBB 780,481
Series 2002, 5.375%, 5/15/33
- -------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 11.9%
Massachusetts Educational Financing Authority, Educational Loan Revenue Bonds, AAA 1,038,970
2002 Series E, 5.000%, 1/01/13 (Alternative Minimum Tax) - AMBAC Insured
Massachusetts Development Finance Agency, Revenue Bonds, Curry College Issue, A 3,006,390
1999 Series A, 5.500%, 3/01/29 - ACA Insured
Massachusetts Development Finance Agency, Revenue Bonds, Massachusetts College of Pharmacy and BBB 2,150,240
Allied Health Sciences Issue, 1999 Series B, 6.625%, 7/01/20
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston College Issue, AA- 1,100,330
Series K, 5.375%, 6/01/14
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston College Issue, AAA 30,451
Series J, 6.625%, 7/01/21 (Pre-refunded to 12/05/03) - FGIC Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Williams College Project, AA+ 507,540
Series 2003H, 5.000%, 7/01/21
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Wellesley College Project,
Series 2003H:
5.000%, 7/01/26 AA+ 501,315
5.000%, 7/01/33 AA+ 498,045
Massachusetts Industrial Finance Agency, Revenue Bonds, Lesley College Project, Series 1995A, AAA 2,505,810
6.300%, 7/01/25 - CONNIE LEE/AMBAC Insured
University of Massachusetts Building Authority, Project Revenue Bonds, Senior Lien Series 2003-1, AAA 1,271,232
5.250%, 11/01/18 - AMBAC Insured
- -------------------------------------------------------------------------------------------------------------------------
Healthcare - 15.7%
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Clinic Medical AAA 1,022,870
Center Issue, Series B, 5.625%, 7/01/15 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard Pilgrim Health AAA 1,408,290
Care Issue, Series A, 4.750%, 7/01/22 - FSA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Winchester Hospital Issue, BBB 3,187,860
Series E, 6.750%, 7/01/30
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Medical AAA 624,498
Center Hospitals, Series 2002H, 5.375%, 5/15/19 - FGIC Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Partners Healthcare System AA- 2,869,330
Issue, Series C, 5.750%, 7/01/32
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Issue, AAA 1,675,390
Series A, 5.000%, 7/01/25 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cape Cod Health Care Inc., AA 2,882,520
Series 2001C, 5.250%, 11/15/31 - RAAI Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Covenant Health Systems A- 1,030,590
Obligated Group, Series 2002, 6.000%, 7/01/31
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Dartmouth-Hitchcock AAA 1,018,740
Obligated Group, Series 2002, 5.125%, 8/01/22 - FSA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caritas Christi Obligated BBB 925,790
Group, Series 2002B, 6.250%, 7/01/22
- ----
9
Portfolio of Investments (Unaudited)
NUVEEN MASSACHUSETTS MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal
Amount (000) Description
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.3%
$ 1,115 Framingham Housing Authority, Massachusetts, Refunding Revenue Bonds, GNMA Collateralized -
Beaver Terrace Apartments Project, Series 2000A, 6.350%, 2/20/32
2,955 Massachusetts Development Finance Agency, Assisted Living Revenue Bonds, Prospect House
Apartments Project, Series 1999, 7.000%, 12/01/31
95 Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 1993 Series A
Refunding, 6.375%, 4/01/21
1,000 Massachusetts Industrial Finance Agency, FHA-Insured Mortgage Loan Bonds, Hudner Associates
Projects, Series 1997, 5.650%, 1/01/22 - MBIA Insured
2,500 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, 2002 Series C,
5.500%, 7/01/32 (Alternative Minimum Tax) - FSA Insured
- ---------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.6%
1,660 Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 84,
5.550%, 12/01/31 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
Long-Term Care - 10.7%
1,790 Massachusetts Development Finance Agency, Revenue Bonds, The May Institute Issue,
Series 1999, 5.750%, 9/01/24 - RAAI Insured
2,900 Massachusetts Development Finance Agency, Revenue Bonds, Northern Berkshire Community Services
Issue, 1999 Series A, 6.250%, 8/15/29 - ACA Insured
885 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cable Housing and Health
Services Issue, Series A, 5.625%, 7/01/13 - MBIA Insured
325 Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA
Collateralized - TNG Draper Place Project, Series 1998, 5.400%, 8/20/12 (Alternative Minimum Tax)
2,020 Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA
Collateralized - The Arbors at Taunton Project, Series 1999, 5.500%, 6/20/40 (Alternative Minimum Tax)
2,500 Massachusetts Industrial Finance Agency, Healthcare Facilities Revenue Bonds, Jewish Geriatric
Services, Inc. Obligated Group, Series 1997B, 5.500%, 5/15/27
760 Massachusetts Industrial Finance Agency, Revenue Bonds, Heights Crossing Limited Partnership Issue,
FHA-Insured Project, Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.6%
1,000 City of Boston, Massachusetts, General Obligation Bonds, Series 2001B, 5.000%, 8/01/15
1,090 Town of Brookline, Massachusetts, General Obligation Bonds, Series 2000, 5.375%, 4/01/17
1,000 Erving, Massachusetts, General Obligation Bonds, Series 2002, 5.500%, 6/15/16
1,000 Fall River, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 - FSA Insured
1,145 Falmouth, Massachusetts, General Obligation Bonds, Series 2002, 5.000%, 2/01/19
750 City of Holyoke, Massachusetts, General Obligation Refunding Bonds, 7.000%, 11/01/08
500 City of Lawrence, Massachusetts, General Obligation Bonds, Series 2001, 5.000%, 2/01/21 -
AMBAC Insured
1,335 Marlborough, Massachusetts, General Obligation Bonds, Series 1999, 5.125%, 6/15/19 - FGIC Insured
2,500 Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1991
Series A, 7.000%, 3/01/21
600 Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1997
Series D, 5.000%, 3/01/27
2,625 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2001,
Series D, 5.000%, 11/01/20 - MBIA Insured
1,250 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2002,
Series D, 5.500%, 8/01/19
1,860 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2003,
Series A, 5.000%, 1/01/22
Optional Call
Description Provisions*
- ------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.3%
Framingham Housing Authority, Massachusetts, Refunding Revenue Bonds, GNMA Collateralized - 8/10 at 105.00
Beaver Terrace Apartments Project, Series 2000A, 6.350%, 2/20/32
Massachusetts Development Finance Agency, Assisted Living Revenue Bonds, Prospect House 12/09 at 102.00
Apartments Project, Series 1999, 7.000%, 12/01/31
Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 1993 Series A 10/03 at 102.00
Refunding, 6.375%, 4/01/21
Massachusetts Industrial Finance Agency, FHA-Insured Mortgage Loan Bonds, Hudner Associates 1/08 at 102.00
Projects, Series 1997, 5.650%, 1/01/22 - MBIA Insured
Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, 2002 Series C, 7/12 at 100.00
5.500%, 7/01/32 (Alternative Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.6%
Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 84, 6/10 at 100.00
5.550%, 12/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 10.7%
Massachusetts Development Finance Agency, Revenue Bonds, The May Institute Issue, 9/09 at 102.00
Series 1999, 5.750%, 9/01/24 - RAAI Insured
Massachusetts Development Finance Agency, Revenue Bonds, Northern Berkshire Community Services 8/09 at 101.00
Issue, 1999 Series A, 6.250%, 8/15/29 - ACA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cable Housing and Health 1/04 at 102.00
Services Issue, Series A, 5.625%, 7/01/13 - MBIA Insured
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA 8/08 at 105.00
Collateralized - TNG Draper Place Project, Series 1998, 5.400%, 8/20/12 (Alternative Minimum Tax)
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA 6/09 at 102.00
Collateralized - The Arbors at Taunton Project, Series 1999, 5.500%, 6/20/40 (Alternative Minimum Tax)
Massachusetts Industrial Finance Agency, Healthcare Facilities Revenue Bonds, Jewish Geriatric 5/07 at 102.00
Services, Inc. Obligated Group, Series 1997B, 5.500%, 5/15/27
Massachusetts Industrial Finance Agency, Revenue Bonds, Heights Crossing Limited Partnership Issue, 2/06 at 102.00
FHA-Insured Project, Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.6%
City of Boston, Massachusetts, General Obligation Bonds, Series 2001B, 5.000%, 8/01/15 8/11 at 100.00
Town of Brookline, Massachusetts, General Obligation Bonds, Series 2000, 5.375%, 4/01/17 4/10 at 101.00
Erving, Massachusetts, General Obligation Bonds, Series 2002, 5.500%, 6/15/16 6/12 at 101.00
Fall River, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 - FSA Insured 2/13 at 101.00
Falmouth, Massachusetts, General Obligation Bonds, Series 2002, 5.000%, 2/01/19 2/12 at 101.00
City of Holyoke, Massachusetts, General Obligation Refunding Bonds, 7.000%, 11/01/08 11/03 at 101.00
City of Lawrence, Massachusetts, General Obligation Bonds, Series 2001, 5.000%, 2/01/21 - 2/11 at 100.00
AMBAC Insured
Marlborough, Massachusetts, General Obligation Bonds, Series 1999, 5.125%, 6/15/19 - FGIC Insured 6/09 at 101.00
Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1991 No Opt. Call
Series A, 7.000%, 3/01/21
Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1997 3/07 at 101.00
Series D, 5.000%, 3/01/27
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2001, 11/11 at 100.00
Series D, 5.000%, 11/01/20 - MBIA Insured
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2002, No Opt. Call
Series D, 5.500%, 8/01/19
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2003, 1/13 at 100.00
Series A, 5.000%, 1/01/22
Description Ratings**
- ------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.3%
Framingham Housing Authority, Massachusetts, Refunding Revenue Bonds, GNMA Collateralized - AAA
Beaver Terrace Apartments Project, Series 2000A, 6.350%, 2/20/32
Massachusetts Development Finance Agency, Assisted Living Revenue Bonds, Prospect House N/R
Apartments Project, Series 1999, 7.000%, 12/01/31
Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 1993 Series A A+
Refunding, 6.375%, 4/01/21
Massachusetts Industrial Finance Agency, FHA-Insured Mortgage Loan Bonds, Hudner Associates AAA
Projects, Series 1997, 5.650%, 1/01/22 - MBIA Insured
Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, 2002 Series C, AAA
5.500%, 7/01/32 (Alternative Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.6%
Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 84, AA
5.550%, 12/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------
Long-Term Care - 10.7%
Massachusetts Development Finance Agency, Revenue Bonds, The May Institute Issue, AA
Series 1999, 5.750%, 9/01/24 - RAAI Insured
Massachusetts Development Finance Agency, Revenue Bonds, Northern Berkshire Community Services A
Issue, 1999 Series A, 6.250%, 8/15/29 - ACA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cable Housing and Health AAA
Services Issue, Series A, 5.625%, 7/01/13 - MBIA Insured
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA AAA
Collateralized - TNG Draper Place Project, Series 1998, 5.400%, 8/20/12 (Alternative Minimum Tax)
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA AAA
Collateralized - The Arbors at Taunton Project, Series 1999, 5.500%, 6/20/40 (Alternative Minimum Tax)
Massachusetts Industrial Finance Agency, Healthcare Facilities Revenue Bonds, Jewish Geriatric A-1
Services, Inc. Obligated Group, Series 1997B, 5.500%, 5/15/27
Massachusetts Industrial Finance Agency, Revenue Bonds, Heights Crossing Limited Partnership Issue, AAA
FHA-Insured Project, Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.6%
City of Boston, Massachusetts, General Obligation Bonds, Series 2001B, 5.000%, 8/01/15 Aa2
Town of Brookline, Massachusetts, General Obligation Bonds, Series 2000, 5.375%, 4/01/17 Aaa
Erving, Massachusetts, General Obligation Bonds, Series 2002, 5.500%, 6/15/16 BBB
Fall River, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 - FSA Insured AAA
Falmouth, Massachusetts, General Obligation Bonds, Series 2002, 5.000%, 2/01/19 AA+
City of Holyoke, Massachusetts, General Obligation Refunding Bonds, 7.000%, 11/01/08 BBB+
City of Lawrence, Massachusetts, General Obligation Bonds, Series 2001, 5.000%, 2/01/21 - Aaa
AMBAC Insured
Marlborough, Massachusetts, General Obligation Bonds, Series 1999, 5.125%, 6/15/19 - FGIC Insured Aaa
Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1991 AAA
Series A, 7.000%, 3/01/21
Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1997 AA
Series D, 5.000%, 3/01/27
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2001, AAA
Series D, 5.000%, 11/01/20 - MBIA Insured
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2002, Aa2
Series D, 5.500%, 8/01/19
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2003, Aa2
Series A, 5.000%, 1/01/22
Market
Description Value
- ----------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.3%
Framingham Housing Authority, Massachusetts, Refunding Revenue Bonds, GNMA Collateralized - $ 1,167,494
Beaver Terrace Apartments Project, Series 2000A, 6.350%, 2/20/32
Massachusetts Development Finance Agency, Assisted Living Revenue Bonds, Prospect House 2,904,588
Apartments Project, Series 1999, 7.000%, 12/01/31
Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 1993 Series A 97,081
Refunding, 6.375%, 4/01/21
Massachusetts Industrial Finance Agency, FHA-Insured Mortgage Loan Bonds, Hudner Associates 1,061,580
Projects, Series 1997, 5.650%, 1/01/22 - MBIA Insured
Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, 2002 Series C, 2,525,950
5.500%, 7/01/32 (Alternative Minimum Tax) - FSA Insured
- ----------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.6%
Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 84, 1,668,748
5.550%, 12/01/31 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 10.7%
Massachusetts Development Finance Agency, Revenue Bonds, The May Institute Issue, 1,848,479
Series 1999, 5.750%, 9/01/24 - RAAI Insured
Massachusetts Development Finance Agency, Revenue Bonds, Northern Berkshire Community Services 3,039,954
Issue, 1999 Series A, 6.250%, 8/15/29 - ACA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cable Housing and Health 905,284
Services Issue, Series A, 5.625%, 7/01/13 - MBIA Insured
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA 348,680
Collateralized - TNG Draper Place Project, Series 1998, 5.400%, 8/20/12 (Alternative Minimum Tax)
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA 2,030,262
Collateralized - The Arbors at Taunton Project, Series 1999, 5.500%, 6/20/40 (Alternative Minimum Tax)
Massachusetts Industrial Finance Agency, Healthcare Facilities Revenue Bonds, Jewish Geriatric 2,459,125
Services, Inc. Obligated Group, Series 1997B, 5.500%, 5/15/27
Massachusetts Industrial Finance Agency, Revenue Bonds, Heights Crossing Limited Partnership Issue, 787,801
FHA-Insured Project, Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.6%
City of Boston, Massachusetts, General Obligation Bonds, Series 2001B, 5.000%, 8/01/15 1,058,590
Town of Brookline, Massachusetts, General Obligation Bonds, Series 2000, 5.375%, 4/01/17 1,172,469
Erving, Massachusetts, General Obligation Bonds, Series 2002, 5.500%, 6/15/16 1,037,430
Fall River, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 - FSA Insured 1,021,560
Falmouth, Massachusetts, General Obligation Bonds, Series 2002, 5.000%, 2/01/19 1,184,525
City of Holyoke, Massachusetts, General Obligation Refunding Bonds, 7.000%, 11/01/08 763,875
City of Lawrence, Massachusetts, General Obligation Bonds, Series 2001, 5.000%, 2/01/21 - 508,190
AMBAC Insured
Marlborough, Massachusetts, General Obligation Bonds, Series 1999, 5.125%, 6/15/19 - FGIC Insured 1,382,459
Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1991 3,122,450
Series A, 7.000%, 3/01/21
Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1997 590,460
Series D, 5.000%, 3/01/27
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2001, 2,667,945
Series D, 5.000%, 11/01/20 - MBIA Insured
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2002, 1,366,325
Series D, 5.500%, 8/01/19
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2003, 1,861,934
Series A, 5.000%, 1/01/22
- ----
10
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,490 Northbridge, Massachusetts, General Obligation Bonds, Series 2002, 2/12 at 101.00 AAA $ 1,578,655
5.250%, 2/15/18 - AMBAC Insured
1,415 Springfield, Massachusetts, General Obligation Bonds, Series 2003, 1/13 at 100.00 AAA 1,463,096
State Qualified, 5.250%, 1/15/23 - MBIA Insured
- -----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 6.0%
680 Martha's Vineyard, Massachusetts, Land Bank Revenue Bonds, Series 5/13 at 100.00 AAA 674,322
2002, 5.000%, 5/01/32 - AMBAC Insured
760 Massachusetts Industrial Finance Agency, Library Revenue Bonds, 1/05 at 102.00 AAA 828,506
Malden Public Library Project, Series 1994, 7.250%, 1/01/15 - MBIA
Insured
1,000 Commonwealth of Massachusetts, Special Obligation Revenue Bonds, 6/12 at 100.00 AAA 1,055,630
Series 2002A Refunding, 5.375%, 6/01/19 - FGIC Insured
2,000 Commonwealth of Massachusetts, Special Obligation Refunding Notes, No Opt. Call Aaa 2,171,640
Federal Highway Grant Anticipation Note Program, Series 2003A,
5.000%, 12/15/11 - FSA Insured
1,500 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call AAA 1,667,610
Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - 6.0%
650 Massachusetts Development Finance Agency, Revenue Bonds, Worcester 6/09 at 101.00 AA 684,730
Redevelopment Authority Issue, Series 1999, 6.000%, 6/01/24 - RAAI
Insured
3,835 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 AAA 3,832,277
7/01/24 - MBIA Insured
1,950 Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta 1/11 at 101.00 AAA 1,863,245
Air Lines, Inc. Project, Series 2001A, 5.000%, 1/01/27 (Alternative
Minimum Tax) - AMBAC Insured
- -----------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 11.3%
250 Massachusetts Bay Transportation Authority, Certificates of 12/06 at 100.00 A+*** 297,288
Participation, Series 1988, 7.800%, 1/15/14 (Pre-refunded to
12/22/06)
1,250 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated 2/10 at 101.00 AAA 1,444,713
Loan, Series 2000A, 6.000%, 2/01/14 (Pre-refunded to 2/01/10)
2,000 Massachusetts Health and Educational Facilities Authority, Revenue No Opt. Call AAA 2,188,480
Bonds, Malden Hospital Issue, FHA-Insured Project, Series A, 5.000%,
8/01/16
700 Massachusetts Health and Educational Facilities Authority, Revenue 7/06 at 100.00 Aaa 745,045
Bonds, Daughters of Charity National Health System - Carney
Hospital, Series D, 6.100%, 7/01/14 (Pre-refunded to 7/01/06)
2,500 Massachusetts Health and Educational Facilities Authority, Revenue 2/04 at 102.00 Aa2*** 2,607,600
Refunding Bonds, Youville Hospital Issue, FHA-Insured Project,
Series B, 6.000%, 2/15/25 (Pre-refunded to 2/15/04)
3,285 Massachusetts Health and Educational Facilities Authority, Revenue 2/07 at 102.00 Aa2*** 3,785,733
Refunding Bonds, Youville Hospital Issue, FHA-Insured Project,
Series A, 6.250%, 2/15/41 (Pre-refunded to 2/15/07)
605 Massachusetts Port Authority, Revenue Bonds, Series 1982, 13.000%, 1/04 at 100.00 AAA 919,279
7/01/13
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - 5.6%
1,000 Massachusetts Development Finance Agency, Resource Recovery Revenue 1/12 at 101.00 AAA 1,086,150
Bonds, SEMASS System, Series A, 5.625%, 1/01/16 - MBIA Insured
5,420 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 12/08 at 102.00 BBB 4,909,001
Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%,
12/01/19 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------
$100,535 Total Long-Term Investments (cost $101,518,748) - 97.8% 103,890,325
- -----------------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 2.2% 2,360,872
---------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 106,251,197
---------------------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities which
ensures the timely payment of principal and interest. Such
securities are normally considered to be equivalent to AAA rated
securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
- ----
11
Portfolio of Investments (Unaudited)
NUVEEN MASSACHUSETTS INSURED MUNICIPAL BOND FUND
August 31, 2003
Principal
Amount (000) Description
- -------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 11.0%
$ 2,000 Massachusetts Educational Financing Authority, Educational Loan Revenue Bonds,
2002 Series E, 5.000%, 1/01/13 (Alternative Minimum Tax) - AMBAC Insured
30 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston College Issue,
Series J, 6.625%, 7/01/21 (Pre-refunded to 12/05/03) - FGIC Insured
1,300 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Brandeis University Issue,
Series I, 4.750%, 10/01/28 - MBIA Insured
2,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Northeastern University
Issue, Series I, 5.000%, 10/01/29 - MBIA Insured
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Worcester City Campus
Corporation Issue, University of Massachusetts Project, Series C, 5.500%, 10/01/18 - MBIA Insured
1,000 Massachusetts Industrial Finance Agency, Revenue Bonds, College of the Holy Cross,
Series 1996, 5.500%, 3/01/20 - MBIA Insured
420 Massachusetts Industrial Finance Agency, Revenue Bonds, Babson College Issue,
Series 1995A, 5.800%, 10/01/10 - MBIA Insured
2,470 Massachusetts Industrial Finance Agency, Revenue Bonds, Western New England College Issue,
Series 1998, 5.000%, 7/01/28 - AMBAC Insured
- -------------------------------------------------------------------------------------------------------------------
Healthcare - 9.7%
1,700 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Clinic Medical
Center Issue, Series B, 5.625%, 7/01/15 - MBIA Insured
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Baystate Medical Center
Issue, Series E, 6.000%, 7/01/26 - FSA Insured
20 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Capital Asset Program,
Series G2, 7.200%, 7/01/09 - MBIA Insured
505 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, South Shore Hospital Issue,
Series D, 6.500%, 7/01/22 - MBIA Insured
600 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Medical
Center Hospitals, Series 2002H, 5.375%, 5/15/19 - FGIC Insured
1,705 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Issue,
Series A, 5.000%, 7/01/25 - MBIA Insured
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Dartmouth-Hitchcock
Obligated Group, Series 2002, 5.125%, 8/01/22 - FSA Insured
2,290 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing
Authority, Hospital Revenue Bonds, Hospital Auxilio Mutuo Obligated Group Project, 1995
Series A, 6.250%, 7/01/16 - MBIA Insured
- -------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 15.4%
2,500 Massachusetts Development Finance Agency, Revenue Bonds, GNMA Collateralized - VOA Concord
Assisted Living, Inc. Project, Series 2000A, 6.900%, 10/20/41
2,500 Massachusetts Development Finance Agency, Assisted Living Facility Revenue Bonds, GNMA
Collateralized - The Arbors at Chicopee Project, Series 2001A, 6.250%, 9/20/42 (Alternative
Minimum Tax)
1,500 Massachusetts Housing Finance Agency, Housing Development Revenue Bonds, 1998 Series A,
5.375%, 6/01/16 (Alternative Minimum Tax) - MBIA Insured
180 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 1989 Series A,
7.600%, 12/01/16 - MBIA Insured
1,000 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds,
1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) - AMBAC Insured
2,835 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, FHA-Insured
Mortgage Loans, 1995 Series A, 7.350%, 1/01/35 (Alternative Minimum Tax) - AMBAC Insured
Optional Call
Description Provisions* Ratings**
- --------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 11.0%
Massachusetts Educational Financing Authority, Educational Loan Revenue Bonds, 1/12 at 100.00 AAA
2002 Series E, 5.000%, 1/01/13 (Alternative Minimum Tax) - AMBAC Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston College Issue, 12/03 at 100.00 AAA
Series J, 6.625%, 7/01/21 (Pre-refunded to 12/05/03) - FGIC Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Brandeis University Issue, 10/08 at 101.00 AAA
Series I, 4.750%, 10/01/28 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Northeastern University 10/09 at 101.00 AAA
Issue, Series I, 5.000%, 10/01/29 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Worcester City Campus 10/12 at 100.00 AAA
Corporation Issue, University of Massachusetts Project, Series C, 5.500%, 10/01/18 - MBIA Insured
Massachusetts Industrial Finance Agency, Revenue Bonds, College of the Holy Cross, 3/06 at 102.00 AAA
Series 1996, 5.500%, 3/01/20 - MBIA Insured
Massachusetts Industrial Finance Agency, Revenue Bonds, Babson College Issue, 10/05 at 102.00 AAA
Series 1995A, 5.800%, 10/01/10 - MBIA Insured
Massachusetts Industrial Finance Agency, Revenue Bonds, Western New England College Issue, 7/08 at 102.00 AAA
Series 1998, 5.000%, 7/01/28 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------------------
Healthcare - 9.7%
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Clinic Medical 1/04 at 102.00 AAA
Center Issue, Series B, 5.625%, 7/01/15 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Baystate Medical Center 7/06 at 102.00 AAA
Issue, Series E, 6.000%, 7/01/26 - FSA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Capital Asset Program, 1/04 at 100.00 AAA
Series G2, 7.200%, 7/01/09 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, South Shore Hospital Issue, 1/04 at 101.00 AAA
Series D, 6.500%, 7/01/22 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Medical 5/12 at 100.00 AAA
Center Hospitals, Series 2002H, 5.375%, 5/15/19 - FGIC Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Issue, 7/08 at 102.00 AAA
Series A, 5.000%, 7/01/25 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Dartmouth-Hitchcock 8/12 at 100.00 AAA
Obligated Group, Series 2002, 5.125%, 8/01/22 - FSA Insured
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing 1/05 at 102.00 AAA
Authority, Hospital Revenue Bonds, Hospital Auxilio Mutuo Obligated Group Project, 1995
Series A, 6.250%, 7/01/16 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 15.4%
Massachusetts Development Finance Agency, Revenue Bonds, GNMA Collateralized - VOA Concord 10/11 at 105.00 AAA
Assisted Living, Inc. Project, Series 2000A, 6.900%, 10/20/41
Massachusetts Development Finance Agency, Assisted Living Facility Revenue Bonds, GNMA 3/12 at 105.00 AAA
Collateralized - The Arbors at Chicopee Project, Series 2001A, 6.250%, 9/20/42 (Alternative
Minimum Tax)
Massachusetts Housing Finance Agency, Housing Development Revenue Bonds, 1998 Series A, 6/08 at 101.00 AAA
5.375%, 6/01/16 (Alternative Minimum Tax) - MBIA Insured
Massachusetts Housing Finance Agency, Housing Revenue Bonds, 1989 Series A, 12/03 at 100.00 AAA
7.600%, 12/01/16 - MBIA Insured
Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, 7/07 at 101.00 AAA
1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) - AMBAC Insured
Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, FHA-Insured 1/05 at 102.00 AAA
Mortgage Loans, 1995 Series A, 7.350%, 1/01/35 (Alternative Minimum Tax) - AMBAC Insured
Market
Description Value
- ---------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 11.0%
Massachusetts Educational Financing Authority, Educational Loan Revenue Bonds, $ 2,077,940
2002 Series E, 5.000%, 1/01/13 (Alternative Minimum Tax) - AMBAC Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston College Issue, 30,451
Series J, 6.625%, 7/01/21 (Pre-refunded to 12/05/03) - FGIC Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Brandeis University Issue, 1,234,012
Series I, 4.750%, 10/01/28 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Northeastern University 1,981,200
Issue, Series I, 5.000%, 10/01/29 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Worcester City Campus 1,078,910
Corporation Issue, University of Massachusetts Project, Series C, 5.500%, 10/01/18 - MBIA Insured
Massachusetts Industrial Finance Agency, Revenue Bonds, College of the Holy Cross, 1,056,240
Series 1996, 5.500%, 3/01/20 - MBIA Insured
Massachusetts Industrial Finance Agency, Revenue Bonds, Babson College Issue, 462,097
Series 1995A, 5.800%, 10/01/10 - MBIA Insured
Massachusetts Industrial Finance Agency, Revenue Bonds, Western New England College Issue, 2,450,042
Series 1998, 5.000%, 7/01/28 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
Healthcare - 9.7%
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Clinic Medical 1,738,879
Center Issue, Series B, 5.625%, 7/01/15 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Baystate Medical Center 1,078,670
Issue, Series E, 6.000%, 7/01/26 - FSA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Capital Asset Program, 20,448
Series G2, 7.200%, 7/01/09 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, South Shore Hospital Issue, 517,524
Series D, 6.500%, 7/01/22 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Medical 624,498
Center Hospitals, Series 2002H, 5.375%, 5/15/19 - FGIC Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Issue, 1,670,491
Series A, 5.000%, 7/01/25 - MBIA Insured
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Dartmouth-Hitchcock 1,018,740
Obligated Group, Series 2002, 5.125%, 8/01/22 - FSA Insured
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing 2,460,559
Authority, Hospital Revenue Bonds, Hospital Auxilio Mutuo Obligated Group Project, 1995
Series A, 6.250%, 7/01/16 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 15.4%
Massachusetts Development Finance Agency, Revenue Bonds, GNMA Collateralized - VOA Concord 2,802,575
Assisted Living, Inc. Project, Series 2000A, 6.900%, 10/20/41
Massachusetts Development Finance Agency, Assisted Living Facility Revenue Bonds, GNMA 2,655,450
Collateralized - The Arbors at Chicopee Project, Series 2001A, 6.250%, 9/20/42 (Alternative
Minimum Tax)
Massachusetts Housing Finance Agency, Housing Development Revenue Bonds, 1998 Series A, 1,537,830
5.375%, 6/01/16 (Alternative Minimum Tax) - MBIA Insured
Massachusetts Housing Finance Agency, Housing Revenue Bonds, 1989 Series A, 180,725
7.600%, 12/01/16 - MBIA Insured
Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, 1,004,850
1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) - AMBAC Insured
Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, FHA-Insured 2,940,434
Mortgage Loans, 1995 Series A, 7.350%, 1/01/35 (Alternative Minimum Tax) - AMBAC Insured
- ----
12
Principal
Amount (000) Description
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
$ 640 Massachusetts Industrial Finance Agency, FHA-Insured Mortgage Loan Bonds, Hudner Associates
Projects, Series 1997, 5.650%, 1/01/22 - MBIA Insured
2,575 Somerville Housing Authority, Massachusetts, Mortgage Revenue Bonds, Clarendon Hill Towers
Project, GNMA Collateralized, Series 2002 Refunding, 5.200%, 11/20/22
- ---------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.5%
3,185 Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA
Collateralized - The Arbors at Amherst Project, Series 1997, 5.950%, 6/20/39 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 34.6%
2,500 Amherst-Pelham Regional School District, Massachusetts, General Obligation Bonds, Series 1998,
5.125%, 5/15/18 - AMBAC Insured
1,520 Fall River, Massachusetts, General Obligation Bonds, Series 2003, 5.250%, 2/01/17 - FSA Insured
1,000 City of Lawrence, Massachusetts, General Obligation Bonds, Series 2001,
5.000%, 2/01/21 - AMBAC Insured
1,380 Littleton, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 1/15/20 - FGIC Insured
3,000 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2001,
Series D, 6.000%, 11/01/13 - MBIA Insured
1,500 Monson, Massachusetts, General Obligation School Refunding Bonds, Bank-Qualified Unlimited Tax,
5.500%, 10/15/10 - MBIA Insured
985 Monson, Massachusetts, General Obligation Bonds, Series 2002, 5.250%, 5/15/22 - AMBAC Insured
1,250 City of Northampton, Massachusetts, General Obligation Bonds, Series 2002,
5.000%, 9/01/19 - MBIA Insured
190 Town of Northfield, Massachusetts, General Obligation Bonds, Municipal Purpose Loan of 1992,
Bank-Qualified, 6.350%, 10/15/09 - MBIA Insured
1,230 Pioneer Valley Regional School District, Massachusetts, General Obligation Bonds,
Series 2002, 5.375%, 6/15/19 - AMBAC Insured
3,000 Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 1997,
6.500%, 7/01/15 - MBIA Insured
420 Springfield, Massachusetts, General Obligation Bonds, Series 2001, 5.000%, 8/01/18 - FGIC Insured
Springfield, Massachusetts, General Obligation Bonds, Series 2003, State Qualified:
2,000 5.250%, 1/15/21 - MBIA Insured
810 5.250%, 1/15/22 - MBIA Insured
2,575 Tantasqua Regional School District, Massachusetts, General Obligation Bonds, Series 2000,
5.000%, 8/15/19 - FSA Insured
220 City of Taunton, Massachusetts, General Obligation Bonds, Series 1991, 6.800%, 9/01/09 -
MBIA Insured
2,200 Commonwealth of Puerto Rico, Public Improvement Bonds, TICS, 11.280%, 7/01/19 (IF) - FSA Insured
2,225 City of Worcester, Massachusetts, General Obligation Bonds, Series 2000, 5.250%, 8/15/20 -
FGIC Insured
545 City of Worcester, Massachusetts, General Obligation Bonds, Series 2001A, 5.500%, 8/15/18 -
FGIC Insured
1,005 City of Worcester, Massachusetts, General Obligation Bonds, Series 2003A Refunding, 5.000%, 8/01/13 -
FGIC Insured
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 5.9%
1,320 Martha's Vineyard, Massachusetts, Land Bank Revenue Bonds, Series 2002, 5.000%, 5/01/32 -
AMBAC Insured
2,000 Massachusetts Bay Transportation Authority, Senior Sales Tax Revenue Bonds, Series 2002A
Refunding, 5.000%, 7/01/27 - FGIC Insured
Optional Call
Description Provisions*
- ------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
Massachusetts Industrial Finance Agency, FHA-Insured Mortgage Loan Bonds, Hudner Associates 1/08 at 102.00
Projects, Series 1997, 5.650%, 1/01/22 - MBIA Insured
Somerville Housing Authority, Massachusetts, Mortgage Revenue Bonds, Clarendon Hill Towers 5/12 at 103.00
Project, GNMA Collateralized, Series 2002 Refunding, 5.200%, 11/20/22
- ------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.5%
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA 12/07 at 102.00
Collateralized - The Arbors at Amherst Project, Series 1997, 5.950%, 6/20/39 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 34.6%
Amherst-Pelham Regional School District, Massachusetts, General Obligation Bonds, Series 1998, 5/08 at 101.00
5.125%, 5/15/18 - AMBAC Insured
Fall River, Massachusetts, General Obligation Bonds, Series 2003, 5.250%, 2/01/17 - FSA Insured 2/13 at 101.00
City of Lawrence, Massachusetts, General Obligation Bonds, Series 2001, 2/11 at 100.00
5.000%, 2/01/21 - AMBAC Insured
Littleton, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 1/15/20 - FGIC Insured 1/13 at 101.00
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2001, No Opt. Call
Series D, 6.000%, 11/01/13 - MBIA Insured
Monson, Massachusetts, General Obligation School Refunding Bonds, Bank-Qualified Unlimited Tax, No Opt. Call
5.500%, 10/15/10 - MBIA Insured
Monson, Massachusetts, General Obligation Bonds, Series 2002, 5.250%, 5/15/22 - AMBAC Insured 5/12 at 101.00
City of Northampton, Massachusetts, General Obligation Bonds, Series 2002, 9/12 at 101.00
5.000%, 9/01/19 - MBIA Insured
Town of Northfield, Massachusetts, General Obligation Bonds, Municipal Purpose Loan of 1992, 10/03 at 101.00
Bank-Qualified, 6.350%, 10/15/09 - MBIA Insured
Pioneer Valley Regional School District, Massachusetts, General Obligation Bonds, 6/12 at 101.00
Series 2002, 5.375%, 6/15/19 - AMBAC Insured
Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 1997, No Opt. Call
6.500%, 7/01/15 - MBIA Insured
Springfield, Massachusetts, General Obligation Bonds, Series 2001, 5.000%, 8/01/18 - FGIC Insured 8/11 at 101.00
Springfield, Massachusetts, General Obligation Bonds, Series 2003, State Qualified:
5.250%, 1/15/21 - MBIA Insured 1/13 at 100.00
5.250%, 1/15/22 - MBIA Insured 1/13 at 100.00
Tantasqua Regional School District, Massachusetts, General Obligation Bonds, Series 2000, 8/10 at 101.00
5.000%, 8/15/19 - FSA Insured
City of Taunton, Massachusetts, General Obligation Bonds, Series 1991, 6.800%, 9/01/09 - 9/03 at 102.00
MBIA Insured
Commonwealth of Puerto Rico, Public Improvement Bonds, TICS, 11.280%, 7/01/19 (IF) - FSA Insured No Opt. Call
City of Worcester, Massachusetts, General Obligation Bonds, Series 2000, 5.250%, 8/15/20 - 8/10 at 101.00
FGIC Insured
City of Worcester, Massachusetts, General Obligation Bonds, Series 2001A, 5.500%, 8/15/18 - 8/11 at 100.00
FGIC Insured
City of Worcester, Massachusetts, General Obligation Bonds, Series 2003A Refunding, 5.000%, 8/01/13 - No Opt. Call
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 5.9%
Martha's Vineyard, Massachusetts, Land Bank Revenue Bonds, Series 2002, 5.000%, 5/01/32 - 5/13 at 100.00
AMBAC Insured
Massachusetts Bay Transportation Authority, Senior Sales Tax Revenue Bonds, Series 2002A 7/12 at 100.00
Refunding, 5.000%, 7/01/27 - FGIC Insured
Description Ratings**
- ------------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
Massachusetts Industrial Finance Agency, FHA-Insured Mortgage Loan Bonds, Hudner Associates AAA
Projects, Series 1997, 5.650%, 1/01/22 - MBIA Insured
Somerville Housing Authority, Massachusetts, Mortgage Revenue Bonds, Clarendon Hill Towers AAA
Project, GNMA Collateralized, Series 2002 Refunding, 5.200%, 11/20/22
- ------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.5%
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA AAA
Collateralized - The Arbors at Amherst Project, Series 1997, 5.950%, 6/20/39 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 34.6%
Amherst-Pelham Regional School District, Massachusetts, General Obligation Bonds, Series 1998, Aaa
5.125%, 5/15/18 - AMBAC Insured
Fall River, Massachusetts, General Obligation Bonds, Series 2003, 5.250%, 2/01/17 - FSA Insured AAA
City of Lawrence, Massachusetts, General Obligation Bonds, Series 2001, Aaa
5.000%, 2/01/21 - AMBAC Insured
Littleton, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 1/15/20 - FGIC Insured AAA
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2001, AAA
Series D, 6.000%, 11/01/13 - MBIA Insured
Monson, Massachusetts, General Obligation School Refunding Bonds, Bank-Qualified Unlimited Tax, AAA
5.500%, 10/15/10 - MBIA Insured
Monson, Massachusetts, General Obligation Bonds, Series 2002, 5.250%, 5/15/22 - AMBAC Insured Aaa
City of Northampton, Massachusetts, General Obligation Bonds, Series 2002, Aaa
5.000%, 9/01/19 - MBIA Insured
Town of Northfield, Massachusetts, General Obligation Bonds, Municipal Purpose Loan of 1992, AAA
Bank-Qualified, 6.350%, 10/15/09 - MBIA Insured
Pioneer Valley Regional School District, Massachusetts, General Obligation Bonds, Aaa
Series 2002, 5.375%, 6/15/19 - AMBAC Insured
Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 1997, AAA
6.500%, 7/01/15 - MBIA Insured
Springfield, Massachusetts, General Obligation Bonds, Series 2001, 5.000%, 8/01/18 - FGIC Insured AAA
Springfield, Massachusetts, General Obligation Bonds, Series 2003, State Qualified:
5.250%, 1/15/21 - MBIA Insured AAA
5.250%, 1/15/22 - MBIA Insured AAA
Tantasqua Regional School District, Massachusetts, General Obligation Bonds, Series 2000, Aaa
5.000%, 8/15/19 - FSA Insured
City of Taunton, Massachusetts, General Obligation Bonds, Series 1991, 6.800%, 9/01/09 - AAA
MBIA Insured
Commonwealth of Puerto Rico, Public Improvement Bonds, TICS, 11.280%, 7/01/19 (IF) - FSA Insured AAA
City of Worcester, Massachusetts, General Obligation Bonds, Series 2000, 5.250%, 8/15/20 - AAA
FGIC Insured
City of Worcester, Massachusetts, General Obligation Bonds, Series 2001A, 5.500%, 8/15/18 - AAA
FGIC Insured
City of Worcester, Massachusetts, General Obligation Bonds, Series 2003A Refunding, 5.000%, 8/01/13 - AAA
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 5.9%
Martha's Vineyard, Massachusetts, Land Bank Revenue Bonds, Series 2002, 5.000%, 5/01/32 - AAA
AMBAC Insured
Massachusetts Bay Transportation Authority, Senior Sales Tax Revenue Bonds, Series 2002A AAA
Refunding, 5.000%, 7/01/27 - FGIC Insured
Market
Description Value
- -----------------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
Massachusetts Industrial Finance Agency, FHA-Insured Mortgage Loan Bonds, Hudner Associates $ 679,411
Projects, Series 1997, 5.650%, 1/01/22 - MBIA Insured
Somerville Housing Authority, Massachusetts, Mortgage Revenue Bonds, Clarendon Hill Towers 2,615,273
Project, GNMA Collateralized, Series 2002 Refunding, 5.200%, 11/20/22
- -----------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.5%
Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue Bonds, GNMA 3,326,764
Collateralized - The Arbors at Amherst Project, Series 1997, 5.950%, 6/20/39 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 34.6%
Amherst-Pelham Regional School District, Massachusetts, General Obligation Bonds, Series 1998, 2,605,775
5.125%, 5/15/18 - AMBAC Insured
Fall River, Massachusetts, General Obligation Bonds, Series 2003, 5.250%, 2/01/17 - FSA Insured 1,636,903
City of Lawrence, Massachusetts, General Obligation Bonds, Series 2001, 1,016,380
5.000%, 2/01/21 - AMBAC Insured
Littleton, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 1/15/20 - FGIC Insured 1,421,621
Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2001, 3,471,930
Series D, 6.000%, 11/01/13 - MBIA Insured
Monson, Massachusetts, General Obligation School Refunding Bonds, Bank-Qualified Unlimited Tax, 1,705,875
5.500%, 10/15/10 - MBIA Insured
Monson, Massachusetts, General Obligation Bonds, Series 2002, 5.250%, 5/15/22 - AMBAC Insured 1,022,499
City of Northampton, Massachusetts, General Obligation Bonds, Series 2002, 1,290,075
5.000%, 9/01/19 - MBIA Insured
Town of Northfield, Massachusetts, General Obligation Bonds, Municipal Purpose Loan of 1992, 193,122
Bank-Qualified, 6.350%, 10/15/09 - MBIA Insured
Pioneer Valley Regional School District, Massachusetts, General Obligation Bonds, 1,317,072
Series 2002, 5.375%, 6/15/19 - AMBAC Insured
Puerto Rico Public Improvement, General Obligation Refunding Bonds, Series 1997, 3,649,260
6.500%, 7/01/15 - MBIA Insured
Springfield, Massachusetts, General Obligation Bonds, Series 2001, 5.000%, 8/01/18 - FGIC Insured 438,085
Springfield, Massachusetts, General Obligation Bonds, Series 2003, State Qualified:
5.250%, 1/15/21 - MBIA Insured 2,083,320
5.250%, 1/15/22 - MBIA Insured 840,011
Tantasqua Regional School District, Massachusetts, General Obligation Bonds, Series 2000, 2,656,576
5.000%, 8/15/19 - FSA Insured
City of Taunton, Massachusetts, General Obligation Bonds, Series 1991, 6.800%, 9/01/09 - 225,403
MBIA Insured
Commonwealth of Puerto Rico, Public Improvement Bonds, TICS, 11.280%, 7/01/19 (IF) - FSA Insured 2,905,804
City of Worcester, Massachusetts, General Obligation Bonds, Series 2000, 5.250%, 8/15/20 - 2,327,150
FGIC Insured
City of Worcester, Massachusetts, General Obligation Bonds, Series 2001A, 5.500%, 8/15/18 - 593,434
FGIC Insured
City of Worcester, Massachusetts, General Obligation Bonds, Series 2003A Refunding, 5.000%, 8/01/13 - 1,088,234
FGIC Insured
- -----------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 5.9%
Martha's Vineyard, Massachusetts, Land Bank Revenue Bonds, Series 2002, 5.000%, 5/01/32 - 1,308,978
AMBAC Insured
Massachusetts Bay Transportation Authority, Senior Sales Tax Revenue Bonds, Series 2002A 1,980,080
Refunding, 5.000%, 7/01/27 - FGIC Insured
- ----
13
Portfolio of Investments (Unaudited)
NUVEEN MASSACHUSETTS INSURED MUNICIPAL BOND FUND (continued)
August 31, 2003
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 475 Massachusetts Development Finance Authority, Revenue Bonds, 100 2/12 at 100.00 AAA $ 473,589
Cambridge Street Redevelopment, MSRB Project, 2002 Series A, 5.125%,
8/01/28 - MBIA Insured
1,225 Massachusetts Industrial Finance Agency, Library Revenue Bonds, 1/05 at 102.00 AAA 1,335,422
Malden Public Library Project, Series 1994, 7.250%, 1/01/15 - MBIA
Insured
500 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/12 at 100.00 AAA 501,560
Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - 7.3%
1,500 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 5.000%, No Opt. Call AAA 1,619,370
7/01/12 - MBIA Insured
Massachusetts Turnpike Authority, Metropolitan Highway System Revenue
Bonds, 1997 Senior Series A:
9,500 0.000%, 1/01/29 - MBIA Insured No Opt. Call AAA 2,368,255
3,000 5.000%, 1/01/37 - MBIA Insured 1/07 at 102.00 AAA 2,930,790
- -----------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 6.8%
2,625 City of Lowell, Massachusetts, General Obligation State Qualified 11/03 at 102.00 AAA 2,698,290
Bonds, 5.600%, 11/01/12 (Pre-refunded to 11/01/03) - FSA Insured
850 Massachusetts Municipal Wholesale Electric Company, Power Supply 1/04 at 102.00 AAA 870,953
System Revenue Bonds, 1993 Series A, 5.000%, 7/01/10 - AMBAC Insured
1,000 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated 3/12 at 100.00 AAA 1,118,170
Loan of 2002, Series B, 5.500%, 3/01/17 (Pre-refunded to 3/01/12) -
FSA Insured
295 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 102.00 AAA 300,755
Bonds, Caregroup Issue, Series A, 5.000%, 7/01/25 - MBIA Insured
955 Massachusetts Port Authority, Revenue Bonds, Series 1982, 13.000%, 1/04 at 100.00 AAA 1,451,094
7/01/13
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - 3.5%
1,500 Massachusetts Development Finance Agency, Resource Recovery Revenue 1/12 at 101.00 AAA 1,629,225
Bonds, SEMASS System, Series A, 5.625%, 1/01/16 - MBIA Insured
1,600 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/10 at 101.00 AAA 1,638,592
2000HH, 5.250%, 7/01/29 - FSA Insured
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 2.2%
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, No Opt. Call AAA 1,072,180
Series 2002J, 5.250%, 8/01/19 - FSA Insured
Springfield, Massachusetts, Water and Sewer Commission General
Revenue Bonds, Series 2003A:
435 5.000%, 7/01/13 - MBIA Insured No Opt. Call AAA 467,873
495 5.000%, 7/01/16 - MBIA Insured 7/14 at 100.00 AAA 522,324
- -----------------------------------------------------------------------------------------------------------------------------
$ 95,785 Total Long-Term Investments (cost $91,578,788) - 99.9% 94,020,042
- -----------------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 0.1% 121,824
---------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 94,141,866
---------------------------------------------------------------------------------------------------------------
All of the bonds in the portfolio are either covered by Original
Issue Insurance, Secondary Market Insurance or Portfolio
Insurance, or are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency securities,
any of which ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(IF) Inverse floating rate security.
See accompanying notes to financial statements.
- ----
14
Statement of Assets and Liabilities (Unaudited)
August 31, 2003
Massachusetts
- -------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at market value (cost $101,518,748 and $91,578,788, respectively) $103,890,325
Cash 1,376,776
Receivables:
Interest 1,191,500
Shares sold 318,377
Other assets 1,045
- -------------------------------------------------------------------------------------------------------------------------
Total assets 106,778,023
- -------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft --
Payable for shares redeemed 20,438
Accrued expenses:
Management fees 50,004
12b-1 distribution and service fees 17,024
Other 47,479
Dividends payable 391,881
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 526,826
- -------------------------------------------------------------------------------------------------------------------------
Net assets $106,251,197
- -------------------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $ 23,841,347
Shares outstanding 2,459,444
Net asset value per share $ 9.69
Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering price) $ 10.11
- -------------------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 7,997,474
Shares outstanding 823,043
Net asset value and offering price per share $ 9.72
- -------------------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 10,687,663
Shares outstanding 1,109,646
Net asset value and offering price per share $ 9.63
- -------------------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $ 63,724,713
Shares outstanding 6,587,978
Net asset value and offering price per share $ 9.67
- -------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- -------------------------------------------------------------------------------------------------------------------------
Capital paid-in $104,355,800
Undistributed (Over-distribution of) net investment income (110,500)
Accumulated net realized gain (loss) from investments (365,680)
Net unrealized appreciation of investments 2,371,577
- -------------------------------------------------------------------------------------------------------------------------
Net assets $106,251,197
- -------------------------------------------------------------------------------------------------------------------------
Massachusetts
Insured
- ------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at market value (cost $101,518,748 and $91,578,788, respectively) $94,020,042
Cash --
Receivables:
Interest 1,145,274
Shares sold 53,417
Other assets 928
- ------------------------------------------------------------------------------------------------------------------------
Total assets 95,219,661
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 644,833
Payable for shares redeemed --
Accrued expenses:
Management fees 44,095
12b-1 distribution and service fees 17,165
Other 38,204
Dividends payable 333,498
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,077,795
- ------------------------------------------------------------------------------------------------------------------------
Net assets $94,141,866
- ------------------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $21,369,485
Shares outstanding 2,097,106
Net asset value per share $ 10.19
Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering price) $ 10.64
- ------------------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 6,838,205
Shares outstanding 670,580
Net asset value and offering price per share $ 10.20
- ------------------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $12,651,551
Shares outstanding 1,242,743
Net asset value and offering price per share $ 10.18
- ------------------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $53,282,625
Shares outstanding 5,217,796
Net asset value and offering price per share $ 10.21
- ------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- ------------------------------------------------------------------------------------------------------------------------
Capital paid-in $92,062,662
Undistributed (Over-distribution of) net investment income (5,757)
Accumulated net realized gain (loss) from investments (356,293)
Net unrealized appreciation of investments 2,441,254
- ------------------------------------------------------------------------------------------------------------------------
Net assets $94,141,866
- ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
15
Statement of Operations (Unaudited)
Six Months Ended August 31, 2003
Massachusetts
Massachusetts Insured
- -------------------------------------------------------------------------------------------------
Investment Income $ 2,795,886 $ 2,464,648
- -------------------------------------------------------------------------------------------------
Expenses
Management fees 295,783 272,891
12b-1 service fees - Class A 22,576 22,368
12b-1 distribution and service fees - Class B 38,265 31,923
12b-1 distribution and service fees - Class C 39,715 51,102
Shareholders' servicing agent fees and expenses 43,402 36,106
Custodian's fees and expenses 19,624 19,610
Trustees' fees and expenses 459 857
Professional fees 5,420 7,525
Shareholders' reports - printing and mailing expenses 15,211 10,523
Federal and state registration fees 3,529 2,115
Other expenses 3,220 3,062
- -------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 487,204 458,082
Custodian fee credit (5,105) (6,934)
- -------------------------------------------------------------------------------------------------
Net expenses 482,099 451,148
- -------------------------------------------------------------------------------------------------
Net investment income 2,313,787 2,013,500
- -------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investments 376,743 (217,098)
Net change in unrealized appreciation (depreciation) of investments (3,452,245) (3,122,936)
- -------------------------------------------------------------------------------------------------
Net gain (loss) from investments (3,075,502) (3,340,034)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ (761,715) $(1,326,534)
- -------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
16
Statement of Changes in Net Assets (Unaudited)
Massachusetts Massachusetts Insured
------------------------------ -----------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
8/31/03 2/28/03 8/31/03 2/28/03
- ----------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 2,313,787 $ 4,824,167 $ 2,013,500 $ 3,929,596
Net realized gain (loss) from investments 376,743 21,810 (217,098) 60,192
Net change in unrealized appreciation (depreciation)
of investments (3,452,245) 2,514,352 (3,122,936) 1,910,773
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (761,715) 7,360,329 (1,326,534) 5,900,561
- ----------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (490,987) (980,471) (464,691) (899,844)
Class B (146,644) (284,972) (113,931) (185,734)
Class C (202,229) (325,057) (244,435) (354,915)
Class R (1,517,155) (3,302,834) (1,217,694) (2,605,765)
From accumulated net realized gains from investments:
Class A -- -- -- (56,464)
Class B -- -- -- (15,320)
Class C -- -- -- (27,619)
Class R -- -- -- (141,887)
- ----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to
shareholders (2,357,015) (4,893,334) (2,040,751) (4,287,548)
- ----------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 7,253,353 10,234,110 7,555,413 21,403,674
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 1,500,660 3,094,840 1,357,839 2,871,122
- ----------------------------------------------------------------------------------------------------------------------
8,754,013 13,328,950 8,913,252 24,274,796
Cost of shares redeemed (5,414,874) (11,878,339) (10,408,945) (8,085,124)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share
transactions 3,339,139 1,450,611 (1,495,693) 16,189,672
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 220,409 3,917,606 (4,862,978) 17,802,685
Net assets at the beginning of period 106,030,788 102,113,182 99,004,844 81,202,159
- ----------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $106,251,197 $106,030,788 $ 94,141,866 $99,004,844
- ----------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment
income at the end of period $ (110,500) $ (67,272) $ (5,757) $ 21,494
- ----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
17
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The Nuveen Multistate Trust II (the "Trust") is an open-end investment company
registered under the Investment Company Act of 1940, as amended. The Trust
comprises the Nuveen Massachusetts Municipal Bond Fund ("Massachusetts") and
the Nuveen Massachusetts Insured Municipal Bond Fund ("Massachusetts Insured")
(collectively, the "Funds"), among others. The Trust was organized as a
Massachusetts business trust on July 1, 1996. The Funds were organized as
series of predecessor trusts or corporations prior to that date.
The Funds seek to provide high tax-free income and preservation of capital
through investments in diversified portfolios of quality municipal bonds.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Trustees of the Funds, or its designee, may establish a fair value
for the security. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject
to market fluctuation during this period. The Funds have instructed the
custodian to segregate assets with a current value at least equal to the amount
of the when-issued and delayed delivery purchase commitments. At August 31,
2003, there were no such outstanding purchase commitments in either of the
Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend. Generally,
payment is made or reinvestment is credited to shareholder accounts on the
first business day after month-end. Net realized capital gains and/or market
discount from investment transactions, if any, are distributed to shareholders
not less frequently than annually. Furthermore, capital gains are distributed
only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, 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 accounting principles
generally accepted in the United States.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will
enable interest from municipal securities, which is exempt from regular federal
and Massachusetts state income taxes, to retain such tax-exempt status when
distributed to the shareholders of the Funds.
Insurance
Massachusetts Insured invests primarily in municipal securities which are
either covered by insurance or backed by an escrow or trust account containing
sufficient U.S. Government or U.S. Government agency securities, both of which
ensure the timely payment of principal and interest. Each insured municipal
security is covered by Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance. Such insurance does not guarantee the market value of the
municipal securities or the value of the Fund's shares. Original Issue
Insurance and Secondary Market Insurance remain in effect as long as the
municipal securities covered thereby remain outstanding and the insurer remains
in business, regardless of whether the Fund ultimately disposes of such
municipal securities. Consequently, the market value of the municipal
securities covered by Original Issue Insurance or Secondary Market Insurance
may reflect value attributable to the insurance. Portfolio Insurance is
effective only while the municipal securities
are held by the Fund. Accordingly, neither the prices used in determining the
market value of the underlying municipal securities nor the net asset value of
the Fund's shares include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Fund
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
- ----
18
Flexible Sales Charge Program
Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a
sales charge and incur a .20% annual 12b-1 service fee. Class A Share purchases
of $1 million or more are sold at net asset value without an up-front sales
charge but may be subject to a contingent deferred sales charge ("CDSC") if
redeemed within 18 months of purchase. Class B Shares are sold without a sales
charge but incur a .75% annual 12b-1 distribution fee and a .20% annual 12b-1
service fee. An investor purchasing Class B Shares agrees to pay a CDSC of up
to 5% depending upon the length of time the shares are held by the investor
(CDSC is reduced to 0% at the end of six years). Class B Shares convert to
Class A Shares eight years after purchase. Class C Shares are sold without a
sales charge but incur a .55% annual 12b-1 distribution fee and a .20% annual
12b-1 service fee. An investor purchasing Class C Shares agrees to pay a CDSC
of 1% if Class C Shares are redeemed within one year of purchase. Class R
Shares are not subject to any sales charge or 12b-1 distribution or service
fees. Class R Shares are available only under limited circumstances.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics including inverse floating rate securities. During
the six months ended August 31, 2003, Massachusetts Insured invested in inverse
floating rate securities for the purpose of enhancing portfolio yield. Inverse
floating rate securities are identified in the Portfolio of Investments and are
marked to market daily. The interest rate of an inverse floating rate security
has an inverse relationship to the interest rate of a short-term floating rate
security. Consequently, as the interest rate of the floating rate security
rises, the interest rate on the inverse floating rate security declines.
Conversely, as the interest rate of the floating rate security declines, the
interest rate on the inverse floating rate security rises. The price of an
inverse floating rate security will be more volatile than that of an otherwise
comparable fixed rate security since the interest rate is dependent on an
underlying fixed coupon rate or the general level of long-term interest rates
as well as the short-term interest paid on the floating rate security, and
because the inverse floating rate security typically bears the risk of loss of
a greater face value of an underlying bond. Massachusetts did not invest in any
such securities during the six months ended August 31, 2003.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific class of
shares are prorated among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares, which presently
only include 12b-1 distribution and service fees, are recorded to the specific
class.
Custodian Fee Credit
Each Fund has an agreement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results may differ from those estimates.
- ----
19`
Notes to Financial Statements (Unaudited) (continued)
2. Fund Shares
Transactions in Fund shares were as follows:
Massachusetts Massachusetts Insured
----------------------------------------------- ----------------------------------------------
Six months ended Year Ended Six months ended Year Ended
8/31/03 2/28/03 8/31/03 2/28/03
--------------------- ------------------------ ---------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A 432,304 $ 4,257,998 352,432 $ 3,446,905 339,924 $ 3,596,792 871,889 $ 9,082,915
Class B 59,680 591,850 179,831 1,762,258 99,229 1,046,416 263,693 2,765,547
Class C 182,508 1,800,570 378,252 3,690,773 170,522 1,791,299 695,410 7,242,865
Class R 60,688 602,935 136,714 1,334,174 105,975 1,120,906 221,668 2,312,347
Shares issued to shareholders
due to reinvestment of
distributions:
Class A 29,673 295,521 58,321 570,405 26,890 282,668 56,141 583,159
Class B 5,096 50,852 10,120 99,195 3,005 31,599 5,595 58,162
Class C 9,324 92,287 15,196 147,802 15,310 160,746 22,479 233,386
Class R 106,846 1,062,000 233,497 2,277,438 83,804 882,826 191,978 1,996,415
- -------------------------------------------------------------------------------------------------------------------------------
886,119 8,754,013 1,364,363 13,328,950 844,659 8,913,252 2,328,853 24,274,796
- -------------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (181,707) (1,802,915) (270,871) (2,656,561) (471,201) (4,962,237) (364,166) (3,785,154)
Class B (44,268) (437,042) (61,677) (597,147) (34,493) (357,730) (11,003) (115,845)
Class C (60,435) (595,206) (97,886) (952,368) (171,125) (1,769,072) (63,878) (667,217)
Class R (260,917) (2,579,711) (787,257) (7,672,263) (319,951) (3,319,906) (337,926) (3,516,908)
- -------------------------------------------------------------------------------------------------------------------------------
(547,327) (5,414,874) (1,217,691) (11,878,339) (996,770) (10,408,945) (776,973) (8,085,124)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 338,792 $ 3,339,139 146,672 $ 1,450,611 (152,111) $ (1,495,693) 1,551,880 $16,189,672
- -------------------------------------------------------------------------------------------------------------------------------
3. Securities Transactions
Purchases and sales (including maturities) of investments in long-term
municipal securities for the six months ended August 31, 2003, were as follows:
Massachusetts
Massachusetts Insured
------------------------------------------------
Purchases $16,496,801 $13,643,548
Sales and maturities 13,518,982 12,031,384
------------------------------------------------
4. 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 income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At August 31, 2003, the cost of investments were as follows:
Massachusetts
Massachusetts Insured
-----------------------------------------------
Cost of investments $101,454,530 $91,476,930
-----------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2003, were as follows:
Massachusetts
Massachusetts Insured
------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 4,002,209 $2,975,964
Depreciation (1,566,414) (432,852)
------------------------------------------------------------------------
Net unrealized appreciation of investments $ 2,435,795 $2,543,112
------------------------------------------------------------------------
- ----
20
The tax components of undistributed net investment income and net realized
gains at February 28, 2003, the Funds' last fiscal year end, were as follows:
Massachusetts
Massachusetts Insured
---------------------------------------------------------------------
Undistributed net tax-exempt income $275,637 $262,438
Undistributed net ordinary income* 68 --
Undistributed net long-term capital gains -- --
---------------------------------------------------------------------
* 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 fiscal year ended February
28, 2003, was designated for purposes of the dividends paid deduction as
follows:
Massachusetts
2003 Massachusetts Insured
--------------------------------------------------------------------------
Distributions from net tax-exempt income $4,906,445 $4,021,282
Distributions from net ordinary income* -- --
Distributions from net long-term capital gains -- 240,601
--------------------------------------------------------------------------
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At February 28, 2003, the Funds' last fiscal year end, Massachusetts 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:
Massachusetts
------------------------------
Expiration year:
2004 $277,200
2005 156,261
2006 --
2007 --
2008 --
2009 285,126
2010 --
2011 23,836
------------------------------
Total $742,423
------------------------------
At February 28, 2003, the Funds' last fiscal year end, Massachusetts Insured
elected to defer net realized losses from investments incurred from November 1,
2002 through February 28, 2003 ("post-October losses") in accordance with
Federal income tax regulations. The post-October losses of $139,195 are treated
as having arisen on the first day of the current fiscal year.
5. Management Fee and Other Transactions with Affiliates
Under the Trust's investment management agreement with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., each
Fund pays an annual management fee, payable monthly, at the rates set forth
below which are based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Management Fee
----------------------------------------------
For the first $125 million .5500%
For the next $125 million .5375
For the next $250 million .5250
For the next $500 million .5125
For the next $1 billion .5000
For the next $3 billion .4750
For net assets over $5 billion .4500
----------------------------------------------
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Trust pays 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 Trust from the Adviser or its affiliates.
The Adviser has agreed to waive part of its management fees or reimburse
certain expenses of each Fund in order to limit total expenses (excluding 12b-1
distribution and service fees and extraordinary expenses) from exceeding .75%
of the average daily net assets of Massachusetts and .975% of the average daily
net assets of Massachusetts Insured. The Adviser may also voluntarily agree to
reimburse additional expenses from time to time. Voluntary reimbursements may
be terminated at any time at the Adviser's discretion.
- ----
21
Notes to Financial Statements (Unaudited) (continued)
During the six months ended August 31, 2003, Nuveen Investments, LLC (the
"Distributor"), a wholly owned subsidiary of Nuveen Investments, Inc.,
collected sales charges on purchases of Class A Shares, the majority of which
were paid out as concessions to authorized dealers as follows:
Massachusetts
Massachusetts Insured
------------------------------------------------------
Sales charges collected $35,207 $54,359
Paid to authorized dealers 30,558 47,139
------------------------------------------------------
The Distributor also received 12b-1 service fees on Class A Shares,
substantially all of which were paid to compensate authorized dealers for
providing services to shareholders relating to their investments.
During the six months ended August 31, 2003, the Distributor compensated
authorized dealers directly with commission advances at the time of purchase as
follows:
Massachusetts
Massachusetts Insured
-----------------------------------------------
Commission advances $33,199 $59,093
-----------------------------------------------
To compensate for commissions advanced to authorized dealers, all 12b-1 service
fees collected on Class B Shares during the first year following a purchase,
all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service
and distribution fees collected on Class C Shares during the first year
following a purchase are retained by the Distributor. During the six months
ended August 31, 2003, the Distributor retained such 12b-1 fees as follows:
Massachusetts
Massachusetts Insured
-----------------------------------------------
12b-1 fees retained $48,281 $54,707
-----------------------------------------------
The remaining 12b-1 fees charged to the Funds were paid to compensate
authorized dealers for providing services to shareholders relating to their
investments.
The Distributor also collected and retained CDSC on share redemptions during
the six months ended August 31, 2003, as follows:
Massachusetts
Massachusetts Insured
-----------------------------------------
CDSC retained $13,148 $8,858
-----------------------------------------
6. Subsequent Event - Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on October 1, 2003, to shareholders of record on
September 9, 2003, as follows:
Massachusetts
Massachusetts Insured
-----------------------------------------------
Dividend per share:
Class A $.0360 $.0360
Class B .0300 .0295
Class C .0315 .0310
Class R .0375 .0375
-----------------------------------------------
- ----
22
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------
MASSACHUSETTS
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended February 28/29, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- --------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $ 9.98 $.21 $(.28) $(.07) $(.22) $-- $(.22) $ 9.69 (.74)%
2003 9.75 .45 .24 .69 (.46) -- (.46) 9.98 7.27
2002 9.70 .48 .07 .55 (.50) -- (.50) 9.75 5.86
2001 9.26 .50 .44 .94 (.50) -- (.50) 9.70 10.34
2000 10.07 .50 (.82) (.32) (.49) -- (.49) 9.26 (3.21)
1999 10.08 .51 (.01) .50 (.51) -- (.51) 10.07 5.05
Class B (3/97)
2004(e) 10.01 .18 (.29) (.11) (.18) -- (.18) 9.72 (1.09)
2003 9.77 .38 .25 .63 (.39) -- (.39) 10.01 6.58
2002 9.72 .41 .06 .47 (.42) -- (.42) 9.77 4.96
2001 9.28 .43 .44 .87 (.43) -- (.43) 9.72 9.60
2000 10.10 .43 (.83) (.40) (.42) -- (.42) 9.28 (4.02)
1999 10.10 .43 .01 .44 (.44) -- (.44) 10.10 4.40
Class C (10/94)
2004(e) 9.92 .19 (.29) (.10) (.19) -- (.19) 9.63 (1.01)
2003 9.69 .40 .24 .64 (.41) -- (.41) 9.92 6.73
2002 9.64 .43 .06 .49 (.44) -- (.44) 9.69 5.20
2001 9.20 .44 .45 .89 (.45) -- (.45) 9.64 9.89
2000 10.02 .44 (.82) (.38) (.44) -- (.44) 9.20 (3.87)
1999 10.02 .45 -- .45 (.45) -- (.45) 10.02 4.62
Class R (12/86)
2004(e) 9.96 .22 (.28) (.06) (.23) -- (.23) 9.67 (.65)
2003 9.73 .47 .24 .71 (.48) -- (.48) 9.96 7.59
2002 9.67 .50 .07 .57 (.51) -- (.51) 9.73 5.96
2001 9.24 .52 .43 .95 (.52) -- (.52) 9.67 10.58
2000 10.05 .52 (.82) (.30) (.51) -- (.51) 9.24 (3.03)
1999 10.05 .52 .01 .53 (.53) -- (.53) 10.05 5.36
- --------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
MASSACHUSETTS ------------------ ------------------ ------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
- -------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $23,841 .92%* 4.27%* .92%* 4.27%* .91%* 4.28%* 13%
2003 21,751 .95 4.62 .95 4.62 .94 4.63 14
2002 19,878 .94 4.96 .94 4.96 .93 4.97 16
2001 18,433 .99 5.23 .95 5.27 .94 5.29 13
2000 16,814 .98 5.15 .96 5.17 .94 5.19 15
1999 15,134 1.02 4.95 .95 5.01 .95 5.01 10
Class B (3/97)
2004(e) 7,997 1.66* 3.52* 1.66* 3.52* 1.66* 3.53* 13
2003 8,031 1.70 3.87 1.70 3.87 1.69 3.88 14
2002 6,588 1.69 4.21 1.69 4.21 1.68 4.22 16
2001 4,198 1.74 4.48 1.70 4.52 1.69 4.54 13
2000 3,730 1.73 4.40 1.71 4.42 1.69 4.44 15
1999 3,226 1.77 4.22 1.71 4.29 1.71 4.29 10
Class C (10/94)
2004(e) 10,688 1.46* 3.72* 1.46* 3.72* 1.46* 3.73* 13
2003 9,703 1.50 4.07 1.50 4.07 1.49 4.08 14
2002 6,614 1.49 4.42 1.49 4.42 1.48 4.42 16
2001 6,591 1.54 4.67 1.50 4.71 1.49 4.73 13
2000 4,730 1.53 4.61 1.51 4.63 1.49 4.64 15
1999 3,696 1.57 4.41 1.50 4.47 1.50 4.48 10
Class R (12/86)
2004(e) 63,725 .72* 4.47* .72* 4.47* .71* 4.48* 13
2003 66,545 .75 4.83 .75 4.83 .74 4.84 14
2002 69,034 .74 5.16 .74 5.16 .73 5.17 16
2001 68,208 .79 5.43 .75 5.47 .74 5.48 13
2000 66,055 .78 5.33 .76 5.35 .74 5.37 15
1999 75,750 .82 5.12 .75 5.19 .75 5.19 10
- -------------------------------------------------------------------------------------------------------------------------
* Annualized.
(a)Per share Net Investment Income is calculated using the average daily shares
method.
(b)Total returns are calculated on net asset value without any sales charge and
are not annualized.
(c)After expense reimbursement from the Adviser, where applicable.
(d)After custodian fee credit and expense reimbursement, where applicable.
(e)For the six months ended August 31, 2003.
See accompanying notes to financial statements.
- ----
23
Financial Highlights (Unaudited) (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- -----------------------
MASSACHUSETTS INSURED
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended February 28/29, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- ----------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $10.54 $.21 $(.34) $(.13) $(.22) $ -- $(.22) $10.19 (1.28)%
2003 10.36 .45 .23 .68 (.47) (.03) (.50) 10.54 6.74
2002 10.30 .50 .07 .57 (.49) (.02) (.51) 10.36 5.67
2001 9.77 .49 .55 1.04 (.50) (.01) (.51) 10.30 10.93
2000 10.59 .50 (.81) (.31) (.50) (.01) (.51) 9.77 (2.95)
1999 10.57 .51 .02 .53 (.51) -- (.51) 10.59 5.09
Class B (3/97)
2004(e) 10.55 .18 (.35) (.17) (.18) -- (.18) 10.20 (1.64)
2003 10.37 .38 .23 .61 (.40) (.03) (.43) 10.55 5.94
2002 10.31 .42 .07 .49 (.41) (.02) (.43) 10.37 4.87
2001 9.78 .42 .55 .97 (.43) (.01) (.44) 10.31 10.06
2000 10.59 .43 (.81) (.38) (.42) (.01) (.43) 9.78 (3.59)
1999 10.57 .43 .02 .45 (.43) -- (.43) 10.59 4.32
Class C (9/94)
2004(e) 10.53 .19 (.35) (.16) (.19) -- (.19) 10.18 (1.56)
2003 10.35 .40 .22 .62 (.41) (.03) (.44) 10.53 6.14
2002 10.28 .44 .08 .52 (.43) (.02) (.45) 10.35 5.17
2001 9.75 .44 .54 .98 (.44) (.01) (.45) 10.28 10.29
2000 10.56 .45 (.81) (.36) (.44) (.01) (.45) 9.75 (3.43)
1999 10.54 .45 .02 .47 (.45) -- (.45) 10.56 4.51
Class R (12/86)
2004(e) 10.56 .23 (.35) (.12) (.23) -- (.23) 10.21 (1.19)
2003 10.38 .48 .22 .70 (.49) (.03) (.52) 10.56 6.91
2002 10.31 .52 .08 .60 (.51) (.02) (.53) 10.38 5.95
2001 9.78 .51 .55 1.06 (.52) (.01) (.53) 10.31 11.11
2000 10.59 .52 (.80) (.28) (.52) (.01) (.53) 9.78 (2.68)
1999 10.57 .53 .01 .54 (.52) -- (.52) 10.59 5.26
- ----------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
MASSACHUSETTS INSURED ------------------ ------------------ ------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
- --------------------------------------------------------------------------------------------------------------------------
Class A (9/94)
2004(e) $21,369 .91%* 4.05%* .91%* 4.05%* .89%* 4.06%* 13%
2003 23,212 .93 4.36 .93 4.36 .92 4.38 18
2002 16,970 .95 4.78 .95 4.78 .92 4.81 23
2001 14,669 1.05 4.92 1.05 4.92 1.04 4.93 8
2000 11,984 1.01 4.99 1.01 4.99 1.00 5.00 10
1999 11,208 1.01 4.77 1.01 4.77 1.01 4.77 11
Class B (3/97)
2004(e) 6,838 1.66* 3.30* 1.66* 3.30* 1.64* 3.31* 13
2003 6,361 1.68 3.59 1.68 3.59 1.67 3.61 18
2002 3,574 1.69 4.03 1.69 4.03 1.67 4.06 23
2001 2,308 1.80 4.17 1.80 4.17 1.79 4.18 8
2000 1,550 1.76 4.23 1.76 4.23 1.75 4.24 10
1999 1,650 1.75 4.03 1.75 4.03 1.75 4.03 11
Class C (9/94)
2004(e) 12,652 1.46* 3.50* 1.46* 3.50* 1.44* 3.51* 13
2003 12,935 1.48 3.79 1.48 3.79 1.47 3.81 18
2002 5,940 1.49 4.25 1.49 4.25 1.46 4.27 23
2001 1,667 1.60 4.37 1.60 4.37 1.59 4.38 8
2000 1,355 1.56 4.42 1.56 4.42 1.55 4.43 10
1999 1,675 1.56 4.22 1.56 4.22 1.56 4.22 11
Class R (12/86)
2004(e) 53,283 .71* 4.25* .71* 4.25* .69* 4.26* 13
2003 56,496 .73 4.58 .73 4.58 .72 4.59 18
2002 54,719 .75 4.98 .75 4.98 .73 5.00 23
2001 53,878 .85 5.12 .85 5.12 .84 5.13 8
2000 51,039 .81 5.17 .81 5.17 .80 5.19 10
1999 57,281 .81 4.97 .81 4.97 .81 4.97 11
- --------------------------------------------------------------------------------------------------------------------------
* Annualized.
(a)Per share Net Investment Income is calculated using the average daily shares
method.
(b)Total returns are calculated on net asset value without any sales charge and
are not annualized.
(c)After expense reimbursement from the Adviser, where applicable.
(d)After custodian fee credit and expense reimbursement, where applicable.
(e)For the six months ended August 31, 2003.
See accompanying notes to financial statements.
- ----
24
- --------------------------------------------------------------------------------
Fund Information
================================================================================
Fund Manager Legal Counsel Transfer Agent and
Nuveen Advisory Corp. Chapman and Cutler LLP Shareholder Services
333 West Wacker Drive Chicago, IL Boston Financial
Chicago, IL 60606 Data Services, Inc.
Independent Auditors Nuveen Investor Services
PricewaterhouseCoopers LLP P.O. Box 8530
Chicago, IL Boston, MA 02266-8530
(800) 257-8787
Custodian
State Street Bank & Trust
Boston, MA
================================================================================
Glossary of Terms Used in this Report
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 (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Duration: Duration is a measure of a bond or bond fund's sensitivity to changes
in interest rates. Generally, the longer a bond or fund's duration, the more
the price of the bond or fund will change as interest rates change.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current offering price.
Net Asset Value (NAV): A fund's NAV is the dollar value of one share in the
fund. It is calculated by subtracting the liabilities of the fund from its
total assets and then dividing the remainder by the number of shares
outstanding. Fund NAVs are calculated at the end of each business day.
SEC Yield: A standardized measure of a fund's yield that accounts for the
future amortization of premiums or discounts of bonds held in the fund's
portfolio.
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.
================================================================================
NASD Regulation, Inc. provides a Public Disclosure Program which supplies
certain information regarding the disciplinary history of NASD members and
their associated persons in response to either telephone inquiries at (800)
289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also
provides an investor brochure that includes information describing the Public
Disclosure Program.
- ----
25
- --------------------------------------------------------------------------------
Serving
Investors
for Generations
- --------------------------------------------------------------------------------
Since 1898, financial advisors and their
clients have relied on Nuveen Investments to
provide dependable investment solutions. For
the past century, Nuveen Investments has
adhered to the belief that the best approach
to investing is to apply conservative
risk-management principles to help minimize
volatility.
Building on this tradition, we today offer a
range of high quality equity and fixed income
solutions that are integral to a
well-diversified core portfolio. Our clients
have come to appreciate this diversity, as
well as our continued adherence to proven,
long-term investing principles.
Managing $90 billion in assets, Nuveen
Investments offers access to a number of
different asset classes and investing
solutions through a variety of products.
Nuveen Investments markets its capabilities
under four distinct brands: Nuveen, a leader
in tax-free investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader
in growth-style equities; and Symphony, a
leading institutional manager of
market-neutral alternative investment
portfolios.
To learn more about the products and services
Nuveen Investments offers and for a
prospectus, where applicable, talk to your
financial advisor, or call us at (800)
257-8787. Please read the information
carefully before you invest.
Distributed by
Nuveen Investments, LLC 333 West Wacker Drive Chicago, Illinois 60606 www.nuveen.com
MSA-MA-0803D
ITEM 1. REPORTS TO STOCKHOLDERS.
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. The registrant has posted such code of
ethics on its website at www.nuveen.com/mf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors has determined that the registrant has at
least one "audit committee financial expert" (as defined in Item 3 of Form
N-CSR) serving on its audit committee. The registrant's audit committee
financial expert is William E. Bennett, who is "independent" for purposes of
Item 3 of Form N-CSR.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer for
First Chicago Corp./First National Bank. As part of his role as Chief Credit
Officer, Mr. Bennett set policy as to accrual of assets/loans; designated
performing/non-performing assets; set the level of reserves against the credit
portfolio and determined the carrying value of credit related assets and
exposure. Among other things, Mr. Bennett was also responsible for the oversight
of the internal analysis function including setting ground rules for the review
and preparation of financial analysis and financial statements for use in making
credit and risk decisions for clients. Mr. Bennett has significant experience
reviewing, analyzing and evaluating financial statements of domestic and
international companies in a variety of industries with complex accounting
issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to this registrant.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing date of
this report that includes the disclosure required by this paragraph, based on
their evaluation of the controls and procedures required by Rule 30a-3(b) under
the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))
that occurred during the registrant's last fiscal half-year (the registrant's
second fiscal half-year in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 10. EXHIBITS
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment hereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/mf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)) in the exact form set forth below: EX-99.CERT
Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 or Title 18 of
the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registration specifically incorporates it by
reference. EX-99.906CERT attached hereto.
SIGNATURES
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.
(Registrant) Nuveen Multistate Trust II
--------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
-------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date October 31, 2003
----------------------------------------------------------------
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.
By (Signature and Title)* /s/ Gifford R. Zimmerman
-------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date October 31, 2003
----------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
-------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date October 31, 2003
----------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.