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 811-07751
Nuveen Multistate Trust IV
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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: May 31
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Date of reporting period: May 31, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure
review, inspection, and 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.
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Nuveen Investments
Municipal Bond Funds
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Annual Report dated May 31, 2004
-----------------------------------
Dependable, tax-free income because it's not what you earn, it's what you
keep.(R)
[PHOTO]
Nuveen Kansas Municipal Bond Fund
Nuveen Kentucky Municipal Bond Fund
Nuveen Michigan Municipal Bond Fund
Nuveen Missouri Municipal Bond Fund
Nuveen Ohio Municipal Bond Fund
Nuveen Wisconsin 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
[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."
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 Managers' Comments and Fund Spotlight sections of this report.
With interest rates near 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 helping to lower Fund expenses. 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
July 15, 2004
Annual Report Page 1
Portfolio Managers' Comments
Portfolio managers Scott Romans and Dan Solender examine economic and market
conditions, key investment strategies, and the performance of the Nuveen
Kansas, Kentucky, Michigan, Missouri, Ohio and Wisconsin Municipal Bond
Funds. Scott, with 4 years of investment experience, assumed primary
management responsibility for the Kansas, Missouri and Wisconsin Funds in
2003. Dan, with 17 years of investment experience, began managing the
Kentucky, Michigan and Ohio Funds in 2003.
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What factors had the greatest influence on the United States economy and the
municipal market during the 12-month reporting period ended May 31, 2004?
While interest rates fluctuated over the 12-month period in response to
changing investor perceptions about future economic growth, bond yields
generally remained at comparatively low historical levels. When this reporting
period began, most measures showed that the U.S. economic growth rate was still
relatively sluggish. A growing amount of data, however, suggested that
conditions were likely to improve later in 2003. Indeed, during the third
quarter of last year, the U.S. gross domestic product grew at an annualized
rate of 8.2 percent, more than double the second quarter's performance and the
fastest annualized quarterly growth rate in nearly 20 years. Although this
rapid pace was not considered sustainable, the economy continued to turn in
steady performance for the rest of the 12-month reporting period, expanding by
an annualized 4.1 percent in the fourth quarter of 2003 and an annualized 3.9
percent in the first three months of 2004.
Continued low interest rates were a major reason for the strong pace of
economic growth. When the reporting period began, short-term rates were at
their lowest levels in more than four decades. In June 2003, the Federal
Reserve Board cut short-term rates even further, providing a very favorable
backdrop for the fixed-income markets. Conditions for bonds were especially
positive in the immediate aftermath of this rate cut, with long-term yields
generally falling and prices rising accordingly (bond yields and prices move in
opposite directions). In particular, as investors became more confident in the
sustainability of the economic recovery, many looked to higher-yielding bonds
because of the income they provided against a backdrop of historically low
interest rates.
In July and August 2003, amid growing evidence of economic recovery, fears of
inflation and rising interest rates led to a period of rapidly rising bond
yields. However, this spike in yields turned out to be short lived, as
surprisingly weak employment data suggested the economy was still vulnerable
and a significant increase in the rate of inflation failed to materialize. In
September 2003, bond yields started a generally steady decline that lasted
until March 2004. In the last months of this reporting period, as unmistakable
signs of rising prices surfaced, investors became convinced that a near-term
hike in short term rates was coming from the Fed and sent long-term bond yields
to their highest levels of the 12-month period.
For the first several months of this reporting period, new municipal bond
supply was substantial, as issuers took advantage of historically low rates to
refinance debt. Beginning in the summer of 2003, however, less attractive
yields led to a decline in municipal issuance. This decline persisted into the
first five months of 2004, during which the supply of new bonds was $148
billion nationwide, a 6 percent decline compared to the same time period in
2003. Despite this national decrease, of the six funds profiled in this report,
only Michigan experienced a drop in issuance, with its supply falling more than
31 percent compared
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The views expressed reflect those of the portfolio managers and are subject to
change at any time, based on market and other conditions.
Annual Report Page 2
Class A Shares--
Average Annual Total Returns on NAV as of 5/31/04
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1-Year 5-Year 10-Year
-----------------------
Nuveen Kansas Municipal Bond
Fund -1.02% 4.35% 5.53%
Lipper Kansas Municipal Debt
Funds category average/1/ -0.20% 4.01% 4.88%
Lehman Brothers Municipal Bond
Index/2/ -0.04% 5.49% 6.33%
----------------------------------------------------------
Nuveen Kentucky Municipal Bond
Fund 0.90% 4.53% 5.64%
Lipper Kentucky Municipal Debt
Funds category average/1/ -0.14% 3.94% 5.28%
Lehman Brothers Municipal Bond
Index/2/ -0.04% 5.49% 6.33%
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Nuveen Michigan Municipal Bond
Fund -0.27% 4.72% 5.64%
Lipper Michigan Municipal Debt
Funds category average/1/ -1.20% 4.36% 5.49%
Lehman Brothers Municipal Bond
Index/2/ -0.04% 5.49% 6.33%
----------------------------------------------------------
Nuveen Missouri Municipal Bond
Fund -0.28% 4.45% 5.53%
Lipper Missouri Municipal Debt
Funds category average/1/ -1.09% 4.39% 5.41%
Lehman Brothers Municipal Bond
Index/2/ -0.04% 5.49% 6.33%
----------------------------------------------------------
Nuveen Ohio Municipal Bond Fund -0.62% 4.34% 5.32%
Lipper Ohio Municipal Debt Funds
category average/1/ -1.09% 4.24% 5.33%
Lehman Brothers Municipal Bond
Index/2/ -0.04% 5.49% 6.33%
----------------------------------------------------------
Since
1-Year 5-Year Inception
-----------------------
Nuveen Wisconsin Municipal Bond
Fund -0.33% 4.43% 5.40%
Lipper Other States Municipal Debt
Funds category average/1/ -0.55% 4.09% 5.07%
Lehman Brothers Municipal Bond
Index/2/ -0.04% 5.49% 6.33%
----------------------------------------------------------
Performance quoted represents past performance which is no guarantee of future
results. Current performance may be lower or higher than the performance shown.
Total Returns at NAV do not reflect the imposition of the maximum sales charge
which would reduce returns.
with the first five months of 2003. Issuance of Missouri municipal debt
remained essentially unchanged period over period, while Kansas, Kentucky, Ohio
and Wisconsin, saw their new bond supply increase 142 percent, 17 percent, 16
percent, and 72 percent, respectively, when comparing January through May 2004
with the first five months of 2003.
How did the Funds perform during the 12 months ended May 31, 2004?
The accompanying chart provides performance information for the six Nuveen
Investments Funds discussed in this report (Class A shares at net asset value)
for the 12 months ending May 31, 2004 as well as other historical periods. The
chart also compares the Funds' performance to the national Lehman Brothers
Municipal Bond Index and to their respective state specific Lipper peer fund
category average. The reasons for each Fund's variance from the national Lehman
Brothers Index and corresponding state-specific Lipper fund category are
discussed later in the report. While we believe that comparing the performance
of a state Fund with that of a national municipal index may offer some insights
into how the Fund performed relative to the general municipal market, we also
think that closely comparing the results of state funds with a national average
is difficult since most of the national index's results come from out-of-state
bonds.
Each Fund seeks to pay dividends at a rate that reflects the past and projected
performance of the Fund. To permit a Fund to maintain a more stable monthly
dividend, the Fund may pay dividends at a rate that may be more or less than
the amount of net investment income actually earned by the Fund during the
period. If the Fund has cumulatively earned more than it has paid in dividends,
it will
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1For each state, the Lipper peer group returns shown represent the average
annualized total return for all reporting funds for the periods ended May 31,
2004. The Lipper peer categories contained 11, 10 and 6 funds in the Lipper
Kansas Municipal Debt Funds Category, 17, 16 and 7 funds in the Lipper
Kentucky Municipal Debt Funds Category, 39, 37 and 23 funds in the Lipper
Michigan Municipal Debt Funds Category, 21, 20 and 14 funds in the Lipper
Missouri Municipal Debt Funds Category, 42, 37 and 26 funds in the Lipper Ohio
Municipal Debt Funds Category and 65, 51 and 28 funds in the Lipper Other
States Municipal Debt Funds Category for the respective one-, five- and
ten-year periods ended May 31, 2004. The returns account for the effects of
management fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges.
2The Lehman Brothers Municipal Bond Index is an unmanaged index composed of a
broad range of investment-grade municipal bonds and does not reflect any
initial or ongoing expenses. You cannot invest directly in an index.
Annual Report Page 3
hold the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's net asset value. Conversely, if the Fund has cumulatively
paid in dividends more than it has earned, the excess will constitute a
negative UNII which will likewise be reflected in the Fund's net asset value.
Each Fund will, over time, pay all its net investment income as dividends to
shareholders. As of May 31, 2004, the Nuveen Kansas, Kentucky, Michigan,
Missouri, Ohio and Wisconsin Municipal Bond Funds had negative UNII.
What strategies were used to manage these Funds during the 12 months ended May
31, 2004, and how did these strategies influence performance during the period?
Each Fund's recent performance varied based upon a variety of unique
circumstances. We outline these circumstances below, as well as provide more
information about our management tactics in response to these circumstances.
Kansas
During the past 12 months, the Kansas economy continued to benefit from its
core strengths, namely highly affordable housing and a low cost of doing
business. On the other hand, the state's heavily farm-based economy remained
exposed to volatile weather and fluctuating prices. Kansas' economic health is
heavily tied to that of Sprint and Boeing, two large employers in the state
that have been through tough times. Sprint, the largest employer in Kansas, has
been especially challenged, having to lay off a number of workers in recent
years. Nevertheless, in May 2004 Kansas' unemployment rate fell to 4.7 percent,
below the national average of 5.6 percent. As of the end of the period, Moody's
gave the state a credit rating of Aa1 with a negative outlook, while Standard &
Poor's rated Kansas AA+ with a negative outlook.
The total return of the Nuveen Kansas Municipal Bond Fund underperformed that
of both the Lipper Kansas Municipal Debt Funds category average and the
national Lehman Brothers Municipal Bond Index for the 12-month period ended May
31, 2004. The Fund's Portfolio was hampered somewhat by having a relatively
long duration. This meant that the Fund was more sensitive to changes in
interest rates, an undesirable situation as rates rose significantly over the
period. At the same time, the Fund's total return was helped by security
selection in the healthcare sector. Four of the top contributors to portfolio
results were hospital bonds, including positions in Wichita Via Christi Health,
Colby Health Citizens Medical Center, and Newton Healthcare. Also helping
performance was the recovery of an existing position in Puerto Rico bonds
backed by revenues from American Airlines. These bonds enjoyed a 73% gain in
total return during the period, thanks to increased optimism about the strength
of the airline industry.
During the period the Fund faced calls of approximately $3 million worth of its
holdings in single-family housing bonds issued by Sedgwick and Shawnee
counties. These bonds offered high coupon payments and were prone to
extraordinary redemption activity as homeowners prepaid mortgages in a
continued environment of relatively low mortgage rates. With these and other
available proceeds, we sought when possible to buy insured premium-coupon bonds
offering maturity dates of 15 to 20 years. Given their defensive nature in a
rising rate environment and the flatness of the yield curve beyond 20 years, we
believed that these securities provided better values than longer bonds, which
offered little more income but considerably more interest-rate risk. Also, we
looked to sell some of the Fund's holdings with 25-year or longer maturities;
as we believed these were the most vulnerable to an expected increase in
interest rates. Finally, as lower-rated bonds enjoyed strong performance during
the period, we looked for opportunities to increase the Fund's credit quality
by selling those securities that had become overly concentrated after a period
of strong performance.
Kentucky
Kentucky's economy remained stable and experienced broad-based improvements
across its
Annual Report Page 4
major industries. The state's service sector provided the biggest positive
influence on the state's economic progress, helping offset declines in the
manufacturing sector. In May 2004 the state's unemployment rate fell to 5.4
percent, slightly below the national average. Kentucky's budget for the 2004
fiscal year, adopted several months before the end of the reporting period, was
balanced through the use of one-time revenues and financial reserves, closing a
gap of $400 million. The state's proposed 2005-06 budget calls for nearly $15
billion in general fund appropriations, does not resort to tax increases, and
relies less on one-time revenue sources than past budgets did. At period end,
Kentucky had credit ratings of Aa2 with a negative outlook from Moody's and AA-
with a stable outlook from Standard & Poor's.
The total return of the Nuveen Kentucky Municipal Bond Fund, although modest in
absolute terms, outperformed the return of both the Lipper Kentucky Municipal
Debt Funds category average and the national Lehman Brothers Municipal Bond
Index over the reporting period. The Fund benefited from an allocation to
A-rated and BBB-rated bonds, both of which enjoyed favorable relative
performance during the period. Also helping the portfolio's results was a
weighting in industrial development, hospital and higher-education bonds, with
securities issued by Appalachian Regional Healthcare and Clark Regional Medical
Center being the best individual performers during the period. By contrast, the
Fund's worst-performing investments tended to be those with long durations.
Long-duration bonds tend to suffer when interest rates are rising, as was the
case for the period. For example, the Fund's results were hampered by insured
zero-coupon bonds issued by Norton Healthcare and due to mature in 2028.
Portfolio-management activity during the period centered on purchasing
relatively defensive bonds in the long-intermediate area of the yield curve.
These bonds were bought at a premium and generally provided coupon payments of
between 5 and 5.25 percent and had maturity dates from 2019 to 2024, the range
where we believed the most value could be found for our shareholders. We also
looked to sell long-duration bonds with lower coupons because of their
vulnerability to the effects of rising interest rates.
Michigan
Michigan's economy, heavily dependent on manufacturing, remained mired in
recession, beset by continued job losses and the weak financial position of
state residents. Particularly hard hit have been Michigan's auto manufacturers
and suppliers, who are vulnerable to an expected decline in vehicle sales. The
state's service industries, along with the biotechnology sector, are expanding,
though not quickly enough to offset the losses elsewhere in the economy.
Michigan's jobless rate, at 6.5 percent in May 2004, remained high compared to
the national average but below its December peak of 6.9 percent. The state's
economic challenges were a major reason for the state's deteriorating fiscal
health. In the 2003 fiscal year, Michigan borrowed $1.3 billion to fund
operations. With another deficit projected for the 2004 fiscal year, the state
issued $1.3 billion worth of short-term debt to cover the shortfall. These were
significant contributing factors to the late-2003 decision of both Moody's and
Standard & Poor's to downgrade Michigan's general obligation debt. At period
end, the state had credit ratings of Aa1 (Moody's) and AA+ (Standard & Poor's).
The total return of the Nuveen Michigan Municipal Bond Fund outperformed that
of the Lipper Michigan Municipal Debt Funds category average, and
underperformed the total return of the national Lehman Brothers Municipal Bond
Index for the 12 month period ended May 31, 2004. The Fund's relatively large
weighting in lower-investment-grade bonds contributed to these relatively solid
results. Several of the Fund's lower-rated holdings performed extremely well
during the period as investors became more confident in issuers' financial
prospects. Also boosting performance was a significant exposure to pre-refunded
securities, which are backed by escrowed
Annual Report Page 5
U.S. government securities. Because such bonds are priced to their near-term
call dates instead of their maturity dates, their durations are relatively
short, a feature that helped results as interest rates rose during the second
half of the period. These pre-refunded bonds occupied over 19 percent of the
portfolio on May 31, 2004. Although this stake was helpful to performance, we
looked to reduce the Fund's large weighting in this sector.
Another strategy we adopted during the period was to reduce our exposure to
certain credits that had grown to represent a larger-than-desired portion of
the Fund's portfolio. This was particularly true of some of our lower-rated
holdings, which benefited as the economy improved and investors became
increasingly comfortable with investment risk. For example, we sold some of our
stake in bonds issued by healthcare issuer Detroit Medical Center. The Fund
owned these securities in past years, holding on through periods of poor price
performance. During the past year these bonds recovered sharply, leading us to
sell a portion of our position to reduce our exposure to these credits and
further diversify the Fund's assets.
Missouri
As of May 31, 2004, Missouri had the highest possible credit ratings from both
Moody's and Standard & Poor's, Aaa and AAA, respectively. These ratings
reflected the state's well-managed fiscal operations and solid financial
reserves. Despite this strength, the state's job-creation potential remained
relatively weak, though employment did finally turn positive following a deep
manufacturing recession. Missouri's financial health continued to benefit from
a relatively diverse economic base, anchored by the wholesale trade,
transportation, communications, utilities, and manufacturing sectors. In fiscal
year 2004, for the third consecutive year, the state's tax collections were
lower than expected. For the 2005 fiscal year, Governor Holden's proposed
budget reduces the state's reliance on one-time revenues and is to be balanced
in part through the use of gaming and cigarette taxes. During the reporting
period, the state's job market endured many challenges, although Missouri's
unemployment rate of 5.1 percent in May 2004 remained below average due in part
to the state's shrinking labor force.
During the past 12 months, the Fund's return outperformed its state-specific
Lipper peer group average and underperformed the national Lehman Brothers
Municipal Bond Index. The Fund's duration was slightly higher than that of the
Lehman Brothers index during the beginning of the period. With interest rates
generally rising over the course of the period, the Fund's performance was hurt
by its long-duration holdings. In particular, its position in zero-coupon bonds
hindered results. Since zero-coupon bonds do not provide regular coupon
payments, they are very sensitive to changes in rates. At the same time, the
Fund benefited from its position in Puerto Rico securities backed by American
Airlines revenues. These bonds were upgraded during the period, and the
increased confidence in the financial position of American Airlines added to
their performance.
Our management approach during the period was to seek to buy insured bonds
trading at a premium and with 15- to 20-year maturity dates. We believed the
flatness of the yield curve beyond the 20-year maturity gave us the opportunity
to obtain nearly as much income as available from longer bonds but without
assuming the additional interest-rate risk. We also sought to sell the Fund's
longest bonds, especially those with maturity dates exceeding 25 years. In an
environment in which further increases in interest rates were expected, we
believed it was prudent to take advantage of attractive retail prices and
moderate the Fund's sensitivity to higher rates in the future. Also, with the
Fund's lower-rated securities benefiting from a favorable market environment,
we looked to sell some of our holdings that enjoyed strong performance, thus
enabling us to improve the Fund's credit quality as well as reduce its
concentration in positions that had grown to larger-than-desired portions of
the portfolio.
Annual Report Page 6
Ohio
Like Michigan, Ohio, having lost more than 200,000 jobs during the past three
years, remained in recession. Despite slowing job losses, Ohio's manufacturing
sector has been particularly hard hit by the economic downturn and shown no
signs of a turnaround. As of May 2004, the state's unemployment rate stood at
5.6 percent, an improvement over the prior year. At the end of the reporting
period, Ohio's general obligation debt maintained a credit rating of Aa1 with a
negative outlook from Moody's and an AA+ rating with a stable outlook from
Standard & Poor's. Moody's negative outlook reflected continued shortfalls in
tax receipts, substantially depleted financial reserves, and rising budget gaps
expected to persist in the 2005 fiscal year.
The total return of the Nuveen Ohio Municipal Bond Fund outperformed its
state-specific Lipper peer group average and underperformed the national Lehman
Brothers Municipal Bond Index for the one year period ended May 31, 2004. The
Fund was helped by its allocation to bonds rated BBB, the lowest
investment-grade credit rating. At the end of the period, 6 percent of the
Fund's portfolio were in BBB-rated securities. The Fund especially benefited
from holdings in the hospital and industrial development sectors, with
positions in Kettering Medical Center and Dayton Special Facilities issued for
Emery Air Freight among the best performers. On the negative side, the Fund's
slightly longer-than-average duration compared to the Lehman Brothers Municipal
Bond Index had a negative impact on results. Having a longer duration during an
environment of rising market interest rates, as was the case for much of the
period, is generally bad for bonds.
During the past 12 months, our management focus emphasized the purchase of
defensive bonds in the intermediate range of the yield curve. We believed that
bonds with these maturity characteristics offered our shareholders the best
relative value. In addition, we looked to reduce the Fund's weighting in
certain bonds that performed well during the period and grew to occupy too
large a portion of the portfolio, in our opinion. For example, we selectively
sold some of our holdings in bonds backed by tobacco company revenues, as well
as in bonds issued for Emery Air Freight, Bayshore Power, and Dayton Power and
Light.
Wisconsin
Wisconsin's economy enjoyed a promising rebound early in 2004, only to slow
somewhat as increases in industrial production and exporting activity failed to
translate into increased hiring. During the past four years, Wisconsin lost
approximately 88,000 high-paying manufacturing jobs that are unlikely to
return; these job losses are expected to continue to weigh on the state's
economy. Wisconsin's May 2004 unemployment rate of 5.1 percent remained
historically high but below the national average. The state's fiscal health was
relatively weak, as the state closed its budget deficit of more than $3 billion
through spending cuts, increased gaming revenues, and the substantial use of
non-recurring revenues. Wisconsin's well-managed debt position will increase
significantly, however, as the state issues bonds to eliminate pension
liabilities. At the end of the period, the state's general obligation bonds
were rated Aa3 with a negative outlook by Moody's and AA- with a stable outlook
by Standard & Poor's.
The total return of the Nuveen Wisconsin Municipal Bond Fund outperformed its
state-specific Lipper peer group average and underperformed the national Lehman
Brothers Municipal Bond Index for the 12 months ended May 31, 2004. Although
new municipal issuance in Wisconsin was up sharply during the period compared
to the prior year, it remained difficult to find fully tax-free municipal bonds
in the state, an ongoing challenge faced by any manager of a Wisconsin
municipal bond fund. Our primary management focus was to keep the Fund fully
invested, a goal we met in part by owning securities issued by Puerto Rico and
other United States territories, which are tax-exempt in all 50 states. Another
goal during the period was to reduce the Fund's holdings in territorial paper,
which we were
Annual Report Page 7
able to do by adding bonds issued for the Milwaukee Public Schools and
displaying the structural characteristics we were seeking for the fund.
Annual Report Page 8
[CHART]
Nuveen Kansas Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Nuveen
Kansas Kansas Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer Price) Bond Index
--------------- --------------- ---------------
5/31/94 $10,000 $ 9,580 $10,000
6/30/94 9,894 9,478 9,938
7/31/94 10,127 9,701 10,121
8/31/94 10,144 9,718 10,156
9/30/94 9,933 9,516 10,007
10/31/94 9,722 9,314 9,829
11/30/94 9,488 9,089 9,651
12/31/94 9,777 9,367 9,864
1/31/95 10,111 9,686 10,145
2/28/95 10,399 9,962 10,440
3/31/95 10,458 10,019 10,560
4/30/95 10,463 10,024 10,573
5/31/95 10,780 10,328 10,910
6/30/95 10,667 10,219 10,815
7/31/95 10,739 10,288 10,917
8/31/95 10,865 10,409 11,056
9/30/95 10,914 10,456 11,126
10/31/95 11,129 10,662 11,288
11/30/95 11,355 10,878 11,475
12/31/95 11,506 11,023 11,585
1/31/96 11,525 11,041 11,673
2/29/96 11,383 10,905 11,594
3/31/96 11,164 10,695 11,446
4/30/96 11,123 10,656 11,413
5/31/96 11,173 10,704 11,409
6/30/96 11,325 10,849 11,533
7/31/96 11,421 10,942 11,638
8/31/96 11,416 10,936 11,635
9/30/96 11,614 11,126 11,797
10/31/96 11,723 11,231 11,931
11/30/96 11,924 11,423 12,149
12/31/96 11,894 11,394 12,098
1/31/97 11,888 11,389 12,121
2/28/97 11,999 11,495 12,232
3/31/97 11,873 11,374 12,069
4/30/97 12,008 11,504 12,170
5/31/97 12,203 11,690 12,353
6/30/97 12,303 11,786 12,485
7/31/97 12,668 12,136 12,831
8/31/97 12,527 12,001 12,710
9/30/97 12,665 12,133 12,861
10/31/97 12,766 12,230 12,944
11/30/97 12,844 12,305 13,020
12/31/97 13,045 12,497 13,210
1/31/98 13,173 12,619 13,346
2/28/98 13,153 12,600 13,350
3/31/98 13,207 12,652 13,362
4/30/98 13,112 12,561 13,302
5/31/98 13,341 12,781 13,512
6/30/98 13,396 12,833 13,566
7/31/98 13,439 12,874 13,600
8/31/98 13,646 13,072 13,810
9/30/98 13,815 13,235 13,982
10/31/98 13,780 13,201 13,982
11/30/98 13,835 13,254 14,031
12/31/98 13,852 13,270 14,066
1/31/99 13,985 13,398 14,233
2/28/99 13,923 13,339 14,171
3/31/99 13,914 13,329 14,191
4/30/99 13,968 13,381 14,226
5/31/99 13,851 13,269 14,144
6/30/99 13,614 13,042 13,940
7/31/99 13,615 13,043 13,991
8/31/99 13,416 12,853 13,879
9/30/99 13,337 12,777 13,885
10/31/99 13,097 12,547 13,734
11/30/99 13,206 12,651 13,880
12/31/99 13,045 12,497 13,777
1/31/00 12,897 12,355 13,717
2/29/00 13,103 12,552 13,876
3/31/00 13,460 12,895 14,179
4/30/00 13,352 12,791 14,095
5/31/00 13,242 12,686 14,022
6/30/00 13,591 13,020 14,394
7/31/00 13,817 13,237 14,594
8/31/00 14,030 13,441 14,819
9/30/00 13,964 13,377 14,742
10/31/00 14,094 13,502 14,903
11/30/00 14,168 13,573 15,015
12/31/00 14,528 13,918 15,386
1/31/01 14,631 14,017 15,539
2/28/01 14,721 14,103 15,588
3/31/01 14,840 14,217 15,728
4/30/01 14,670 14,054 15,557
5/31/01 14,834 14,211 15,725
6/30/01 14,941 14,313 15,830
7/31/01 15,150 14,514 16,065
8/31/01 15,405 14,758 16,329
9/30/01 15,306 14,663 16,275
10/31/01 15,474 14,824 16,468
11/30/01 15,359 14,714 16,330
12/31/01 15,244 14,603 16,175
1/31/02 15,443 14,795 16,456
2/28/02 15,644 14,987 16,654
3/31/02 15,346 14,701 16,328
4/30/02 15,639 14,982 16,647
5/31/02 15,733 15,073 16,748
6/30/02 15,905 15,237 16,925
7/31/02 16,092 15,416 17,143
8/31/02 16,280 15,596 17,349
9/30/02 16,671 15,970 17,729
10/31/02 16,236 15,554 17,435
11/30/02 16,189 15,509 17,363
12/31/02 16,581 15,885 17,729
1/31/03 16,422 15,733 17,684
2/28/03 16,691 15,990 17,931
3/31/03 16,690 15,989 17,942
4/30/03 16,896 16,187 18,061
5/31/03 17,312 16,585 18,484
6/30/03 17,198 16,476 18,405
7/31/03 16,520 15,826 17,761
8/31/03 16,633 15,934 17,893
9/30/03 17,087 16,369 18,419
10/31/03 16,972 16,259 18,327
11/30/03 17,165 16,444 18,518
12/31/03 17,309 16,582 18,671
1/31/04 17,404 16,673 18,778
2/29/04 17,747 17,002 19,061
3/31/04 17,610 16,870 18,994
4/30/04 17,139 16,419 18,544
5/31/04 17,135 16,415 18,447
================================================================================
[CHART]
Nuveen Kentucky Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Nuveen
Kentucky Kentucky Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer Price) Bond Index
--------------- --------------- ---------------
5/31/94 $10,000 $ 9,580 $10,000
6/30/94 9,945 9,527 9,938
7/31/94 10,145 9,719 10,121
8/31/94 10,166 9,739 10,156
9/30/94 9,986 9,567 10,007
10/31/94 9,778 9,367 9,829
11/30/94 9,596 9,193 9,651
12/31/94 9,879 9,464 9,864
1/31/95 10,192 9,764 10,145
2/28/95 10,521 10,079 10,440
3/31/95 10,582 10,138 10,560
4/30/95 10,593 10,148 10,573
5/31/95 10,942 10,483 10,910
6/30/95 10,833 10,378 10,815
7/31/95 10,905 10,447 10,917
8/31/95 11,029 10,565 11,056
9/30/95 11,079 10,614 11,126
10/31/95 11,254 10,782 11,288
11/30/95 11,459 10,978 11,475
12/31/95 11,583 11,097 11,585
1/31/96 11,635 11,146 11,673
2/29/96 11,580 11,094 11,594
3/31/96 11,384 10,905 11,446
4/30/96 11,341 10,865 11,413
5/31/96 11,385 10,906 11,409
6/30/96 11,500 11,017 11,533
7/31/96 11,595 11,108 11,638
8/31/96 11,596 11,109 11,635
9/30/96 11,765 11,271 11,797
10/31/96 11,883 11,384 11,931
11/30/96 12,076 11,568 12,149
12/31/96 12,029 11,523 12,098
1/31/97 12,050 11,544 12,121
2/28/97 12,148 11,638 12,232
3/31/97 12,026 11,521 12,069
4/30/97 12,125 11,616 12,170
5/31/97 12,279 11,763 12,353
6/30/97 12,400 11,880 12,485
7/31/97 12,735 12,200 12,831
8/31/97 12,645 12,114 12,710
9/30/97 12,779 12,242 12,861
10/31/97 12,868 12,328 12,944
11/30/97 12,935 12,392 13,020
12/31/97 13,118 12,567 13,210
1/31/98 13,230 12,675 13,346
2/28/98 13,240 12,684 13,350
3/31/98 13,272 12,714 13,362
4/30/98 13,187 12,633 13,302
5/31/98 13,383 12,821 13,512
6/30/98 13,439 12,875 13,566
7/31/98 13,472 12,906 13,600
8/31/98 13,647 13,074 13,810
9/30/98 13,775 13,196 13,982
10/31/98 13,747 13,170 13,982
11/30/98 13,804 13,224 14,031
12/31/98 13,816 13,236 14,066
1/31/99 13,921 13,336 14,233
2/28/99 13,893 13,310 14,171
3/31/99 13,913 13,328 14,191
4/30/99 13,943 13,358 14,226
5/31/99 13,876 13,294 14,144
6/30/99 13,672 13,098 13,940
7/31/99 13,692 13,117 13,991
8/31/99 13,499 12,932 13,879
9/30/99 13,443 12,879 13,885
10/31/99 13,248 12,692 13,734
11/30/99 13,332 12,772 13,880
12/31/99 13,204 12,649 13,777
1/31/00 13,122 12,571 13,717
2/29/00 13,309 12,750 13,876
3/31/00 13,574 13,004 14,179
4/30/00 13,504 12,937 14,095
5/31/00 13,421 12,857 14,022
6/30/00 13,689 13,114 14,394
7/31/00 13,894 13,311 14,594
8/31/00 14,087 13,495 14,819
9/30/00 14,042 13,453 14,742
10/31/00 14,157 13,563 14,903
11/30/00 14,232 13,635 15,015
12/31/00 14,536 13,925 15,386
1/31/01 14,625 14,011 15,539
2/28/01 14,700 14,082 15,588
3/31/01 14,816 14,193 15,728
4/30/01 14,687 14,070 15,557
5/31/01 14,817 14,195 15,725
6/30/01 14,935 14,307 15,830
7/31/01 15,149 14,513 16,065
8/31/01 15,392 14,745 16,329
9/30/01 15,274 14,633 16,275
10/31/01 15,449 14,800 16,468
11/30/01 15,357 14,712 16,330
12/31/01 15,237 14,597 16,175
1/31/02 15,427 14,779 16,456
2/28/02 15,632 14,975 16,654
3/31/02 15,382 14,736 16,328
4/30/02 15,617 14,961 16,647
5/31/02 15,738 15,077 16,748
6/30/02 15,875 15,208 16,925
7/31/02 16,026 15,353 17,143
8/31/02 16,177 15,498 17,349
9/30/02 16,461 15,770 17,729
10/31/02 16,175 15,496 17,435
11/30/02 16,182 15,502 17,363
12/31/02 16,495 15,803 17,729
1/31/03 16,428 15,738 17,684
2/28/03 16,688 15,987 17,931
3/31/03 16,635 15,936 17,942
4/30/03 16,791 16,086 18,061
5/31/03 17,160 16,439 18,484
6/30/03 17,152 16,431 18,405
7/31/03 16,566 15,870 17,761
8/31/03 16,695 15,994 17,893
9/30/03 17,131 16,411 18,419
10/31/03 17,091 16,374 18,327
11/30/03 17,312 16,585 18,518
12/31/03 17,471 16,737 18,671
1/31/04 17,553 16,816 18,778
2/29/04 17,839 17,089 19,061
3/31/04 17,764 17,018 18,994
4/30/04 17,373 16,643 18,544
5/31/04 17,314 16,587 18,447
The graphs do not reflect the deduction of taxes, such as state and local
income taxes or capital gains taxes, that a shareholder may pay on Fund
distributions or the redemption of shares.
The index comparisons show the change in value of a $10,000 investment in the
Class A shares of the Nuveen Funds compared with the Lehman Brothers Municipal
Bond Index. The Lehman Brothers Municipal Bond Index is an unmanaged index
composed of a broad range of investment-grade municipal bonds. The index does
not reflect any initial or ongoing expenses. You cannot invest directly in an
index. The Nuveen Funds' returns include reinvestment of all dividends and
distributions, and the Funds' returns at the offer price depicted in the charts
reflect the initial maximum sales charge applicable to A shares (4.20%) and all
ongoing Fund expenses. The performance data quoted represents past performance,
which is not indicative of future results. Current performance may be lower or
higher than the performance shown.
Annual Report Page 9
[CHART]
Nuveen Michigan Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Nuveen
Michigan Michigan Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer Price) Bond Index
--------------- --------------- ---------------
5/31/94 $10,000 $ 9,580 $10,000
6/30/94 9,959 9,541 9,938
7/31/94 10,141 9,715 10,121
8/31/94 10,154 9,728 10,156
9/30/94 10,022 9,601 10,007
10/31/94 9,828 9,415 9,829
11/30/94 9,668 9,262 9,651
12/31/94 9,909 9,492 9,864
1/31/95 10,197 9,769 10,145
2/28/95 10,463 10,024 10,440
3/31/95 10,513 10,072 10,560
4/30/95 10,525 10,083 10,573
5/31/95 10,855 10,399 10,910
6/30/95 10,727 10,277 10,815
7/31/95 10,798 10,344 10,917
8/31/95 10,916 10,457 11,056
9/30/95 10,986 10,524 11,126
10/31/95 11,162 10,694 11,288
11/30/95 11,377 10,899 11,475
12/31/95 11,525 11,041 11,585
1/31/96 11,566 11,080 11,673
2/29/96 11,489 11,006 11,594
3/31/96 11,286 10,812 11,446
4/30/96 11,228 10,756 11,413
5/31/96 11,249 10,777 11,409
6/30/96 11,368 10,891 11,533
7/31/96 11,480 10,998 11,638
8/31/96 11,492 11,010 11,635
9/30/96 11,673 11,183 11,797
10/31/96 11,795 11,300 11,931
11/30/96 11,998 11,494 12,149
12/31/96 11,960 11,457 12,098
1/31/97 11,966 11,463 12,121
2/28/97 12,070 11,563 12,232
3/31/97 11,917 11,416 12,069
4/30/97 12,021 11,517 12,170
5/31/97 12,199 11,687 12,353
6/30/97 12,326 11,809 12,485
7/31/97 12,684 12,151 12,831
8/31/97 12,538 12,011 12,710
9/30/97 12,676 12,143 12,861
10/31/97 12,784 12,247 12,944
11/30/97 12,849 12,309 13,020
12/31/97 13,030 12,483 13,210
1/31/98 13,138 12,586 13,346
2/28/98 13,149 12,596 13,350
3/31/98 13,171 12,618 13,362
4/30/98 13,095 12,545 13,302
5/31/98 13,292 12,734 13,512
6/30/98 13,347 12,786 13,566
7/31/98 13,369 12,808 13,600
8/31/98 13,558 12,988 13,810
9/30/98 13,725 13,148 13,982
10/31/98 13,703 13,127 13,982
11/30/98 13,748 13,171 14,031
12/31/98 13,766 13,188 14,066
1/31/99 13,868 13,285 14,233
2/28/99 13,800 13,220 14,171
3/31/99 13,811 13,231 14,191
4/30/99 13,844 13,262 14,226
5/31/99 13,750 13,172 14,144
6/30/99 13,563 12,993 13,940
7/31/99 13,574 13,004 13,991
8/31/99 13,385 12,823 13,879
9/30/99 13,349 12,788 13,885
10/31/99 13,146 12,594 13,734
11/30/99 13,227 12,672 13,880
12/31/99 13,071 12,522 13,777
1/31/00 12,926 12,383 13,717
2/29/00 13,128 12,577 13,876
3/31/00 13,429 12,865 14,179
4/30/00 13,328 12,768 14,095
5/31/00 13,227 12,671 14,022
6/30/00 13,568 12,998 14,394
7/31/00 13,775 13,197 14,594
8/31/00 13,983 13,396 14,819
9/30/00 13,892 13,309 14,742
10/31/00 14,027 13,438 14,903
11/30/00 14,062 13,471 15,015
12/31/00 14,425 13,819 15,386
1/31/01 14,497 13,888 15,539
2/28/01 14,596 13,983 15,588
3/31/01 14,733 14,114 15,728
4/30/01 14,550 13,939 15,557
5/31/01 14,741 14,122 15,725
6/30/01 14,907 14,281 15,830
7/31/01 15,138 14,502 16,065
8/31/01 15,423 14,775 16,329
9/30/01 15,367 14,722 16,275
10/31/01 15,588 14,934 16,468
11/30/01 15,452 14,803 16,330
12/31/01 15,269 14,628 16,175
1/31/02 15,518 14,867 16,456
2/28/02 15,728 15,068 16,654
3/31/02 15,374 14,728 16,328
4/30/02 15,652 14,995 16,647
5/31/02 15,729 15,069 16,748
6/30/02 15,915 15,247 16,925
7/31/02 16,102 15,426 17,143
8/31/02 16,316 15,631 17,349
9/30/02 16,698 15,996 17,729
10/31/02 16,375 15,687 17,435
11/30/02 16,342 15,656 17,363
12/31/02 16,710 16,008 17,729
1/31/03 16,635 15,937 17,684
2/28/03 16,912 16,201 17,931
3/31/03 16,850 16,143 17,942
4/30/03 17,029 16,314 18,061
5/31/03 17,366 16,637 18,484
6/30/03 17,232 16,509 18,405
7/31/03 16,611 15,913 17,761
8/31/03 16,764 16,060 17,893
9/30/03 17,164 16,443 18,419
10/31/03 17,101 16,383 18,327
11/30/03 17,298 16,572 18,518
12/31/03 17,375 16,645 18,671
1/31/04 17,472 16,738 18,778
2/29/04 17,823 17,074 19,061
3/31/04 17,771 17,025 18,994
4/30/04 17,359 16,630 18,544
5/31/04 17,319 16,592 18,477
================================================================================
[CHART]
Nuveen Missouri Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Nuveen
Missouri Missouri Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer Price) Bond Index
--------------- --------------- ---------------
5/31/94 $10,000 $ 9,580 $10,000
6/30/94 9,943 9,525 9,938
7/31/94 10,116 9,691 10,121
8/31/94 10,127 9,702 10,156
9/30/94 9,962 9,544 10,007
10/31/94 9,779 9,368 9,829
11/30/94 9,593 9,190 9,651
12/31/94 9,829 9,416 9,864
1/31/95 10,126 9,701 10,145
2/28/95 10,409 9,972 10,440
3/31/95 10,479 10,039 10,560
4/30/95 10,487 10,047 10,573
5/31/95 10,819 10,364 10,910
6/30/95 10,697 10,247 10,815
7/31/95 10,758 10,306 10,917
8/31/95 10,880 10,423 11,056
9/30/95 10,961 10,500 11,126
10/31/95 11,125 10,658 11,288
11/30/95 11,310 10,835 11,475
12/31/95 11,433 10,953 11,585
1/31/96 11,495 11,012 11,673
2/29/96 11,427 10,947 11,594
3/31/96 11,205 10,735 11,446
4/30/96 11,148 10,680 11,413
5/31/96 11,198 10,728 11,409
6/30/96 11,311 10,836 11,533
7/31/96 11,405 10,926 11,638
8/31/96 11,425 10,945 11,635
9/30/96 11,593 11,106 11,797
10/31/96 11,709 11,217 11,931
11/30/96 11,922 11,421 12,149
12/31/96 11,875 11,376 12,098
1/31/97 11,873 11,374 12,121
2/28/97 11,990 11,487 12,232
3/31/97 11,854 11,356 12,069
4/30/97 11,962 11,459 12,170
5/31/97 12,125 11,616 12,353
6/30/97 12,256 11,742 12,485
7/31/97 12,613 12,083 12,831
8/31/97 12,484 11,960 12,710
9/30/97 12,628 12,098 12,861
10/31/97 12,715 12,181 12,944
11/30/97 12,791 12,254 13,020
12/31/97 12,984 12,439 13,210
1/31/98 13,096 12,546 13,346
2/28/98 13,092 12,542 13,350
3/31/98 13,124 12,572 13,362
4/30/98 13,061 12,512 13,302
5/31/98 13,255 12,699 13,512
6/30/98 13,310 12,751 13,566
7/31/98 13,340 12,780 13,600
8/31/98 13,538 12,969 13,810
9/30/98 13,688 13,113 13,982
10/31/98 13,659 13,085 13,982
11/30/98 13,715 13,139 14,031
12/31/98 13,734 13,158 14,066
1/31/99 13,850 13,268 14,233
2/28/99 13,808 13,228 14,171
3/31/99 13,803 13,223 14,191
4/30/99 13,859 13,277 14,226
5/31/99 13,780 13,202 14,144
6/30/99 13,589 13,018 13,940
7/31/99 13,608 13,036 13,991
8/31/99 13,439 12,875 13,879
9/30/99 13,396 12,833 13,885
10/31/99 13,176 12,623 13,734
11/30/99 13,246 12,690 13,880
12/31/99 13,138 12,586 13,777
1/31/00 13,017 12,470 13,717
2/29/00 13,178 12,624 13,876
3/31/00 13,430 12,866 14,179
4/30/00 13,385 12,823 14,095
5/31/00 13,301 12,742 14,022
6/30/00 13,583 13,012 14,394
7/31/00 13,775 13,197 14,594
8/31/00 13,956 13,370 14,819
9/30/00 13,899 13,315 14,742
10/31/00 14,041 13,452 14,903
11/30/00 14,131 13,537 15,015
12/31/00 14,449 13,842 15,386
1/31/01 14,539 13,928 15,539
2/28/01 14,616 14,002 15,588
3/31/01 14,735 14,116 15,728
4/30/01 14,594 13,981 15,557
5/31/01 14,754 14,135 15,725
6/30/01 14,860 14,236 15,830
7/31/01 15,064 14,431 16,065
8/31/01 15,365 14,720 16,329
9/30/01 15,291 14,649 16,275
10/31/01 15,455 14,806 16,468
11/30/01 15,350 14,705 16,330
12/31/01 15,231 14,591 16,175
1/31/02 15,423 14,775 16,456
2/28/02 15,602 14,947 16,654
3/31/02 15,338 14,694 16,328
4/30/02 15,576 14,922 16,647
5/31/02 15,669 15,011 16,748
6/30/02 15,821 15,156 16,925
7/31/02 15,987 15,316 17,143
8/31/02 16,169 15,490 17,349
9/30/02 16,454 15,763 17,729
10/31/02 16,137 15,459 17,435
11/30/02 16,098 15,422 17,363
12/31/02 16,445 15,754 17,729
1/31/03 16,361 15,673 17,684
2/28/03 16,605 15,908 17,931
3/31/03 16,610 15,913 17,942
4/30/03 16,827 16,120 18,061
5/31/03 17,178 16,456 18,484
6/30/03 17,073 16,356 18,405
7/31/03 16,404 15,715 17,761
8/31/03 16,575 15,879 17,893
9/30/03 17,023 16,308 18,419
10/31/03 16,980 16,266 18,327
11/30/03 17,181 16,460 18,518
12/31/03 17,306 16,579 18,671
1/31/04 17,399 16,668 18,778
2/29/04 17,712 16,969 19,061
3/31/04 17,634 16,893 18,994
4/30/04 17,208 16,485 18,544
5/31/04 17,129 16,410 18,477
The graphs do not reflect the deduction of taxes, such as state and local
income taxes or capital gains taxes, that a shareholder may pay on Fund
distributions or the redemption of shares.
The index comparisons show the change in value of a $10,000 investment in the
Class A shares of the Nuveen Funds compared with the Lehman Brothers Municipal
Bond Index. The Lehman Brothers Municipal Bond Index is an unmanaged index
composed of a broad range of investment-grade municipal bonds. The index does
not reflect any initial or ongoing expenses. You cannot invest directly in an
index. The Nuveen Funds' returns include reinvestment of all dividends and
distributions, and the Funds' returns at the offer price depicted in the charts
reflect the initial maximum sales charge applicable to A shares (4.20%) and all
ongoing Fund expenses. The performance data quoted represents past performance,
which is not indicative of future results. Current performance may be lower or
higher than the performance shown.
Annual Report Page 10
[CHART]
Nuveen Ohio Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Nuveen
Ohio Ohio Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer Price) Bond Index
--------------- --------------- ---------------
5/31/94 $10,000 $ 9,580 $10,000
6/30/94 9,957 9,539 9,938
7/31/94 10,122 9,697 10,121
8/31/94 10,134 9,709 10,156
9/30/94 9,982 9,563 10,007
10/31/94 9,823 9,410 9,829
11/30/94 9,697 9,290 9,651
12/31/94 9,894 9,478 9,864
1/31/95 10,147 9,721 10,145
2/28/95 10,406 9,969 10,440
3/31/95 10,493 10,053 10,560
4/30/95 10,495 10,055 10,573
5/31/95 10,800 10,346 10,910
6/30/95 10,698 10,249 10,815
7/31/95 10,769 10,317 10,917
8/31/95 10,887 10,430 11,056
9/30/95 10,947 10,487 11,126
10/31/95 11,115 10,648 11,288
11/30/95 11,310 10,835 11,475
12/31/95 11,429 10,949 11,585
1/31/96 11,461 10,980 11,673
2/29/96 11,382 10,904 11,594
3/31/96 11,207 10,736 11,446
4/30/96 11,157 10,689 11,413
5/31/96 11,189 10,719 11,409
6/30/96 11,308 10,833 11,533
7/31/96 11,410 10,931 11,638
8/31/96 11,402 10,923 11,635
9/30/96 11,554 11,068 11,797
10/31/96 11,667 11,177 11,931
11/30/96 11,850 11,352 12,149
12/31/96 11,811 11,315 12,098
1/31/97 11,813 11,317 12,121
2/28/97 11,917 11,417 12,232
3/31/97 11,773 11,279 12,069
4/30/97 11,857 11,359 12,170
5/31/97 12,014 11,510 12,353
6/30/97 12,131 11,621 12,485
7/31/97 12,438 11,915 12,831
8/31/97 12,321 11,803 12,710
9/30/97 12,449 11,926 12,861
10/31/97 12,535 12,009 12,944
11/30/97 12,600 12,071 13,020
12/31/97 12,785 12,248 13,210
1/31/98 12,915 12,372 13,346
2/28/98 12,913 12,371 13,350
3/31/98 12,946 12,402 13,362
4/30/98 12,867 12,326 13,302
5/31/98 13,065 12,516 13,512
6/30/98 13,108 12,557 13,566
7/31/98 13,141 12,589 13,600
8/31/98 13,307 12,749 13,810
9/30/98 13,465 12,899 13,982
10/31/98 13,451 12,886 13,982
11/30/98 13,506 12,939 14,031
12/31/98 13,521 12,953 14,066
1/31/99 13,645 13,072 14,233
2/28/99 13,598 13,027 14,171
3/31/99 13,607 13,036 14,191
4/30/99 13,652 13,079 14,226
5/31/99 13,580 13,009 14,144
6/30/99 13,413 12,849 13,940
7/31/99 13,410 12,847 13,991
8/31/99 13,241 12,685 13,879
9/30/99 13,179 12,625 13,885
10/31/99 12,984 12,438 13,734
11/30/99 13,076 12,527 13,880
12/31/99 12,947 12,403 13,777
1/31/00 12,882 12,341 13,717
2/29/00 13,049 12,501 13,876
3/31/00 13,302 12,743 14,179
4/30/00 13,237 12,681 14,095
5/31/00 13,147 12,594 14,022
6/30/00 13,452 12,887 14,394
7/31/00 13,648 13,075 14,594
8/31/00 13,845 13,263 14,819
9/30/00 13,791 13,212 14,742
10/31/00 13,889 13,306 14,903
11/30/00 13,975 13,388 15,015
12/31/00 14,290 13,690 15,386
1/31/01 14,377 13,773 15,539
2/28/01 14,413 13,807 15,588
3/31/01 14,526 13,916 15,728
4/30/01 14,368 13,765 15,557
5/31/01 14,468 13,860 15,725
6/30/01 14,580 13,968 15,830
7/31/01 14,798 14,177 16,065
8/31/01 15,017 14,387 16,329
9/30/01 14,907 14,281 16,275
10/31/01 15,074 14,441 16,468
11/30/01 14,975 14,346 16,330
12/31/01 14,835 14,211 16,175
1/31/02 15,056 14,423 16,456
2/28/02 15,238 14,598 16,654
3/31/02 14,933 14,306 16,328
4/30/02 15,171 14,534 16,647
5/31/02 15,273 14,632 16,748
6/30/02 15,417 14,769 16,925
7/31/02 15,616 14,960 17,143
8/31/02 15,802 15,138 17,349
9/30/02 16,169 15,490 17,729
10/31/02 15,815 15,151 17,435
11/30/02 15,766 15,104 17,363
12/31/02 16,138 15,460 17,729
1/31/03 16,046 15,372 17,684
2/28/03 16,322 15,636 17,931
3/31/03 16,315 15,629 17,942
4/30/03 16,478 15,786 18,061
5/31/03 16,900 16,190 18,484
6/30/03 16,792 16,087 18,405
7/31/03 16,108 15,431 17,761
8/31/03 16,245 15,563 17,893
9/30/03 16,717 16,015 18,419
10/31/03 16,666 15,966 18,327
11/30/03 16,908 16,198 18,518
12/31/03 17,048 16,332 18,671
1/31/04 17,099 16,381 18,778
2/29/04 17,433 16,700 19,061
3/31/04 17,336 16,608 18,994
4/30/04 16,866 16,158 18,544
5/31/04 16,796 16,090 18,477
================================================================================
[CHART]
Nuveen Wisconsin Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Nuveen
Wisconsin Wisconsin Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer Price) Bond Index
--------------- --------------- ---------------
5/31/94 $10,000 $ 9,580 $10,000
6/30/94 9,979 9,560 9,938
7/31/94 10,170 9,742 10,121
8/31/94 10,194 9,766 10,156
9/30/94 9,975 9,556 10,007
10/31/94 9,787 9,376 9,829
11/30/94 9,512 9,113 9,651
12/31/94 9,729 9,321 9,864
1/31/95 10,001 9,581 10,145
2/28/95 10,312 9,879 10,440
3/31/95 10,368 9,933 10,560
4/30/95 10,381 9,945 10,573
5/31/95 10,734 10,283 10,910
6/30/95 10,582 10,138 10,815
7/31/95 10,706 10,257 10,917
8/31/95 10,820 10,365 11,056
9/30/95 10,888 10,431 11,126
10/31/95 11,059 10,594 11,288
11/30/95 11,240 10,768 11,475
12/31/95 11,401 10,922 11,585
1/31/96 11,427 10,947 11,673
2/29/96 11,337 10,861 11,594
3/31/96 11,101 10,635 11,446
4/30/96 11,057 10,592 11,413
5/31/96 11,094 10,628 11,409
6/30/96 11,200 10,729 11,533
7/31/96 11,296 10,821 11,638
8/31/96 11,276 10,802 11,635
9/30/96 11,429 10,949 11,797
10/31/96 11,550 11,065 11,931
11/30/96 11,729 11,236 12,149
12/31/96 11,685 11,194 12,098
1/31/97 11,688 11,197 12,121
2/28/97 11,786 11,291 12,232
3/31/97 11,645 11,156 12,069
4/30/97 11,744 11,251 12,170
5/31/97 11,915 11,415 12,353
6/30/97 12,015 11,511 12,485
7/31/97 12,408 11,887 12,831
8/31/97 12,239 11,725 12,710
9/30/97 12,402 11,881 12,861
10/31/97 12,504 11,979 12,944
11/30/97 12,581 12,053 13,020
12/31/97 12,784 12,247 13,210
1/31/98 12,948 12,404 13,346
2/28/98 12,949 12,405 13,350
3/31/98 12,975 12,430 13,362
4/30/98 12,875 12,334 13,302
5/31/98 13,131 12,580 13,512
6/30/98 13,171 12,617 13,566
7/31/98 13,196 12,641 13,600
8/31/98 13,415 12,851 13,810
9/30/98 13,621 13,049 13,982
10/31/98 13,569 13,000 13,982
11/30/98 13,621 13,049 14,031
12/31/98 13,621 13,049 14,066
1/31/99 13,749 13,172 14,233
2/28/99 13,694 13,119 14,171
3/31/99 13,705 13,129 14,191
4/30/99 13,742 13,165 14,226
5/31/99 13,633 13,061 14,144
6/30/99 13,377 12,815 13,940
7/31/99 13,361 12,800 13,991
8/31/99 13,127 12,576 13,879
9/30/99 13,028 12,480 13,885
10/31/99 12,738 12,203 13,734
11/30/99 12,843 12,303 13,880
12/31/99 12,696 12,163 13,777
1/31/00 12,595 12,066 13,717
2/29/00 12,839 12,300 13,876
3/31/00 13,194 12,640 14,179
4/30/00 13,092 12,542 14,095
5/31/00 12,947 12,404 14,022
6/30/00 13,363 12,802 14,394
7/31/00 13,611 13,039 14,594
8/31/00 13,846 13,265 14,819
9/30/00 13,756 13,178 14,742
10/31/00 13,879 13,296 14,903
11/30/00 13,975 13,388 15,015
12/31/00 14,386 13,782 15,386
1/31/01 14,454 13,847 15,539
2/28/01 14,565 13,953 15,588
3/31/01 14,662 14,046 15,728
4/30/01 14,454 13,847 15,557
5/31/01 14,610 13,996 15,725
6/30/01 14,737 14,118 15,830
7/31/01 14,998 14,368 16,065
8/31/01 15,244 14,604 16,329
9/30/01 15,136 14,500 16,275
10/31/01 15,295 14,653 16,468
11/30/01 15,171 14,534 16,330
12/31/01 15,002 14,372 16,175
1/31/02 15,208 14,569 16,456
2/28/02 15,430 14,782 16,654
3/31/02 15,107 14,473 16,328
4/30/02 15,361 14,716 16,647
5/31/02 15,524 14,872 16,748
6/30/02 15,688 15,029 16,925
7/31/02 15,868 15,201 17,143
8/31/02 16,079 15,404 17,349
9/30/02 16,399 15,711 17,729
10/31/02 15,976 15,305 17,435
11/30/02 15,955 15,285 17,363
12/31/02 16,358 15,671 17,729
1/31/03 16,227 15,546 17,684
2/28/03 16,443 15,752 17,931
3/31/03 16,407 15,717 17,942
4/30/03 16,608 15,910 18,061
5/31/03 16,985 16,272 18,484
6/30/03 16,901 16,191 18,405
7/31/03 16,302 15,618 17,761
8/31/03 16,426 15,736 17,893
9/30/03 16,874 16,165 18,419
10/31/03 16,836 16,129 18,327
11/30/03 16,993 16,279 18,518
12/31/03 17,117 16,398 18,671
1/31/04 17,209 16,486 18,778
2/29/04 17,515 16,779 19,061
3/31/04 17,409 16,678 18,994
4/30/04 17,006 16,291 18,544
5/31/04 16,930 16,219 18,477
The graphs do not reflect the deduction of taxes, such as state and local
income taxes or capital gains taxes, that a shareholder may pay on Fund
distributions or the redemption of shares.
The index comparisons show the change in value of a $10,000 investment in the
Class A shares of the Nuveen Funds compared with the Lehman Brothers Municipal
Bond Index. The Lehman Brothers Municipal Bond Index is an unmanaged index
composed of a broad range of investment-grade municipal bonds. The index does
not reflect any initial or ongoing expenses. You cannot invest directly in an
index. The Nuveen Funds' returns include reinvestment of all dividends and
distributions, and the Funds' returns at the offer price depicted in the charts
reflect the initial maximum sales charge applicable to A shares (4.20%) and all
ongoing Fund expenses. The performance data quoted represents past performance,
which is not indicative of future results. Current performance may be lower or
higher than the performance shown.
Annual Report Page 11
Fund Spotlight as of 5/31/04 Nuveen Kansas Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.20 $10.12 $10.21 10.24
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0375 $0.0310 $0.0330 $0.0395
--------------------------------------------------------------
Inception Date 1/09/92 2/19/97 2/11/97 2/25/97
--------------------------------------------------------------
Returns are historical and do not guarantee future performance. Returns without
sales charges would be lower if the sales charge were included. Current
performance may be higher or lower than the performance shown. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. 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. For
the most recent month-end performance visit www.nuveen.com or call (800)
257-8787.
Class 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.
Average Annual Total Returns as of 5/31/04
A Shares NAV Offer
-------------------------------------------
1-Year -1.02% -5.16%
-------------------------------------------
5-Year 4.35% 3.46%
-------------------------------------------
10-Year 5.53% 5.08%
-------------------------------------------
B Shares w/o CDSC w/CDSC
-------------------------------------------
1-Year -1.77% -5.56%
-------------------------------------------
5-Year 3.56% 3.39%
-------------------------------------------
10-Year 4.90% 4.90%
-------------------------------------------
C Shares NAV
-------------------------------------------
1-Year -1.53%
-------------------------------------------
5-Year 3.78%
-------------------------------------------
10-Year 5.04%
-------------------------------------------
R Shares NAV
-------------------------------------------
1-Year -0.89%
-------------------------------------------
5-Year 4.53%
-------------------------------------------
10-Year 5.73%
-------------------------------------------
Tax-Free Yields
A Shares NAV Offer
-------------------------------------------
Dividend Yield/2/ 4.41% 4.22%
-------------------------------------------
SEC 30-Day Yield/2/ 3.90% 3.74%
-------------------------------------------
Taxable-Equivalent Yield/3/ 5.78% 5.54%
-------------------------------------------
B Shares NAV
-------------------------------------------
Dividend Yield/2/ 3.67%
-------------------------------------------
SEC 30-Day Yield/2/ 3.34%
-------------------------------------------
Taxable-Equivalent Yield/3/ 4.95%
-------------------------------------------
C Shares NAV
-------------------------------------------
Dividend Yield/2/ 3.87%
-------------------------------------------
SEC 30-Day Yield/2/ 3.54%
-------------------------------------------
Taxable-Equivalent Yield/3/ 5.24%
-------------------------------------------
R Shares NAV
-------------------------------------------
Dividend Yield/2/ 4.62%
-------------------------------------------
SEC 30-Day Yield/2/ 4.29%
-------------------------------------------
Taxable-Equivalent Yield/3/ 6.36%
-------------------------------------------
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 0.09% -4.13%
------------------------------------------
5-Year 4.81% 3.91%
------------------------------------------
10-Year 5.69% 5.24%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.66% -4.49%
------------------------------------------
5-Year 4.03% 3.86%
------------------------------------------
10-Year 5.06% 5.06%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year -0.42%
------------------------------------------
5-Year 4.23%
------------------------------------------
10-Year 5.20%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.33%
------------------------------------------
5-Year 5.01%
------------------------------------------
10-Year 5.91%
------------------------------------------
Bond Credit Quality/4/
[CHART]
AAA/U.S. Guaranteed 59%
AA 14%
A 10%
BBB 9%
NR 7%
BB or Lower 1%
Top Five Sectors/4/
Tax Obligation/Limited 27%
-------------------------------------------
Healthcare 19%
-------------------------------------------
Tax Obligation/General 15%
-------------------------------------------
U.S. Guaranteed 10%
-------------------------------------------
Water and Sewer 7%
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $127,604
-------------------------------------------
Average Effective Maturity (Years) 16.80
-------------------------------------------
Average Duration 7.24
-------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2004. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2004.
2The Dividend 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 the average net yield of a fund's portfolio of bonds that accounts
for the future amortization of premiums or discounts of bonds held in the
fund's portfolio.
3The taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield on the Nuveen Investments
Fund on an after-tax basis. With respect to investments that generate
qualified dividend income that is taxable at a maximum rate of 15%, the
taxable-equivalent yield is lower. 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%.
4As a percentage of total holdings as of May 31, 2004. Holdings are subject to
change.
Annual Report Page 12
Fund Spotlight as of 5/31/04 Nuveen Kentucky Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
------------------------------------------------------------------------
NAV $10.88 $10.88 $10.87 $10.87
------------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0425 $0.0355 $0.0375 $0.0440
------------------------------------------------------------------------
Latest Capital Gain
and Ordinary Income Distribution/2/ $0.0396 $0.0396 $0.0396 $0.0396
------------------------------------------------------------------------
Inception Date 5/04/87 2/05/97 10/04/93 2/07/97
------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Returns without
sales charges would be lower if the sales charge were included. Current
performance may be higher or lower than the performance shown. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. 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. For
the most recent month-end performance visit www.nuveen.com or call (800)
257-8787.
Class 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.
Average Annual Total Returns as of 5/31/04
A Shares NAV Offer
-------------------------------------------
1-Year 0.90% -3.36%
-------------------------------------------
5-Year 4.53% 3.64%
-------------------------------------------
10-Year 5.64% 5.19%
-------------------------------------------
B Shares w/o CDSC w/CDSC
-------------------------------------------
1-Year 0.14% -3.70%
-------------------------------------------
5-Year 3.75% 3.58%
-------------------------------------------
10-Year 5.07% 5.07%
-------------------------------------------
C Shares NAV
-------------------------------------------
1-Year 0.35%
-------------------------------------------
5-Year 3.96%
-------------------------------------------
10-Year 5.06%
-------------------------------------------
R Shares NAV
-------------------------------------------
1-Year 1.15%
-------------------------------------------
5-Year 4.73%
-------------------------------------------
10-Year 5.78%
-------------------------------------------
Tax-Free Yields
A Shares NAV Offer
-------------------------------------------
Dividend Yield/3/ 4.68% 4.48%
-------------------------------------------
SEC 30-Day Yield/3/ 3.56% 3.41%
-------------------------------------------
Taxable-Equivalent Yield/4/ 5.27% 5.05%
-------------------------------------------
B Shares NAV
-------------------------------------------
Dividend Yield/3/ 3.91%
-------------------------------------------
SEC 30-Day Yield/3/ 2.98%
-------------------------------------------
Taxable-Equivalent Yield/4/ 4.41%
-------------------------------------------
C Shares NAV
-------------------------------------------
Dividend Yield/3/ 4.13%
-------------------------------------------
SEC 30-Day Yield/3/ 3.17%
-------------------------------------------
Taxable-Equivalent Yield/4/ 4.70%
-------------------------------------------
R Shares NAV
-------------------------------------------
Dividend Yield/3/ 4.85%
-------------------------------------------
SEC 30-Day Yield/3/ 3.92%
-------------------------------------------
Taxable-Equivalent Yield/4/ 5.81%
-------------------------------------------
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 1.34% -2.87%
------------------------------------------
5-Year 4.92% 4.03%
------------------------------------------
10-Year 5.74% 5.29%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 0.58% -3.28%
------------------------------------------
5-Year 4.12% 3.95%
------------------------------------------
10-Year 5.18% 5.18%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 0.79%
------------------------------------------
5-Year 4.35%
------------------------------------------
10-Year 5.16%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 1.60%
------------------------------------------
5-Year 5.13%
------------------------------------------
10-Year 5.88%
------------------------------------------
Bond Credit Quality/5/
[CHART]
AAA/U.S. Guaranteed 62%
AA 11%
A 10%
BBB 14%
NR 2%
BB or Lower 1%
Top Five Sectors/5/
Tax Obligation/Limited 26%
-------------------------------------------
U.S. Guaranteed 16%
-------------------------------------------
Healthcare 12%
-------------------------------------------
Water and Sewer 9%
-------------------------------------------
Utilities 9%
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $477,572
-------------------------------------------
Average Effective Maturity (Years) 16.47
-------------------------------------------
Average Duration 6.59
-------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2004. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2004.
2Paid December 3, 2003. Capital gains and/or ordinary income are subject to
federal taxation.
3The Dividend 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 the average net yield of a fund's portfolio of bonds 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
fully taxable investment in order to equal the yield on the Nuveen Investments
Fund on an after-tax basis. With respect to investments that generate
qualified dividend income that is taxable at a maximum rate of 15%, the
taxable-equivalent yield is lower. 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 May 31, 2004. Holdings are subject to
change.
Annual Report Page 13
Fund Spotlight as of 5/31/04 Nuveen Michigan Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------------
NAV $11.45 $11.47 $11.43 $11.45
--------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0435 $0.0360 $0.0380 $0.0455
--------------------------------------------------------------------
Latest Capital Gain and
Ordinary Income Distribution/2/ $0.1259 $0.1259 $0.1259 $0.1259
--------------------------------------------------------------------
Inception Date 6/27/85 2/03/97 6/22/93 2/03/97
--------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Returns without
sales charges would be lower if the sales charge were included. Current
performance may be higher or lower than the performance shown. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. 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. For
the most recent month-end performance visit www.nuveen.com or call (800)
257-8787.
Class 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.
Average Annual Total Returns as of 5/31/04
A Shares NAV Offer
-------------------------------------------
1-Year -0.27% -4.43%
-------------------------------------------
5-Year 4.72% 3.83%
-------------------------------------------
10-Year 5.64% 5.19%
-------------------------------------------
B Shares w/o CDSC w/CDSC
-------------------------------------------
1-Year -1.03% -4.79%
-------------------------------------------
5-Year 3.93% 3.76%
-------------------------------------------
10-Year 5.08% 5.08%
-------------------------------------------
C Shares NAV
-------------------------------------------
1-Year -0.83%
-------------------------------------------
5-Year 4.12%
-------------------------------------------
10-Year 5.06%
-------------------------------------------
R Shares NAV
-------------------------------------------
1-Year -0.07%
-------------------------------------------
5-Year 4.92%
-------------------------------------------
10-Year 5.79%
-------------------------------------------
Tax-Free Yields
A Shares NAV Offer
-------------------------------------------
Dividend Yield/3/ 4.55% 4.36%
-------------------------------------------
SEC 30-Day Yield/3/ 3.75% 3.59%
-------------------------------------------
Taxable-Equivalent Yield/4/ 5.43% 5.20%
-------------------------------------------
B Shares NAV
-------------------------------------------
Dividend Yield/3/ 3.76%
-------------------------------------------
SEC 30-Day Yield/3/ 3.17%
-------------------------------------------
Taxable-Equivalent Yield/4/ 4.59%
-------------------------------------------
C Shares NAV
-------------------------------------------
Dividend Yield/3/ 3.98%
-------------------------------------------
SEC 30-Day Yield/3/ 3.38%
-------------------------------------------
Taxable-Equivalent Yield/4/ 4.90%
-------------------------------------------
R Shares NAV
-------------------------------------------
Dividend Yield/3/ 4.76%
-------------------------------------------
SEC 30-Day Yield/3/ 4.12%
-------------------------------------------
Taxable-Equivalent Yield/4/ 5.97%
-------------------------------------------
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 0.80% -3.46%
------------------------------------------
5-Year 5.07% 4.17%
------------------------------------------
10-Year 5.72% 5.27%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 0.12% -3.69%
------------------------------------------
5-Year 4.29% 4.12%
------------------------------------------
10-Year 5.14% 5.14%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 0.24%
------------------------------------------
5-Year 4.49%
------------------------------------------
10-Year 5.14%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 1.01%
------------------------------------------
5-Year 5.29%
------------------------------------------
10-Year 5.88%
------------------------------------------
Bond Credit Quality/5/
[CHART]
AAA/U.S. Guaranteed 71%
AA 12%
A 5%
BBB 7%
NR 2%
BB or Lower 3%
Top Five Sectors/5/
Tax Obligation/General 27%
-------------------------------------------
U.S. Guaranteed 19%
-------------------------------------------
Tax Obligation/Limited 15%
-------------------------------------------
Healthcare 13%
-------------------------------------------
Water and Sewer 8%
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $250,597
-------------------------------------------
Average Effective Maturity (Years) 15.85
-------------------------------------------
Average Duration 6.48
-------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2004. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2004.
2Paid December 3, 2003. Capital gains and/or ordinary income are subject to
federal taxation.
3The Dividend 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 the average net yield of a fund's portfolio of bonds 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
fully taxable investment in order to equal the yield on the Nuveen Investments
Fund on an after-tax basis. With respect to investments that generate
qualified dividend income that is taxable at a maximum rate of 15%, the
taxable-equivalent yield is lower. 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%.
5As a percentage of total holdings as of May 31, 2004. Holdings are subject to
change.
Annual Report Page 14
Fund Spotlight as of 5/31/04 Nuveen Missouri Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.78 $10.79 $10.77 $10.79
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0400 $0.0330 $0.0350 $0.0420
--------------------------------------------------------------
Inception Date 8/03/87 2/06/97 2/02/94 2/19/97
--------------------------------------------------------------
Returns are historical and do not guarantee future performance. Returns without
sales charges would be lower if the sales charge were included. Current
performance may be higher or lower than the performance shown. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. 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. For
the most recent month-end performance visit www.nuveen.com or call (800)
257-8787.
Class 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.
Average Annual Total Returns as of 5/31/04
A Shares NAV Offer
-------------------------------------------
1-Year -0.28% -4.51%
-------------------------------------------
5-Year 4.45% 3.55%
-------------------------------------------
10-Year 5.53% 5.08%
-------------------------------------------
B Shares w/o CDSC w/CDSC
-------------------------------------------
1-Year -0.95% -4.77%
-------------------------------------------
5-Year 3.69% 3.52%
-------------------------------------------
10-Year 4.96% 4.96%
-------------------------------------------
C Shares NAV
-------------------------------------------
1-Year -0.84%
-------------------------------------------
5-Year 3.87%
-------------------------------------------
10-Year 4.94%
-------------------------------------------
R Shares NAV
-------------------------------------------
1-Year -0.10%
-------------------------------------------
5-Year 4.65%
-------------------------------------------
10-Year 5.68%
-------------------------------------------
Tax-Free Yields
A Shares NAV Offer
-------------------------------------------
Dividend Yield/2/ 4.45% 4.26%
-------------------------------------------
SEC 30-Day Yield/2/ 4.10% 3.93%
-------------------------------------------
Taxable-Equivalent Yield/3/ 6.08% 5.82%
-------------------------------------------
B Shares NAV
-------------------------------------------
Dividend Yield/2/ 3.67%
-------------------------------------------
SEC 30-Day Yield/2/ 3.55%
-------------------------------------------
Taxable-Equivalent Yield/3/ 5.26%
-------------------------------------------
C Shares NAV
-------------------------------------------
Dividend Yield/2/ 3.89%
-------------------------------------------
SEC 30-Day Yield/2/ 3.75%
-------------------------------------------
Taxable-Equivalent Yield/3/ 5.56%
-------------------------------------------
R Shares NAV
-------------------------------------------
Dividend Yield/2/ 4.67%
-------------------------------------------
SEC 30-Day Yield/2/ 4.50%
-------------------------------------------
Taxable-Equivalent Yield/3/ 6.67%
-------------------------------------------
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 0.79% -3.44%
------------------------------------------
5-Year 4.84% 3.94%
------------------------------------------
10-Year 5.64% 5.18%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.07% -3.92%
------------------------------------------
5-Year 4.06% 3.89%
------------------------------------------
10-Year 5.06% 5.06%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 0.15%
------------------------------------------
5-Year 4.26%
------------------------------------------
10-Year 5.06%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.98%
------------------------------------------
5-Year 5.04%
------------------------------------------
10-Year 5.79%
------------------------------------------
Bond Credit Quality/4/
[CHART]
AAA/U.S. Guaranteed 56%
AA 13%
A 7%
BBB 6%
NR 17%
BB or Lower 1%
Top Five Sectors/4/
Tax Obligation/Limited 17%
-------------------------------------------
Education and Civic Organizations 11%
-------------------------------------------
Long-Term Care 11%
-------------------------------------------
Housing/Multifamily 10%
-------------------------------------------
Tax Obligation/General 10%
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $253,372
-------------------------------------------
Average Effective Maturity (Years) 18.48
-------------------------------------------
Average Duration 7.38
-------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2004. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2004.
2The Dividend 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 the average net yield of a fund's portfolio of bonds that accounts
for the future amortization of premiums or discounts of bonds held in the
fund's portfolio.
3The taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield on the Nuveen Investments
Fund on an after-tax basis. With respect to investments that generate
qualified dividend income that is taxable at a maximum rate of 15%, the
taxable-equivalent yield is lower. 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%.
4As a percentage of total holdings as of May 31, 2004. Holdings are subject to
change.
Annual Report Page 15
Fund Spotlight as of 5/31/04 Nuveen Ohio Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------------------
NAV $11.17 $11.16 $11.15 $11.16
--------------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0430 $0.0360 $0.0380 $0.0450
--------------------------------------------------------------------------
Latest Ordinary Income Distribution/2/ $0.0002 $0.0002 $0.0002 $0.0002
--------------------------------------------------------------------------
Inception Date 6/27/85 2/03/97 8/03/93 2/03/97
--------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Returns without
sales charges would be lower if the sales charge were included. Current
performance may be higher or lower than the performance shown. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. 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. For
the most recent month-end performance visit www.nuveen.com or call (800)
257-8787.
Class 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.
Average Annual Total Returns as of 5/31/04
A Shares NAV Offer
-------------------------------------------
1-Year -0.62% -4.82%
-------------------------------------------
5-Year 4.34% 3.45%
-------------------------------------------
10-Year 5.32% 4.87%
-------------------------------------------
B Shares w/o CDSC w/CDSC
-------------------------------------------
1-Year -1.34% -5.13%
-------------------------------------------
5-Year 3.58% 3.41%
-------------------------------------------
10-Year 4.75% 4.75%
-------------------------------------------
C Shares NAV
-------------------------------------------
1-Year -1.14%
-------------------------------------------
5-Year 3.77%
-------------------------------------------
10-Year 4.76%
-------------------------------------------
R Shares NAV
-------------------------------------------
1-Year -0.41%
-------------------------------------------
5-Year 4.55%
-------------------------------------------
10-Year 5.47%
-------------------------------------------
Tax-Free Yields
A Shares NAV Offer
-------------------------------------------
Dividend Yield/3/ 4.61% 4.42%
-------------------------------------------
SEC 30-Day Yield/3/ 4.07% 3.90%
-------------------------------------------
Taxable-Equivalent Yield/4/ 6.08% 5.82%
-------------------------------------------
B Shares NAV
-------------------------------------------
Dividend Yield/3/ 3.87%
-------------------------------------------
SEC 30-Day Yield/3/ 3.51%
-------------------------------------------
Taxable-Equivalent Yield/4/ 5.24%
-------------------------------------------
C Shares NAV
-------------------------------------------
Dividend Yield/3/ 4.08%
-------------------------------------------
SEC 30-Day Yield/3/ 3.71%
-------------------------------------------
Taxable-Equivalent Yield/4/ 5.54%
-------------------------------------------
R Shares NAV
-------------------------------------------
Dividend Yield/3/ 4.83%
-------------------------------------------
SEC 30-Day Yield/3/ 4.46%
-------------------------------------------
Taxable-Equivalent Yield/4/ 6.66%
-------------------------------------------
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 0.50% -3.71%
------------------------------------------
5-Year 4.70% 3.80%
------------------------------------------
10-Year 5.41% 4.96%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.33% -4.16%
------------------------------------------
5-Year 3.92% 3.75%
------------------------------------------
10-Year 4.84% 4.84%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year -0.03%
------------------------------------------
5-Year 4.15%
------------------------------------------
10-Year 4.84%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.71%
------------------------------------------
5-Year 4.93%
------------------------------------------
10-Year 5.57%
------------------------------------------
Bond Credit Quality/5/
[CHART]
AAA/U.S. Guaranteed 63%
AA 18%
A 7%
BBB 6%
NR 3%
BB or Lower 3%
Top Five Sectors/5/
Tax Obligation/General 26%
-------------------------------------------
Healthcare 18%
-------------------------------------------
Tax Obligation/Limited 9%
-------------------------------------------
U.S. Guaranteed 9%
-------------------------------------------
Utilities 8%
-------------------------------------------
Portfolio Statistics
Net Assets ($000) $558,127
-------------------------------------------
Average Effective Maturity (Years) 16.58
-------------------------------------------
Average Duration 6.62
-------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2004. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2004.
2Paid December 3, 2003. Capital gains and/or ordinary income are subject to
federal taxation.
3The Dividend 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 the average net yield of a fund's portfolio of bonds 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
fully taxable investment in order to equal the yield on the Nuveen Investments
Fund on an after-tax basis. With respect to investments that generate
qualified dividend income that is taxable at a maximum rate of 15%, the
taxable-equivalent yield is lower. 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%.
5As a percentage of total holdings as of May 31, 2004. Holdings are subject to
change.
Annual Report Page 16
Fund Spotlight as of 5/31/04 Nuveen Wisconsin Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------------------
NAV $10.16 $10.18 $10.18 $10.20
--------------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0345 $0.0285 $0.0300 $0.0365
--------------------------------------------------------------------------
Latest Ordinary Income Distribution/2/ $0.0003 $0.0003 $0.0003 $0.0003
--------------------------------------------------------------------------
Inception Date 6/01/94 2/25/97 2/25/97 2/25/97
--------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Returns without
sales charges would be lower if the sales charge were included. Current
performance may be higher or lower than the performance shown. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. 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. For
the most recent month-end performance visit www.nuveen.com or call (800)
257-8787.
Class 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.
Average Annual Total Returns as of 5/31/04
A Shares NAV Offer
-------------------------------------------
1-Year -0.33% -4.55%
-------------------------------------------
5-Year 4.43% 3.53%
-------------------------------------------
Since Inception 5.40% 4.95%
-------------------------------------------
B Shares w/o CDSC w/CDSC
-------------------------------------------
1-Year -1.01% -4.84%
-------------------------------------------
5-Year 3.65% 3.47%
-------------------------------------------
Since Inception 4.86% 4.86%
-------------------------------------------
C Shares NAV
-------------------------------------------
1-Year -0.84%
-------------------------------------------
5-Year 3.86%
-------------------------------------------
Since Inception 4.91%
-------------------------------------------
R Shares NAV
-------------------------------------------
1-Year -0.10%
-------------------------------------------
5-Year 4.65%
-------------------------------------------
Since Inception 5.59%
-------------------------------------------
Tax-Free Yields
A Shares NAV Offer
-------------------------------------------
Dividend Yield/3/ 4.07% 3.90%
-------------------------------------------
SEC 30-Day Yield/3/ 3.59% 3.44%
-------------------------------------------
Taxable-Equivalent Yield/4/ 5.36% 5.13%
-------------------------------------------
B Shares NAV
-------------------------------------------
Dividend Yield/3/ 3.35%
-------------------------------------------
SEC 30-Day Yield/3/ 3.01%
-------------------------------------------
Taxable-Equivalent Yield/4/ 4.49%
-------------------------------------------
C Shares NAV
-------------------------------------------
Dividend Yield/3/ 3.53%
-------------------------------------------
SEC 30-Day Yield/3/ 3.21%
-------------------------------------------
Taxable-Equivalent Yield/4/ 4.79%
-------------------------------------------
R Shares NAV
-------------------------------------------
Dividend Yield/3/ 4.29%
-------------------------------------------
SEC 30-Day Yield/3/ 3.96%
-------------------------------------------
Taxable-Equivalent Yield/4/ 5.91%
-------------------------------------------
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 0.61% -3.59%
------------------------------------------
5-Year 4.91% 4.01%
------------------------------------------
10-Year 5.47% 5.02%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.18% -4.03%
------------------------------------------
5-Year 4.13% 3.96%
------------------------------------------
10-Year 4.93% 4.93%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 0.00%
------------------------------------------
5-Year 4.34%
------------------------------------------
10-Year 4.98%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.75%
------------------------------------------
5-Year 5.14%
------------------------------------------
10-Year 5.66%
------------------------------------------
Bond Credit Quality/5/
[CHART]
AAA/U.S. Guaranteed 56%
AA 12%
A 12%
BBB 5%
NR 14%
BB or Lower 1%
Top Five Sectors/5/
Tax Obligation/Limited 60%
------------------------------------------
U.S. Guaranteed 18%
------------------------------------------
Housing/Multifamily 10%
------------------------------------------
Education and Civic Organizations 5%
------------------------------------------
Long-Term Care 2%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $48,411
------------------------------------------
Average Effective Maturity (Years) 15.58
------------------------------------------
Average Duration 6.57
------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2004. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2004.
2Paid December 3, 2003. Capital gains and/or ordinary income are subject to
federal taxation.
3The Dividend 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 the average net yield of a fund's portfolio of bonds 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
fully taxable investment in order to equal the yield on the Nuveen Investments
Fund on an after-tax basis. With respect to investments that generate
qualified dividend income that is taxable at a maximum rate of 15%, the
taxable-equivalent yield is lower. 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%.
5As a percentage of total holdings as of May 31, 2004. Holdings are subject to
change.
Annual Report Page 17
Portfolio of Investments
NUVEEN KANSAS MUNICIPAL BOND FUND
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.2%
$ 220 Wichita Airport Authority, Kansas, Airport Facilities 9/04 at 100.00 AA $ 220,975
Revenue Bonds, Wichita Airport Hotel Associates, L.P.
Project, Series 1992, 7.000%, 3/01/05 - RAAI Insured
- --------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 2.2%
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 1,516,635
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System Project, Series 1999, 5.375%, 2/01/19
955 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 1,028,564
Series 2001A, 5.500%, 7/01/16 - AMBAC Insured
270 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 290,798
Series 2001B, 5.500%, 7/01/16 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------
Healthcare - 19.4%
Coffeyville Public Building Commission, Kansas, Healthcare
Facilities Revenue Bonds, Coffeyville Regional Medical
Center, Series 2002:
1,005 5.000%, 8/01/18 - AMBAC Insured 8/12 at 100.00 AAA 1,028,286
1,050 5.000%, 8/01/19 - AMBAC Insured 8/12 at 100.00 AAA 1,069,320
1,000 5.000%, 8/01/20 - AMBAC Insured 8/12 at 100.00 AAA 1,012,310
4,250 Colby, Kansas, Health Facilities Revenue Refunding Bonds, 8/08 at 100.00 N/R 3,823,343
Citizens Medical Center, Inc., Series 1998, 5.625%, 8/15/16
1,285 Kansas Development Finance Authority, Hospital Revenue 12/12 at 100.00 AA 1,346,821
Bonds, Susan B. Allen Memorial Hospital, Series 2002Q,
5.375%, 12/15/16 - RAAI Insured
4,580 Kansas Development Finance Authority, Health Facilities 6/10 at 101.00 AA 5,137,523
Revenue Bonds, Sisters of Charity of Leavenworth Health
Services Corporation, Series 2000K, 6.500%, 12/01/16
1,110 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial 7/09 at 100.00 AA 1,145,797
Hospital, Series 1999, 5.750%, 7/01/24 - RAAI Insured
Manhattan, Kansas, Hospital Revenue Bonds, Mercy Health
Center, Series 2001:
1,025 5.000%, 8/15/14 - FSA Insured 8/11 at 100.00 AAA 1,072,201
1,075 5.000%, 8/15/15 - FSA Insured 8/11 at 100.00 AAA 1,114,764
Newton, Kansas, Hospital Revenue Refunding Bonds, Newton
Healthcare Corporation, Series 1998A:
1,000 5.700%, 11/15/18 11/08 at 100.00 BBB- 1,012,330
1,750 5.750%, 11/15/24 11/08 at 100.00 BBB- 1,746,815
100 Puerto Rico Industrial, Tourist, Educational, Medical and 1/05 at 102.00 AAA 104,053
Environmental Control Facilities Financing Authority,
Hospital Revenue Bonds, Auxilio Mutuo Hospital, Series
1995A, 6.250%, 7/01/24 - MBIA Insured
4,780 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/09 at 101.00 A+ 5,086,016
Improvement Bonds, Via Christi Health System, Inc., Series
1999-XI, 6.250%, 11/15/24
- --------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.1%
1,715 Kansas Development Finance Authority, Multifamily Housing 12/10 at 100.00 AAA 1,770,823
Senior Revenue Bonds, Chimney Hills Apartments Project,
Series 2000U-1, 5.900%, 12/01/20 (Alternative Minimum Tax)
- AMBAC Insured
1,000 Olathe, Kansas, FNMA Multifamily Housing Revenue Refunding 6/04 at 102.00 AAA 1,022,440
Bonds, Deerfield Apartments, Series 1994A, 6.450%, 6/01/19
(Pre-refunded to 6/01/04)
Wichita, Kansas, Multifamily Housing Revenue Refunding
Bonds, Shores Apartments, Series 1994XI-A:
1,500 6.700%, 4/01/19 - RAAI Insured 4/09 at 102.00 AA 1,567,890
2,000 6.800%, 4/01/24 - RAAI Insured 4/09 at 102.00 AA 2,082,240
- --------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.1%
30 Olathe-Labette County, Kansas, GNMA Collateralized Single 2/05 at 105.00 Aaa 31,222
Family Mortgage Revenue Refunding Bonds, Series 1994C-I,
7.800%, 2/01/25
525 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 545,900
Securities Program Single Family Revenue Bonds, Series
1997A-1, 6.950%, 6/01/29 (Alternative Minimum Tax)
1,930 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 6/08 at 105.00 Aaa 2,055,778
Securities Program Single Family Revenue Bonds, Series
1998A-1, 6.500%, 12/01/22 (Alternative Minimum Tax)
- ----
18
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 765 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 12/09 at 105.00 Aaa $ 812,660
Securities Program Single Family Revenue Bonds, Series
2000A-2, 7.600%, 12/01/31 (Alternative Minimum Tax)
350 Sedgwick and Shawnee Counties, Kansas, FNMA/GNMA 12/10 at 105.00 Aaa 371,494
Mortgage-Backed Securities Program Single Family Revenue
Bonds, Series 2001A, 6.300%, 12/01/32 (Alternative Minimum
Tax)
125 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized 11/04 at 105.00 Aaa 129,936
Single Family Mortgage Revenue Refunding Bonds, Series
1994A-III, 8.125%, 5/01/24 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Industrials - 1.6%
1,000 Wichita Airport Authority, Kansas, Special Facilities 6/12 at 101.00 A- 1,042,370
Revenue Bonds, Cessna Citation Service Center,
Series 2002A, 6.250%, 6/15/32 (Alternative Minimum Tax)
1,000 Wichita, Kansas, Industrial Revenue Bonds, NMF America, 8/07 at 101.00 AA- 1,039,120
Inc., Series 2000-II, 5.800%, 8/01/15 (Alternative Minimum
Tax)
- --------------------------------------------------------------------------------------------------------------
Long-Term Care - 0.4%
500 Sedgwick County, Kansas, Healthcare Facilities Revenue 11/09 at 100.00 A 510,420
Bonds, Catholic Care Center, Inc., Series 2001, 5.750%,
11/15/23
- --------------------------------------------------------------------------------------------------------------
Materials - 3.7%
1,000 Dodge City, Kansas, Pollution Control Revenue Refunding 11/04 at 100.00 A2 1,019,740
Bonds, Excel Corporation Project/Cargill, Inc., Project,
Series 1992, 6.625%, 5/01/05
3,700 Ford County, Kansas, Sewage and Solid Waste Disposal 6/08 at 102.00 A+ 3,720,128
Revenue Bonds, Excel Corporation/Cargill, Inc. Project,
Series 1998, 5.400%, 6/01/28 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 15.2%
2,500 Butler and Sedgwick Counties Unified School District 385, No Opt. Call AAA 2,902,750
Andover, Kansas, General Obligation Refunding and
Improvement Bonds, Series 2000, 6.000%, 9/01/16 - FSA
Insured
1,675 Cowley County Unified School District 465, Winfield, 10/13 at 100.00 AAA 1,733,005
Kansas, General Obligation Bonds,
Series 2003, 5.250%, 10/01/23 - MBIA Insured
750 Derby, Kansas, General Obligation Bonds, Series 2001A, 12/11 at 100.00 Aaa 785,212
5.250%, 12/01/21 - AMBAC Insured
560 Derby, Kansas, General Obligation Bonds, Series 2002B, 12/10 at 100.00 Aaa 582,366
5.000%, 12/01/18 - FSA Insured
650 Harvey County Unified School District 460, Hesston, Kansas, 9/12 at 100.00 AAA 659,835
General Obligation Bonds, Series 2002, 5.000%, 9/01/22 -
FGIC Insured
1,100 Montgomery County Unified School District 445, Coffeyville, 4/12 at 100.00 AAA 1,115,961
Kansas, General Obligation Bonds, Series 2002, 5.000%,
4/01/22 - FGIC Insured
500 Puerto Rico, Public Improvement General Obligation Bonds, 7/11 at 100.00 A- 505,640
Series 2002A, 5.375%, 7/01/28
1,000 Puerto Rico, Public Improvement General Obligation No Opt. Call AAA 1,114,200
Refunding Bonds, Series 2002A, 5.500%,7/01/20 - MBIA
Insured
1,070 Scott County Unified School District 466, Kansas, General 9/12 at 100.00 AAA 1,135,527
Obligation Refunding Bonds, Series 2002, 5.250%, 9/01/18 -
FGIC Insured
1,250 Sedgwick County Unified School District 259, Wichita, 9/10 at 100.00 AA 1,133,700
Kansas, General Obligation Bonds, Series 2000, 3.500%,
9/01/16
1,795 Wichita, Kansas, General Obligation Bonds, Series 2002, 4/09 at 101.00 AA 1,855,940
5.000%, 4/01/17
3,050 Wyandotte County Unified School District 500, Kansas, 9/11 at 100.00 AAA 2,791,116
General Obligation Bonds, Series 2001, 4.000%, 9/01/20 -
FSA Insured
3,000 Wyandotte County Unified School District 500, Kansas, 9/12 at 100.00 AAA 3,074,220
General Obligation Bonds, Series 2002, 5.000%, 9/01/20 -
FSA Insured
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 26.4%
3,000 Butler County Public Building Commission, Kansas, 10/10 at 100.00 Aaa 3,218,430
Improvement Revenue Bonds, Public Facilities Projects,
Series 2000, 5.550%, 10/01/21 - MBIA Insured
500 Kansas Development Finance Authority, Lease Revenue Bonds, 10/12 at 100.00 AAA 508,670
Department of Administration, State Capitol Restoration
Parking Facility Project, Series 2002C, 5.000%, 10/01/21 -
FSA Insured
- ----
19
Portfolio of Investments
NUVEEN KANSAS MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 1,000 Kansas Development Finance Authority, Revenue Bonds, State 10/11 at 100.00 AAA $1,042,780
Projects, Series 2001W, 5.000%,10/01/17 - MBIA Insured
2,085 Kansas Development Finance Authority, Revenue Bonds, State 10/12 at 100.00 AAA 2,213,186
Projects, Series 2002N, 5.250%,10/01/18 - AMBAC Insured
5,000 Kansas Development Finance Authority, Revenue Bonds, Board 4/13 at 102.00 AAA 5,035,050
of Regents, Scientific Research and Development Facilities
Projects, Series 2003C, 5.000%, 10/01/23 - AMBAC Insured
2,355 Kansas Development Finance Authority, Revenue Bonds, State 8/13 at 100.00 AAA 2,454,923
Projects, Series 2003J, 5.250%,8/01/20 - AMBAC Insured
5,000 Overland Park Development Corporation, Kansas, First Tier 1/11 at 101.00 N/R 4,990,700
Revenue Bonds, Overland Park Convention Center, Series
2001A, 7.375%, 1/01/32
Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Bonds, Series 2002E:
1,000 6.000%, 8/01/26 No Opt. Call BBB+ 1,112,220
4,500 6.000%, 8/01/26 No Opt. Call AAA 5,187,870
2,500 5.500%, 8/01/29 2/12 at 100.00 BBB+ 2,547,550
1,000 Virgin Islands Public Finance Authority, Revenue Refunding 10/08 at 101.00 BBB- 1,003,090
Senior Lien Bonds, Matching Fund Loan Notes, Series 1998A,
5.625%, 10/01/25
2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,215,760
Taxes Loan Notes, Series 1999A, 6.375%,10/01/19
8,025 Wyandotte County-Kansas City Unified Government, Kansas, No Opt. Call AAA 2,210,246
Sales Tax Special Obligation Revenue Bonds, Kansas
International Speedway Corporation, Series 1999, 0.000%,
12/01/27 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------
Transportation - 0.8%
1,500 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 1,010,445
Bonds, American Airlines, Inc., Series 1996A, 6.250%,
6/01/26 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 9.9%
12,175 Johnson County, Kansas, Residual Revenue and Refunding No Opt. Call Aaa 8,719,492
Bonds, Series 1992, 0.000%, 5/01/12
400 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial 7/04 at 100.00 Baa1*** 401,668
Hospital, Series 1994, 6.200%, 7/01/19 (Pre-refunded to
7/01/04)
2,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 2,359,000
Revenue Bonds, Series 2000B, 6.500%, 7/01/27 (Pre-refunded
to 7/01/10)
1,010 Wichita, Kansas, Revenue Bonds, CSJ Health System of 11/04 at 100.00 A+*** 1,198,234
Wichita, Inc., Series 1985-XXV, 7.200%, 10/01/15
- --------------------------------------------------------------------------------------------------------------
Utilities - 4.5%
1,000 Burlington, Kansas, Environmental Improvement Revenue No Opt. Call A3 1,027,410
Bonds, Kansas City Power and Light Company Project, Series
1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07)
1,010 Kansas City, Kansas, Utility System Revenue Refunding and 9/04 at 102.00 AAA 1,041,340
Improvement Bonds, Series 1994, 6.375%, 9/01/23 - FGIC
Insured
500 Pratt, Kansas, Electric System Revenue Bonds, Series 5/10 at 100.00 AAA 527,350
2001-1, 5.250%, 5/01/18 - AMBAC Insured
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,014,690
Series 2002II, 5.125%, 7/01/26 - FSA Insured
Wellington, Kansas, Electric, Water and Sewer Utility
System Revenue Bonds, Series 2002:
335 5.250%, 11/01/25 - AMBAC Insured 11/12 at 100.00 AAA 343,814
785 5.250%, 11/01/27 - AMBAC Insured 11/12 at 100.00 AAA 802,223
1,000 Wynadotte County-Kansas City Unified Government, Kansas, 5/11 at 100.00 AAA 1,016,040
Industrial Revenue Bonds, Board of Public Utilities Office
Building Complex, Series 2001, 5.000%, 5/01/21 - MBIA
Insured
- ----
20
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.0%
$ 2,000 Augusta, Kansas, Waterworks System Revenue Bonds, Series 10/08 at 101.50 AA $ 2,202,780
2000A, 6.150%, 10/01/20 - RAAI Insured
1,040 Chisholm Creek Utility Authority, Kansas, Water and 9/12 at 100.00 Aaa 1,073,311
Wastewater Facilities Revenue Bonds, Series 2002, 5.250%,
9/01/22 - MBIA Insured
5,500 Wichita, Kansas, Water and Sewer Utility Revenue Bonds, 10/13 at 100.00 AAA 5,592,014
Series 2003, 5.000%, 10/01/22 - FGIC Insured
- ----------------------------------------------------------------------------------------------------------------
$132,215 Total Long-Term Investments (cost $123,171,995) - 99.5% 126,938,470
- ----------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 0.5% 665,995
--------------------------------------------------------------------------------------------------
Net Assets - 100% $127,604,465
--------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent registered
public accounting firm): 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/RInvestment is not rated.
See accompanying notes to financial statements.
- ----
21
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Consumer Staples - 0.9%
$ 5,125 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 4,385,770
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ---------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.2%
9,295 Columbia, Kentucky, Educational Development Revenue Bonds, 4/11 at 101.00 BBB- 9,506,089
Lindsey Wilson College Project, Series 2001, 6.250%,
4/01/21
5,930 Jefferson County, Kentucky, College Revenue Bonds, 5/09 at 101.00 Baa2 5,447,832
Bellarmine College Project, Series 1999, 5.250%, 5/01/29
4,500 Kentucky Economic Development Finance Authority, College 10/12 at 100.00 AAA 4,447,665
Revenue Refunding and Improvement Bonds, Centre College
Project, Series 2002, 5.000%, 4/01/32 - FSA Insured
2,500 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 2,443,025
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System Project, Series 1999, 5.375%, 2/01/29
3,000 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 2,925,450
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, University of the Sacred
Heart Project, Series 2001, 5.250%, 9/01/31
- ---------------------------------------------------------------------------------------------------------------
Energy - 3.0%
5,000 Ashland, Kentucky, Pollution Control Revenue Refunding 8/04 at 100.00 Baa2 5,128,000
Bonds, Ashland Oil, Inc. Project, Series 1992, 6.650%,
8/01/09
9,000 Ashland, Kentucky, Sewerage and Solid Waste Revenue Bonds, 2/05 at 102.00 Baa2 9,332,640
Ashland, Inc. Project, Series 1995, 7.125%, 2/01/22
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------
Healthcare - 11.4%
1,310 Christian County, Kentucky, Hospital Revenue Bonds, Jennie 7/06 at 102.00 A- 1,349,811
Stuart Medical Center, Series 1996A, 6.000%, 7/01/17
3,500 Christian County, Kentucky, Hospital Revenue Refunding 7/06 at 102.00 A- 3,656,555
Bonds, Jennie Stuart Medical Center, Series 1997A, 6.000%,
7/01/13
5,270 Clark County, Kentucky, Hospital Revenue Refunding and 3/07 at 102.00 BBB- 5,441,644
Improvement Bonds, Clark Regional Medical Center Project,
Series 1997, 6.200%, 4/01/13
9,500 Kentucky Economic Development Finance Authority, Hospital 2/07 at 102.00 AAA 9,901,185
Revenue Refunding Bonds, Pikeville, United Methodist
Hospital of Kentucky, Inc. Project, Series 1997, 5.700%,
2/01/28 - CONNIE LEE/AMBAC Insured
Kentucky Economic Development Finance Authority, Hospital
System Revenue Refunding and Improvement Bonds, Appalachian
Regional Healthcare, Inc. Project, Series 1997:
500 5.500%, 10/01/07 No Opt. Call BB- 502,260
500 5.600%, 10/01/08 4/08 at 102.00 BB- 502,190
3,500 5.850%, 10/01/17 4/08 at 102.00 BB- 3,293,675
1,500 5.875%, 10/01/22 4/08 at 102.00 BB- 1,353,180
6,000 Kentucky Economic Development Finance Authority, Revenue 6/08 at 101.00 AA 5,771,340
Refunding and Improvement Bonds, Catholic Health
Initiatives, Series 1998A, 5.000%, 12/01/27
Kentucky Economic Development Finance Authority, Revenue
Bonds, Catholic Health Initiatives, Series 2001:
1,000 5.250%, 9/01/21 9/11 at 100.00 AA 1,011,640
1,000 5.250%, 9/01/24 9/11 at 100.00 AA 1,005,010
10,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 2,600,303
System Revenue Bonds, Norton Healthcare, Inc., Series
2000B, 0.000%, 10/01/28 - MBIA Insured
1,665 McCracken County, Kentucky, Hospital Facilities Revenue 11/04 at 102.00 AAA 1,726,006
Refunding Bonds, Mercy Health System, Series 1994A,
6.300%, 11/01/06 - MBIA Insured
16,500 Russell, Kentucky, Revenue Bonds, Bon Secours Health 11/12 at 100.00 A- 16,432,020
System, Series 2002A, 5.625%, 11/15/30
- ----
22
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.1%
$ 2,455 Greater Kentucky Housing Assistance Corporation, 7/04 at 100.00 AAA $2,456,817
FHA-Insured Section 8 Mortgage Revenue Refunding Bonds,
Brown Proctor and California Square II Apartment Projects,
Series 1993A, 6.250%, 7/01/24 - MBIA Insured
3,385 Henderson, Kentucky, Senior Tax-Exempt Residential 5/09 at 102.00 N/R 2,983,742
Facilities Revenue Bonds, Pleasant Pointe Project, Series
1999A, 6.125%, 5/01/29
- --------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.1%
2,000 Kentucky Housing Corporation, Housing Revenue Bonds, Series 11/10 at 100.00 AAA 2,080,320
2000F, 5.850%, 7/01/20 (Alternative Minimum Tax)
850 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/09 at 101.00 AAA 858,993
1998F, 5.000%, 7/01/18 (Alternative Minimum Tax)
9,480 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 9,554,702
1999A, 5.200%, 1/01/31
2,390 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 2,392,533
1999B, 5.250%, 1/01/28 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.5%
4,840 Florence, Kentucky, Housing Facilities Revenue Bonds, 8/09 at 101.00 A 5,053,396
Bluegrass RHF Housing, Inc. Project, Series 1999, 6.375%,
8/15/29 - ACA Insured
555 Jefferson County, Kentucky, First Mortgage Revenue Bonds, 11/04 at 102.00 BBB 568,958
First Christian Church Homes of Kentucky Project, Series
1994, 6.000%, 11/15/09
Kentucky Economic Development Finance Authority, Revenue
Bonds, Christian Church Homes of Kentucky, Inc. Obligated
Group, Series 1998:
1,800 5.375%, 11/15/23 5/08 at 102.00 BBB 1,720,494
3,500 5.500%, 11/15/30 5/08 at 102.00 BBB 3,302,390
Kentucky Economic Development Finance Authority, Mortgage
Revenue Bonds, South Central Nursing Homes, Inc., Series
1997A:
2,000 6.000%, 7/01/27 (Mandatory put 7/01/20) - MBIA Insured 1/08 at 105.00 AAA 2,162,280
3,700 6.000%, 7/01/27 (Mandatory put 1/01/24) - MBIA Insured 1/08 at 105.00 AAA 4,000,218
- --------------------------------------------------------------------------------------------------------------
Materials - 3.5%
2,370 Hancock County, Kentucky, Solid Waste Disposal Revenue 5/06 at 102.00 BBB 2,419,343
Bonds, Willamette Industries, Inc. Project, Series 1996,
6.600%, 5/01/26 (Alternative Minimum Tax)
1,000 Jefferson County, Kentucky, Pollution Control Revenue 7/04 at 102.50 AA- 1,033,410
Bonds, E.I. du Pont de Nemours and Company Project, Series
1982A, 6.300%, 7/01/12
3,750 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 6/04 at 102.00 Baa2 3,834,713
Weyerhaeuser Company - TJ International Project, Series
1994, 7.000%, 6/01/24 (Alternative Minimum Tax)
4,240 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 5/06 at 102.00 N/R 4,402,519
Weyerhaeuser Company - TJ International Project, Series
1996, 6.800%, 5/01/26 (Alternative Minimum Tax)
2,000 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 4/07 at 102.00 Baa2 2,059,120
Weyerhaeuser Company - TJ International Project, Series
1997, 6.550%, 4/15/27 (Alternative Minimum Tax)
2,820 Wickliffe, Kentucky, Solid Waste Disposal Facility Revenue 4/06 at 102.00 BBB 2,859,367
Bonds, Westvaco Corporation, Series 1996, 6.375%, 4/01/26
(Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 2.7%
2,500 Jefferson County, Kentucky, General Obligation Refunding 5/09 at 100.00 AA 2,669,950
Bonds, Series 1999C, 6.150%, 5/15/16 (Alternative Minimum
Tax)
1,175 Louisville, Kentucky, General Obligation Bonds, Series 11/11 at 101.00 AA 1,202,002
2001A, 5.000%, 11/01/21
3,000 Louisville, Kentucky, General Obligation Bonds, Series 10/12 at 100.00 AAA 3,029,340
2002A, 5.000%, 10/01/23 - FGIC Insured
4,400 Puerto Rico, Public Improvement Bonds, TICS/TOCS, Series No Opt. Call AAA 5,849,228
2001, 10.883%, 7/01/19 - FSA Insured (IF)
- ----
23
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 25.6%
$ 1,875 Bell County Public Properties Corporation, Kentucky, First 3/11 at 102.00 AAA $ 2,028,244
Mortgage Revenue Bonds, Judicial Center Project, Series
2000, 5.850%, 9/01/28 - AMBAC Insured
1,465 Boone County, Kentucky, Public Properties Corporation, 9/12 at 101.00 Aa3 1,505,141
First Mortgage Bonds, AOC Judicial Facility, Series 2001,
5.125%, 9/01/22
Bowling Green, Kentucky, General Obligation and Special
Revenue Bonds, Series 2002B:
1,785 5.000%, 6/01/23 6/12 at 100.00 Aa2 1,803,171
1,230 5.000%, 6/01/24 6/12 at 100.00 Aa2 1,237,651
1,665 5.000%, 6/01/25 6/12 at 100.00 Aa2 1,668,796
Butler County School District Finance Corporation,
Kentucky, Revenue Bonds, School Buildings, Series 2004C:
1,220 5.000%, 6/01/20 (WI, settling 6/08/04) 6/14 at 100.00 Aa3 1,239,691
1,255 5.000%, 6/01/22 (WI, settling 6/08/04) 6/14 at 100.00 Aa3 1,264,337
Fayette County School District Finance Corporation,
Kentucky, School Building Revenue Bonds, Series 2000:
1,665 5.500%, 6/01/18 6/10 at 101.00 AA- 1,791,756
2,795 5.500%, 6/01/20 6/10 at 101.00 AA- 2,956,803
3,155 Florence Public Properties Corporation, Kentucky, First 6/07 at 102.00 AAA 3,292,621
Mortgage Revenue Bonds, Administrative Office Complex
Project, Series 1997, 5.500%, 6/01/27 - MBIA Insured
4,500 Kenton County Public Properties Corporation, Kentucky, 3/09 at 101.00 Aa3 4,390,425
First Mortgage Revenue Bonds, Courthouse Facilities
Project, Series 1998A, 5.000%, 3/01/29
Kentucky Area Development Districts Financing Trust, Ewing,
Lease Acquisition Program Revenue Bonds, Series 2000C:
750 5.850%, 6/01/20 6/10 at 102.00 AA 794,333
1,000 6.000%, 6/01/30 6/10 at 102.00 AA 1,075,130
Kentucky State Property and Buildings Commission, Revenue
Refunding Bonds, Project No. 79, Series 2003:
5,000 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 5,095,000
6,500 5.000%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 6,589,180
1,845 Kentucky State Property and Buildings Commission, Revenue 11/13 at 100.00 AAA 1,862,195
Bonds, Project No. 81, Series 2003, 5.000%, 11/01/23 -
AMBAC Insured
4,000 Kentucky Turnpike Authority, Economic Development Road 7/11 at 100.00 AAA 4,173,960
Revenue and Refunding Bonds, Revitalization Project,
Series 2001B, 5.150%, 7/01/19 - FSA Insured
11,000 Lexington-Fayette Urban County Government, Kentucky, First 7/08 at 102.00 AAA 11,029,370
Mortgage Bonds, Public Facilities Corporation, Series
1998, 5.125%, 10/01/31 - FSA Insured
1,695 Louisville and Jefferson County Visitors and Convention 6/14 at 101.00 AAA 1,818,210
Commission, Kentucky, Dedicated Tax Revenue Bonds, Series
2004A, 5.000%, 12/01/15 - FSA Insured
650 Magoffin County School District Finance Corporation, 6/10 at 101.00 Aa3 708,507
Kentucky, School Building Revenue Bonds, Series 2000,
5.750%, 6/01/20
1,525 McCracken County Public Properties Corporation, Kentucky, 9/06 at 102.00 AAA 1,643,371
Public Project Revenue Bonds, Court Facilities, Series
1995, 5.900%, 9/01/26 - AMBAC Insured
8,000 Mount Sterling, Kentucky, Lease Revenue Bonds, Kentucky 9/04 at 101.00 Aa3 8,089,680
League of Cities Funding Trust, Series 1993A, 6.200%,
3/01/18
5,100 Oldham County School District Finance Corporation, 4/11 at 101.00 Aa3 5,294,208
Kentucky, School Building Revenue Bonds, Series 2001A,
5.125%, 4/01/21
Oldham County School District Finance Corporation,
Kentucky, School Building Revenue Bonds, Series 2004:
1,230 5.000%, 5/01/18 - MBIA Insured 5/14 at 100.00 Aaa 1,279,249
1,635 5.000%, 5/01/20 - MBIA Insured 5/14 at 100.00 Aaa 1,679,374
1,715 5.000%, 5/01/21 - MBIA Insured 5/14 at 100.00 Aaa 1,751,958
1,360 Owen County School District Finance Corporation, Kentucky, 4/11 at 101.00 Aa3 1,386,697
School Building Revenue Bonds, Series 2001, 5.000%, 4/01/21
- ----
24
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
Pendleton County, Kentucky, Leasing Trust Revenue Bonds,
Kentucky Association of Counties, Series 1993A:
$ 16,460 6.500%, 3/01/19 9/04 at 101.00 A $16,646,986
500 6.400%, 3/01/19 No Opt. Call A 583,800
4,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 4,505,800
Revenue Bonds, Reset Option Long Certificates II-R-66,
Series 1996Y, 9.870%, 1/01/13 (IF)
2,545 Puerto Rico Highway and Transportation Authority, No Opt. Call AAA 2,877,402
Transportation Revenue Bonds, Series 1998A, 5.500%,
7/01/14 - AMBAC Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 1,000,610
Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured
3,185 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 3,543,631
Government Facilities Revenue Bonds, Series 1993L, 5.500%,
7/01/21 - FSA Insured
3,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 3,458,580
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
1,360 Shelby County School District Finance Corporation, 5/14 at 100.00 Aaa 1,389,308
Kentucky, Revenue Bonds, School Buildings, Series 2004,
5.000%, 5/01/21 (WI, settling 6/10/04) - MBIA Insured
2,185 Spencer County School District Finance Corporation, 7/14 at 100.00 Aaa 2,237,986
Kentucky, Revenue Bonds, School Buildings, Series 2004,
5.000%, 7/01/21 (WI, settling 6/15/04) - FSA Insured
1,010 Virgin Islands Public Finance Authority, Gross Receipts 10/14 at 100.00 AAA 1,069,024
Taxes Loan Notes, Series 2003, 5.250%, 10/01/21 - FSA
Insured
7,000 Warren County Justice Center Expansion Corporation, 9/07 at 102.00 AAA 7,180,040
Kentucky, First Mortgage Revenue Bonds, AOC Judicial
Facility, Series 1997A, 5.250%, 9/01/24 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------
Transportation - 5.2%
Guam International Airport Authority, Revenue Bonds, Series
2003C:
5,000 5.250%, 10/01/22 (Alternative Minimum Tax) - MBIA Insured 10/10 at 100.00 AAA 5,142,050
2,195 5.000%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured 10/13 at 100.00 AAA 2,166,728
1,250 Kenton County Airport Board, Kentucky, Airport Revenue 3/06 at 102.00 AAA 1,341,238
Bonds, Cincinnati/Northern Kentucky International Airport,
Series 1996B, 5.750%, 3/01/13 - MBIA Insured
5,090 Kenton County Airport Board, Kentucky, Airport Revenue 3/13 at 100.00 AAA 5,025,561
Bonds, Cincinnati/Northern Kentucky International Airport,
Series 2003B, 5.000%, 3/01/23 (Alternative Minimum Tax) -
MBIA Insured
5,000 Louisville and Jefferson County Regional Airport Authority, 7/05 at 102.00 AAA 5,130,550
Kentucky, Airport System Revenue Bonds, Series 1995A,
5.625%, 7/01/25 (Alternative Minimum Tax) - MBIA Insured
1,000 Louisville and Jefferson County Regional Airport Authority, 7/13 at 100.00 AAA 1,016,940
Kentucky, Airport System Revenue Bonds, Series 2003C,
5.250%, 7/01/22 (Alternative Minimum Tax) - FSA Insured
6,000 Louisville and Jefferson County Regional Airport Authority, 3/09 at 101.00 Baa3 5,245,380
Kentucky, Special Facilities Revenue Bonds, Airis
Louisville LLC Project, Series 1999A, 5.500%, 3/01/19
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 15.5%
1,595 Bowling Green Municipal Project Corporation, Kentucky, 12/04 at 102.00 A2*** 1,668,721
Lease Revenue Bonds, Series 1994, 6.500%, 12/01/14
(Pre-refunded to 12/01/04)
5,085 Campbellsville, Kentucky, Industrial Building Revenue 3/09 at 102.00 A+*** 5,694,691
Bonds, Campbellsville University Project, Series 1999,
5.500%, 3/01/29 (Pre-refunded to 3/01/09)
1,005 Casey County School District Finance Corporation, Kentucky, 3/05 at 102.00 Aa3*** 1,057,501
School Building Revenue Bonds, Series 1995, 5.750%,
3/01/15 (Pre-refunded to 3/01/05)
1,070 Fleming County School District Finance Corporation, 3/05 at 102.00 A+*** 1,126,731
Kentucky, School Building Revenue Bonds, Series 1995,
5.875%, 3/01/15 (Pre-refunded to 3/01/05)
1,260 Floyd County Public Properties Corporation, Kentucky, First 3/06 at 102.00 N/R*** 1,360,485
Mortgage Revenue Bonds, Floyd County Justice Center
Project, Series 1995A, 5.550%, 9/01/23 (Pre-refunded to
3/01/06)
3,550 Floyd County Public Properties Corporation, Kentucky, First 3/06 at 102.00 N/R*** 3,872,766
Mortgage Revenue Bonds, Floyd County Justice Center
Project, Series 1996B, 6.200%, 9/01/26 (Pre-refunded to
3/01/06)
1,200 Floyd County School District Finance Corporation, Kentucky, 5/05 at 102.00 Aa3*** 1,267,992
School Building Revenue Bonds, Series 1995, 5.500%,
5/01/15 (Pre-refunded to 5/01/05)
- ----
25
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
Hardin County Building Commission, Kentucky, Revenue Bonds,
Detention Facility Project, Series 1994:
$ 525 6.200%, 12/01/11 (Pre-refunded to 12/01/04) - MBIA Insured 12/04 at 102.00 AAA $ 548,389
1,775 6.250%, 12/01/14 (Pre-refunded to 12/01/04) - MBIA Insured 12/04 at 102.00 AAA 1,854,520
2,000 Jefferson County Collegiate Housing Foundation, Kentucky, 9/09 at 102.00 N/R*** 2,386,220
Student Housing Revenue Bonds, University of Louisville
Project, Series 1999A, 7.125%, 9/01/29 (Pre-refunded to
9/01/09)
Kentucky Infrastructure Authority, Infrastructure Revolving
Loan Program Revenue Bonds, Series 1995J:
440 6.300%, 6/01/10 (Pre-refunded to 6/01/05) 6/05 at 102.00 Aa3*** 469,792
360 6.350%, 6/01/11 (Pre-refunded to 6/01/05) 6/05 at 102.00 Aa3*** 384,556
600 6.375%, 6/01/14 (Pre-refunded to 6/01/05) 6/05 at 102.00 Aa3*** 641,076
420 Kentucky Infrastructure Authority, Governmental Agencies 8/05 at 102.00 A-*** 440,089
Program Revenue Bonds, Series 1995G, 6.300%, 8/01/10
(Pre-refunded to 8/01/05)
400 Kentucky State Property and Buildings Commission, Agency 5/10 at 100.00 AAA 451,536
Fund Revenue Bonds, Project No. 66A, Series 2000, 5.750%,
5/01/20 (Pre-refunded to 5/01/10) - MBIA Insured
500 Kentucky State Property and Buildings Commission, Revenue 11/09 at 100.00 AAA 556,080
Bonds, Project No. 64, Series 1999, 5.500%, 5/01/18
(Pre-refunded to 11/01/09) - MBIA Insured
Kentucky State Property and Buildings Commission, Revenue
Refunding Bonds, Project No. 72, Series 2001:
4,375 5.375%, 10/01/18 (Pre-refunded to 10/01/11) - MBIA Insured 10/11 at 100.00 AAA 4,874,275
5,860 5.375%, 10/01/19 (Pre-refunded to 10/01/11) - MBIA Insured 10/11 at 100.00 AAA 6,528,743
5,780 Kentucky State Property and Buildings Commission, Revenue 10/13 at 100.00 AAA 6,347,654
Refunding Bonds, Project No. 79, Series 2003, 5.125%,
10/01/19 (Pre-refunded to 10/01/13) - MBIA Insured
1,000 Lawrence County School District Finance Corporation, 11/04 at 102.00 Aa3*** 1,042,810
Kentucky, School Building Revenue Bonds, Series 1994,
6.750%, 11/01/14 (Pre-refunded to 11/01/04)
Lexington-Fayette Urban County Government, Kentucky,
Revenue Bonds, University of Kentucky Alumni Association
Project, Series 1994:
3,195 6.750%, 11/01/17 (Pre-refunded to 11/01/04) - MBIA Insured 11/04 at 102.00 AAA 3,332,066
4,320 6.750%, 11/01/24 (Pre-refunded to 11/01/04) - MBIA Insured 11/04 at 102.00 AAA 4,505,328
Louisville and Jefferson County Metropolitan Sewer
District, Kentucky, Sewer and Drainage System Revenue
Bonds, Series 1994A:
2,720 6.750%, 5/15/19 (Pre-refunded to 11/15/04) - AMBAC Insured 11/04 at 102.00 AAA 2,842,318
2,070 6.500%, 5/15/24 (Pre-refunded to 11/15/04) - AMBAC Insured 11/04 at 102.00 AAA 2,160,707
2,500 6.750%, 5/15/25 (Pre-refunded to 11/15/04) - AMBAC Insured 11/04 at 102.00 AAA 2,612,425
1,365 McCreary County School District Finance Corporation, 8/05 at 102.00 Aa3*** 1,456,196
Kentucky, School Building Revenue Bonds, Second Series
1995, 5.600%, 8/01/16 (Pre-refunded to 8/01/05)
1,410 Morgan County School District Finance Corporation, 9/04 at 102.00 Aa3*** 1,455,360
Kentucky, School Building Revenue Bonds, Series 1994,
6.000%, 9/01/14 (Pre-refunded to 9/01/04)
1,310 Puerto Rico Public Improvement, General Obligation Bonds, 7/06 at 101.50 A-*** 1,417,499
Series 1996, 5.400%, 7/01/25 (Pre-refunded to 7/01/06)
2,000 Puerto Rico, Public Improvement General Obligation 7/07 at 100.00 A-*** 2,168,460
Refunding Bonds, Series 1997, 5.375%,
7/01/25 (Pre-refunded to 7/01/07)
2,600 Puerto Rico, Public Improvement General Obligation Bonds, 7/10 at 100.00 AAA 2,938,884
Series 2000, 5.750%, 7/01/26 (Pre-refunded to 7/01/10) -
MBIA Insured
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/04 at 102.00 A-*** 3,072,930
Series 1994T, 6.000%, 7/01/16 (Pre-refunded to 7/01/04)
2,800 Russell, Kentucky, Health System Revenue Bonds, Franciscan 1/10 at 100.00 Baa2*** 3,081,316
Health Partnership Inc. - Our Lady of Bellefonte Hospital,
Series 1997, 5.500%, 7/01/15 (Pre-refunded to 1/01/10)
- --------------------------------------------------------------------------------------------------------------
Utilities - 8.5%
6,000 Boone County, Kentucky, Collateralized Pollution Control 7/04 at 102.00 AAA 6,197,400
Revenue Refunding Bonds, Cincinnati Gas and Electric
Company Project, Series 1994A, 5.500%, 1/01/24 - MBIA
Insured
1,750 Jefferson County, Kentucky, Pollution Control Revenue 4/05 at 102.00 A1 1,793,680
Bonds, Louisville Gas and Electric Company Project, Series
1995A, 5.900%, 4/15/23
- ----
26
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------
Utilities (continued)
Owensboro, Kentucky, Electric Light and Power System
Revenue Bonds, Series 1991B:
$ 7,100 0.000%, 1/01/11 - AMBAC Insured No Opt. Call AAA $ 5,443,996
6,475 0.000%, 1/01/12 - AMBAC Insured No Opt. Call AAA 4,705,253
5,810 0.000%, 1/01/15 - AMBAC Insured No Opt. Call AAA 3,537,419
7,900 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 4,278,561
13,300 0.000%, 1/01/18 - AMBAC Insured No Opt. Call AAA 6,788,320
5,100 0.000%, 1/01/19 - AMBAC Insured No Opt. Call AAA 2,449,326
4,725 0.000%, 1/01/20 - AMBAC Insured No Opt. Call AAA 2,131,920
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 3,224,040
Series 2003NN, 5.250%, 7/01/23 - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------
Water and Sewer - 9.1%
1,405 Christian County Water District, Kentucky, Waterworks 10/09 at 101.00 Aaa 1,549,518
Revenue Bonds, Series 1999, 6.000%, 1/01/30 - AMBAC Insured
1,750 Henderson, Kentucky, Water and Sewer Revenue Refunding 11/04 at 103.00 AAA 1,834,560
Bonds, Series 1994A, 6.100%, 11/01/14 - FSA Insured
Kentucky Infrastructure Authority, Governmental Agencies
Program Revenue Bonds, Series 1995G:
445 6.350%, 8/01/11 8/05 at 102.00 A- 474,561
825 6.375%, 8/01/14 8/05 at 102.00 A- 880,044
1,000 Kentucky Rural Water Finance Corporation, Multimodal Public 2/11 at 102.00 AA- 1,053,760
Projects Revenue Bonds, Flexible Term Program, Series
2001A, 5.375%, 2/01/20
Louisville and Jefferson County Metropolitan Sewer
District, Kentucky, Sewer and Drainage System Revenue
Bonds, Series 1997B:
6,000 5.350%, 5/15/22 - MBIA Insured 11/07 at 101.00 AAA 6,262,440
2,500 5.200%, 5/15/25 - MBIA Insured 11/07 at 101.00 AAA 2,527,525
3,200 Louisville and Jefferson County Metropolitan Sewer 5/08 at 101.00 AAA 3,170,080
District, Kentucky, Sewer and Drainage System Revenue
Bonds, Series 1998A, 5.000%, 5/15/30 - FGIC Insured
16,000 Louisville and Jefferson County Metropolitan Sewer 11/11 at 101.00 AAA 16,668,640
District, Kentucky, Sewer and Drainage System Revenue
Bonds, Series 2001A, 5.500%, 5/15/34 - MBIA Insured
Northern Kentucky Water District, Revenue Refunding Bonds,
Series 2002A:
1,250 4.750%, 2/01/19 - FGIC Insured 2/12 at 100.00 Aaa 1,258,313
6,920 5.000%, 2/01/27 - FGIC Insured 2/12 at 100.00 Aaa 6,903,667
1,000 Northern Kentucky Water District, Revenue Bonds, Series 8/13 at 100.00 Aaa 919,930
2003B, 4.000%, 2/01/18 - FGIC Insured
- ----------------------------------------------------------------------------------------------------------------
$485,585 Total Long-Term Investments (cost $454,363,772) - 98.3% 469,338,866
- ----------------------------------------------------------------------------------------------------------------
- ------------
Short-Term Investments - 1.1%
5,150 Puerto Rico Government Development Bank, Adjustable A-1 5,150,000
Refunding Bonds, Variable Rate Demand Obligations, Series
1985, 0.970%, 12/01/15 - MBIA Insured+
- ----------------------------------------------------------------------------------------------------------------
$ 5,150 Total Short-Term Investments (cost $5,150,000) 5,150,000
- ----------------------------------------------------------------------------------------------------------------
- ------------
Total Investments (cost $459,513,772) - 99.4% 474,488,866
---------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 3,083,190
---------------------------------------------------------------------------------------------------
Net Assets - 100% $477,572,056
---------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent registered
public accounting firm): 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/RInvestment is not rated.
(WI)Security purchased on a when-issued basis.
+ 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.
- ----
27
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.8%
$ 2,000 Michigan Strategic Fund, Multi-Modal Interchangeable Rate 9/05 at 102.00 Baa1 $2,043,480
Pollution Control Revenue Refunding Bonds, General Motors
Corporation, Series 1995, 6.200%, 9/01/20
- --------------------------------------------------------------------------------------------------------------
Consumer Staples - 0.3%
945 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 808,693
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- --------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 3.7%
Michigan Technological University, General Revenue Bonds,
Series 2004A:
1,230 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,237,675
1,850 5.000%, 10/01/29 - MBIA Insured 10/13 at 100.00 AAA 1,835,422
6,150 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 6,174,047
Series 1999, 5.125%, 11/15/29 - FGIC Insured
- --------------------------------------------------------------------------------------------------------------
Healthcare - 12.4%
Flint Hospital Building Authority, Michigan, Revenue Rental
Bonds, Hurley Medical Center, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 101.00 Baa3 942,870
1,000 5.375%, 7/01/28 7/08 at 101.00 Baa3 888,200
3,750 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 3,799,988
Spectrum Health, Series 2001A, 5.500%, 1/15/31
3,530 Lake View Community Hospital Authority, Michigan, Hospital 2/07 at 101.00 N/R 3,315,235
Revenue Refunding Bonds, Series 1997, 6.250%, 2/15/13
4,855 Michigan State Hospital Finance Authority, Revenue 8/04 at 101.00 Ba3 4,054,750
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993A, 6.500%, 8/15/18
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 3,126,000
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 1/05 at 102.00 A+ 1,027,060
Refunding Bonds, Otsego Memorial Hospital, Series 1995,
6.125%, 1/01/15
710 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call BBB 741,247
Refunding Bonds, Gratiot Community Hospital, Series 1995,
6.100%, 10/01/07
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 10/06 at 102.00 BBB- 1,001,140
Bonds, Michigan Community Hospital, Series 1996, 6.250%,
10/01/27
1,475 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 101.00 BBB 1,416,944
Refunding Bonds, Chelsea Community Hospital, Series 1998,
5.375%, 5/15/19
1,000 Michigan State Hospital Finance Authority, Revenue 3/12 at 101.00 A+ 1,012,310
Refunding Bonds, Crittenton Hospital, Series 2002A,
5.625%, 3/01/27
2,200 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 2,287,120
Bonds, Henry Ford Health System, Series 1999A, 6.000%,
11/15/24
1,600 Pontiac Hospital Finance Authority, Michigan, Hospital 8/04 at 101.00 Ba1 1,391,376
Revenue Refunding Bonds, NOMC Obligated Group, Series
1993, 6.000%, 8/01/23
3,000 Royal Oak Hospital Finance Authority, Michigan, Hospital 1/06 at 102.00 AAA 3,066,030
Revenue Refunding Bonds, William Beaumont Hospital, Series
1996, 5.250%, 1/01/20 - MBIA Insured
Royal Oak Hospital Finance Authority, Michigan, Hospital
Revenue Bonds, William Beaumont Hospital, Series 2001M:
1,000 5.250%, 11/15/31 - MBIA Insured 11/11 at 100.00 AAA 1,003,340
2,000 5.250%, 11/15/35 - MBIA Insured 11/11 at 100.00 AAA 2,001,780
- --------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.7%
390 Grand Rapids Housing Corporation, Michigan, FHA-Insured 7/04 at 104.00 AAA 404,859
Section 8 Multifamily Mortgage Loan Revenue Refunding
Bonds, Series 1992, 7.375%, 7/15/41
750 Grand Rapids Housing Finance Authority, Michigan, FNMA 9/04 at 100.00 AAA 753,660
Collateralized Multifamily Housing Revenue Refunding
Bonds, Series 1990A, 7.625%, 9/01/23
- ----
28
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
$ 1,190 Michigan Housing Development Authority, GNMA Collateralized 4/05 at 102.00 Aaa $1,224,320
Limited Obligation Multifamily Revenue Refunding Bonds,
Parc Point Apartments, Series 1995A, 6.500%, 10/01/15
6,000 Michigan State Housing Development Authority, Section 8 No Opt. Call AA- 2,417,040
Assisted Mortgage Revenue Bonds, Series 1983I, 0.000%,
4/01/14
710 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 732,606
Revenue Bonds, Series 1995B, 6.150%, 10/01/15 - MBIA
Insured
1,320 Michigan Housing Development Authority, Rental Housing 4/09 at 101.00 AAA 1,310,496
Revenue Bonds, Series 1999A, 5.300%, 10/01/37 (Alternative
Minimum Tax) - MBIA Insured
- --------------------------------------------------------------------------------------------------------------
Housing/Single Family - 0.4%
1,100 Michigan Housing Development Authority, Single Family 6/12 at 100.00 AAA 1,116,346
Mortgage Revenue Bonds, Series 2002B, 5.500%, 6/01/30
(Alternative Minimum Tax) - MBIA Insured
- --------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.8%
2,500 Kalamazoo Economic Development Corporation, Michigan, 5/07 at 102.00 BB+ 2,396,050
Limited Obligation Revenue Refunding Bonds, Friendship
Village of Kalamazoo, Series 1997A, 6.250%, 5/15/27
Michigan State Hospital Finance Authority, Revenue Bonds,
Presbyterian Villages of Michigan Obligated Group, Series
1997:
600 6.375%, 1/01/15 1/07 at 102.00 N/R 580,044
500 6.375%, 1/01/25 1/07 at 102.00 N/R 452,305
Michigan Strategic Fund, Limited Obligation Revenue
Refunding Bonds, Porter Hills Presbyterian Village, Series
1998:
140 5.300%, 7/01/18 7/08 at 101.00 A- 146,355
260 5.375%, 7/01/28 7/08 at 101.00 A- 262,577
3,300 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 6/08 at 100.00 BBB 3,134,505
Clark Retirement Community, Inc., Series 1998, 5.250%,
6/01/18
- --------------------------------------------------------------------------------------------------------------
Materials - 0.7%
1,650 Dickinson County Economic Development Corporation, 10/04 at 101.50 BBB 1,683,611
Michigan, Pollution Control Revenue Refunding Bonds,
Champion International Corporation Project, Series 1993,
5.850%, 10/01/18
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 25.6%
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA+ 1,082,420
Michigan, General Obligation Bonds, Series 2002-3, 5.500%,
5/01/18
1,175 Birmingham, Michigan, General Obligation Bonds, Series 10/12 at 100.50 AAA 1,203,412
2002, 5.000%, 10/01/21
1,625 Brighton Township Sanitary Sewer Drainage District, 4/09 at 100.00 AAA 1,703,309
Livingston County, Michigan, Limited Tax General
Obligation Bonds, Series 2000, 5.250%, 10/01/19 - FSA
Insured
1,020 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AA+ 1,055,588
Counties, Michigan, General Obligation Bonds, Series 2003,
5.250%, 5/01/22
1,195 Carman-Ainsworth Community School District, Genesee County, 5/12 at 100.00 AAA 1,288,987
Michigan, General Obligation Bonds, Series 2002, 5.500%,
5/01/19 - FGIC Insured
1,500 Clarkston Community Schools, Michigan, General Obligation 5/07 at 100.00 AAA 1,537,065
Bonds, School Bond Loan Fund - QSBLF, Series 1997, 5.250%,
5/01/23 - MBIA Insured
1,800 Coopersville Area Public Schools, Ottawa and Muskegon 5/09 at 100.00 AAA 1,785,996
Counties, Michigan, Unlimited Tax General Obligation
School Building and Site Bonds, Series 1999, 5.000%,
5/01/29 - MBIA Insured
2,520 Detroit, Michigan, Unlimited Tax General Obligation Bonds, 4/10 at 101.00 AAA 2,710,058
Series 1999B, 5.500%, 4/01/18 - MBIA Insured
1,000 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 1,039,460
General Obligation Bonds, Series 2002A, 5.375%, 5/01/24 -
FGIC Insured
Detroit City School District, Wayne County, Michigan,
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A:
2,000 5.500%, 5/01/21 - FSA Insured 5/12 at 100.00 AAA 2,142,060
250 5.125%, 5/01/31 - FSA Insured 5/12 at 100.00 AAA 250,490
- ----
29
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,000 Frankenmuth School District, Saginaw and Tuscola Counties, 5/10 at 100.00 AAA $ 1,084,390
Michigan, Unlimited Tax General Obligation School Building
and Site Bonds, Series 2000, 5.625%, 5/01/16 - FGIC Insured
2,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AA+ 1,990,700
General Obligation Refunding Bonds, Series 2001, 5.000%,
5/01/26
5,600 Grand Ledge Public Schools, Eaton, Clinton and Ionia 5/05 at 102.00 AAA 5,784,912
Counties, Michigan, General Obligation Refunding Bonds,
Series 1995, 5.375%, 5/01/24 - MBIA Insured
4,350 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA+ 4,362,876
Michigan, General Obligation Refunding Bonds, Series 2001,
5.125%, 5/01/29
1,000 Hastings Area School System, Barry County, Michigan, 5/11 at 100.00 AAA 997,980
Unlimited Tax General Obligation, Building and Site Bonds,
Series 2001, 5.000%, 5/01/26 - MBIA Insured
2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA+ 2,009,620
Obligation Bonds, Series 2003, 5.000%, 5/01/24
2,000 Jonesville Community Schools, Hillsdale and Jackson 5/09 at 100.00 AAA 2,137,020
Counties, Michigan, Unlimited Tax General Obligation
Building and Site Bonds, Series 1999, 5.750%, 5/01/29 -
FGIC Insured
1,000 Livonia Municipal Building Authority, Wayne County, 5/10 at 100.00 AAA 996,980
Michigan, General Obligation Bonds, Series 2001, 5.000%,
5/01/27 - FGIC Insured
2,700 Livonia Public Schools, Wayne County, Michigan, Unlimited No Opt. Call AAA 2,373,570
Tax General School Building and Site Bonds, Series
1992-II, 0.000%, 5/01/08 - FGIC Insured
2,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 2,043,100
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA
Insured
2,800 Michigan Municipal Bond Authority, Local Government Loan No Opt. Call AAA 2,450,168
Program Revenue Bonds, Pontiac School District, Series
1991C, 0.000%, 6/15/08 - FSA Insured
3,000 Michigan, General Obligation Bonds, Environmental 5/13 at 100.00 AA+ 3,153,660
Protection Program, Series 2003A, 5.250%, 5/01/21
2,000 Muskegon Public Schools, Muskegon County, Michigan, General 5/14 at 100.00 AAA 2,054,280
Obligation Bonds, Series 2004, 5.000%, 5/01/20 - FSA
Insured
1,130 Novi, Michigan, General Obligation Bonds, Series 2002, 10/13 at 100.00 AAA 1,224,016
5.250%, 10/01/15 - FSA Insured
Okemos Public School District, Ingham County, Michigan,
General Obligation Refunding Bonds, Series 1993:
1,000 0.000%, 5/01/17 - MBIA Insured No Opt. Call AAA 532,870
1,020 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 512,091
1,500 Portage Lake Water and Sewerage Authority, Houghton County, 10/05 at 102.00 AAA 1,608,960
Michigan, Limited Tax General Obligation Refunding Bonds,
Series 1995, 6.200%, 10/01/20 - AMBAC Insured
3,000 Southgate Community School District, Wayne County, 5/09 at 100.00 AAA 3,003,120
Michigan, General Obligation Bonds, Series 1999, 5.000%,
5/01/25 - FGIC Insured
2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,606,000
General Obligation Bonds, Series 2000, 5.125%, 3/01/17 -
AMBAC Insured
3,270 West Ottawa Public School District, Ottawa County, No Opt. Call AAA 1,742,485
Michigan, General Obligation Refunding Bonds, Series 1992,
0.000%, 5/01/17 - FGIC Insured
5,175 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 5,574,821
Tax General Obligation QSBLF Bonds, Series 1996, 5.500%,
5/01/25 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 14.2%
1,845 Detroit, Michigan, Building Authority Revenue Bonds, 2/07 at 101.00 A 1,924,058
District Court Madison Center, Series 1996A, 6.150%,
2/01/11
11,000 Detroit-Wayne County Stadium Authority, Michigan, Limited 2/07 at 102.00 AAA 11,123,090
Tax General Obligation Building Authority Stadium Bonds,
Series 1997, 5.250%, 2/01/27 - FGIC Insured
Grand Rapids Downtown Development Authority, Michigan, Tax
Increment Revenue Bonds, Series 1994:
3,985 0.000%, 6/01/17 - MBIA Insured No Opt. Call AAA 2,114,879
3,295 0.000%, 6/01/18 - MBIA Insured No Opt. Call AAA 1,647,467
1,650 6.875%, 6/01/24 - MBIA Insured 6/04 at 102.00 AAA 1,689,633
- ----
30
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 250 Michigan Municipal Bond Authority, Wayne County, Local 6/04 at 100.00 AAA $ 250,615
Government Loan Program Revenue Bonds, Series 1991A,
4.750%, 12/01/09 - FGIC Insured
Michigan State Building Authority, Revenue Refunding Bonds,
Facilities Program, Series 2001-I:
2,720 5.500%, 10/15/19 10/11 at 100.00 AA 2,931,888
5,000 5.000%, 10/15/24 10/11 at 100.00 AA 5,025,750
2,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 2,020,040
Facilities Program, Series 2003-II, 5.000%, 10/15/22 -
MBIA Insured
1,500 Michigan State, Certificates of Participation, Series 2000, 6/10 at 100.00 AAA 1,604,160
5.500%, 6/01/20 - AMBAC Insured
2,000 Michigan State Trunk Line, Trunk Line Fund Bonds, Series 11/11 at 100.00 AAA 2,003,000
2001A, 5.000%, 11/01/25
6,000 Michigan House of Representatives, Certificates of No Opt. Call AAA 2,140,500
Participation, Series 1998, 0.000%, 8/15/23 - AMBAC Insured
1,085 Romulus Tax Increment Finance Authority, Wayne County, 11/06 at 100.00 N/R 1,129,811
Michigan, Limited Obligation Development Revenue Bonds,
Series 1994, 6.750%, 11/01/19
- --------------------------------------------------------------------------------------------------------------
Transportation - 1.2%
3,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 2,965,320
Metropolitan Airport, Series 1998B, 5.000%, 12/01/28
- --------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 18.6%
210 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 225,937
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
3,000 Detroit, Michigan, Downtown Development Authority, Tax 7/06 at 102.00 AAA 3,313,140
Increment Refunding Bonds, Development Area 1 Projects,
Series 1996C, 6.250%, 7/01/25 (Pre-refunded to 7/01/06)
2,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,847,675
Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) -
FGIC Insured
6,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 8,225,555
Residual Option Long Series II-R-103, 10.330%, 7/01/20
(Pre-refunded to 1/01/10) (IF)
2,000 Detroit, Michigan, Water Supply System Senior Lien Revenue 1/10 at 101.00 AAA 2,265,460
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to
1/01/10) - FGIC Insured
1,500 Grand Rapids Township Economic Development Corporation, 7/09 at 101.00 A-*** 1,663,035
Michigan, Limited Obligation Revenue Bonds, Porter Hills
Obligated Group, Cook Valley Estate Project, Series 1999,
5.450%, 7/01/29 (Pre-refunded to 7/01/09)
1,000 Holt Public Schools, Ingham and Eaton Counties, Michigan, 5/10 at 100.00 AAA 1,115,500
Unlimited Tax General Obligation School Building and Site
Bonds, Series 2000A, 5.500%, 5/01/23 (Pre-refunded to
5/01/10) - FGIC Insured
3,000 Lake Orion Community School District, Oakland County, 5/05 at 101.00 AAA 3,181,560
Michigan, School Building and Site Revenue Refunding
Bonds, Series 1994, 7.000%, 5/01/15 (Pre-refunded to
5/01/05) - AMBAC Insured
2,000 Livonia Public Schools, Wayne County, Michigan, Unlimited 5/10 at 100.00 AAA 2,271,020
Tax General Obligation School Building and Site Bonds,
Series 2000, 5.875%, 5/01/25 (Pre-refunded to 5/01/10) -
FGIC Insured
2,000 Macomb Township Building Authority, Macomb County, 4/08 at 101.00 AAA 2,245,960
Michigan, General Obligation Bonds, Series 2000, 6.000%,
4/01/27 (Pre-refunded to 4/01/08) - FGIC Insured
1,000 Michigan Municipal Bond Authority, State Revolving Fund 10/04 at 102.00 AAA 1,037,640
Revenue Bonds, Series 1994, 6.500%, 10/01/14 (Pre-refunded
to 10/01/04)
500 Michigan Municipal Bond Authority, Drinking Water Revolving 10/10 at 101.00 AAA 574,535
Fund Revenue Bonds, Series 2000, 5.875%, 10/01/17
(Pre-refunded to 10/01/10)
1,220 Michigan State, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,358,165
Development, Inc., Series 2001, 5.375%, 9/01/21
(Pre-refunded to 9/01/11) - MBIA Insured
5,000 Michigan State Hospital Finance Authority, Revenue Bonds, 11/09 at 101.00 AAA 5,760,250
Ascension Health Credit Group, Series 1999A, 6.125%,
11/15/26 (Pre-refunded to 11/15/09)
Michigan Strategic Fund, Limited Obligation Revenue
Refunding Bonds, Porter Hills Presbyterian Village, Series
1998:
260 5.300%, 7/01/18 (Pre-refunded to 7/01/08) 7/08 at 101.00 A-*** 285,951
1,415 5.375%, 7/01/28 (Pre-refunded to 7/01/08) 7/08 at 101.00 A-*** 1,560,306
2,775 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 3,132,531
Michigan, General Obligation Bonds, Series 2000A, 5.750%,
5/01/20 (Pre-refunded to 5/01/10) - FGIC Insured
- ----
31
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
$ 1,215 Potterville Public Schools, Easton County, Michigan, 5/09 at 100.00 AAA $ 1,358,747
Unlimited Tax School Building and Site Bonds, Series 1999,
5.750%, 5/01/20 (Pre-refunded to 5/01/09) - FSA Insured
1,235 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,394,117
Counties, Michigan, General Obligation Bonds, Series
2000I, 5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC
Insured
180 Saginaw-Midland Municipal Water Supply Corporation, 9/04 at 102.00 A2*** 186,165
Michigan, Limited Tax General Obligation Water Supply
Revenue Bonds, Series 1992, 6.875%, 9/01/16 (Pre-refunded
to 9/01/04)
7,000 Vicksburg Community Schools, Kalamazoo and St. Joseph 5/06 at 37.24 AAA 2,501,240
Counties, Michigan, General Obligation Bonds, Series 1991,
0.000%, 5/01/20 (Pre-refunded to 5/01/06) - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------
Utilities - 5.5%
1,000 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,020,090
Electric Utility System Revenue Bonds, Series 2003A,
5.000%, 7/01/21 - FSA Insured
1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,017,160
Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC
Insured
3,000 Michigan South Central Power Agency, Power Supply System 11/04 at 102.00 Baa1 3,120,210
Revenue Refunding Bonds, Series 1994, 7.000%, 11/01/11
1,000 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 1,077,950
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,300 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 3,308,052
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C, 5.650%,
9/01/29 (Alternative Minimum Tax)
1,000 Monroe County Economic Development Corporation, Michigan, No Opt. Call AAA 1,262,100
Collateralized Limited Obligation Revenue Refunding Bonds,
Detroit Edison Company, Series 1992AA, 6.950%, 9/01/22 -
FGIC Insured
1,000 Monroe County, Michigan, Pollution Control Revenue Bonds, No Opt. Call AAA 1,024,400
Detroit Edison Company Project, Series 1994A, 6.350%,
12/01/04 (Alternative Minimum Tax) - AMBAC Insured
4,000 Puerto Rico Electric Power Authority, Power Revenue No Opt. Call AAA 2,065,960
Refunding Bonds, Series 1989O, 0.000%, 7/01/17 - MBIA
Insured
- ----------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.5%
4,455 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, No Opt. Call AAA 2,080,931
Series 1999A, 0.000%, 7/01/19 - FGIC Insured
3,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/11 at 100.00 AAA 3,005,340
Revenue Bonds, Series 2001A, 5.125%, 7/01/31 - FGIC Insured
3,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 3,125,580
Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 -
FSA Insured
Detroit, Michigan, Water Supply System Senior Lien Revenue
Bonds, Series 2001A:
2,500 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 2,469,372
3,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 3,123,300
5,000 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/13 at 100.00 AAA 5,001,600
Bonds, Series 2003A, 5.000%, 7/01/25 - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------
$256,930 Total Long-Term Investments (cost $229,278,698) - 96.4% 241,608,690
- ----------------------------------------------------------------------------------------------------------------
- ------------ Other Assets Less Liabilities - 3.6% 8,988,450
---------------------------------------------------------------------------------------------------
Net Assets - 100% $250,597,140
---------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent registered
public accounting firm): 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/RInvestment is not rated.
(IF)Inverse floating rate security.
See accompanying notes to financial statements.
- ----
32
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.7%
$ 3,225 St. Louis Industrial Development Authority, Missouri, No Opt. Call AAA $1,895,945
Senior Lien Revenue Bonds, St. Louis Convention Center
Headquarters Hotel, Series 2000A, 0.000%, 7/15/15 - AMBAC
Insured
- --------------------------------------------------------------------------------------------------------------
Consumer Staples - 4.4%
3,000 Cape Girardeau County Industrial Development Authority, 5/08 at 101.00 AA- 2,984,220
Missouri, Solid Waste Disposal Revenue Bonds, The Procter
and Gamble Paper Products Company Project, Series 1998,
5.300%, 5/15/28 (Alternative Minimum Tax)
8,100 Missouri Development Finance Board, Solid Waste Disposal No Opt. Call AA- 8,104,941
Revenue Bonds, The Procter and Gamble Paper Products
Company Project, Series 1999, 5.200%, 3/15/29 (Alternative
Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 11.0%
4,200 Curators of the University of Missouri, System Facilities 11/13 at 100.00 AA 4,159,596
Revenue Bonds, Series 2003A, 5.000%, 11/01/31
1,000 Kansas City Metropolitan Community Colleges Building 7/11 at 100.00 Aaa 1,079,610
Corporation, Missouri, Leasehold Revenue Bonds, Junior
College District of Metropolitan Kansas City, Series 2001,
5.500%, 7/01/18 - FGIC Insured
1,000 Missouri Development Finance Board, Cultural Facilities 12/11 at 100.00 AAA 990,570
Revenue Bonds, Nelson Gallery Foundation, Series 2001A,
5.000%, 12/01/30 - MBIA Insured
1,000 Missouri Higher Education Loan Authority, Subordinate Lien 8/04 at 100.00 A2 1,002,880
Student Loan Revenue Bonds, Series 1992, 6.500%, 2/15/06
(Alternative Minimum Tax)
4,190 Missouri Higher Education Loan Authority, Subordinate Lien 8/04 at 102.00 A2 4,372,684
Student Loan Revenue Bonds, Series 1994F, 6.750%, 2/15/09
(Alternative Minimum Tax)
1,000 Missouri Health and Educational Facilities Authority, No Opt. Call AA+ 1,117,380
Revenue Bonds, Washington University, Series 2001A,
5.500%, 6/15/16
Missouri Health and Educational Facilities Authority,
Revenue Bonds, Maryville University of St. Louis, Series
1997:
1,000 5.625%, 6/15/13 6/07 at 101.00 Baa2 1,034,830
1,750 5.750%, 6/15/17 6/07 at 101.00 Baa2 1,795,693
1,100 Missouri Health and Educational Facilities Authority, 10/08 at 100.00 N/R 1,041,733
Revenue Bonds, Barstow School, Series 1998, 5.250%,
10/01/23
1,000 Missouri Health and Educational Facilities Authority, 1/10 at 100.00 AA 1,053,260
Revenue Bonds, Central Institute for the Deaf, Series
1999, 5.850%, 1/01/22 - RAAI Insured
900 Missouri Health and Educational Facilities Authority, 6/08 at 102.00 A1 940,752
Revenue Bonds, Stephens College, Series 1999, 6.000%,
6/01/24
3,375 Missouri Health and Educational Facilities Authority, 6/10 at 100.00 Baa2 3,511,181
Revenue Bonds, Maryville University of St. Louis, Series
2000, 6.750%, 6/15/30
1,360 Missouri Health and Educational Facilities Authority, 4/11 at 100.00 Aaa 1,464,951
Revenue Bonds, Webster University, Series 2001, 5.500%,
4/01/18 - MBIA Insured
St. Louis County Industrial Development Authority,
Missouri, Revenue Bonds, Kiel Center Multipurpose Arena,
Series 1992:
650 7.625%, 12/01/09 (Alternative Minimum Tax) 6/04 at 101.00 N/R 651,599
1,000 7.750%, 12/01/13 (Alternative Minimum Tax) 6/04 at 101.00 N/R 1,030,700
500 7.875%, 12/01/24 (Alternative Minimum Tax) 6/04 at 101.00 N/R 515,500
2,060 Southeast Missouri State University, System Facilities 4/11 at 100.00 Aaa 2,053,078
Revenue Refunding and Improvement Bonds, Series 2001,
5.000%, 4/01/26 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------
Healthcare - 8.8%
1,000 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AAA 1,007,470
Revenue Bonds, St. Luke's Health System, Series 2001,
5.250%, 12/01/26 - FSA Insured
1,000 Missouri Health and Educational Facilities Authority, 5/13 at 100.00 AA 999,980
Revenue Bonds, BJC Health System, Series 2003, 5.125%,
5/15/25
2,750 Missouri Health and Educational Facilities Authority, 2/14 at 100.00 BBB+ 2,760,918
Revenue Bonds, Lake Regional Health System, Series 2003,
5.700%, 2/15/34
- ----
33
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Healthcare (continued)
Missouri Health and Educational Facilities Authority,
Revenue Bonds, Freeman Health System, Series 1998:
$ 1,500 5.250%, 2/15/18 2/08 at 102.00 BBB+ $1,467,615
1,300 5.250%, 2/15/28 2/08 at 102.00 BBB+ 1,195,064
500 Missouri Health and Educational Facilities Authority, 11/06 at 100.00 BBB+ 477,990
Revenue Bonds, Capital Region Medical Center, Series 1998,
5.250%, 11/01/23
2,000 Missouri Health and Educational Facilities Authority, 12/10 at 101.00 A 2,084,380
Revenue Bonds, St. Anthony's Medical Center, Series 2000,
6.250%, 12/01/30
Missouri Health and Educational Facilities Authority,
Revenue Bonds, Lester E. Cox Medical Center,
Series 1992H:
2,650 0.000%, 9/01/17 - MBIA Insured No Opt. Call AAA 1,382,187
4,740 0.000%, 9/01/21 - MBIA Insured No Opt. Call AAA 1,934,773
6,300 0.000%, 9/01/22 - MBIA Insured No Opt. Call AAA 2,411,199
1,000 New Liberty Hospital District, Missouri, Revenue Bonds, 12/11 at 100.00 AAA 1,010,910
Series 2001, 5.000%, 12/01/21 - AMBAC Insured
2,000 North Kansas City, Missouri, Hospital Revenue Bonds, North 11/13 at 100.00 AAA 2,003,080
Kansas City Hospital and Affiliate, Series 2003A, 5.125%,
11/15/33 - FSA Insured
2,880 Taney County Industrial Development Authority, Missouri, 5/08 at 101.00 BBB 2,673,821
Hospital Revenue Bonds, Skaggs Community Hospital
Association, Series 1998, 5.400%, 5/15/28
950 Texas County, Missouri, Hospital Revenue Bonds, Texas 6/10 at 100.00 N/R 933,869
County Memorial Hospital, Series 2000, 7.250%, 6/15/25
- --------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 10.0%
Clay County Industrial Development Authority, Missouri,
GNMA Multifamily Housing Revenue Bonds, Oak Creek
Apartments, Series 2002:
1,320 6.125%, 7/20/25 (Alternative Minimum Tax) 7/13 at 105.00 AAA 1,331,695
2,530 6.300%, 1/20/38 (Alternative Minimum Tax) 7/13 at 103.00 AAA 2,524,839
695 Missouri Housing Development Commission, FHA-Insured 7/04 at 100.00 Aaa 695,486
Mortgage Loan Housing Development Refunding Bonds, Series
1992, 6.600%, 7/01/24
885 Missouri Housing Development Commission, Multifamily 12/05 at 103.00 N/R 885,681
Housing Revenue Bonds, Primm Place Apartments, Series
1995A, 6.250%, 12/01/17 (Alternative Minimum Tax)
2,620 Missouri Housing Development Commission, Multifamily 4/08 at 102.00 N/R 2,334,446
Housing Revenue Bonds, Mansion Apartments II, Series 1999,
6.125%, 4/01/22 (Alternative Minimum Tax)
Missouri Housing Development Commission, GNMA
Collateralized Multifamily Housing Revenue Bonds, JB Hughes
Apartments I and II, Series 2002G:
283 6.200%, 5/20/19 5/12 at 105.00 Aaa 288,533
975 6.300%, 5/20/37 5/12 at 105.00 Aaa 986,447
1,805 St. Louis County Industrial Development Authority, 1/09 at 105.00 AAA 1,777,329
Missouri, GNMA Collateralized Subordinate Lien Housing
Revenue Refunding Bonds, Southfield and Oak Forest II
Apartments, Series 2002A, 5.200%, 1/20/36
2,000 St. Louis County Housing Authority, Missouri, FNMA 3/05 at 102.00 AAA 2,059,020
Multifamily Housing Revenue Refunding Bonds, Kensington
Square Apartments, Series 1995, 6.650%, 3/01/20
9,105 St. Louis County Industrial Development Authority, 8/06 at 105.00 AAA 9,580,281
Missouri, GNMA Mortgage-Backed Multifamily Housing Revenue
Bonds, Covington Manor Apartments, Series 1996A, 6.875%,
8/20/36 (Alternative Minimum Tax)
1,880 St. Louis Land Clearance Redevelopment Authority, Missouri, 11/04 at 101.00 AAA 1,894,213
FHA-Insured Multifamily Mortgage Revenue Refunding Bonds,
St. Louis Place Apartments, Series 1993, 6.250%, 8/01/27
925 Universal City Industrial Development Authority, Missouri, 8/07 at 102.00 Aaa 951,622
GNMA Collateralized Revenue Refunding Bonds, River Valley
Apartments, Series 1997A, 5.900%, 2/20/37
- ----
34
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.8%
$ 40 Greene County, Missouri, Collateralized Single Family 7/04 at 100.00 AAA $ 42,490
Mortgage Revenue Bonds, Series 1996, 6.300%, 12/01/22
(Alternative Minimum Tax) (Pre-refunded to 7/01/04)
420 Missouri Housing Development Commission, GNMA/FNMA Single 1/07 at 102.00 AAA 430,088
Family Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1996D, 6.125%, 3/01/28 (Alternative Minimum Tax)
155 Missouri Housing Development Commission, GNMA/FNMA Single 3/07 at 105.00 AAA 156,443
Family Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1997A-2, 7.300%, 3/01/28 (Alternative Minimum Tax)
360 Missouri Housing Development Commission, Single Family 3/06 at 105.00 AAA 361,177
Mortgage Revenue Bonds, Homeownership Loan Program, Series
1995C, 7.250%, 9/01/26 (Alternative Minimum Tax)
Missouri Housing Development Commission, GNMA Single Family
Remarketed Mortgage Revenue Bonds, Homeownership Loan
Program, Series 1995B:
570 6.375%, 9/01/20 (Alternative Minimum Tax) 9/06 at 102.00 AAA 588,582
455 6.450%, 9/01/27 (Alternative Minimum Tax) 9/06 at 102.00 AAA 470,120
335 Missouri Housing Development Commission, Single Family 9/06 at 105.00 AAA 336,926
Mortgage Revenue Bonds, Homeownership Loan Program, Series
1996B, 7.550%, 9/01/27 (Alternative Minimum Tax)
Missouri Housing Development Commission, GNMA
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1994A:
55 6.700%, 12/01/07 (Alternative Minimum Tax) 12/04 at 102.00 AAA 56,025
245 7.125%, 12/01/14 (Alternative Minimum Tax) 12/04 at 102.00 AAA 248,376
105 7.200%, 12/01/17 (Alternative Minimum Tax) 12/04 at 102.00 AAA 106,506
280 Missouri Housing Development Commission, Single Family 3/08 at 105.00 AAA 282,974
Mortgage Revenue Bonds, Homeownership Loan Program, Series
1998B-2, 6.400%, 3/01/29 (Alternative Minimum Tax)
935 Missouri Housing Development Commission, Single Family 9/09 at 100.00 AAA 968,912
Mortgage Revenue Bonds, Homeownership Loan Program, Series
2000A-1, 6.300%, 9/01/25 (Alternative Minimum Tax)
540 Missouri Housing Development Commission, Single Family 3/10 at 100.00 AAA 560,758
Mortgage Revenue Bonds, Homeownership Loan Program, Series
2000B-1, 6.200%, 9/01/25 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Long-Term Care - 10.6%
4,250 Kansas City Industrial Development Authority, Missouri, 11/08 at 102.00 N/R 3,649,518
Retirement Center Revenue Refunding and Improvement Bonds,
Kingswood Project, Series 1998A, 5.875%, 11/15/29
1,000 Lees Summit Industrial Development Authority, Missouri, 8/05 at 102.00 N/R 1,042,890
Health Facilities Revenue Bonds, John Knox Village, Series
1995, 6.625%, 8/15/13
5,000 Lees Summit Industrial Development Authority, Missouri, 8/09 at 101.00 N/R 5,252,300
Health Facilities Revenue Bonds, John Knox Village, Series
1999, 6.000%, 8/15/17
1,500 Lees Summit Industrial Development Authority, Missouri, 8/12 at 101.00 N/R 1,530,555
Health Facilities Revenue Bonds, John Knox Village, Series
2002, 5.700%, 8/15/22
1,285 Missouri Development Finance Board, Healthcare Facilities 11/11 at 100.00 A2 1,302,142
Revenue Bonds, Lutheran Home for the Aged, Series 2001A,
5.600%, 11/01/21
3,750 Missouri Health and Educational Facilities Authority, 2/06 at 102.00 N/R 3,849,338
Revenue Bonds, Lutheran Senior Serivces, Series 1996A,
6.375%, 2/01/27
3,500 Missouri Health and Educational Facilities Authority, 2/07 at 102.00 N/R 3,561,075
Revenue Bonds, Lutheran Senior Services, Series 1997,
5.875%, 2/01/23
St. Louis County Industrial Development Authority,
Missouri, Revenue Refunding Bonds, Friendship Village of
West County, Series 1996A:
865 5.750%, 9/01/05 No Opt. Call N/R 876,323
1,800 6.250%, 9/01/10 9/06 at 102.00 N/R 1,883,934
2,425 St. Louis County Industrial Development Authority, 8/05 at 104.00 AAA 2,608,039
Missouri, GNMA Collateralized Healthcare Facilities
Revenue Bonds, Mother of Perpetual Help Residence, Inc.,
Series 1995, 6.250%, 8/01/28
1,200 St. Louis County Industrial Development Authority, 3/10 at 102.00 AAA 1,210,392
Missouri, GNMA Collateralized Healthcare Facilities
Revenue Bonds, Mary, Queen and Mother Association, Series
2001, 5.400%, 9/20/34
- ----
35
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Materials - 0.4%
$ 1,000 Sugar Creek, Missouri, Industrial Development Revenue 6/13 at 101.00 BBB $ 973,470
Bonds, Lafarge North America, Inc., Series 2003A, 5.650%,
6/01/37 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 9.9%
2,000 Cass County Reorganized School District R-II, Raymore and 3/12 at 100.00 AAA 2,087,180
Peculiar, Missouri, General Obligation Bonds, Series 2002,
5.250%, 3/01/20 - FSA Insured
540 Clay County Public School District 53, Liberty, Missouri, 3/12 at 100.00 AA+ 557,912
General Obligation Bonds, Series 2001C, 5.200%, 3/01/21
1,280 Clay County Public School District 53, Liberty, Missouri, 3/12 at 100.00 AAA 1,296,742
General Obligation Bonds, Series 2002B, 5.000%, 3/01/22 -
FSA Insured
2,500 Hickman Mills C-1 School District, Jackson County, 3/13 at 100.00 AAA 2,554,050
Missouri, General Obligation Bonds, Series 2003, 5.000%,
3/01/21 - FSA Insured
1,000 Jackson County R-7 School District, Lees Summit, Missouri, 3/12 at 100.00 AAA 1,057,580
General Obligation Refunding and Improvement Bonds, Series
2002, 5.250%, 3/01/18 - FSA Insured
1,000 Jefferson City School District, Missouri, General No Opt. Call Aa2 1,156,960
Obligation Bonds, Series 1991A, 6.700%, 3/01/11
3,000 Missouri, General Obligation Refunding Bonds, Fourth State 10/12 at 100.00 AAA 3,125,850
Building, Series 2002A, 5.000%, 10/01/18
750 Polk County R-1 School District, Bolivar, Missouri, General 3/10 at 100.00 AA+ 810,945
Obligation Bonds, Missouri Direct Deposit Program, Series
2000, 5.700%, 3/01/20
1,345 St. Louis County Pattonville R3 School District, Missouri, No Opt. Call AAA 1,608,701
General Obligation Bonds, Series 2000, 6.500%, 3/01/14 -
FGIC Insured
3,000 St. Louis Board of Education, Missouri, General Obligation 4/12 at 100.00 AA+ 3,155,820
Bonds, Series 2002A, 5.250%, 4/01/19
Springfield School District R12, Missouri, General
Obligation Bonds, Series 2003:
2,875 5.125%, 3/01/20 (DD, settling 6/01/04) - FGIC Insured 3/13 at 100.00 AAA 2,979,880
3,000 5.000%, 3/01/22 - FGIC Insured 3/13 at 100.00 AAA 3,049,770
1,500 5.000%, 3/01/23 - FGIC Insured 3/13 at 100.00 AAA 1,516,320
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 16.5%
900 Brentwood, Missouri, Tax Increment Refunding Bonds, 4/09 at 100.00 AA 895,095
Promenade Project, Series 2002, 4.700%, 4/01/19 - RAAI
Insured
1,875 Chrisitan County Public Building Corporation, Missouri, 6/10 at 100.00 AA 1,983,619
Leasehold Revenue Bonds, Justice Center Project, Series
2000, 5.450%, 6/01/15 - RAAI Insured
1,025 Excelsior Springs School District, Missouri, Leasehold No Opt. Call AAA 658,573
Revenue Bonds, Series 1994, 0.000%, 3/01/14 - FSA Insured
2,750 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R 2,787,318
Bonds, Gravois Bluffs Project, Series 2002, 6.125%,
10/01/21
3,000 Harrisonville, Missouri, Lease Participation Certificates, 12/13 at 100.00 AAA 3,023,700
Series 2003, 5.000%, 12/01/22 - XLCA Insured
4,240 Howard Bend Levee District, St. Louis County, Missouri, 3/09 at 101.00 N/R 4,378,436
Levee District Improvement Bonds, Series 1999, 5.850%,
3/01/19
2,000 Jackson County Public Building Corporation, Missouri, 12/13 at 100.00 Aa3 1,979,360
Leasehold Revenue Bonds, Capital Improvement Projects,
Series 2003, 5.000%, 12/01/28
1,200 Kansas City Land Clearance Redevelopment Authority, 12/05 at 102.00 AAA 1,284,216
Missouri, Lease Revenue Bonds, Municipal Auditorium and
Muehlebach Hotel Redevelopment Projects, Series 1995A,
5.900%, 12/01/18 - FSA Insured
Mehlville School District R-9, St. Louis County, Missouri,
Certificates of Participation, Capital Improvement
Projects, Series 2002:
1,275 5.500%, 9/01/17 - FSA Insured 9/12 at 100.00 AAA 1,384,382
1,000 5.500%, 9/01/18 - FSA Insured 9/12 at 100.00 AAA 1,081,660
1,500 Missouri Development Finance Board, Kansas City, 4/10 at 100.00 AAA 1,627,320
Infrastructure Facilities Revenue Bonds, Midtown
Redevelopment Project, Series 2000A, 5.750%, 4/01/22 -
MBIA Insured
4,000 Missouri Development Finance Board, Independence, 4/11 at 100.00 A+ 4,003,120
Infrastructure Facilities Revenue Bonds, Santa Fe
Redevelopment Project, Series 2001, 5.250%, 4/01/23
- ----
36
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 2,000 Missouri Development Finance Board, Infrastructure 3/10 at 100.00 N/R $2,001,240
Facilities Revenue Bonds, Riverside-Quindaro Bend Levee
District L-385 Project, Series 2001, 5.800%, 3/01/20
450 Monarch-Chesterfield Levee District, St. Louis County, 3/10 at 101.00 AAA 494,284
Missouri, Levee District Improvement Bonds, Series 1999,
5.750%, 3/01/19 - MBIA Insured
1,705 O'Fallon, Missouri, Certificates of Participation, Series 2/12 at 100.00 Aaa 1,823,634
2002, 5.250%, 2/01/15 - MBIA Insured
900 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100.00 A 920,070
Revenue Bonds, Series 1996Y, 5.500%, 7/01/36
3,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call A- 3,233,760
Government Facilities Revenue Bonds, Series 1993L, 5.500%,
7/01/21
1,240 St. Louis Municipal Finance Corporation, Missouri, 2/12 at 100.00 Aaa 1,373,970
Leasehold Revenue Bonds, Carnahan Courthouse, Series
2002A, 5.750%, 2/15/17 - FGIC Insured
1,750 St. Louis Regional Convention and Sports Complex Authority, 8/07 at 100.00 AAA 1,828,820
Missouri, Lease Revenue Refunding Bonds, Series 1997C,
5.300%, 8/15/20 - AMBAC Insured
2,950 Springfield Public Building Corporation, Missouri, Lease 6/10 at 100.00 AAA 3,281,875
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
6.125%, 6/01/21 - AMBAC Insured
1,945 Springfield Center City Development Corporation, Missouri, 6/12 at 100.00 Aaa 1,931,580
Lease Revenue Bonds, Jordan Valley Park Exposition Center,
Series 2002A, 5.000%, 6/01/27 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------
Transportation - 7.9%
2,000 Kansas City, Missouri, Passenger Facility Charge Revenue 4/11 at 101.00 AAA 1,974,640
Bonds, Kansas City International Airport, Series 2001,
5.000%, 4/01/23 (Alternative Minimum Tax) - AMBAC Insured
2,000 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 1,347,260
Bonds, American Airlines, Inc., Series 1996A, 6.250%,
6/01/26 (Alternative Minimum Tax)
St. Louis, Missouri, Airport Revenue Bonds, Airport
Development Program, Series 2001A:
5,000 5.000%, 7/01/26 - MBIA Insured 7/11 at 100.00 AAA 4,911,200
1,000 5.250%, 7/01/31 - MBIA Insured 7/11 at 100.00 AAA 1,005,530
St. Louis, Missouri, Airport Revenue Refunding Bonds,
Series 2003A:
3,450 5.250%, 7/01/16 - FSA Insured 7/13 at 100.00 AAA 3,682,323
1,000 5.250%, 7/01/18 - FSA Insured 7/13 at 100.00 AAA 1,054,270
St. Louis Land Clearance Redevelopment Authority, Missouri,
Revenue Refunding and Improvement Bonds, LCRA Parking
Facilities, Series 1999C:
1,000 7.000%, 9/01/19 9/09 at 102.00 N/R 1,061,940
2,400 7.050%, 9/01/24 9/09 at 102.00 N/R 2,530,080
2,250 St. Louis, Missouri, Revenue Refunding Bonds, Parking 12/06 at 102.00 AAA 2,370,240
Facility, Series 1996, 5.375%, 12/15/21 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 5.3%
2,285 Branson Public Building Corporation, Missouri, Leasehold 11/06 at 101.00 N/R*** 2,517,750
Revenue Bonds, City Hall and Fire Station Improvement
Projects, Series 1995, 6.250%, 11/01/12 (Pre-refunded to
11/01/06)
4,500 Cape Girardeau County, Missouri, Single Family Mortgage No Opt. Call Aaa 2,778,930
Revenue Bonds, Series 1983, 0.000%, 12/01/14
235 Greene County, Missouri, Single Family Mortgage Revenue No Opt. Call Aaa 133,156
Bonds, Series 1984, 0.000%, 3/01/16
1,000 Jackson County Public Finance Authority, Missouri, 12/04 at 100.00 AAA 1,024,300
Leasehold Revenue Refunding and Improvement Bonds, Capital
Improvement Projects, Series 1994, 6.125%, 12/01/15
(Pre-refunded to 12/01/04) - MBIA Insured
3,200 Kansas City, Missouri, General Improvement Airport Revenue 9/04 at 101.00 AAA 3,277,888
Bonds, Series 1994B, 6.875%, 9/01/14 (Pre-refunded to
9/01/04) - FSA Insured
2,395 Missouri Health and Educational Facilities Authority, No Opt. Call N/R*** 2,904,369
Revenue Bonds, BJC Health System, Series 1994A, 6.750%,
5/15/14
750 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 864,128
Revenue Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded
to 7/01/10)
- ----
37
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------
Utilities - 4.6%
$ 2,710 Columbia, Missouri, Water and Electric Revenue Bonds, 10/12 at 100.00 AAA $ 2,700,786
Series 2002A, 5.000%, 10/01/26 - AMBAC Insured
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,014,690
Series 2002II, 5.125%, 7/01/26 - FSA Insured
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 2,149,360
Series 2003NN, 5.250%, 7/01/23 - MBIA Insured
2,000 Sikeston, Missouri, Electric System Revenue Bonds, Series No Opt. Call AAA 2,268,420
1992, 6.200%, 6/01/10 - MBIA Insured
3,030 Sikeston, Missouri, Electric System Revenue Refunding No Opt. Call AAA 3,523,314
Bonds, Series 1996, 6.000%, 6/01/14 - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------
Water and Sewer - 5.9%
1,825 Kansas City, Missouri, Sewerage System Revenue Bonds, 1/12 at 100.00 AA 1,909,333
Series 2002D-1, 5.375%, 1/01/22
Metropolitan St. Louis Sewerage District, Missouri, Revenue
Bonds, Wastewater System, Series 2004A:
3,385 5.000%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 3,484,993
5,000 5.000%, 5/01/34 - MBIA Insured 5/14 at 100.00 AAA 4,946,950
1,635 Missouri Environmental Improvement and Energy Resources 4/09 at 100.00 AA 1,749,761
Authority, Water Facility Revenue Refunding Bonds,
Tri-County Water Authority, Series 1999, 6.000%, 4/01/22 -
RAAI Insured
490 Missouri Environmental Improvement and Energy Resources 10/04 at 100.00 Aaa 492,141
Authority, Water Pollution Control Revenue Bonds, State
Revolving Fund Program - Springfield Project, Series
1990A, 7.000%, 10/01/10
365 Missouri Environmental Improvement and Energy Resources 7/04 at 100.00 Aaa 366,606
Authority, Water Pollution Control Revenue Bonds, State
Revolving Fund Program - Multi-Participants, Series 1992A,
6.550%, 7/01/14
260 Missouri Environmental Improvement and Energy Resources 7/04 at 102.00 Aaa 266,388
Authority, Water Pollution Control Revenue Bonds, State
Revolving Fund Program - Multi-Participants, Series 1994B,
7.200%, 7/01/16
St. Charles County Public Water Supply District 2,
Missouri, Certificates of Participation, Series 2002A:
750 5.000%, 12/01/26 - MBIA Insured 12/11 at 100.00 Aaa 745,482
1,000 5.250%, 12/01/28 - MBIA Insured 12/11 at 100.00 Aaa 1,013,360
- ----------------------------------------------------------------------------------------------------------------
$253,483 Total Long-Term Investments (cost $242,179,531) - 97.8% 247,806,634
- ----------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 2.2% 5,565,481
--------------------------------------------------------------------------------------------------
Net Assets - 100% $253,372,115
--------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent registered
public accounting firm): 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/RInvestment is not rated.
(DD)Security purchased on a delayed delivery basis.
See accompanying notes to financial statements.
- ----
38
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.1%
$ 7,100 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 6,075,896
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ---------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 6.6%
2,120 Ohio State Education Student Loan Revenue Bonds, 6/07 at 102.00 AAA 2,197,444
Supplemental Student Loan Program, Series 1997A-1, 5.850%,
12/01/19 (Alternative Minimum Tax) - AMBAC Insured
1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,198,836
Bonds, University of Findlay, Series 1996, 6.125%, 9/01/16
5,000 Ohio Higher Educational Facilities Commission, Revenue 5/07 at 102.00 AAA 5,231,050
Bonds, Xavier University, Series 1997, 5.375%, 5/15/22 -
MBIA Insured
1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,035,720
Bonds, University of Dayton, Series 2000, 5.500%, 12/01/30
- AMBAC Insured
Ohio Higher Educational Facilities Commission, Revenue
Bonds, Wittenberg University, Series 2001:
1,200 5.500%, 12/01/21 12/11 at 100.00 Baa1 1,231,512
2,000 5.000%, 12/01/26 12/11 at 100.00 Baa1 1,910,280
2,730 Ohio Higher Educational Facilities Commission, Revenue 11/14 at 100.00 AA 2,779,877
Bonds, Denison University, Series 2004, 5.000%, 11/01/20
910 Ohio Higher Education Facilities Commission, Revenue Bonds, No Opt. Call AA 1,102,092
Case Western Reserve University Project, Series 1990B,
6.500%, 10/01/20
3,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 AA 3,181,890
Case Western Reserve University Project, Series 2002B,
5.500%, 10/01/22
1,750 Ohio Higher Education Facilities Commission, General 10/13 at 100.00 AA 1,766,957
Revenue Bonds, Oberlin College, Series 2003, 5.125%,
10/01/24
Ohio University at Athens, Subordinate Lien General
Receipts Bonds, Series 2004:
1,855 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 AAA 1,895,309
1,900 5.000%, 12/01/23 - MBIA Insured 6/14 at 100.00 AAA 1,921,622
University of Cincinnati, Ohio, General Receipts Bonds,
Series 2001A:
1,500 5.750%, 6/01/18 - FGIC Insured 6/11 at 101.00 AAA 1,638,210
1,520 5.750%, 6/01/19 - FGIC Insured 6/11 at 101.00 AAA 1,654,277
2,000 5.250%, 6/01/24 - FGIC Insured 6/11 at 101.00 AAA 2,054,560
4,250 University of Cincinnati, Ohio, General Receipts Bonds, 6/07 at 100.00 AAA 4,441,420
Series 1997, 5.375%, 6/01/20 - MBIA Insured
1,675 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,714,078
Series 2004A, 5.000%, 6/01/21 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------
Healthcare - 17.5%
10,000 Akron, Bath, and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 9,034,400
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System Project, Series 1998A, 5.375%, 11/15/24
11,900 Cuyahoga County, Ohio, Hospital Improvement Revenue Bonds, 2/09 at 101.00 A- 12,308,646
MetroHealth System Project, Series 1999, 6.125%, 2/15/24
1,000 Cuyahoga County, Ohio, Hospital Improvement and Revenue 2/07 at 102.00 AAA 1,073,220
Refunding Bonds, MetroHealth System Project, Series 1997,
5.625%, 2/15/17 - MBIA Insured
4,400 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 A1 4,605,128
Clinic Health System, Series 2003A, 6.000%, 1/01/32
2,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 2,482,275
Firelands Regional Medical Center, Series 2002A, 5.625%,
8/15/32
Franklin County, Ohio, Hospital Revenue Refunding and
Improvement Bonds, Children's Hospital Project, Series
1996A:
1,575 5.750%, 11/01/15 11/06 at 101.00 Aa2 1,633,275
5,275 5.875%, 11/01/25 11/06 at 101.00 Aa2 5,381,028
- ----
39
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Healthcare (continued)
Franklin County, Ohio, Hospital Revenue Bonds, Holy Cross
Health System Corporation, Series 1996:
$ 965 5.800%, 6/01/16 6/06 at 102.00 AA- $ 1,003,812
2,000 5.875%, 6/01/21 6/06 at 102.00 AA- 2,060,280
5,690 Lorain County, Ohio, Hospital Facilities Revenue Refunding 11/05 at 102.00 AAA 5,922,778
Bonds, EMH Regional Medical Center, Series 1995, 5.375%,
11/01/21 - AMBAC Insured
2,000 Marion County, Ohio, Hospital Revenue Refunding and 5/06 at 102.00 BBB+ 2,103,060
Improvement Bonds, The Community Hospital, Series 1996,
6.375%, 5/15/11
1,250 Maumee, Ohio, Hospital Facilities Revenue Bonds, St. Luke's 12/04 at 102.00 AAA 1,299,300
Hospital, Series 1994, 5.800%, 12/01/14 - AMBAC Insured
2,000 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,072,500
and Improvement Bonds, Upper Valley Medical Center, Series
1996A, 6.250%, 5/15/16
4,205 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 4,389,431
and Improvement Bonds, Upper Valley Medical Center, Series
1996C, 6.250%, 5/15/13
4,000 Middleburg Heights, Ohio, Hospital Improvement Revenue 8/08 at 102.00 AAA 4,327,760
Refunding Bonds, Southwest General Hospital, Series 1995,
5.625%, 8/15/15 - FSA Insured
Montgomery County, Ohio, Hospital Facilities Revenue
Refunding and Improvement Bonds, Kettering Medical Center,
Series 1996:
1,500 5.625%, 4/01/16 - MBIA Insured 4/06 at 102.00 AAA 1,606,665
7,000 6.250%, 4/01/20 - MBIA Insured No Opt. Call AAA 8,172,010
9,500 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A3 10,260,855
Kettering Medical Center, Series 1999, 6.750%, 4/01/22
13,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA 13,241,150
Initiatives, Series 2001, 5.375%, 9/01/21
1,250 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 1,278,213
Hospital Revenue Refunding and Improvement Bonds, Series
1998, 5.350%, 11/01/18
2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,112,060
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/22
1,200 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 1,183,620
Union Hospital Project, Series 2001, 5.250%, 10/01/31 -
RAAI Insured
- ---------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.6%
1,540 Butler County, Ohio, Multifamily Housing Revenue Bonds, 9/08 at 103.00 N/R 1,338,953
Anthony Wayne Apartments Project, Series 1998, 6.500%,
9/01/30 (Alternative Minimum Tax)
1,105 Clark County, Ohio, Multifamily Housing Revenue Bonds, 11/08 at 103.00 N/R 967,560
Church of God Retirement Home, Series 1998, 6.250%,
11/01/30 (Alternative Minimum Tax)
16,105 Franklin County, Ohio, GNMA Collateralized Mortgage Revenue 10/07 at 103.00 Aaa 16,204,529
Bonds, Columbus Properties Project, Series 1997, 5.600%,
4/20/39 (Alternative Minimum Tax)
3,045 Franklin County, Ohio, GNMA Collateralized Multifamily 9/11 at 102.00 Aaa 3,098,927
Housing Mortgage Revenue Bonds, Carriage House Apartments
Project, Series 2002, 5.400%, 3/20/37
2,705 Henry County, Ohio, GNMA Collateralized Healthcare Facility 8/09 at 102.00 AAA 2,870,952
Revenue Bonds, Alpine Village Project, Series 1999,
6.375%, 2/20/41
6,315 Ohio Capital Corporation for Housing, FHA-Insured Section 8 2/09 at 102.00 Aa2 6,590,650
Mortgage Loan Revenue Refunding Bonds, Series 1999D,
5.950%, 2/01/23
- ---------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.9%
1,875 Ohio Housing Finance Agency, GNMA Mortgage-Backed 7/09 at 100.00 Aaa 1,935,994
Securities Program Residential Mortgage Revenue Bonds,
Series 1999C, 5.750%, 9/01/30 (Alternative Minimum Tax)
3,265 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 3,335,851
Securities Program Residential Mortgage Revenue Bonds,
Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
3,340 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 3,412,478
Securities Program Residential Mortgage Revenue Bonds,
Series 1997C, 5.750%, 9/01/28 (Alternative Minimum Tax)
- ----
40
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 3,875 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA $3,944,246
Securities Program Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum Tax)
- FSA Insured
930 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/04 at 102.00 Aaa 951,743
Securities Program Residential Mortgage Revenue Bonds,
Series 1994A-1, 6.100%, 9/01/14
740 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/04 at 102.00 AAA 757,501
Securities Program Residential Mortgage Revenue Bonds,
Series 1994B-1, 6.375%, 9/01/14
7,230 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 7,500,041
Securities Program Residential Mortgage Remarketed Revenue
Bonds, Series 1997A-1, 6.150%, 3/01/29 (Alternative
Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Industrials - 0.8%
2,465 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/08 at 102.00 N/R 2,447,030
Revenue Bonds, Jergens, Inc. Project, Series 1998A,
5.375%, 5/15/18 (Alternative Minimum Tax)
Ohio, Economic Development Revenue Bonds, Enterprise Bond
Fund Loan Pool, Series 2002-4:
500 5.000%, 6/01/15 (Alternative Minimum Tax) 6/12 at 102.00 AA- 497,695
675 5.450%, 6/01/22 (Alternative Minimum Tax) 6/12 at 102.00 AA- 675,203
1,020 Ohio, Economic Development Revenue Bonds, Enterprise Bond No Opt. Call AA- 1,036,075
Fund Loan Pool, Series 2002-7, 5.850%, 12/01/22
(Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.1%
1,600 Cuyahoga County, Ohio, FHA-Insured Industrial Development 8/04 at 100.00 AAA 1,614,432
Mortgage Revenue Refunding Bonds, University Health Care
Center Project, Series 1991, 7.300%, 8/01/11
3,120 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 11/05 at 102.00 Aa2 3,245,424
Heinzerling Foundation, Series 1995, 6.200%, 11/01/20
2,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/12 at 100.00 AA 1,992,900
Presbyterian Retirement Services, Series 2002A, 5.125%,
7/01/22 - RAAI Insured
500 Franklin County, Ohio, FHA-Insured Hospital Revenue 8/04 at 100.00 N/R 501,870
Refunding Mortgage Loan Bonds, Worthington Christian
Village Nursing Home, Series 1992, 7.000%, 8/01/16
1,250 Hamilton County, Ohio, Healthcare Facilities Revenue Bonds, 10/08 at 101.00 BBB 1,098,288
Twin Towers, Series 1998A, 5.125%, 10/01/23
Marion County, Ohio, Healthcare Facilities Revenue
Refunding and Improvement Bonds, United Church Homes, Inc.,
Series 1993:
846 6.375%, 11/15/10 11/04 at 101.00 BBB- 859,519
750 6.300%, 11/15/15 11/04 at 101.00 BBB- 757,058
1,725 Napoleon, Ohio, FHA-Insured Healthcare Facilities Mortgage 9/04 at 102.00 Aa2 1,768,936
Revenue Refunding Bonds, Lutheran Orphans and Old Folks
Home Society, Series 1994, 6.875%, 8/01/23
- --------------------------------------------------------------------------------------------------------------
Materials - 0.2%
1,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue 3/14 at 101.00 A+ 945,600
Bonds, Cargill, Inc., Series 2004A, 4.800%, 3/01/22
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 25.5%
Adams County Valley School District, Adams and Highland
Counties, Ohio, Unlimited Tax School Improvement General
Obligation Bonds, Series 1995:
6,000 7.000%, 12/01/15 - MBIA Insured No Opt. Call AAA 7,404,840
9,500 5.250%, 12/01/21 - MBIA Insured 12/05 at 102.00 AAA 9,901,945
600 Anthony Wayne Local School District, Lucas, Wood and Fulton No Opt. Call AAA 398,220
Counties, Ohio, School Facilities Construction and
Improvement Bonds, Series 1995, 0.000%, 12/01/13 - FGIC
Insured
700 Buckeye Local School District, Medina County, Ohio, General 12/10 at 100.00 Aaa 738,990
Obligation Bonds, Series 2000, 5.500%, 12/01/25 - FGIC
Insured
2,500 Buckeye Valley Local School District, Ohio, Unlimited Tax No Opt. Call AAA 3,009,475
General Obligation Bonds, Series 1995A, 6.850%, 12/01/15 -
MBIA Insured
2,295 Central Ohio Solid Waste Authority, General Obligation 6/14 at 100.00 AAA 2,437,015
Bonds, Series 2004A, 5.000%, 12/01/15 - AMBAC Insured
- ----
41
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Chesapeake-Union Exempt Village School District, Ohio,
General Obligation Bonds, Series 1986:
$ 125 8.500%, 12/01/04 No Opt. Call N/R $ 129,085
125 8.500%, 12/01/05 No Opt. Call N/R 136,406
125 8.500%, 12/01/06 No Opt. Call N/R 141,885
125 8.500%, 12/01/07 No Opt. Call N/R 146,088
125 8.500%, 12/01/08 No Opt. Call N/R 149,618
130 8.500%, 12/01/09 No Opt. Call N/R 158,700
Cincinnati City School District, Hamilton County, Ohio,
General Obligation Bonds, Series 2001:
2,000 5.375%, 12/01/15 - MBIA Insured 12/11 at 100.00 AAA 2,151,320
6,745 5.375%, 12/01/16 - MBIA Insured 12/11 at 100.00 AAA 7,241,837
1,255 5.375%, 12/01/17 - MBIA Insured 12/11 at 100.00 AAA 1,347,443
3,805 Cleveland, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 3,946,318
5.250%, 12/01/22 - MBIA Insured
Columbus, Franklin County, Ohio, General Obligation Bonds,
Series 1985:
590 9.375%, 4/15/06 No Opt. Call AAA 668,482
500 9.375%, 4/15/07 No Opt. Call AAA 593,820
7,045 Columbus, Ohio, General Obligation Bonds, Series 2000, 11/10 at 101.00 AAA 7,480,804
5.250%, 11/15/17
1,300 Crawford County, Ohio, General Obligation Bonds, Series 12/12 at 100.00 AAA 1,326,676
2002, 5.200%, 12/01/26 - AMBAC Insured
1,000 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,106,030
Various Purpose Refunding Bonds, Series 1993B, 5.250%,
10/01/13
1,345 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,509,265
Bonds, Series 1993, 5.650%, 5/15/18
5,830 Cuyahoga County, Ohio, Limited Tax General Obligation 12/10 at 100.00 AA+ 6,423,552
Capital Improvement Bonds, Series 2000, 5.750%, 12/01/16
Cuyahoga Falls, Ohio, General Obligation Bonds, Series 2004:
1,245 5.000%, 12/01/18 - MBIA Insured 6/14 at 100.00 Aaa 1,298,286
1,440 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 Aaa 1,473,595
750 Defiance, Ohio, Waterworks System Improvement Bonds, Series 12/04 at 102.00 AAA 780,960
1994, 6.200%, 12/01/20 - MBIA Insured
Delaware City School District, Delaware County, Ohio,
Unlimited Tax General Obligation School Facilities
Construction and Improvement Bonds, Series 1995:
1,000 0.000%, 12/01/10 - FGIC Insured No Opt. Call AAA 779,560
1,000 0.000%, 12/01/11 - FGIC Insured No Opt. Call AAA 739,330
1,000 Evergreen Local School District, Ohio, Unlimited Tax 12/09 at 101.00 Aaa 1,063,330
General Obligation School Improvement Bonds, Series 1999,
5.625%, 12/01/24 - FGIC Insured
4,040 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 4,320,457
Refunding Bonds, Series 1993, 5.375%, 12/01/20
1,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 1,083,990
Ohio, General Obligation School Improvement Bonds, Series
2001, 5.500%, 12/15/18 - MBIA Insured
420 Geauga County, Ohio, Limited Tax General Obligation, Sewer 12/05 at 102.00 Aa2 458,552
District Improvement Bonds, Bainbridge Water Project,
Series 1995, 6.850%, 12/01/10
1,000 Grandview Heights City School District, Franklin County, 12/05 at 101.00 AA 1,066,880
Ohio, Unlimited Tax General Obligation School Facilities
Construction and Improvement Bonds, Series 1995, 6.100%,
12/01/19
3,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa3 3,099,930
Obligation Bonds, Series 2001, 5.500%, 12/01/28
1,200 Heath City School District, Licking County, Ohio, Unlimited 12/10 at 100.00 Aaa 1,240,176
Tax General Obligation School Improvement Bonds, Series
2000A, 5.500%, 12/01/27 - FGIC Insured
2,500 Highland Local School District, Morrow and Delaware 12/11 at 100.00 Aaa 2,494,950
Counties, Ohio, General Obligation Bonds, Series 2001,
5.000%, 12/01/26 - FSA Insured
1,000 Huron County, Ohio, Limited Tax General Obligation 12/07 at 102.00 AAA 1,102,780
Correctional Facility Bonds, Series 1996, 5.850%, 12/01/16
- MBIA Insured
1,270 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,283,297
Obligation Bonds, Series 2003, 5.000%, 12/01/23 - MBIA
Insured
- ----
42
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,400 Kent City School District, Portage County, Ohio, General 12/14 at 100.00 AAA $1,442,126
Obligation Library Improvement Bonds, Series 2004, 5.000%,
12/01/20 - FGIC Insured
1,070 Kettering, Ohio, Limited Tax General Obligation Bonds, 6/04 at 100.00 Aa3 1,074,366
Series 1991, 6.650%, 12/01/12
1,000 Kettering City School District, Montgomery County, Ohio, 12/05 at 101.00 AAA 1,035,150
General Obligation Bonds, Series 1994, 5.250%, 12/01/22 -
FGIC Insured
555 Lake County, Ohio, Limited Tax Sewer District Improvement No Opt. Call Aa2 606,887
Bonds, Series 2000, 5.600%, 12/01/20
1,440 Lakewood, Ohio, General Obligation Bonds, Series 1995B, 12/05 at 102.00 Aa2 1,534,982
5.750%, 12/01/15
3,385 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 3,407,172
Unlimited Tax General Obligation School Improvement and
Refunding Bonds, Series 2001, 5.125%, 12/01/26 - FGIC
Insured
Logan County, Ohio, General Obligation Bonds, Series 1986:
155 7.750%, 12/01/04 No Opt. Call A+ 159,963
155 7.750%, 12/01/05 No Opt. Call A+ 168,584
155 7.750%, 12/01/06 No Opt. Call A+ 175,454
315 Lucas County, Ohio, General Obligation Bonds, Various 6/04 at 101.00 A1 322,484
Improvements, Series 1992, 6.650%, 12/01/12
1,750 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,768,060
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 - FGIC Insured
1,265 Monroe Local School District, Butler County, Ohio, General No Opt. Call Aaa 1,440,671
Obligation Bonds, Series 2002, 5.750%, 12/01/20 - AMBAC
Insured
North Royalton City School District, Ohio, School
Improvement Bonds, Series 1994:
2,200 6.000%, 12/01/14 - MBIA Insured 12/09 at 102.00 AAA 2,506,152
2,400 6.100%, 12/01/19 - MBIA Insured 12/09 at 102.00 AAA 2,723,376
1,000 Ohio, Full Faith and Credit General Obligation No Opt. Call AA+ 1,141,210
Infrastructure Improvement Bonds, Series 1994, 6.000%,
8/01/10
3,315 Ohio, General Obligation Bonds, Conservation Projects, 3/14 at 100.00 AA+ 3,534,884
Series 2004A, 5.000%, 3/01/15
6,055 Ohio, General Obligation Bonds, Infrastructure 2/13 at 100.00 AA+ 6,150,427
Improvements, Series 2003F, 5.000%, 2/01/22
4,035 Olentangy Local School District, Delaware and Franklin 12/09 at 101.00 AA 4,005,746
Counties, Ohio, Various Purpose Bonds, Series 1999,
5.000%, 12/01/27
Olentangy Local School District, Deleware and Franklin
Counties, Ohio, General Obligation Bonds, Series 2004A:
400 5.250%, 12/01/21 (WI, settling 6/02/04) - FGIC Insured 6/14 at 100.00 AAA 419,192
3,055 5.250%, 12/01/22 (WI, settling 6/02/04) - FGIC Insured 6/14 at 100.00 AAA 3,184,196
500 Pickerington Local School District, Fairfield County, Ohio, No Opt. Call AAA 368,850
General Obligation Bonds, Series 1993, 0.000%, 12/01/11 -
AMBAC Insured
3,500 Springfield City School District, Clark County, Ohio, 12/11 at 102.00 Aaa 3,604,790
General Obligation Bonds, Series 2001, 5.200%, 12/01/23 -
FGIC Insured
2,340 Stow, Ohio, General Obligation Construction Bonds, Safety 12/05 at 102.00 A1 2,436,642
Center, Series 1995, 6.200%, 12/01/20
30 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 32,631
Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21
1,185 Sugarcreek Local School District, Athens County, Ohio, 12/13 at 100.00 Aaa 1,222,126
General Obligation Bonds, Series 2003, 5.250%, 12/01/24 -
MBIA Insured
1,315 Summit County, Ohio, General Obligation Refunding Bonds, No Opt. Call AAA 1,455,403
Series 2002R, 5.500%, 12/01/21 - FGIC Insured
2,290 Tipp City Exempted Village School District, Ohio, School 6/11 at 100.00 Aaa 2,301,404
Facilities Construction and Improvement Bonds, Series
2001, 5.000%, 12/01/24 - FGIC Insured
3,755 Toledo City School District, Lucas County, Ohio, General 12/13 at 100.00 Aaa 3,818,948
Obligation Bonds, Series 2003B, 5.000%, 12/01/22 - FGIC
Insured
1,910 Vandalia, Ohio, General Obligation Bonds, Series 1996, 12/06 at 101.00 Aa3 2,054,262
5.850%, 12/01/21
West Chester Township, Butler County, Ohio, General
Obligation Bonds, Series 2003:
1,365 5.250%, 12/01/19 - MBIA Insured 12/13 at 100.00 Aaa 1,442,941
1,515 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 Aaa 1,584,796
- ----
43
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 4,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA $ 3,979,160
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 - MBIA Insured
300 Youngstown, Ohio, Limited Tax General Obligation Bonds, 12/04 at 102.00 AAA 312,639
Series 1994, 6.125%, 12/01/14 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 8.9%
6,300 Cleveland, Ohio, Certificates of Participation, Cleveland 11/07 at 102.00 AAA 6,370,749
Stadium Project, Series 1997, 5.250%, 11/15/27 - AMBAC
Insured
1,210 Groveport, Ohio, Income Tax Receipts Bonds, Special 12/12 at 100.00 Aaa 1,227,158
Obligation, Series 2002, 5.000%, 12/01/22 - MBIA Insured
Hamilton County Convention Facilities Authority, Ohio,
First Lien Revenue Bonds, Series 2004:
2,300 5.000%, 12/01/20 - FGIC Insured 6/14 at 100.00 AAA 2,359,202
1,000 5.000%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 1,020,130
2,535 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 2,571,884
3,300 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series No Opt. Call Aaa 854,436
2000B, 0.000%, 12/01/28 - AMBAC Insured
1,000 City of Hamilton, Butler County, Ohio, Limited Tax General 11/11 at 101.00 Aaa 1,069,070
Obligation Bonds, One Renaissance Center Acquisition,
Series 2001, 5.375%, 11/01/17 - AMBAC Insured
1,485 New Albany Community Authority, Ohio, Community Facilities 4/12 at 100.00 AAA 1,621,056
Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/16 -
AMBAC Insured
8,140 Ohio, Higher Education Capital Facilities, Appropriation 2/11 at 100.00 AA+ 8,317,778
Bonds, Series II-2001A, 5.000%, 2/01/20
1,000 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,061,780
Capital Facilities, Series 2004A-II, 5.000%, 12/01/15
1,050 Ohio Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,062,495
Administrative Building Fund Projects, Series 2002A,
5.000%, 4/01/22 - FSA Insured
950 Ohio Department of Transportation, Certificates of 10/04 at 100.00 AAA 953,734
Participation, Panhandle Rail Line, Series 1992A, 6.500%,
4/15/12 - FSA Insured
11,700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 13,179,465
Revenue Bonds, Reset Option Long Certificates II-R-66,
Series 1996Y, 9.870%, 1/01/13 (IF)
6,550 Puerto Rico Public Buildings Authority, Guaranteed Revenue No Opt. Call AAA 8,025,126
Bonds, Reset Option Long Trust Certificates II-R56, Series
1993L, 9.870%, 7/01/18 (IF)
- ---------------------------------------------------------------------------------------------------------------
Transportation - 3.9%
1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 971,210
International Airport, Series 2003C, 5.250%, 12/01/27
(Alternative Minimum Tax) - RAAI Insured
6,300 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 BB+ 5,686,947
Emery Air Freight Corporation and Emery Worldwide
Airlines, Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18
5,000 Ohio Turnpike Commission, Revenue Refunding Bonds, ROL No Opt. Call AA- 5,878,400
Series II-R51, Series 1998A, 9.830%, 2/15/24 (IF)
7,500 Ohio Turnpike Commission, Revenue Bonds, ROL II-R75, No Opt. Call Aaa 9,160,650
9.830%, 2/15/12 (IF)
- ---------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 8.6%
3,955 Akron, Ohio, Various Purpose Improvement Limited Tax 12/04 at 102.00 AAA 4,142,190
General Obligation Bonds, Series 1994, 6.750%, 12/01/14
(Pre-refunded to 12/01/04) - MBIA Insured
730 Athens, Ohio, Sanitary Sewer System Mortgage Revenue Bonds, 12/09 at 100.00 N/R*** 836,938
Series 1989, 7.300%, 12/01/14 (Pre-refunded to 12/01/09)
1,000 Aurora City School District, Ohio, Unlimited Tax General 12/05 at 102.00 AAA 1,080,200
Obligation School Improvement Bonds, Series 1995, 5.800%,
12/01/16 (Pre-refunded to 12/01/05) - FGIC Insured
4,745 Cleveland, Ohio, Various Purpose General Obligation Bonds, 11/04 at 102.00 AAA 4,955,678
Series 1994, 6.625%, 11/15/14 (Pre-refunded to 11/15/04) -
MBIA Insured
550 Columbiana County, Ohio, Unlimited Tax General Obligation 12/04 at 102.00 AA*** 575,702
Bonds, County Jail Facilities Construction Project, Series
1994, 6.600%, 12/01/17 (Pre-refunded to 12/01/04) - RAAI
Insured
- ----
44
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
Cuyahoga County, Ohio, Hospital Revenue Bonds, Meridia
Health System, Series 1995:
$ 250 6.250%, 8/15/14 (Pre-refunded to 8/15/05) 8/05 at 102.00 AAA $ 268,995
5,500 6.250%, 8/15/24 (Pre-refunded to 8/15/05) 8/05 at 102.00 AAA 5,917,890
1,000 Lakeview Local School District, Trumbull County, Ohio, 12/04 at 102.00 AAA 1,048,300
General Obligation Bonds, Series 1994, 6.900%, 12/01/14
(Pre-refunded to 12/01/04) - AMBAC Insured
1,300 Lorain, Ohio, Hospital Revenue Refunding Bonds, Lakeland 11/04 at 100.00 A1*** 1,328,847
Community Hospital, Inc., Series 1992, 6.500%, 11/15/12
11,000 Montgomery County, Ohio, Health System Revenue Bonds, 1/08 at 102.00 Baa2*** 11,978,120
Franciscan Medical Center - Dayton Campus, Series 1997,
5.500%, 7/01/18 (Pre-refunded to 1/01/08)
Ohio Housing Finance Agency, Single Family Mortgage Revenue
Bonds, Series 1985B:
5,700 0.000%, 1/15/15 (Pre-refunded to 7/15/11) - FGIC Insured 7/11 at 70.48 AAA 3,004,983
6,460 0.000%, 1/15/15 (Pre-refunded to 1/15/11) - FGIC Insured 1/11 at 67.04 AAA 3,314,884
750 Ohio, Full Faith and Credit General Obligation 8/05 at 102.00 AA+*** 805,328
Infrastructure Improvement Bonds, Series 1995, 6.200%,
8/01/13 (Pre-refunded to 8/01/05)
5,065 Ohio Water Development Authority, Pure Water Loan Revenue No Opt. Call AAA 5,745,635
Bonds, Sereis 1990I, 6.000%, 12/01/16 - AMBAC Insured
130 Toledo, Ohio, Sewerage System Mortgage Revenue Bonds, 11/04 at 102.00 AAA 135,607
Series 1994, 6.350%, 11/15/17 (Pre-refunded to 11/15/04) -
AMBAC Insured
110 Toledo, Ohio, Water System Mortgage Revenue Bonds, Series 11/04 at 102.00 AAA 114,795
1994, 6.450%, 11/15/24 (Pre-refunded to 11/15/04) - AMBAC
Insured
540 Trumbull County, Ohio, General Obligation Bonds, Series 12/04 at 102.00 AAA 564,057
1994, 6.200%, 12/01/14 (Pre-refunded to 12/01/04) - AMBAC
Insured
1,000 Woodridge Local School District, Ohio, General Obligation 12/04 at 102.00 AAA 1,043,540
Bonds, Series 1994, 6.000%, 12/01/19 (Pre-refunded to
12/01/04) - AMBAC Insured
1,230 Youngstown State University, Ohio, General Receipts Bonds, 12/04 at 102.00 AAA 1,285,707
Series 1994, 6.000%, 12/15/16 (Pre-refunded to 12/15/04) -
AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------
Utilities - 7.9%
1,535 Cleveland, Ohio, Public Power System First Mortgage Revenue No Opt. Call AAA 1,020,929
Bonds, Series 1994A, 0.000%, 11/15/13 - MBIA Insured
2,500 Cleveland, Ohio, Public Power System, First Mortgage 11/06 at 102.00 AAA 2,505,900
Revenue Refunding Bonds, Series 1996, Sub-Series 1,
5.000%, 11/15/24 - MBIA Insured
565 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 612,839
Series 2001, 5.500%, 12/01/17 - AMBAC Insured
Ohio Municipal Electric Generation Agency, Beneficial
Interest Certificates, Joint Venture 5, Belleville
Hydroelectric Project, American Municipal Power Ohio, Inc.,
Series 2004:
3,775 5.000%, 2/15/21 - AMBAC Insured 2/14 at 100.00 AAA 3,840,119
2,295 5.000%, 2/15/23 - AMBAC Insured 2/14 at 100.00 AAA 2,311,524
1,750 Ohio Air Quality Development Authority, Pollution Control 6/04 at 101.00 AAA 1,773,713
Revenue Bonds, Columbus Southern Power Company Project,
Series 1985A, 6.375%, 12/01/20 - FGIC Insured
10,500 Ohio Air Quality Development Authority, Revenue Refunding 9/05 at 102.00 Ba1 10,499,685
Bonds, Dayton Power and Light Company Project, Series
1995, 6.100%, 9/01/30
5,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG 4/07 at 102.00 AAA 5,182,750
Funding Limited Partnership Project, Series 1997, 5.625%,
1/01/23 (Alternative Minimum Tax) - AMBAC Insured
500 Ohio Water Development Authority, Collateralized Water 8/04 at 100.00 BBB- 510,825
Revenue Refunding Bonds, Dayton Power and Light Company,
Series 1992A, 6.400%, 8/15/27
11,350 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 10,449,718
Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%,
9/01/20 (Alternative Minimum Tax)
1,545 Puerto Rico Electric Power Authority, Power Revenue No Opt. Call A- 805,548
Refunding Bonds, Series 1989O, 0.000%, 7/01/17
4,460 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 4,629,168
Environmental Control Facilities Financing Authority,
Cogeneration Facility Revenue Bonds, Series 2000A, 6.625%,
6/01/26 (Alternative Minimum Tax)
- ----
45
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call
Amount (000) Description Provisions* Ratings** Market Value
- ----------------------------------------------------------------------------------------------------------------
Water and Sewer - 5.6%
$ 3,000 Butler County, Ohio, Sewer System Revenue Bonds, Series 12/06 at 101.00 AAA $ 3,127,500
1996, 5.250%, 12/01/21 - AMBAC Insured
2,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ 2,017,040
5.000%, 12/01/23
Cincinnati, Ohio, Water System Revenue Bonds, ROLS
RR-II-R212 Series:
1,300 12.570%, 12/01/11 (IF) 6/11 at 100.00 AAA 1,631,526
1,640 12.580%, 12/01/12 (IF) 6/11 at 100.00 AAA 2,004,654
550 12.620%, 12/01/13 (IF) 6/11 at 100.00 AAA 668,316
10,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 10,944,500
Refunding and Improvement Bonds, Series 1993G, 5.500%,
1/01/21 - MBIA Insured
1,600 Greene County, Ohio, Water System Revenue Bonds, Series 12/07 at 102.00 AAA 1,772,991
1996, 6.125%, 12/01/21 - FGIC Insured
4,260 Ohio Water Development Authority, Community Assistance 12/07 at 102.00 AAA 4,406,670
Bonds, Series 1997, 5.375%, 12/01/24 - AMBAC Insured
2,000 Ohio Water Development Authority, Revenue Bonds, Fresh 6/08 at 101.00 AAA 2,029,400
Water Development, Series 1998, 5.125%, 12/01/23 - AMBAC
Insured
1,255 Ohio Water Development Authority, Revenue Bonds, Fresh 6/14 at 100.00 AAA 1,366,580
Water Development, Series 2004, 5.250%, 12/01/15
620 Toledo, Ohio, Sewerage System Mortgage Revenue Bonds, 11/04 at 102.00 AAA 644,400
Series 1994, 6.350%, 11/15/17 - AMBAC Insured
390 Toledo, Ohio, Water System Mortgage Revenue Bonds, Series 11/04 at 102.00 AAA 405,640
1994, 6.450%, 11/15/24 - AMBAC Insured
- ----------------------------------------------------------------------------------------------------------------
$534,906 Total Long-Term Investments (cost $525,928,719) - 98.2% 547,882,113
- ----------------------------------------------------------------------------------------------------------------
- ------------ Other Assets Less Liabilities - 1.8% 10,244,774
--------------------------------------------------------------------------------------------------
. Net Assets - 100% $558,126,887
--------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent registered
public accounting firm): 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/RInvestment is not rated.
(WI)Security purchased on a when-issued basis.
(IF)Inverse floating rate security.
See accompanying notes to financial statements.
- ----
46
Portfolio of Investments
NUVEEN WISCONSIN MUNICIPAL BOND FUND
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.2%
$ 475 Ashland Housing Authority, Wisconsin, Student Housing 4/08 at 100.00 Aaa $ 478,439
Revenue Bonds, Northland College Project, Series 1998,
5.100%, 4/01/18
500 Madison Community Development Authority, Wisconsin, Revenue 11/06 at 102.00 AA- 508,250
Bonds, Fluno Center Project, Series 1998A, 5.000%, 11/01/20
370 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 361,568
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System Project, Series 1999, 5.375%, 2/01/29
200 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 201,604
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, University of the Sacred
Heart Project, Series 2001, 5.250%, 9/01/21
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 977,130
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System Project Refunding, Series 2002, 5.500%, 12/01/31
- --------------------------------------------------------------------------------------------------------------
Healthcare - 2.1%
500 Puerto Rico Industrial, Tourist, Educational, Medical and 1/05 at 102.00 AAA 520,265
Environmental Control Facilities Financing Authority,
Hospital Revenue Bonds, Auxilio Mutuo Hospital, Series
1995A, 6.250%, 7/01/24 - MBIA Insured
450 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101.50 AAA 476,055
Environmental Control Facilities Financing Authority,
Insured Mortgage Hospital Revenue Bonds, Doctor Pila
Hospital, Series 1995A, 5.875%, 8/01/12
- --------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 9.4%
Dane County Housing Authority, Wisconsin, Multifamily
Housing Revenue Bonds, Forest Harbor Apartments Project,
Series 1994:
25 5.900%, 7/01/12 (Pre-refunded to 7/01/04) 7/04 at 100.00 N/R 24,354
50 5.950%, 7/01/13 (Pre-refunded to 7/01/04) 7/04 at 100.00 N/R 48,289
50 6.000%, 7/01/14 (Pre-refunded to 7/01/04) 7/04 at 100.00 N/R 47,980
675 Kenosha Housing Authority, Wisconsin, GNMA Collateralized 5/08 at 102.00 N/R 696,870
Multifamily Housing Revenue Bonds, Villa Ciera, Inc.
Project, Series 2000A, 5.900%, 11/20/30
570 Lake Delton Community Development Agency, Wisconsin, GNMA 1/12 at 102.00 N/R 572,993
Collateralized Multifamily Housing Revenue Bonds, Woodland
Park Project, Series 2001, 5.300%, 2/20/31 (Alternative
Minimum Tax)
1,000 Madison Community Development Authority, Wisconsin, GNMA 9/06 at 102.00 AAA 1,007,150
Multifamily Housing Revenue Refunding Bonds, Greentree
Glen Apartments, Series 1999A, 5.500%, 9/20/29
(Alternative Minimum Tax)
200 Milwaukee Redevelopment Authority, Wisconsin, FHA-Insured 8/07 at 102.00 N/R 206,064
Multifamily Housing Revenue Bonds, City Hall Square
Apartments, Series 1993, 6.000%, 8/01/22 (Alternative
Minimum Tax)
500 Sheboygan Housing Authority, Wisconsin, GNMA Multifamily 5/06 at 102.00 AAA 501,010
Revenue Refunding Bonds, Lake Shore Apartments, Series
1998A, 5.100%, 11/20/26
300 Walworth County Housing Authority, Wisconsin, FHA-Insured 9/05 at 102.00 N/R 304,365
Housing Revenue Bonds, Kiwanis Heritage, Inc. Senior
Apartments, Series 1997, 5.550%, 9/01/22
Waukesha Housing Authority, Wisconsin, GNMA Collateralized
Mortgage Loan Multifamily Housing Revenue Refunding Bonds,
Westgrove Woods Project, Series 1996A:
350 5.800%, 12/01/18 (Alternative Minimum Tax) 12/06 at 102.00 AAA 358,005
750 6.000%, 12/01/31 (Alternative Minimum Tax) 12/06 at 102.00 AAA 762,998
- --------------------------------------------------------------------------------------------------------------
Housing/Single Family - 0.6%
190 Puerto Rico Housing Bank and Finance Agency, Single Family 4/05 at 102.00 AAA 195,415
Mortgage Revenue Bonds, Affordable Housing Mortgage
Subsidy Program, Series 1995-I, 6.250%, 4/01/29
(Alternative Minimum Tax)
90 Virgin Islands Housing Finance Corporation, Single Family 3/05 at 102.00 AAA 91,990
Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed
Securities Program, Series 1995A, 6.450%, 3/01/16
(Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.3%
1,120 Waukesha County Housing Authority, Wisconsin, Housing 6/04 at 102.00 N/R 1,116,181
Revenue Bonds, Arboretum Project, Series 1998, 5.250%,
12/01/21 (Alternative Minimum Tax) (Mandatory put 12/01/12)
- ----
47
Portfolio of Investments
NUVEEN WISCONSIN MUNICIPAL BOND FUND (continued)
May 31, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 0.5%
$ 250 Guam, General Obligation Bonds, Series 1993A, 5.400%, 11/04 at 101.00 B $ 241,240
11/15/18
- --------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 59.3%
1,500 Ashwaubenon Community Development Authority, Wisconsin, 6/12 at 100.00 Aa2 1,514,985
Lease Revenue Refunding Bonds, Arena Project, Series 2002,
5.150%, 6/01/29
1,500 Cudahy Community Development Authority, Wisconsin, 6/06 at 100.00 N/R 1,605,165
Redevelopment Lease Revenue Bonds, Series 1995, 6.000%,
6/01/11
1,000 De Forest Redevelopment Authority, Wisconsin, Redevelopment 2/08 at 100.00 N/R 1,007,750
Lease Revenue Bonds, Series 1999B, 5.100%, 2/01/18
100 Glendale Community Development Authority, Wisconsin, 10/11 at 100.00 A2 102,776
Community Development Lease Revenue Refunding Bonds, Tax
Increment District 6, Series 2001, 5.000%, 10/01/19
350 Green Bay/Brown County Professional Football Stadium 2/11 at 100.00 AAA 359,181
District, Wisconsin, Sales Tax Revenue Bonds, Lambeau
Field Renovation Project, Series 2001A, 5.000%, 2/01/19 -
AMBAC Insured
Green Bay Redevelopment Authority, Wisconsin, Lease Revenue
Bonds, Convention Center Project, Series 1999A:
1,300 5.250%, 6/01/24 6/09 at 100.00 Aa2 1,323,790
1,650 5.100%, 6/01/29 6/09 at 100.00 Aa2 1,656,138
500 Jackson Community Development Authority, Wisconsin, Revenue 12/09 at 100.00 N/R 489,445
Refunding Bonds, Series 1999, 5.100%, 12/01/17
960 Madison Community Development Authority, Wisconsin, Lease 3/12 at 100.00 Aa2 900,931
Revenue Refunding Bonds, Monona Terrace, Series 2002,
4.375%, 3/01/20
Milwaukee Redevelopment Authority, Wisconsin, Revenue
Bonds, Summerfest Project, Series 2001:
400 4.850%, 8/01/17 8/11 at 100.00 A 405,124
1,000 4.950%, 8/01/20 8/11 at 100.00 A 1,011,070
2,000 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/12 at 100.00 AAA 2,010,580
Bonds, Neighborhood Public Schools Initiative, Series
2002A, 4.875%, 8/01/21 - AMBAC Insured
2,500 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/13 at 100.00 AAA 2,559,000
Bonds, Public Schools, Series 2003A, 5.125%, 8/01/21 -
AMBAC Insured
1,000 Onalaska Community Development Authority, Wisconsin, 10/13 at 100.00 A3 973,430
Community Development Lease Revenue Bonds, Series 2003,
4.875%, 10/01/27
2,500 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call A- 2,694,800
Government Facilities Revenue Bonds, Series 1993L, 5.500%,
7/01/21
200 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 222,444
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
Sheboygan County Housing Authority, Wisconsin, Housing
Revenue Refunding Bonds, Rocky Knoll Health Center, Series
1994:
150 5.300%, 12/01/17 12/04 at 100.00 A1 150,140
195 5.300%, 12/01/18 12/04 at 100.00 A1 195,090
395 5.300%, 12/01/19 12/04 at 100.00 A1 395,004
Southeast Wisconsin Professional Baseball Park District,
Sales Tax Revenue Refunding Bonds, Series 1998A:
850 5.500%, 12/15/18 - MBIA Insured No Opt. Call AAA 943,364
400 5.500%, 12/15/19 - MBIA Insured No Opt. Call AAA 443,192
2,195 5.500%, 12/15/20 - MBIA Insured No Opt. Call AAA 2,426,090
500 5.500%, 12/15/26 - MBIA Insured No Opt. Call AAA 540,300
375 Sturgeon Bay Waterfront Redevelopment Authority, Wisconsin, 10/08 at 100.00 N/R 380,573
Lease Revenue Bonds, Series 1998A, 5.200%, 10/01/21
600 Virgin Islands Public Finance Authority, Revenue Refunding 10/08 at 101.00 BBB- 601,854
Senior Lien Bonds, Matching Fund Loan Notes, Series 1998A,
5.625%, 10/01/25
1,150 Virgin Islands Public Finance Authority, Gross Receipts 10/14 at 100.00 AAA 1,222,094
Taxes Loan Notes, Series 2003, 5.250%, 10/01/20 - FSA
Insured
- ----
48
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 500 Wauwatosa Redevelopment Authority, Milwaukee County, 12/07 at 100.00 AAA $ 540,985
Wisconsin, Lease Revenue Bonds, Series 1997, 5.650%,
12/01/16 - MBIA Insured
Wisconsin Center District, Junior Dedicated Tax Revenue
Refunding Bonds, Series 1999:
1,000 5.250%, 12/15/23 - FSA Insured No Opt. Call AAA 1,061,210
500 5.250%, 12/15/27 - FSA Insured No Opt. Call AAA 516,960
2,000 Wisconsin Center District, Senior Dedicated Tax Revenue No Opt. Call AAA 509,380
Refunding Bonds, Series 2003A, 0.000%, 12/15/28 - FSA
Insured
- ---------------------------------------------------------------------------------------------------------------
Transportation - 0.7%
500 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 336,815
Bonds, American Airlines, Inc., Series 1996A, 6.250%,
6/01/26 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 18.2%
Ashwaubenon Community Development Authority, Wisconsin,
Lease Revenue Bonds, Arena Project, Series 1999A:
2,000 5.700%, 6/01/24 (Pre-refunded to 6/01/09) 6/09 at 100.00 Aa2*** 2,234,400
700 5.800%, 6/01/29 (Pre-refunded to 6/01/09) 6/09 at 100.00 Aa2*** 785,260
1,500 Glendale Community Development Authority, Wisconsin, 9/08 at 100.00 N/R*** 1,624,785
Community Development Lease Revenue Bonds, Series 1998A,
5.400%, 9/01/18 (Pre-refunded to 9/01/08)
300 Madison Community Development Authority, Wisconsin, Lease 3/05 at 100.00 Aa2*** 310,527
Revenue Bonds, Monona Terrace Community and Convention
Center, Series 1995, 6.100%, 3/01/10 (Pre-refunded to
3/01/05)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
250 5.375%, 10/01/16 10/10 at 101.00 AAA 270,330
750 5.500%, 10/01/20 10/10 at 101.00 AAA 798,510
600 Southeast Wisconsin Professional Baseball Park District, 3/07 at 101.00 AAA 658,863
Sales Tax Revenue Bonds, Series 1996, 5.800%, 12/15/26
(Pre-refunded to 3/13/07) - MBIA Insured
1,000 Southeast Wisconsin Professional Baseball Park District, 12/04 at 100.00 AAA 1,025,980
Sales Tax Revenue Bonds, Series 1999, 6.100%, 12/15/29
(Pre-refunded to 12/15/04) - MBIA Insured
1,000 Wisconsin Center District, Junior Dedicated Tax Revenue 12/06 at 101.00 AAA 1,094,740
Bonds, Series 1996B, 5.700%, 12/15/20 (Pre-refunded to
12/15/06)
- ---------------------------------------------------------------------------------------------------------------
$47,485 Total Long-Term Investments (cost $46,361,793) - 98.3% 47,601,270
- ---------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.7% 809,268
-------------------------------------------------------------------------------------------------
Net Assets - 100% $48,410,538
-------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent registered
public accounting firm): 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/RInvestment is not rated.
See accompanying notes to financial statements.
- ----
49
Statement of Assets and Liabilities
May 31, 2004
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- -----------------------------------------------------------------------------------------------------------------
Assets
Investments, at market value
(cost $123,171,995,
$459,513,772, $229,278,698,
$242,179,531, $525,928,719
and $46,361,793,
respectively) $126,938,470 $474,488,866 $241,608,690 $247,806,634 $547,882,113 $47,601,270
Cash 428,918 570,803 1,330,407 2,625,834 -- 134,212
Receivables:
Interest 1,868,504 6,137,361 2,983,082 3,935,387 9,836,734 907,502
Investments sold 1,080,034 5,236,167 6,089,700 3,264,335 7,290,748 --
Shares sold 31,168 462,573 68,347 82,844 90,080 89,790
Other assets 417 21,752 13,189 2,570 27,668 157
- -----------------------------------------------------------------------------------------------------------------
Total assets 130,347,511 486,917,522 252,093,415 257,717,604 565,127,343 48,732,931
- -----------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- -- -- -- 14,288 --
Payables:
Investments purchased 2,136,628 6,116,865 -- 2,998,431 3,554,956 --
Shares redeemed 13,015 932,087 297,031 189,609 741,970 107,792
Accrued expenses:
Management fees 59,602 216,785 115,706 116,059 252,119 22,642
12b-1 distribution and
service fees 39,606 115,319 62,419 58,949 108,718 13,355
Other 36,184 118,368 78,537 58,871 169,964 16,852
Dividends payable 458,011 1,846,042 942,582 923,570 2,158,441 161,752
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 2,743,046 9,345,466 1,496,275 4,345,489 7,000,456 322,393
- -----------------------------------------------------------------------------------------------------------------
Net assets $127,604,465 $477,572,056 $250,597,140 $253,372,115 $558,126,887 $48,410,538
- -----------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $ 91,743,885 $410,109,265 $179,956,053 $221,954,718 $347,732,722 $39,033,072
Shares outstanding 8,997,398 37,691,365 15,723,459 20,588,238 31,123,978 3,842,323
Net asset value per share $ 10.20 $ 10.88 $ 11.45 $ 10.78 $ 11.17 $ 10.16
Offering price per share (net
asset value per share
plus maximum sales charge of
4.20% of offering price) $ 10.65 $ 11.36 $ 11.95 $ 11.25 $ 11.66 $ 10.61
- -----------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 11,001,136 $ 20,874,236 $ 10,111,555 $ 9,532,089 $ 26,057,011 $ 4,568,295
Shares outstanding 1,087,052 1,917,850 881,895 883,720 2,335,402 448,731
Net asset value and offering
price per share $ 10.12 $ 10.88 $ 11.47 $ 10.79 $ 11.16 $ 10.18
- -----------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 23,655,515 $ 45,303,447 $ 36,911,824 $ 21,402,030 $ 44,574,967 $ 4,631,905
Shares outstanding 2,317,425 4,167,763 3,228,453 1,986,269 3,997,328 454,814
Net asset value and offering
price per share $ 10.21 $ 10.87 $ 11.43 $ 10.77 $ 11.15 $ 10.18
- -----------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $ 1,203,929 $ 1,285,108 $ 23,617,708 $ 483,278 $139,762,187 $ 177,266
Shares outstanding 117,539 118,260 2,063,132 44,772 12,521,990 17,376
Net asset value and offering
price per share $ 10.24 $ 10.87 $ 11.45 $ 10.79 $ 11.16 $ 10.20
- -----------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- -----------------------------------------------------------------------------------------------------------------
Capital paid-in $126,756,701 $464,935,200 $238,963,946 $249,063,493 $538,064,217 $47,696,827
Undistributed
(Over-distribution of) net
investment income (157,348) (371,032) (206,743) (134,854) (99,771) (21,572)
Accumulated net realized gain
(loss) from investments (2,761,363) (1,967,206) (490,055) (1,183,627) (1,790,953) (504,194)
Net unrealized appreciation
of investments 3,766,475 14,975,094 12,329,992 5,627,103 21,953,394 1,239,477
- -----------------------------------------------------------------------------------------------------------------
Net assets $127,604,465 $477,572,056 $250,597,140 $253,372,115 $558,126,887 $48,410,538
- -----------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
50
Statement of Operations
Year Ended May 31, 2004
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ----------------------------------------------------------------------------------------------------------------
Investment Income $ 7,229,570 $ 26,767,465 $ 14,635,090 $ 14,160,178 $ 32,348,299 $ 2,507,262
- ----------------------------------------------------------------------------------------------------------------
Expenses
Management fees 754,591 2,642,597 1,449,762 1,435,603 3,119,661 273,705
12b-1 service fees - Class A 197,084 847,446 382,725 459,705 731,905 79,691
12b-1 distribution and
service fees - Class B 113,261 203,332 103,280 106,430 259,308 47,406
12b-1 distribution and
service fees - Class C 193,641 360,790 306,311 172,014 355,132 35,631
Shareholders' servicing agent
fees and expenses 80,546 254,076 163,204 127,195 359,580 28,354
Custodian's fees and expenses 43,088 119,308 71,574 76,954 145,850 25,614
Trustees' fees and expenses 3,179 10,731 6,237 5,805 12,352 975
Professional fees 33,168 28,862 18,592 17,475 39,001 8,112
Shareholders' reports -
printing and mailing expenses 28,883 68,047 50,229 37,383 128,415 10,162
Federal and state
registration fees 6,337 5,696 11,240 9,513 8,960 7,971
Other expenses 6,360 20,513 12,851 11,422 28,353 3,356
- ----------------------------------------------------------------------------------------------------------------
Total expenses before
custodian fee credit and
expense reimbursement 1,460,138 4,561,398 2,576,005 2,459,499 5,188,517 520,977
Custodian fee credit (9,247) (16,700) (8,889) (6,874) (8,534) (5,994)
- ----------------------------------------------------------------------------------------------------------------
Net expenses 1,450,891 4,544,698 2,567,116 2,452,625 5,179,983 514,983
- ----------------------------------------------------------------------------------------------------------------
Net investment income 5,778,679 22,222,767 12,067,974 11,707,553 27,168,316 1,992,279
- ----------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain
(Loss) from Investments
Net realized gain (loss) from
investments (1,665,829) (1,975,667) (381,658) 443,606 1,763,995 389,437
Net change in unrealized
appreciation (depreciation)
of investments (5,728,328) (16,569,142) (12,892,193) (12,919,701) (33,135,955) (2,742,604)
- ----------------------------------------------------------------------------------------------------------------
Net gain (loss) from
investments (7,394,157) (18,544,809) (13,273,851) (12,476,095) (31,371,960) (2,353,167)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations $(1,615,478) $ 3,677,958 $ (1,205,877) $ (768,542) $ (4,203,644) $ (360,888)
- ----------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
51
Statement of Changes in Net Assets
Kansas Kentucky
-------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/04 5/31/03 5/31/04 5/31/03
- ------------------------------------------------------------------------------------------------
Operations
Net investment income $ 5,778,679 $ 5,907,144 $ 22,222,767 $ 22,632,364
Net realized gain (loss) from
investments (1,665,829) 158,850 (1,975,667) 2,114,527
Net change in unrealized appreciation
(depreciation) of investments (5,728,328) 6,480,501 (16,569,142) 16,859,562
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (1,615,478) 12,546,495 3,677,958 41,606,453
- ------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (4,349,593) (4,628,215) (19,890,380) (20,028,647)
Class B (440,052) (452,354) (841,490) (762,133)
Class C (1,002,336) (841,745) (2,003,684) (1,946,364)
Class R (54,894) (67,888) (58,747) (51,875)
From accumulated net realized gains
from investment transactions:
Class A -- -- (1,451,394) (289,143)
Class B -- -- (73,792) (13,099)
Class C -- -- (163,017) (32,628)
Class R -- -- (4,045) (713)
- ------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (5,846,875) (5,990,202) (24,486,549) (23,124,602)
- ------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 14,588,942 23,090,960 41,174,702 50,759,048
Net proceeds from shares issued to
shareholders due
to reinvestment of distributions 2,860,449 2,915,310 12,028,415 11,151,301
- ------------------------------------------------------------------------------------------------
17,449,391 26,006,270 53,203,117 61,910,349
Cost of shares redeemed (24,476,334) (15,507,694) (54,176,868) (47,280,723)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions (7,026,943) 10,498,576 (973,751) 14,629,626
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (14,489,296) 17,054,869 (21,782,342) 33,111,477
Net assets at the beginning of year 142,093,761 125,038,892 499,354,398 466,242,921
- ------------------------------------------------------------------------------------------------
Net assets at the end of year $127,604,465 $142,093,761 $477,572,056 $499,354,398
- ------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the end of
year $ (157,348) $ (88,597) $ (371,032) $ 208,962
- ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
52
Michigan Missouri
-------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/04 5/31/03 5/31/04 5/31/03
- ------------------------------------------------------------------------------------------------
Operations
Net investment income $ 12,067,974 $ 12,881,062 $ 11,707,553 $ 11,659,089
Net realized gain (loss) from
investments (381,658) 2,802,585 443,606 117,007
Net change in unrealized appreciation
(depreciation) of investments (12,892,193) 11,764,886 (12,919,701) 11,511,004
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (1,205,877) 27,448,533 (768,542) 23,287,100
- ------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (8,999,938) (9,642,292) (10,177,283) (10,568,434)
Class B (426,071) (407,534) (410,400) (431,777)
Class C (1,693,924) (1,748,339) (888,249) (919,808)
Class R (1,182,789) (1,207,750) (23,566) (25,536)
From accumulated net realized gains
from investment transactions:
Class A (2,004,173) (124,373) -- --
Class B (114,034) (6,398) -- --
Class C (422,817) (26,125) -- --
Class R (251,531) (15,064) -- --
- ------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (15,095,277) (13,177,875) (11,499,498) (11,945,555)
- ------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 19,888,293 23,926,058 24,186,720 37,213,355
Net proceeds from shares issued to
shareholders due to reinvestment of
distributions 5,922,909 4,784,615 5,132,188 5,035,402
- ------------------------------------------------------------------------------------------------
25,811,202 28,710,673 29,318,908 42,248,757
Cost of shares redeemed (43,387,219) (35,934,398) (33,456,713) (21,376,429)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions (17,576,017) (7,223,725) (4,137,805) 20,872,328
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (33,877,171) 7,046,933 (16,405,845) 32,213,873
Net assets at the beginning of year 284,474,311 277,427,378 269,777,960 237,564,087
- ------------------------------------------------------------------------------------------------
Net assets at the end of year $250,597,140 $284,474,311 $253,372,115 $269,777,960
- ------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the end of
year $ (206,743) $ 140,194 $ (134,854) $ (334,393)
- ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
53
Statement of Changes in Net Assets (continued)
Ohio Wisconsin
-------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/04 5/31/03 5/31/04 5/31/03
- -----------------------------------------------------------------------------------------------
Operations
Net investment income $ 27,168,316 $ 28,122,835 $ 1,992,279 $ 2,055,274
Net realized gain (loss) from
investments 1,763,995 1,268,680 389,437 (213,617)
Net change in unrealized appreciation
(depreciation) of investments (33,135,955) 31,686,941 (2,742,604) 2,623,140
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (4,203,644) 61,078,456 (360,888) 4,464,797
- -----------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (17,203,763) (17,957,323) (1,678,781) (1,758,397)
Class B (1,085,124) (993,978) (174,560) (197,486)
Class C (1,982,379) (2,010,781) (173,583) (139,711)
Class R (7,215,607) (7,473,631) (7,838) (5,832)
From accumulated net realized gains
from investment transactions:
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class R -- -- -- --
- -----------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (27,486,873) (28,435,713) (2,034,762) (2,101,426)
- -----------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 37,222,137 44,313,612 6,672,641 7,418,035
Net proceeds from shares issued to
shareholders due to reinvestment of
distributions 13,107,814 13,425,680 1,197,776 1,257,045
- -----------------------------------------------------------------------------------------------
50,329,951 57,739,292 7,870,417 8,675,080
Cost of shares redeemed (79,991,538) (65,962,814) (10,096,228) (6,808,683)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions (29,661,587) (8,223,522) (2,225,811) 1,866,397
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (61,352,104) 24,419,221 (4,621,461) 4,229,768
Net assets at the beginning of year 619,478,991 595,059,770 53,031,999 48,802,231
- -----------------------------------------------------------------------------------------------
Net assets at the end of year $558,126,887 $619,478,991 $ 48,410,538 $53,031,999
- -----------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the
end of year $ (99,771) $ 191,800 $ (21,572) $ 20,591
- -----------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
54
Notes to Financial Statements
1. General Information and Significant Accounting Policies
The Nuveen Multistate Trust IV (the "Trust") is an open-end investment company
registered under the Investment Company Act of 1940, as amended. The Trust
comprises the Nuveen Kansas Municipal Bond Fund ("Kansas"), Nuveen Kentucky
Municipal Bond Fund ("Kentucky"), Nuveen Michigan Municipal Bond Fund
("Michigan"), Nuveen Missouri Municipal Bond Fund ("Missouri"), Nuveen Ohio
Municipal Bond Fund ("Ohio") and Nuveen Wisconsin Municipal Bond Fund
("Wisconsin") (collectively, the "Funds"). The Trust was organized as a
Massachusetts business trust on July 1, 1996. The Funds were each organized as
a 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 May 31, 2004,
Kentucky, Missouri and Ohio had outstanding when-issued or delayed delivery
purchase commitments of $6,116,865, $2,998,431 and $3,554,956, respectively.
There were no such outstanding purchase commitments in Kansas, Michigan, or
Wisconsin.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal
fees incurred in the normal course of operations, audit fees, tax consulting
fees and, in some cases, workout expenditures. Workout expenditures are
incurred in an attempt to protect or enhance an investment, or to pursue other
claims or legal actions on behalf of the Fund's shareholders.
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 shareholders of the Funds. All monthly tax-exempt income
dividends paid during the fiscal year ended May 31, 2004, have been designated
Exempt Interest Dividends.
- ----
55
Notes to Financial Statements (continued)
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 fiscal year ended May 31, 2004, Kentucky, Michigan and Ohio 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. Kansas, Missouri
and Wisconsin did not invest in any such securities during the fiscal year
ended May 31, 2004.
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.
Indemnifications
Under the Trust's organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business the Trust
enters into contracts that provide general indemnifications to other parties.
The Trust's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Trust that have not yet
occurred.
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.
- ----
56
2. Fund Shares
Transactions in Fund shares were as follows:
Kansas
--------------------------------------------------
Year Ended Year Ended
5/31/04 5/31/03
------------------------ ------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------
Shares sold:
Class A 793,968 $ 8,303,025 1,063,903 $ 11,127,933
Class B 59,064 615,299 261,424 2,722,034
Class C 526,585 5,524,723 862,578 9,029,763
Class R 13,736 145,895 20,017 211,230
Shares issued to shareholders due to
reinvestment of distributions:
Class A 200,112 2,092,048 213,938 2,232,298
Class B 19,035 197,536 20,670 214,205
Class C 53,905 564,187 44,657 466,919
Class R 636 6,678 180 1,888
- --------------------------------------------------------------------------------------------
1,667,041 17,449,391 2,487,367 26,006,270
- --------------------------------------------------------------------------------------------
Shares redeemed:
Class A (1,557,318) (16,264,216) (1,122,005) (11,705,711)
Class B (188,261) (1,938,824) (87,869) (908,480)
Class C (586,380) (6,086,120) (233,992) (2,447,500)
Class R (17,937) (187,174) (42,271) (446,003)
- --------------------------------------------------------------------------------------------
(2,349,896) (24,476,334) (1,486,137) (15,507,694)
- --------------------------------------------------------------------------------------------
Net increase (decrease) (682,855) $ (7,026,943) 1,001,230 $ 10,498,576
- --------------------------------------------------------------------------------------------
Kentucky
--------------------------------------------------
Year Ended Year Ended
5/31/04 5/31/03
------------------------ ------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------
Shares sold:
Class A 2,858,255 $ 31,892,416 2,987,211 $ 33,128,568
Class B 249,021 2,763,418 429,304 4,755,279
Class C 572,512 6,394,052 1,153,800 12,772,504
Class R 11,133 124,816 9,266 102,697
Shares issued to shareholders due to
reinvestment of distributions:
Class A 932,474 10,375,268 881,467 9,748,497
Class B 45,210 503,135 36,069 399,076
Class C 98,888 1,099,196 86,797 959,216
Class R 4,573 50,816 4,032 44,512
- --------------------------------------------------------------------------------------------
4,772,066 53,203,117 5,587,946 61,910,349
- --------------------------------------------------------------------------------------------
Shares redeemed:
Class A (3,709,929) (41,162,021) (3,595,606) (39,730,221)
Class B (244,740) (2,709,713) (135,981) (1,503,715)
Class C (930,718) (10,295,377) (547,753) (6,046,787)
Class R (899) (9,757) -- --
- --------------------------------------------------------------------------------------------
(4,886,286) (54,176,868) (4,279,340) (47,280,723)
- --------------------------------------------------------------------------------------------
Net increase (decrease) (114,220) $ (973,751) 1,308,606 $ 14,629,626
- --------------------------------------------------------------------------------------------
- ----
57
Notes to Financial Statements (continued)
Michigan
--------------------------------------------------
Year Ended Year Ended
5/31/04 5/31/03
------------------------ ------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
Shares sold:
Class A 1,173,770 $ 13,773,949 1,147,174 $ 13,590,360
Class B 103,810 1,221,861 191,037 2,263,633
Class C 344,503 4,053,427 613,129 7,268,172
Class R 71,099 839,056 68,242 803,893
Shares issued to shareholders due to reinvestment
of distributions:
Class A 341,045 4,005,239 275,851 3,261,898
Class B 17,765 208,791 11,689 138,439
Class C 60,648 711,144 47,722 563,598
Class R 84,936 997,735 69,386 820,680
- -----------------------------------------------------------------------------------------------------
2,197,576 25,811,202 2,424,230 28,710,673
- -----------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (2,625,909) (30,776,396) (2,403,385) (28,411,154)
Class B (157,814) (1,844,648) (81,059) (960,241)
Class C (774,769) (9,064,066) (421,866) (4,999,002)
Class R (144,833) (1,702,109) (131,775) (1,564,001)
- -----------------------------------------------------------------------------------------------------
(3,703,325) (43,387,219) (3,038,085) (35,934,398)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) (1,505,749) $(17,576,017) (613,855) $ (7,223,725)
- -----------------------------------------------------------------------------------------------------
Missouri
--------------------------------------------------
Year Ended Year Ended
5/31/04 5/31/03
------------------------ ------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
Shares sold:
Class A 1,896,429 $ 20,766,655 2,629,463 $ 28,861,715
Class B 106,461 1,175,381 306,097 3,367,562
Class C 204,008 2,244,513 453,975 4,984,078
Class R 15 171 -- --
Shares issued to shareholders due to reinvestment
of distributions:
Class A 418,334 4,614,441 413,086 4,534,618
Class B 18,993 209,608 17,952 197,082
Class C 27,661 305,073 27,386 300,388
Class R 278 3,066 302 3,314
- -----------------------------------------------------------------------------------------------------
2,672,179 29,318,908 3,848,261 42,248,757
- -----------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (2,434,553) (26,768,972) (1,563,588) (17,165,813)
Class B (295,500) (3,248,762) (111,014) (1,216,887)
Class C (311,727) (3,408,979) (272,997) (2,993,729)
Class R (2,688) (30,000) -- --
- -----------------------------------------------------------------------------------------------------
(3,044,468) (33,456,713) (1,947,599) (21,376,429)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) (372,289) $ (4,137,805) 1,900,662 $ 20,872,328
- -----------------------------------------------------------------------------------------------------
- ----
58
Ohio
--------------------------------------------------
Year Ended Year Ended
5/31/04 5/31/03
------------------------ ------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
Shares sold:
Class A 2,304,454 $ 26,549,245 2,388,290 $ 27,234,695
Class B 267,211 3,083,903 520,124 5,932,156
Class C 489,022 5,609,952 619,754 7,076,225
Class R 171,767 1,979,037 358,046 4,070,536
Shares issued to shareholders due to reinvestment
of distributions:
Class A 599,545 6,881,391 625,025 7,115,671
Class B 34,215 392,111 30,778 350,186
Class C 66,384 760,754 69,847 794,388
Class R 442,465 5,073,558 454,082 5,165,435
- -----------------------------------------------------------------------------------------------------
4,375,063 50,329,951 5,065,946 57,739,292
- -----------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (4,517,200) (51,533,122) (4,260,086) (48,660,023)
Class B (352,580) (4,031,327) (176,004) (1,989,404)
Class C (894,505) (10,208,729) (388,410) (4,420,801)
Class R (1,243,807) (14,218,360) (955,771) (10,892,586)
- -----------------------------------------------------------------------------------------------------
(7,008,092) (79,991,538) (5,780,271) (65,962,814)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) (2,633,029) $(29,661,587) (714,325) $ (8,223,522)
- -----------------------------------------------------------------------------------------------------
Wisconsin
--------------------------------------------------
Year Ended Year Ended
5/31/04 5/31/03
------------------------ ------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
Shares sold:
Class A 464,905 $ 4,873,006 478,781 $ 4,961,350
Class B 38,553 404,420 73,841 769,287
Class C 132,785 1,393,067 156,529 1,621,327
Class R 197 2,148 6,385 66,071
Shares issued to shareholders due to reinvestment
of distributions:
Class A 94,737 985,477 101,556 1,048,681
Class B 9,370 97,772 11,032 114,246
Class C 10,299 107,357 8,551 88,556
Class R 687 7,170 536 5,562
- -----------------------------------------------------------------------------------------------------
751,533 7,870,417 837,211 8,675,080
- -----------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (704,255) (7,287,114) (559,306) (5,764,985)
Class B (158,637) (1,626,947) (39,206) (401,473)
Class C (114,245) (1,182,167) (62,106) (642,225)
Class R -- -- -- --
- -----------------------------------------------------------------------------------------------------
(977,137) (10,096,228) (660,618) (6,808,683)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) (225,604) $ (2,225,811) 176,593 $ 1,866,397
- -----------------------------------------------------------------------------------------------------
- ----
59
Notes to Financial Statements (continued)
3. Securities Transactions
Purchases and sales (including maturities) of investments in long-term
municipal securities for the fiscal year ended May 31, 2004, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ------------------------------------------------------------------------------------
Purchases $15,241,426 $76,336,863 $24,644,264 $32,906,462 $ 68,329,638 $10,348,616
Sales and
maturities 19,885,363 75,776,258 50,984,105 39,912,074 103,072,908 11,121,192
- ------------------------------------------------------------------------------------
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 May 31, 2004, the cost of investments were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ------------------------------------------------------------------------------------------------
Cost of investments $123,156,590 $459,343,030 $229,348,955 $242,137,366 $525,495,659 $46,345,125
- ------------------------------------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 2004, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- -----------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 5,040,963 $19,164,047 $14,386,649 $ 8,413,622 $26,964,693 $1,703,812
Depreciation (1,259,083) (4,018,211) (2,126,914) (2,744,354) (4,578,239) (447,667)
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $ 3,781,880 $15,145,836 $12,259,735 $ 5,669,268 $22,386,454 $1,256,145
- -----------------------------------------------------------------------------------------------------------------------
The tax components of undistributed net investment income and net realized
gains at May 31, 2004, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ----------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $285,259 $1,271,426 $587,061 $746,553 $1,625,609 $123,512
Undistributed net ordinary income* -- -- 16,192 -- -- --
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 years ended May 31,
2004 and May 31, 2003, was designated for purposes of the dividends paid
deduction as follows:
2004 Kansas Kentucky Michigan Missouri Ohio Wisconsin
- --------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $5,889,048 $22,797,140 $12,369,021 $11,548,175 $27,679,862 $2,048,961
Distributions from net ordinary income* -- 66,682 78,164 -- 9,397 1,079
Distributions from net long-term capital gains -- 1,687,946 2,769,039 -- -- --
- --------------------------------------------------------------------------------------------------------------------
2003 Kansas Kentucky Michigan Missouri Ohio Wisconsin
- --------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $5,966,173 $22,742,904 $13,042,876 $11,944,635 $28,473,859 $2,099,102
Distributions from net ordinary income* -- -- 16,718 -- -- --
Distributions from net long-term capital gains -- 335,583 155,242 -- -- --
- --------------------------------------------------------------------------------------------------------------------
*Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2004, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
-------------------------------------------------------------------
2008 $ 671,721 $ -- $ -- $ 287,168 $ -- $ --
2009 424,368 -- -- 691,893 -- 504,194
2010 -- -- -- 204,566 1,790,953 --
2011 -- -- -- -- -- --
2012 1,614,137 1,829,281 225,407 -- -- --
-------------------------------------------------------------------
$2,710,226 $1,829,281 $225,407 $1,183,627 $1,790,953 $504,194
-------------------------------------------------------------------
- ----
60
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2003 through May 31, 2004 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen in the following fiscal year:
Kansas Kentucky Michigan
---------------------------
$51,137 $105,059 $61,811
---------------------------
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 Board of Trustees has
adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
As approved by the Board of Trustees, a complex-wide fee schedule for all Funds
managed by the Adviser and its affiliates will go into effect on August 1,
2004. The implementation of this complex-wide fee schedule is expected to
result in a marginal immediate decrease in the rates at which management fees
are to be paid by the Funds. As assets in the Nuveen Fund complex grow, the
management fee rates to be paid by the Funds will decrease further. Under no
circumstances will the complex-wide fee schedule result in an increase in the
rate at which management fees would be paid by the Funds if the complex-wide
fee schedule were not implemented.
The Adviser has agreed to waive part of its management fees or reimburse
certain expenses of Ohio 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. The Adviser may also voluntarily 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 fiscal year ended May 31, 2004, 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:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ---------------------------------------------------------------------------------------------
Sales charges collected (unaudited) $197,237 $864,139 $211,365 $358,806 $432,159 $125,889
Paid to authorized dealers (unaudited) 169,033 752,296 186,486 317,125 381,424 109,860
- ---------------------------------------------------------------------------------------------
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 fiscal year ended May 31, 2004, the Distributor compensated
authorized dealers directly with commission advances at the time of purchase as
follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- -------------------------------------------------------------------------------------
Commission advances (unaudited) $91,453 $224,706 $110,151 $138,797 $187,477 $38,534
- -------------------------------------------------------------------------------------
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 fiscal year
ended May 31, 2004, the Distributor retained such 12b-1 fees as follows:
- ----
61
Notes to Financial Statements (continued)
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- --------------------------------------------------------------------------------------
12b-1 fees retained (unaudited) $145,146 $224,714 $131,821 $112,780 $260,926 $50,664
- --------------------------------------------------------------------------------------
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 fiscal year ended May 31, 2004, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
------------------------------------------------------------------------------
CDSC retained (unaudited) $47,908 $71,874 $35,890 $73,483 $74,534 $38,502
------------------------------------------------------------------------------
6. Subsequent Event - Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on July 1, 2004, to shareholders of record on June 9,
2004, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
-------------------------------------------------------------
Dividend
per
share:
Class A $.0375 $.0425 $.0435 $.0400 $.0430 $.0345
Class B .0310 .0355 .0360 .0330 .0360 .0285
Class C .0330 .0375 .0380 .0350 .0380 .0300
Class R .0395 .0440 .0455 .0420 .0450 .0365
-------------------------------------------------------------
- ----
62
Financial Highlights
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ---------------------- --------
KANSAS
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending Ending
Net Invest- ment Invest- Net Net
Year Ended Asset ment Gain ment Capital Asset Total Assets
May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000)
- ------------------------------------------------------------------------------------------------------
Class A (1/92)
2004 $10.77 $.46 $(.57) $(.11) $(.46) $-- $(.46) $10.20 (1.02)% $ 91,744
2003 10.25 .48 .52 1.00 (.48) -- (.48) 10.77 10.03 102,938
2002 10.16 .50 .10 .60 (.51) -- (.51) 10.25 6.06 96,411
2001 9.54 .51 .62 1.13 (.51) -- (.51) 10.16 12.02 91,062
2000 10.49 .50 (.96) (.46) (.49) -- (.49) 9.54 (4.38) 86,460
Class B (2/97)
2004 10.69 .38 (.57) (.19) (.38) -- (.38) 10.12 (1.77) 11,001
2003 10.18 .40 .52 .92 (.41) -- (.41) 10.69 9.18 12,797
2002 10.09 .42 .11 .53 (.44) -- (.44) 10.18 5.30 10,210
2001 9.48 .44 .61 1.05 (.44) -- (.44) 10.09 11.17 6,851
2000 10.43 .42 (.95) (.53) (.42) -- (.42) 9.48 (5.14) 5,361
Class C (2/97)
2004 10.78 .40 (.56) (.16) (.41) -- (.41) 10.21 (1.53) 23,656
2003 10.27 .42 .52 .94 (.43) -- (.43) 10.78 9.35 25,049
2002 10.17 .44 .12 .56 (.46) -- (.46) 10.27 5.60 16,943
2001 9.56 .46 .61 1.07 (.46) -- (.46) 10.17 11.29 6,359
2000 10.51 .45 (.96) (.51) (.44) -- (.44) 9.56 (4.89) 5,633
Class R (2/97)
2004 10.82 .48 (.58) (.10) (.48) -- (.48) 10.24 (.89) 1,204
2003 10.30 .50 .53 1.03 (.51) -- (.51) 10.82 10.23 1,310
2002 10.20 .53 .11 .64 (.54) -- (.54) 10.30 6.38 1,475
2001 9.59 .54 .60 1.14 (.53) -- (.53) 10.20 12.12 1,967
2000 10.55 .52 (.96) (.44) (.52) -- (.52) 9.59 (4.22) 1,360
- ------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
-------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
KANSAS ----------------- ----------------- -----------------
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
to to to to to to
Average Average Average Average Average Average Portfolio
Year Ended Net Net Net Net Net Net Turnover
May 31, Assets Assets Assets Assets Assets Assets Rate
- ------------------------------------------------------------------------------
Class A (1/92)
2004 .90% 4.36% .90% 4.36% .89% 4.37% 11%
2003 .88 4.57 .88 4.57 .87 4.58 12
2002 .90 4.90 .90 4.90 .89 4.91 17
2001 .90 5.13 .90 5.13 .89 5.14 18
2000 1.01 5.04 1.01 5.05 1.00 5.06 54
Class B (2/97)
2004 1.64 3.61 1.64 3.61 1.64 3.62 11
2003 1.63 3.81 1.63 3.81 1.62 3.82 12
2002 1.65 4.13 1.65 4.13 1.64 4.15 17
2001 1.65 4.38 1.65 4.38 1.64 4.39 18
2000 1.77 4.31 1.77 4.31 1.76 4.32 54
Class C (2/97)
2004 1.45 3.81 1.45 3.81 1.44 3.82 11
2003 1.43 4.01 1.43 4.01 1.42 4.02 12
2002 1.44 4.31 1.44 4.31 1.43 4.32 17
2001 1.45 4.58 1.45 4.58 1.44 4.59 18
2000 1.57 4.51 1.56 4.51 1.56 4.52 54
Class R (2/97)
2004 .70 4.56 .70 4.56 .69 4.57 11
2003 .68 4.77 .68 4.77 .67 4.78 12
2002 .70 5.12 .70 5.12 .69 5.13 17
2001 .69 5.33 .69 5.33 .68 5.34 18
2000 .85 5.32 .85 5.32 .84 5.33 54
- ------------------------------------------------------------------------------
(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.
See accompanying notes to financial statements.
- ----
63
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------- --------
KENTUCKY
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending Ending
Net Invest- ment Invest- Net Net
Year Ended Asset ment Gain ment Capital Asset Total Assets
May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000)
- ------------------------------------------------------------------------------------------------------
Class A (5/87)
2004 $11.35 $.51 $(.42) $ .09 $(.52) $(.04) $(.56) $10.88 .90% $410,109
2003 10.92 .53 .44 .97 (.53) (.01) (.54) 11.35 9.03 426,782
2002 10.80 .54 .12 .66 (.54) -- (.54) 10.92 6.22 407,706
2001 10.30 .55 .50 1.05 (.55) -- (.55) 10.80 10.40 403,793
2000 11.22 .55 (.92) (.37) (.55) -- (.55) 10.30 (3.27) 394,048
Class B (2/97)
2004 11.35 .43 (.42) .01 (.44) (.04) (.48) 10.88 .14 20,874
2003 10.92 .45 .44 .89 (.45) (.01) (.46) 11.35 8.21 21,206
2002 10.80 .46 .12 .58 (.46) -- (.46) 10.92 5.42 16,808
2001 10.30 .47 .51 .98 (.48) -- (.48) 10.80 9.60 12,977
2000 11.22 .47 (.92) (.45) (.47) -- (.47) 10.30 (3.99) 10,148
Class C (10/93)
2004 11.34 .45 (.42) .03 (.46) (.04) (.50) 10.87 .35 45,303
2003 10.91 .47 .44 .91 (.47) (.01) (.48) 11.34 8.45 50,194
2002 10.79 .48 .12 .60 (.48) -- (.48) 10.91 5.64 40,746
2001 10.29 .49 .50 .99 (.49) -- (.49) 10.79 9.80 35,770
2000 11.21 .50 (.93) (.43) (.49) -- (.49) 10.29 (3.82) 31,078
Class R (2/97)
2004 11.33 .53 (.41) .12 (.54) (.04) (.58) 10.87 1.15 1,285
2003 10.90 .55 .44 .99 (.55) (.01) (.56) 11.33 9.23 1,172
2002 10.78 .57 .11 .68 (.56) -- (.56) 10.90 6.40 983
2001 10.27 .57 .51 1.08 (.57) -- (.57) 10.78 10.72 889
2000 11.20 .57 (.93) (.36) (.57) -- (.57) 10.27 (3.18) 842
- ------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
-------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
KENTUCKY ----------------- ----------------- -----------------
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
to to to to to to
Average Average Average Average Average Average Portfolio
Year Ended Net Net Net Net Net Net Turnover
May 31, Assets Assets Assets Assets Assets Assets Rate
- ------------------------------------------------------------------------------
Class A (5/87)
2004 .84% 4.58% .84% 4.58% .83% 4.58% 16%
2003 .84 4.79 .84 4.79 .83 4.79 14
2002 .85 4.99 .85 4.99 .84 5.00 14
2001 .87 5.11 .87 5.11 .85 5.13 14
2000 .96 5.23 .96 5.23 .96 5.23 7
Class B (2/97)
2004 1.59 3.83 1.59 3.83 1.58 3.83 16
2003 1.59 4.04 1.59 4.04 1.58 4.04 14
2002 1.59 4.24 1.59 4.24 1.58 4.25 14
2001 1.62 4.36 1.62 4.36 1.60 4.38 14
2000 1.72 4.48 1.72 4.48 1.72 4.48 7
Class C (10/93)
2004 1.39 4.03 1.39 4.03 1.38 4.03 16
2003 1.39 4.24 1.39 4.24 1.38 4.24 14
2002 1.40 4.44 1.40 4.44 1.39 4.45 14
2001 1.42 4.56 1.42 4.56 1.40 4.58 14
2000 1.51 4.68 1.51 4.68 1.51 4.68 7
Class R (2/97)
2004 .64 4.78 .64 4.78 .63 4.78 16
2003 .64 4.99 .64 4.99 .63 4.99 14
2002 .65 5.19 .65 5.19 .64 5.20 14
2001 .67 5.31 .67 5.31 .65 5.33 14
2000 .77 5.43 .77 5.43 .77 5.43 7
- ------------------------------------------------------------------------------
(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.
See accompanying notes to financial statements.
- ----
64
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
---------------------------- ----------------------- --------
MICHIGAN
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending Ending
Net Invest- ment Invest- Net Net
Year Ended Asset ment Gain ment Capital Asset Total Assets
May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000)
- --------------------------------------------------------------------------------------------------------
Class A (6/85)
2004 $12.16 $.54 $ (.58) $ (.04) $(.55) $(.12) $(.67) $11.45 (.27)% $179,956
2003 11.55 .55 .63 1.18 (.56) (.01) (.57) 12.16 10.40 204,652
2002 11.39 .56 .20 .76 (.57) (.03) (.60) 11.55 6.70 205,808
2001 10.75 .58 .63 1.21 (.57) -- (.57) 11.39 11.45 211,992
2000 11.83 .58 (1.03) (.45) (.58) (.05) (.63) 10.75 (3.80) 208,290
Class B (2/97)
2004 12.18 .45 (.58) (.13) (.46) (.12) (.58) 11.47 (1.03) 10,112
2003 11.57 .46 .63 1.09 (.47) (.01) (.48) 12.18 9.56 11,179
2002 11.41 .48 .19 .67 (.48) (.03) (.51) 11.57 5.88 9,214
2001 10.77 .50 .63 1.13 (.49) -- (.49) 11.41 10.61 8,642
2000 11.85 .50 (1.03) (.53) (.50) (.05) (.55) 10.77 (4.52) 7,741
Class C (6/93)
2004 12.14 .48 (.58) (.10) (.49) (.12) (.61) 11.43 (.83) 36,912
2003 11.54 .49 .61 1.10 (.49) (.01) (.50) 12.14 9.71 43,693
2002 11.38 .50 .19 .69 (.50) (.03) (.53) 11.54 6.11 38,763
2001 10.74 .52 .63 1.15 (.51) -- (.51) 11.38 10.84 36,123
2000 11.82 .52 (1.03) (.51) (.52) (.05) (.57) 10.74 (4.35) 35,678
Class R (2/97)
2004 12.16 .57 (.58) (.01) (.58) (.12) (.70) 11.45 (.07) 23,618
2003 11.56 .58 .61 1.19 (.58) (.01) (.59) 12.16 10.53 24,951
2002 11.39 .59 .20 .79 (.59) (.03) (.62) 11.56 6.99 23,643
2001 10.75 .60 .63 1.23 (.59) -- (.59) 11.39 11.63 22,799
2000 11.83 .60 (1.03) (.43) (.60) (.05) (.65) 10.75 (3.62) 22,035
- --------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
-------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
MICHIGAN ----------------- ----------------- -----------------
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
to to to to to to
Average Average Average Average Average Average Portfolio
Year Ended Net Net Net Net Net Net Turnover
May 31, Assets Assets Assets Assets Assets Assets Rate
- ------------------------------------------------------------------------------
Class A (6/85)
2004 .87% 4.61% .87% 4.61% .86% 4.61% 9%
2003 .86 4.67 .86 4.67 .86 4.67 10
2002 .87 4.86 .87 4.86 .87 4.86 19
2001 .87 5.15 .87 5.15 .86 5.16 11
2000 .97 5.22 .97 5.22 .96 5.22 28
Class B (2/97)
2004 1.62 3.86 1.62 3.86 1.61 3.86 9
2003 1.61 3.91 1.61 3.91 1.61 3.92 10
2002 1.62 4.11 1.62 4.11 1.62 4.11 19
2001 1.62 4.40 1.62 4.40 1.61 4.41 11
2000 1.73 4.48 1.73 4.48 1.72 4.49 28
Class C (6/93)
2004 1.42 4.06 1.42 4.06 1.41 4.06 9
2003 1.41 4.12 1.41 4.12 1.41 4.12 10
2002 1.42 4.31 1.42 4.31 1.42 4.31 19
2001 1.42 4.60 1.42 4.60 1.41 4.61 11
2000 1.51 4.66 1.51 4.66 1.50 4.67 28
Class R (2/97)
2004 .67 4.81 .67 4.81 .66 4.81 9
2003 .66 4.87 .66 4.87 .66 4.87 10
2002 .67 5.06 .67 5.06 .67 5.06 19
2001 .67 5.35 .67 5.35 .66 5.36 11
2000 .77 5.42 .77 5.42 .76 5.43 28
- ------------------------------------------------------------------------------
(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.
See accompanying notes to financial statements.
- ----
65
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------- --------
MISSOURI
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending Ending
Net Invest- ment Invest- Net Net
Year Ended Asset ment Gain ment Capital Asset Total Assets
May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000)
- -------------------------------------------------------------------------------------------------------
Class A (8/87)
2004 $11.30 $.50 $(.53) $(.03) $(.49) $ -- $(.49) $10.78 (.28)% $221,955
2003 10.81 .51 .51 1.02 (.53) -- (.53) 11.30 9.63 233,996
2002 10.71 .54 .11 .65 (.55) -- (.55) 10.81 6.20 207,890
2001 10.18 .56 .53 1.09 (.56) -- (.56) 10.71 10.93 202,698
2000 11.12 .55 (.93) (.38) (.55) (.01) (.56) 10.18 (3.47) 194,271
Class B (2/97)
2004 11.30 .41 (.52) (.11) (.40) -- (.40) 10.79 (.95) 9,532
2003 10.81 .43 .50 .93 (.44) -- (.44) 11.30 8.80 11,912
2002 10.71 .46 .11 .57 (.47) -- (.47) 10.81 5.38 9,091
2001 10.18 .48 .53 1.01 (.48) -- (.48) 10.71 10.10 6,991
2000 11.11 .47 (.93) (.46) (.46) (.01) (.47) 10.18 (4.13) 5,165
Class C (2/94)
2004 11.29 .44 (.53) (.09) (.43) -- (.43) 10.77 (.84) 21,402
2003 10.81 .45 .49 .94 (.46) -- (.46) 11.29 8.93 23,336
2002 10.70 .48 .12 .60 (.49) -- (.49) 10.81 5.72 20,076
2001 10.17 .50 .53 1.03 (.50) -- (.50) 10.70 10.31 12,589
2000 11.11 .49 (.93) (.44) (.49) (.01) (.50) 10.17 (4.03) 10,229
Class R (2/97)
2004 11.31 .52 (.53) (.01) (.51) -- (.51) 10.79 (.10) 483
2003 10.82 .53 .50 1.03 (.54) -- (.54) 11.31 9.80 534
2002 10.71 .57 .11 .68 (.57) -- (.57) 10.82 6.47 507
2001 10.18 .58 .53 1.11 (.58) -- (.58) 10.71 11.11 470
2000 11.12 .57 (.93) (.36) (.57) (.01) (.58) 10.18 (3.29) 442
- -------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
-------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
MISSOURI ----------------- ----------------- -----------------
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
to to to to to to
Average Average Average Average Average Average Portfolio
Year Ended Net Net Net Net Net Net Turnover
May 31, Assets Assets Assets Assets Assets Assets Rate
- ------------------------------------------------------------------------------
Class A (8/87)
2004 .85% 4.50% .85% 4.50% .85% 4.51% 13%
2003 .86 4.65 .86 4.65 .85 4.66 14
2002 .87 5.02 .87 5.02 .86 5.03 13
2001 .87 5.31 .87 5.31 .87 5.31 13
2000 .96 5.25 .96 5.25 .95 5.26 21
Class B (2/97)
2004 1.60 3.75 1.60 3.75 1.60 3.75 13
2003 1.61 3.90 1.61 3.90 1.60 3.91 14
2002 1.62 4.27 1.62 4.27 1.61 4.27 13
2001 1.62 4.55 1.62 4.55 1.61 4.56 13
2000 1.71 4.51 1.71 4.51 1.70 4.52 21
Class C (2/94)
2004 1.40 3.95 1.40 3.95 1.40 3.95 13
2003 1.41 4.10 1.41 4.10 1.40 4.11 14
2002 1.41 4.46 1.41 4.46 1.41 4.47 13
2001 1.42 4.76 1.42 4.76 1.42 4.76 13
2000 1.50 4.69 1.50 4.69 1.49 4.70 21
Class R (2/97)
2004 .65 4.70 .65 4.70 .65 4.71 13
2003 .66 4.86 .66 4.86 .65 4.86 14
2002 .67 5.22 .67 5.22 .66 5.23 13
2001 .67 5.51 .67 5.51 .67 5.51 13
2000 .77 5.47 .77 5.47 .76 5.48 21
- ------------------------------------------------------------------------------
(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.
See accompanying notes to financial statements.
- ----
66
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------- --------
OHIO
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending Ending
Net Invest- ment Invest- Net Net
Year Ended Asset ment Gain ment Capital Asset Total Assets
May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000)
- -------------------------------------------------------------------------------------------------------
Class A (6/85)
2004 $11.78 $.53 $(.60) $(.07) $(.54) $ -- $(.54) $11.17 (.62)% $347,733
2003 11.16 .54 .62 1.16 (.54) -- (.54) 11.78 10.65 385,619
2002 11.10 .55 .06 .61 (.55) -- (.55) 11.16 5.57 379,342
2001 10.62 .57 .48 1.05 (.57) -- (.57) 11.10 10.05 385,226
2000 11.57 .57 (.93) (.36) (.57) (.02) (.59) 10.62 (3.18) 389,898
Class B (2/97)
2004 11.77 .45 (.61) (.16) (.45) -- (.45) 11.16 (1.34) 26,057
2003 11.15 .45 .63 1.08 (.46) -- (.46) 11.77 9.85 28,080
2002 11.09 .47 .05 .52 (.46) -- (.46) 11.15 4.79 22,433
2001 10.62 .48 .48 .96 (.49) -- (.49) 11.09 9.16 19,846
2000 11.56 .49 (.93) (.44) (.48) (.02) (.50) 10.62 (3.82) 14,970
Class C (8/93)
2004 11.76 .47 (.60) (.13) (.48) -- (.48) 11.15 (1.14) 44,575
2003 11.15 .47 .62 1.09 (.48) -- (.48) 11.76 9.99 50,999
2002 11.09 .49 .06 .55 (.49) -- (.49) 11.15 5.01 44,984
2001 10.61 .51 .48 .99 (.51) -- (.51) 11.09 9.46 41,396
2000 11.56 .51 (.93) (.42) (.51) (.02) (.53) 10.61 (3.71) 41,220
Class R (2/97)
2004 11.77 .56 (.61) (.05) (.56) -- (.56) 11.16 (.41) 139,762
2003 11.15 .56 .62 1.18 (.56) -- (.56) 11.77 10.89 154,781
2002 11.09 .57 .06 .63 (.57) -- (.57) 11.15 5.80 148,302
2001 10.62 .59 .48 1.07 (.60) -- (.60) 11.09 10.19 146,678
2000 11.57 .60 (.94) (.34) (.59) (.02) (.61) 10.62 (2.97) 142,031
- -------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
-------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
OHIO ----------------- ----------------- -----------------
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
to to to to to to
Average Average Average Average Average Average Portfolio
Year Ended Net Net Net Net Net Net Turnover
May 31, Assets Assets Assets Assets Assets Assets Rate
- ------------------------------------------------------------------------------
Class A (6/85)
2004 .85% 4.65% .85% 4.65% .85 % 4.65% 12%
2003 .87 4.69 .87 4.69 .87 4.69 12
2002 .86 4.93 .86 4.93 .86 4.93 21
2001 .86 5.13 .86 5.13 .85 5.13 12
2000 .90 5.25 .90 5.25 .89 5.25 11
Class B (2/97)
2004 1.60 3.90 1.60 3.90 1.60 3.90 12
2003 1.62 3.94 1.62 3.94 1.61 3.94 12
2002 1.61 4.17 1.61 4.17 1.61 4.18 21
2001 1.61 4.37 1.61 4.37 1.60 4.37 12
2000 1.65 4.51 1.65 4.51 1.64 4.52 11
Class C (8/93)
2004 1.40 4.10 1.40 4.10 1.40 4.10 12
2003 1.42 4.14 1.42 4.14 1.41 4.14 12
2002 1.41 4.37 1.41 4.37 1.41 4.38 21
2001 1.41 4.57 1.41 4.57 1.40 4.58 12
2000 1.45 4.69 1.45 4.69 1.44 4.70 11
Class R (2/97)
2004 .65 4.85 .65 4.85 .65 4.85 12
2003 .67 4.89 .67 4.89 .67 4.89 12
2002 .66 5.12 .66 5.12 .66 5.13 21
2001 .66 5.32 .66 5.32 .65 5.33 12
2000 .70 5.45 .70 5.45 .69 5.46 11
- ------------------------------------------------------------------------------
(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.
See accompanying notes to financial statements.
- ----
67
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------- -------
WISCONSIN
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending Ending
Net Invest- ment Invest- Net Net
Year Ended Asset ment Gain ment Capital Asset Total Assets
May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000)
- ------------------------------------------------------------------------------------------------------
Class A (6/94)
2004 $10.62 $.43 $(.45) $(.02) $(.44) $ -- $(.44) $10.16 (.33)% $39,033
2003 10.14 .43 .49 .92 (.44) -- (.44) 10.62 9.41 42,360
2002 9.97 .44 .17 .61 (.44) -- (.44) 10.14 6.26 40,199
2001 9.24 .45 .72 1.17 (.44) -- (.44) 9.97 12.84 30,944
2000 10.20 .44 (.95) (.51) (.44) (.01) (.45) 9.24 (5.04) 30,146
Class B (2/97)
2004 10.65 .35 (.46) (.11) (.36) -- (.36) 10.18 (1.01) 4,568
2003 10.17 .36 .49 .85 (.37) -- (.37) 10.65 8.53 5,960
2002 10.00 .37 .17 .54 (.37) -- (.37) 10.17 5.49 5,224
2001 9.27 .38 .72 1.10 (.37) -- (.37) 10.00 11.98 4,401
2000 10.23 .37 (.95) (.58) (.37) (.01) (.38) 9.27 (5.75) 3,977
Class C (2/97)
2004 10.65 .37 (.46) (.09) (.38) -- (.38) 10.18 (.84) 4,632
2003 10.16 .38 .50 .88 (.39) -- (.39) 10.65 8.83 4,536
2002 10.00 .39 .16 .55 (.39) -- (.39) 10.16 5.58 3,282
2001 9.26 .40 .73 1.13 (.39) -- (.39) 10.00 12.31 5,408
2000 10.22 .39 (.95) (.56) (.39) (.01) (.40) 9.26 (5.56) 4,366
Class R (2/97)
2004 10.67 .45 (.46) (.01) (.46) -- (.46) 10.20 (.10) 177
2003 10.18 .46 .50 .96 (.47) -- (.47) 10.67 9.62 176
2002 10.02 .47 .16 .63 (.47) -- (.47) 10.18 6.36 97
2001 9.28 .47 .73 1.20 (.46) -- (.46) 10.02 13.10 51
2000 10.23 .46 (.94) (.48) (.46) (.01) (.47) 9.28 (4.73) 45
- ------------------------------------------------------------------------------------------------------
Class (Commencement Date)
Ratios/Supplemental Data
-------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
WISCONSIN ----------------- ----------------- -----------------
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
to to to to to to
Average Average Average Average Average Average Portfolio
Year Ended Net Net Net Net Net Net Turnover
May 31, Assets Assets Assets Assets Assets Assets Rate
- ------------------------------------------------------------------------------
Class A (6/94)
2004 .92% 4.12% .92% 4.12% .91% 4.13% 21%
2003 .93 4.19 .93 4.19 .91 4.20 8
2002 .93 4.39 .93 4.39 .92 4.40 19
2001 .97 4.59 .97 4.59 .95 4.61 16
2000 1.14 4.50 1.02 4.62 1.01 4.63 26
Class B (2/97)
2004 1.67 3.37 1.67 3.37 1.66 3.38 21
2003 1.67 3.44 1.67 3.44 1.66 3.45 8
2002 1.68 3.65 1.68 3.65 1.67 3.66 19
2001 1.72 3.84 1.72 3.84 1.70 3.86 16
2000 1.89 3.75 1.76 3.87 1.75 3.88 26
Class C (2/97)
2004 1.47 3.57 1.47 3.57 1.46 3.58 21
2003 1.47 3.64 1.47 3.64 1.45 3.65 8
2002 1.51 3.85 1.51 3.85 1.49 3.86 19
2001 1.52 4.04 1.52 4.04 1.50 4.05 16
2000 1.69 3.95 1.57 4.07 1.56 4.08 26
Class R (2/97)
2004 .72 4.32 .72 4.32 .71 4.33 21
2003 .72 4.39 .72 4.39 .70 4.41 8
2002 .73 4.60 .73 4.60 .72 4.62 19
2001 .77 4.79 .77 4.79 .75 4.80 16
2000 .92 4.67 .79 4.81 .78 4.82 26
- ------------------------------------------------------------------------------
(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.
See accompanying notes to financial statements.
- ----
68
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Multistate Trust IV:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Nuveen Kansas
Municipal Bond Fund, Nuveen Kentucky Municipal Bond Fund, Nuveen Michigan
Municipal Bond Fund, Nuveen Missouri Municipal Bond Fund, Nuveen Ohio Municipal
Bond Fund and Nuveen Wisconsin Municipal Bond Fund (constituting the Nuveen
Multistate Trust IV, hereafter referred to as the "Funds") at May 31, 2004, the
results of each of their operations for the year then ended, the changes in
each of their net assets for each of the two years then ended and the financial
highlights for each of the three years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board, which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at May 31, 2004 by correspondence with the custodian
and brokers, provide a reasonable basis for our opinion. The financial
highlights of the Funds for the periods ended May 31, 2001 and prior were
audited by other independent auditors who have ceased operations. Those
independent auditors expressed an unqualified opinion in the report dated July
11, 2001.
PricewaterhouseCoopers LLP
Chicago, IL
July 16, 2004
- ----
69
Trustees and Officers
================================================================================
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board of
Trustees of the Funds. The number of trustees of the Funds is currently set at
seven. None of the trustees who are not "interested" persons of the Funds has
ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the trustees and officers of
the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
The Funds' Statement of Additional Information ("SAI") includes more
information about the Trustees. To request a free copy, call Nuveen Investments
at (800) 257-8787.
Number of
Portfolios in
Name, Position(s) Year First Principal Occupation(s) Fund Complex
Birthdate Held with Elected or Including other Directorships Overseen by
and Address the Funds Appointed(2) During Past 5 Years Trustee
- --------------------------------------------------------------------------------------------------------------------
Trustee who is an interested person of the Funds:
- --------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 144
3/28/49 Board and Investments, Inc. and Nuveen Investments,
333 W. Wacker Drive Trustee LLC; Director (since 1992) and Chairman
Chicago, IL 60606 (since 1996) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.;
Chairman and Director (since 1997) of Nuveen
Asset Management, Inc.; Director (since
1996) of Institutional Capital Corporation;
Chairman and Director (since 1999) of
Rittenhouse Asset Management, Inc.; Chairman
of Nuveen Investments Advisers Inc. (since
2002).
Trustees who are not interested persons of the Funds:
- --------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Trustee 1997 Private Investor and Management Consultant. 144
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- --------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Trustee 1993 Retired (1989) as Senior Vice President of 144
7/29/34 The Northern Trust Company; Director,
333 W. Wacker Drive Community Advisory Board for Highland Park
Chicago, IL 60606 and Highwood, United Way of the North Shore
(since 2002).
- --------------------------------------------------------------------------------------------------------------------
Jack B. Evans Trustee 1999 President, The Hall-Perrine Foundation, a 144
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive 1996); Director, Alliant Energy; Director
Chicago, IL 60606 and Vice Chairman, United Fire & Casualty
Company; formerly Director, Federal Reserve
Bank of Chicago; formerly, President and
Chief Operating Officer, SCI Financial
Group, Inc., a regional financial services
firm.
- --------------------------------------------------------------------------------------------------------------------
William C. Hunter Trustee 2004 Dean and Distinguished Professor of Finance, 144
3/6/48 School of Business at the University of
333 W. Wacker Drive Connecticut; previously Senior Vice
Chicago, IL 60606 President and Director of Research at the
Federal Reserve Bank of Chicago (1995-2003);
Director, Credit Research Center at
Georgetown University; Director of Xerox
Corporation (since 2004).
- --------------------------------------------------------------------------------------------------------------------
William J. Schneider Trustee 1997 Senior Partner and Chief Operating Officer, 144
9/24/44 Miller-Valentine Group, Vice President,
333 W. Wacker Drive Miller-Valentine Realty, a construction
Chicago, IL 60606 company; Chair, Miami Valley Hospital;
Chair, Dayton Development Coalition;
formerly, Member, Community Advisory Board,
National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland Federal
Reserve Bank.
- --------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Trustee 1997 Executive Director, Gaylord and Dorothy 144
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
- ----
70
Number of
Portfolios in
Name, Position(s) Year First Fund Complex
Birthdate Held with Elected or Principal Occupation(s) Overseen by
and Address the Funds Appointed(3) During Past 5 Years Trustee
- --------------------------------------------------------------------------------------------------------------
Officers of the Funds:
- --------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant 144
9/9/56 Administrative Secretary and Associate General Counsel,
333 W. Wacker Drive Officer formerly, Vice President and Assistant
Chicago, IL 60606` General Counsel of Nuveen Investments, LLC;
Managing Director (since 2002), General
Counsel and Assistant Secretary, formerly,
Vice President of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant
Secretary and Associate General Counsel,
formerly, Vice President (since 2000), of
Nuveen Asset Management, Inc. Assistant
Secretary of Nuveen Investments, Inc. (since
1994); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002); Vice
President and Assistant Secretary of Nuveen
Investments Advisers Inc. (since 2002);
Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since 2003); Chartered
Financial Analyst.
- --------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 144
2/3/66 and Assistant Assistant Vice President (since 2000),
333 W. Wacker Drive Secretary previously, Associate of Nuveen Investments,
Chicago, IL 60606 LLC.
- --------------------------------------------------------------------------------------------------------------
Paul L. Brennan Vice President 1999 Vice President (since 2002), formerly, 128
11/10/66 Assistant Vice President (since 1997), of
333 W. Wacker Drive Nuveen Advisory Corp.; prior thereto,
Chicago, IL 60606 portfolio manager of Flagship Financial
Inc.; Chartered Financial Analyst and
Certified Public Accountant.
- --------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC 144
11/28/67 and Treasurer (since 1999), prior thereto, Assistant Vice
333 W. Wacker Drive President (since 1997); Vice President and
Chicago, IL 60606 Treasurer of Nuveen Investments, Inc. (since
1999); Vice President and Treasurer of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp (since 1999);
Vice President and Treasurer of Nuveen Asset
Management, Inc. (since 2002) and of Nuveen
Investments Advisers Inc. (since 2002);
Assistant Treasurer of NWQ Investment
Management Company, LLC (since 2002); Vice
President and Treasurer of Nuveen
Rittenhouse Asset Management, Inc. (since
2003); Chartered Financial Analyst.
- --------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant 144
9/24/64 and Secretary General Counsel (since 1998); formerly,
333 W. Wacker Drive Assistant Vice President (since 1998) of
Chicago, IL 60606 Nuveen Investments, LLC; Vice President
(since 2002) and Assistant Secretary (since
1998), formerly Assistant Vice President of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.
- --------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, 144
10/24/45 Vice President of Nuveen Investments, LLC;
333 W. Wacker Drive Managing Director (since 2004) formerly,
Chicago, IL 60606 Vice President (since 1998) of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.
- --------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen 144
3/2/64 Investments, LLC; Managing Director (since
333 W. Wacker Drive 2001), formerly Vice President of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional
Advisory Corp. (since 1995); Managing
Director of Nuveen Asset Management, Inc.
(since 2001); Vice President of Nuveen
Investment Advisers Inc. (since 2002);
Chartered Financial Analyst.
- --------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 144
5/31/54 and Controller Controller (since 1998) of Nuveen
333 W. Wacker Drive Investments, LLC and Vice President and
Chicago, IL 60606 Funds Controller (since 1998) of Nuveen
Investments, Inc.; Certified Public
Accountant.
- ----
71
Trustees and Officers (continued)
================================================================================
Number of
Portfolios in
Name, Position(s) Year First Fund Complex
Birthdate Held with Elected or Principal Occupation(s) Overseen by
and Address the Funds Appointed(3) During Past 5 Years Trustee
- -----------------------------------------------------------------------------------------------------------
J. Thomas Futrell Vice President 1988 Vice President of Nuveen Advisory Corp.; 128
7/5/55 Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
- -----------------------------------------------------------------------------------------------------------
Steven J. Krupa Vice President 1990 Vice President of Nuveen Advisory Corp. 128
8/21/57
333 W. Wacker Drive
Chicago, IL 60606
- -----------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 144
3/22/63 Investments, LLC, previously Assistant Vice
333 W. Wacker Drive President (since 1999); prior thereto,
Chicago, IL 60606 Associate of Nuveen Investments, LLC;
Certified Public Accountant.
- -----------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, 144
8/27/61 Assistant Vice President (since 1993) of
333 W. Wacker Drive Nuveen Investments, LLC.
Chicago, IL 60606
- -----------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and 144
7/27/51 and Assistant Assistant General Counsel of Nuveen
333 W. Wacker Drive Secretary Investments, LLC; Vice President and
Chicago, IL 60606 Assistant Secretary of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.;
Assistant Secretary of Nuveen Investments,
Inc. and (since 1997) Nuveen Asset
Management, Inc.; Vice President (since
2000), Assistant Secretary and Assistant
General Counsel (since 1998) of Rittenhouse
Asset Management, Inc.; Vice President and
Assistant Secretary of Nuveen Investments
Advisers Inc. (since 2002); Assistant
Secretary of NWQ Investment Management
Company, LLC (since 2002).
- -----------------------------------------------------------------------------------------------------------
John V. Miller Vice President 2003 Vice President (since 2003) previously, 128
4/10/67 Assistant Vice President (since 1999), prior
333 W. Wacker Drive thereto, credit analyst (since 1996) of
Chicago, IL 60606 Nuveen Advisory Corp.; Chartered Financial
Analyst.
- -----------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen 144
7/7/65 Investments, LLC; Managing Director (since
333 W. Wacker Drive 1997), formerly Vice President (since 1996)
Chicago, IL 60606 of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.; Managing
Director of Nuveen Asset Management, Inc.
(since 1999). Chartered Financial Analyst.
- -----------------------------------------------------------------------------------------------------------
Daniel S. Solender Vice President 2003 Vice President of Nuveen Advisory Corp. 128
10/27/65 (since 2003); previously, Principal and
333 W. Wacker Drive portfolio manager with The Vanguard Group
Chicago, IL 60606 (1999-2003); prior thereto, Assistant Vice
President of the Nuveen Advisory Corp.;
Chartered Financial Analyst.
- -----------------------------------------------------------------------------------------------------------
Thomas C. Spalding Vice President 1982 Vice President of Nuveen Advisory Corp. and 128
7/31/51 Nuveen Institutional Advisory Corp.;
333 W. Wacker Drive Chartered Financial Analyst.
Chicago, IL 60606
(1)Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and trustee of the
Adviser.
(2)Trustees serve an indefinite term until his/her successor is elected. The
year first elected or appointed represents the year in which the Trustee was
first elected or appointed to any fund in the Nuveen Complex.
(3)Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
- ----
72
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 Registered Nuveen Investor Services
Public Accounting Firm P.O. Box 8530
PricewaterhouseCoopers LLP Boston, MA 02266-8530
Chicago, IL (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.
================================================================================
Proxy Voting Policies and Procedures: A description of the policies and
procedures that the Funds use to determine how to vote proxies relating to
portfolio securities is available (i) without charge, upon request, by calling
Nuveen Investments at (800) 257-8787; and (ii) on the Commission's website at
http://www.sec.gov.
================================================================================
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.
- ----
73
- --------------------------------------------------------------------------------
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.
Managing $102 billion in assets, Nuveen
Investments provides high-quality investment
services that contribute to the building of
well diversified investment portfolios. The
Company serves institutional clients,
financial advisors and high-net-worth
investors. The firm's asset management
capabilities are marketed through four
distinct brands, each with an independent
investment team and area of expertise:
Nuveen, focused on fixed-income investments;
NWQ, specializing in value-style equities;
Rittenhouse, dedicated to conservative
growth-style equities; and Symphony, with
expertise in alternative investment
portfolios.
To learn more about the products and services
Nuveen Investments offers, talk to your
financial advisor, or call us at (800)
257-8787.
Distributed by
Nuveen Investments, LLC 333 West Wacker Drive Chicago, Illinois 60606 www.nuveen.com
MAN-MS6-0504D
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/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors determined that the registrant had 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 was William E. Bennett, who was "independent" for purposes of Item 3 of
Form N-CSR.
Although Mr. Bennett served as the audit committee financial expert for the
majority of the reporting period, he unexpectedly resigned from the Board
effective April 30, 2004. Since that time, the Audit Committee determined that
Jack B. Evans, the Chairman of the Audit Committee, qualifies as an audit
committee financial expert and recommended to the full Board that he be
designated as such. On July 26, 2004, the full Board voted to so designate Mr.
Evans.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, The First National Bank
of Chicago. 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.
The following table shows the amount of fees that PricewaterhouseCoopers LLP,
the Trust's auditor, billed to the Trust during the Trust's last two full fiscal
years. For engagements with PricewaterhouseCoopers LLP entered into on or after
May 6, 2003, the Audit Committee approved in advance all audit services and
non-audit services that PricewaterhouseCoopers LLP provided to the Trust, except
for those non-audit services that were subject to the pre-approval exception
under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Trust waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Trust during the
fiscal year in which the services are provided; (B) the Trust did not recognize
the services as non-audit services at the time of the engagement; and (C) the
services are promptly brought to the Audit Committee's attention, and the
Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE TRUST
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
May 31, 2004 to Funds Billed to Funds Billed to Funds Billed to Funds
- -------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Kansas $ 9,172 $ 0 $ 174 $ 0
Kentucky 18,269 0 612 0
Michigan 12,367 0 334 0
Missouri 12,440 0 328 0
Ohio 20,545 0 724 0
Wisconsin 6,989 0 60 0
-------------------------------------------------------------------------------
Total $79,782 $ 0 $ 2,232 $ 0
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
Percentage Approved Pursuant to Pre-approval Exception
-------------------------------------------------------------------------------
Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
to Funds Billed to Funds Billed to Funds Billed to Funds
- -------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Kansas 0% 0% 0% 0%
Kentucky 0 0 0 0
Michigan 0 0 0 0
Missouri 0 0 0 0
Ohio 0 0 0 0
Wisconsin 0 0 0 0
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
May 31, 2003 to Funds Billed to Funds Billed to Funds Billed to Funds
- -------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Kansas $ 8,769 $ 0 $ 658 $ 0
Kentucky 17,657 0 658 0
Michigan 12,510 0 658 0
Missouri 11,943 0 658 0
Ohio 20,783 0 658 0
Wisconsin 6,594 0 658 0
-------------------------------------------------------------------------------
Total $78,256 $ 0 $ 3,948 $ 0
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
Percentage Approved Pursuant to Pre-approval Exception
-------------------------------------------------------------------------------
Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
to Funds Billed to Funds Billed to Funds Billed to Funds
- -------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Kansas N/A N/A N/A N/A
Kentucky N/A N/A N/A N/A
Michigan N/A N/A N/A N/A
Missouri N/A N/A N/A N/A
Ohio N/A N/A N/A N/A
Wisconsin N/A N/A N/A N/A
SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following table shows the amount of fees billed by PricewaterhouseCoopers
LLP to Nuveen Advisory Corp. ("NAC" or the "Adviser"), and any entity
controlling, controlled by or under common control with NAC that provides
ongoing services to the Trust ("Affiliated Fund Service Provider"), for
engagements directly related to the Trust's operations and financial reporting,
during the Trust's last two full fiscal years.
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund
May 31, 2004 Service Providers Service Providers Service Providers
- ------------------------------------------------------------------------------------------------
$0 $0 $0
Percentage Approved Pursuant to Pre-approval Exception
------------------------------------------------------------------
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Affiliated Fund Affiliated Fund and Affiliated Fund
Service Providers Service Providers Service Providers
------------------------------------------------------------------
0% 0% 0%
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund
May 31, 2003 Service Providers Service Providers Service Providers
- -----------------------------------------------------------------------------------------------------
$0 $0 $0
Percentage Approved Pursuant to Pre-approval Exception
------------------------------------------------------------------
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Affiliated Fund Affiliated Fund and Affiliated Fund
Service Providers Service Providers Service Providers
------------------------------------------------------------------
0% 0% 0%
The table also shows the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to PricewaterhouseCoopers LLP by the Trust, the Adviser and
Affiliated Fund Service Providers during the fiscal year in which the services
are provided that would have to be pre-approved by the Audit Committee; (B) the
Trust did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
Trust's audit is completed.
NON-AUDIT SERVICES
The following table shows the amount of fees that PricewaterhouseCoopers LLP
billed during the Trust's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that PricewaterhouseCoopers LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement relates directly to the Trust's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from PricewaterhouseCoopers
LLP about any non-audit services that PricewaterhouseCoopers LLP rendered during
the Trust's last fiscal year to the Adviser and any Affiliated Fund Service
Provider. The Committee considered this information in evaluating
PricewaterhouseCoopers LLP's independence.
Total Non-Audit Fees
billed to Adviser and
Affiliated Fund Service Total Non-Audit Fees
Providers (engagements billed to Adviser and
related directly to the Affiliated Fund Service
Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other
May 31, 2004 Billed to Trust reporting of the Trust) engagements) Total
- ------------------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Kansas $ 174 $ 0 $ 0 $ 174
Kentucky 612 0 0 612
Michigan 334 0 0 335
Missouri 328 0 0 328
Ohio 724 0 0 724
Wisconsin 60 0 0 60
------------------------------------------------------------------------------------------
Total $2,232 $ 0 $ 0 $2,232
Total Non-Audit Fees
billed to Adviser and
Affiliated Fund Service Total Non-Audit Fees
Providers (engagements billed to Adviser and
related directly to the Affiliated Fund Service
Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other
May 31, 2003 Billed to Trust reporting of the Trust) engagements) Total
- ------------------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Kansas $ 658 $ 0 $ 0 $ 658
Kentucky 658 0 0 658
Michigan 658 0 0 658
Missouri 658 0 0 658
Ohio 658 0 0 658
Wisconsin 658 0 0 658
------------------------------------------------------------------------------------------
Total $3,948 $ 0 $ 0 $3,948
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Trust
by the Trust's independent accountants and (ii) all audit and non-audit services
to be performed by the Trust's independent accountants for the Affiliated Fund
Service Providers with respect to the operations and financial reporting of the
Trust. Regarding tax and research projects conducted by the independent
accountants for the Trust and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Trust) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee Chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to this registrant.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable to this registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 10. 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
Securities Exchange Act of 1934, as amended (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 11. EXHIBITS
File the exhibits listed below as part of this Form.
(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 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: EX-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable
to this registrant.
(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 1940 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 of 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-99.906 CERT 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 IV
--------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
-------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date August 6, 2004
----------------------------------------------------------------
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 August 6, 2004
----------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
-------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date August 6, 2004
----------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.