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, 2005
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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, 2005
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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
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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
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 long-term interest rates still relatively low, 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.
Some of you may have heard that in April, 2005, The St. Paul Travelers
Companies, Inc., which owned 79% of Nuveen Investments, Inc. (the parent of
your Fund's investment adviser) completed a public offering of a substantial
portion of its equity stake in Nuveen. At the same time, St. Paul Travelers
also entered into agreements to sell the balance of its shares in Nuveen to us
or to others at a future date.
These transactions will have no impact on the investment objectives or
management of your Fund. However, taken as a whole they are considered to be an
"assignment" of your Fund's investment management agreement. This means that
you and your fellow Fund shareholders have been asked to formally approve the
continuation of your Fund's management contract with Nuveen. You should have
already received proxy materials asking for such approval in recent weeks.
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 14, 2005
"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."
Annual Report Page 1
Portfolio Managers' Comments for the Nuveen Kansas, Kentucky,
Michigan, Missouri, Ohio, and Wisconsin Municipal Bond Funds
Portfolio managers Scott Romans and Cathryn Steeves 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, who has 5 years of investment experience, began managing
the Kansas, Missouri, and Wisconsin Funds in 2003. Cathryn has 9 years of
investment experience and began managing the Kentucky and Ohio Funds in
August 2004 and the Michigan Fund in January 2005.
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What factors had the greatest influence on the U.S. economy and the municipal
market during the 12-month reporting period ended May 31, 2005?
The U.S. economy continued to see solid growth during the past 12 months. Gross
domestic product, a measure of the goods and services produced in a nation,
grew at an annualized rate of 3.3 percent during the second quarter of 2004,
4.0 percent during the year's third quarter, 3.8 percent in the fourth quarter,
and 3.8 percent during the first quarter of 2005. The economy grew despite high
energy prices, which fell in the final months of 2004 but rose sharply
throughout most of the rest of the period. As another sign of the continued
recovering economy, employment trended upward. Nearly 275,000 jobs were created
in April 2005, although the following month's increase was a much smaller
78,000 jobs. On May 31, 2005, the unemployment rate was 5.1 percent, below the
5.6 percent rate of a year earlier.
With the economy's expansion came increased concerns about rising inflation.
When the period began, it was becoming increasingly apparent that consumer
prices, led by the cost of gasoline, were rising. Beginning in June 2004, the
Federal Reserve, worried about inflation, started to raise short-term interest
rates for the first time in more than four years. During the 12-month period,
the Fed increased rates a total of eight times. By May 2005, the short-term
federal funds rate stood at 3 percent, up from 1 percent at the start of the
period. (After the end of the reporting period, the Fed raised the rate an
additional 0.25 percent to 3.25 percent.)
Although inflation generally was rising, its rate of increase was in line with
bond investors' expectations. Accordingly, investors remained confident that
the Fed would continue its policy of "measured" interest rate hikes and would
not need to raise rates more quickly. This confidence that inflation was
manageable and that the Fed would proceed in a deliberate fashion supported
long-term municipal bond prices, while their yields fell accordingly (a bond's
yield and price move in opposite directions). By contrast, short-term municipal
bond yields rose in line with the Fed's rate hikes. Lower-rated credits were
among the best-performing securities in the municipal market during the period.
Investors saw in these bonds opportunities to pick up additional income and
were willing to take on additional credit risk to do so.
Throughout the period, supply of new municipal debt remained strong. Many
issuers sought to take advantage of still-historically low interest rates to
refinance outstanding obligations. During the first five months of 2005, for
example, new municipal issuance totaled $164 billion, an increase of about 6
percent over new supply in the first five months of 2004.
How did the Funds perform during the 12-month reporting period ended May 31,
2005?
The table on the next page provides total return performance information for
the six Funds discussed in this report for the one-year, five-year, and
ten-year periods ended May 31, 2005. Each Fund's performance is compared with
the national Lehman Brothers Municipal Bond Index, as well as with its
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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 as of 5/31/05
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1-Year 5-Year 10-Year
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Nuveen Kansas Municipal
Bond Fund
A Shares at NAV 8.95% 7.11% 5.64%
A Shares at Offer 4.35% 6.19% 5.19%
Lipper Kansas Municipal
Debt Funds Category
Average/1/ 5.01% 5.68% 4.58%
Lehman Brothers Municipal
Bond Index/2/ 7.96% 7.30% 6.22%
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Nuveen Kentucky Municipal
Bond Fund
A Shares at NAV 8.51% 6.96% 5.56%
A Shares at Offer 3.93% 6.05% 5.11%
Lipper Kentucky Municipal
Debt Funds Category
Average/1/ 6.78% 5.88% 5.16%
Lehman Brothers Municipal
Bond Index/2/ 7.96% 7.30% 6.22%
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Nuveen Michigan Municipal
Bond Fund
A Shares at NAV 8.48% 7.27% 5.64%
A Shares at Offer 3.95% 6.36% 5.18%
Lipper Michigan Municipal
Debt Funds Category
Average/1/ 6.58% 6.33% 5.22%
Lehman Brothers Municipal
Bond Index/2/ 7.96% 7.30% 6.22%
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1-Year 5-Year 10-Year
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Nuveen Missouri Municipal
Bond Fund
A Shares at NAV 8.97% 7.01% 5.61%
A Shares at Offer 4.42% 6.09% 5.15%
Lipper Missouri Municipal
Debt Funds Category
Average/1/ 7.30% 6.54% 5.31%
Lehman Brothers Municipal
Bond Index/2/ 7.96% 7.30% 6.22%
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Nuveen Ohio Municipal
Bond Fund
A Shares at NAV 9.00% 6.85% 5.42%
A Shares at Offer 4.42% 5.93% 4.97%
Lipper Ohio Municipal Debt
Funds Category Average/1/ 7.10% 6.24% 5.16%
Lehman Brothers Municipal
Bond Index/2/ 7.96% 7.30% 6.22%
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Nuveen Wisconsin
Municipal Bond Fund
A Shares at NAV 7.94% 7.13% 5.46%
A Shares at Offer 3.36% 6.21% 5.01%
Lipper Other States
Municipal Debt Funds Category
Average/1/ 5.91% 5.95% 4.96%
Lehman Brothers Municipal
Bond Index/2/ 7.96% 7.30% 6.22%
-----------------------------------------------------
Returns quoted represent past performance, which is no guarantee of future
results. Returns at NAV 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. Class A
shares have a 4.2% maximum sales charge. Returns do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption
of shares. For the most recent month-end performance, visit www.nuveen.com or
call (800) 257-8787.
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Lipper peer fund category average. The factors determining the performance of
each Fund are discussed later in the report.
Although 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 imperfect 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
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1For each Fund, the Lipper category average shown represents the average
annualized total return for all reporting funds for the periods ended May 31,
2005. The Lipper 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, 37, 36 and 29 funds in the Lipper Michigan
Municipal Debt Funds Category, 21, 20 and 16 funds in the Lipper Missouri
Municipal Debt Funds Category, 42, 38 and 32 funds in the Lipper Ohio
Municipal Debt Funds Category and 63, 55 and 33 funds in the Lipper Wisconsin
Municipal Debt Funds Category for the respective one-, five- and ten-year
periods ended May 31, 2005. The returns account for the effects of management
fees and assume reinvestment of dividends, but do not reflect any applicable
sales charges. You cannot invest directly in a Lipper Category.
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. An index is not available for direct investment.
Annual Report Page 3
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 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 that 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, 2005, each Fund had negative UNII for financial statement
purposes and positive UNII balances for tax purposes.
What type of economic environment did the six states profiled in this report
experience during the period?
The Kansas economy continued to recover, despite its exposure to certain
challenged sectors, such as manufacturing, telecommunications, and agriculture.
The state's May 2005 unemployment rate was 5.3 percent, down 0.3 percent from
May 2004 but slightly above the national average. To balance its fiscal year
2005 budget, Kansas continued to rely on nonrecurring revenues, a trend in
evidence for the fiscal 2006 budget as well. New municipal debt issuance in the
state for the first five months of 2005 was $1.02 billion, a 36 percent decline
over the same time period in 2004 and well below the national increase of 6
percent. At period end, Kansas maintained credit ratings of Aa1 and AA+ by
Moody's and Standard & Poor's, respectively, both of which maintained a
negative outlook on the state's debt, citing the state's fiscal stresses and
recent economic weakness.
As of May 31, 2005, Kentucky maintained credit ratings of Aa3 and A+ from
Moody's and Standard & Poor's, respectively. The state's municipal issuance
during the first five months of 2005 totaled $1.47 billion, a modest 1 percent
decline over the prior year's issuance. Kentucky's economy continued to expand
modestly during the reporting period. The state saw favorable job growth that
was helped by strength in the leisure and hospitality industries. Nevertheless,
Kentucky's unemployment rate was 5.7 percent in May 2005, 0.2 percent above the
prior year's rate and 0.6 percent higher than the national average. The state's
revenues for the 2005 fiscal year continue to outpace projections, growing at a
nearly 9 percent pace.
Michigan's manufacturing-based economy remained in recession during the past 12
months, due primarily to the state's dependence on the challenged automotive
industry. At period end, the state's jobless rate was 7.1 percent, tied with
Mississippi for the nation's highest. Governor Jennifer Granholm's proposed
budget for the 2006 fiscal year eliminates a general fund budget gap by relying
on spending cuts, revenue enhancements, and proposed Medicaid reforms providing
estimated savings of $80 million per year. Despite the state's financial
challenges, Michigan's debt levels remained manageable, providing flexibility
if revenue collections lag expectations. Michigan was an active issuer of bonds
during the first five months of 2005, with new supply 128 percent higher than
in the first five months of 2004. Both Moody's and Standard & Poor's downgraded
Michigan's general obligation bond credit ratings during the period. Moody's
rating fell from Aa1 to Aa2, while Standard & Poor's lowered its rating on the
state's debt from AA+ to AA.
Missouri's economy continued to perform better than the overall Midwest region,
following a deep recession that saw the loss of thousands of
manufacturing-related jobs. The Show-Me State has benefited from its relatively
diverse economy. At period end, Missouri's unemployment rate was 5.6 percent,
same as a year ago but higher than the national average of 5.1 percent. The
state's recently elected governor, Matt Blunt, proposed a $19 billion budget
for the 2006 fiscal year that is structurally balanced. Despite declines in
four of the past five years, Missouri maintains a healthy unreserved fund
balance. Municipal issuance in the state totaled $1.97 billion for the first
five months
Annual Report Page 4
of 2005, more than 23 percent below the prior year's supply and lagging the
national increase of 6 percent. Missouri continued to maintain the highest
credit ratings of Aaa and AAA from Moody's and Standard & Poor's, respectively,
reflecting the state's sound financial management.
Ohio's economy remained stagnant during the past year, with an unemployment
rate of 6.1 percent in May 2005, a full percentage point above the national
average. Although the state has seen job growth in healthcare and professional
services, neither industry has made up for the substantial manufacturing job
losses of prior years. Ohio's 2006 - 07 biennial budget is largely in balance.
Revenue collections are slightly ahead of projections for the 2005 fiscal year,
although ongoing economic challenges could weaken the state's financial
position. Ohio issued $4.89 billion in municipal debt during the first five
months of 2005, a modest 4 percent year-over-year increase. At period end, the
state had credit ratings of Aa1 from Moody's and AA+ from Standard & Poor's.
Wisconsin's economy moderated during the past 12 months, benefiting from
strength in service sectors such as education and healthcare but hurt by
weakness in the leisure, hospitality, and transportation industries. In May
2005, the state's unemployment rate was 4.7 percent, a 0.3 percent improvement
from May 2004 and better than the national average. Governor Doyle's fiscal
2005-07 biennial budget is balanced but relies on continued strong revenue
growth as well as spending cuts to close a $1.6 billion shortfall. New
municipal issuance in Wisconsin rose during the first five months of 2005, an
18 percent year-over-year increase in supply. As of May 31, 2005, Moody's and
Standard & Poor's rated the state's general obligation debt Aa3 and AA-. In
March 2005, Moody's upgraded its outlook for Wisconsin from negative to stable,
citing the state's stabilizing economy and improved financial picture. S&P
maintained its stable outlook throughout the period.
What strategies were used to manage the Funds during the reporting period? How
did these strategies influence performance?
The total return of all six Funds outperformed their Lipper peer group
averages. Five of the six Funds also outperformed the national Lehman Brothers
Municipal Bond Index, with the sixth, Wisconsin, essentially performing in line
with the Lehman Brothers national index.
We pursued consistent management strategies across all six Funds, although our
ability to implement the strategies varied depending on the types of securities
available for purchase in each state. Our broad management themes during the
past 12 months included:
.. Duration management. We sought to preserve each Fund's duration - its
sensitivity to changes in interest rates - within a target range. With the
Fed continuing to raise short-term rates but no consensus about how much
rates would go up, we believed it was prudent to avoid making significant
interest rate bets in the portfolios.
.. Reduction of concentrated credit positions. Throughout the past 12 months,
credit spreads, the additional yield available to investors for taking on
credit risk, narrowed considerably. As lower-rated bonds rallied, we took
advantage of market conditions and reduced our holdings in securities that
we believed had grown to a larger-than-desired weighting. Such a strategy
allowed us to lock in some gains, reduce or at least diversify risk, and
invest in parts of the market that offered more attractive value potential,
in our view.
.. Yield curve positioning. We generally favored bonds in the long-intermediate
part of the yield curve, with maturities of between 20 and 27 years,
depending on the state, tending to offer the most compelling values, in our
opinion.
The Nuveen Kansas Municipal Bond Fund enjoyed strong performance relative to
its Lipper peer group average and the Lehman Brothers Municipal Bond Index. An
overweighting in lower-rated and non-rated bonds helped performance, as did
strong
Annual Report Page 5
security selection. For example, non-rated revenue bonds issued for the
Overland Park Convention Center, offering 7.375 percent in coupon income and
maturing in 2032, performed particularly well, as did non-rated revenue bonds
issued for Citizens Medical Center in Colby County, providing coupon income of
5.625 percent and maturing in 2016. On the negative side, some of the Fund's
single family housing bonds had a slightly negative effect on performance. This
sector was under pressure as interest rates remained low and it became more
likely that these high-coupon bonds would be called. Although none of our
housing bonds performed negatively, they still lagged the market and detracted
from results on a relative basis.
During the period we worked to reposition the Fund to move closer to our
desired portfolio structure. A greater-than-usual number of investment
opportunities during the period enabled us to be fairly active with this
portfolio. When appropriate, we sold some of the portfolio's lower-coupon
intermediate-maturity holdings and replaced them with premium-coupon bonds
offering 20-year maturity dates, which we believed offered good value as the
period progressed. For example, we established a new position in Butler County
Unified District bonds, which offered a 5 percent coupon and mature in 2025,
the ideal structure we were looking to buy. By contrast, we sold the Fund's
holdings in Johnson County Unified School District bonds. Although these
securities offered a slightly higher coupon than the Butler County bonds, their
2017 maturity date represented a less attractive part of the yield curve, in
our opinion.
The Nuveen Kentucky Municipal Bond Fund performed well, surpassing both its
Lipper peer group as well as the national Lehman Brothers Index. The Fund
benefited from its somewhat longer-than-average duration, which helped
performance as shorter-dated securities underperformed longer bonds. The
portfolio's exposure to lower-rated bonds also helped, as did weightings in the
healthcare and lifecare sectors. Finally, our tobacco bonds gained in value as
investors perceived an improved legal environment for the tobacco companies
whose revenues back the securities. By contrast, an overweight in pre-refunded
bonds detracted from results, as these underperformed along with other
short-maturity securities. Also, bonds backed by International Paper were
called during the period, having a negative impact on the Fund's income stream.
Supply of new debt was modest during the period, not unusual for Kentucky, and
the difficulty of finding enough new bonds to meet our investment criteria kept
our portfolio restructuring activity relatively limited. We did find some
opportunities in the education sector, adding new bonds, for example, from the
Kenton County School District. With the Fund's duration somewhat longer than
our target, these bonds with maturity dates between 2017 and 2019 represented
what we saw as a desirable part of the yield curve. Throughout the period, we
continued to look for opportunities to reduce concentrated positions in
lower-rated securities, taking advantage of market conditions to redeploy
assets in better-valued, higher-rated bonds.
The Nuveen Michigan Municipal Bond Fund, which also outperformed both
benchmarks, was helped by its overweighting of lower-rated bonds. The Fund also
benefited from tobacco bonds as well as from an overweighting in the healthcare
sector, which generally performed well. The Fund's longer-than-average duration
also added to performance. On the negative side, the Fund was modestly
underweighted in the very longest bonds, which enjoyed strong performance
during the period, and overweighted in very short bonds, which did not. Another
negative influence was supplied by a small position in debt backed by General
Motors, whose recent financial problems have been well publicized.
Our management strategy in the Michigan Fund was similar to that of the other
Funds during the period. To try to reduce the portfolio's risk, we continued to
scale back our positions in lower-rated bonds that had recently performed well.
We also sold some of our shorter holdings, including pre-refunded bonds, to
maintain the Fund's
Annual Report Page 6
duration, which was gradually declining as existing bonds rolled off or were
called from the portfolio. As part of our duration-management efforts, we
bought premium-coupon intermediate bonds, with 2025 and 2026 maturity dates
representing our ideal target. For example, we purchased bonds issued by the
Zeeland Public Schools, rated AAA, offering a 5 percent coupon, and maturing in
2022 and 2025.
The Nuveen Missouri Municipal Bond Fund was another strong performer relative
to both the Lehman Brothers Municipal Bond Index and its Lipper category
average. An overweighted position in BBB-rated and non-rated bonds helped
performance. Security selection among our lower-rated holdings also contributed
to results, especially among certain bonds whose price consequently jumped
substantially, during the period. When a lower-rated bond is pre-refunded,
meaning that the issuer refunds as of a future date an older bond with proceeds
from a newer bond issued at lower rates, its price often goes up sharply even
as its income stream remains constant. (The downside is that the bonds usually
mature and leave the portfolio sooner.) Our higher-coupon housing bonds,
however, were modest detractors from performance. Although these securities did
not underperform by a wide margin, they failed to perform as well as the market
because investors were unwilling to pay more for these bonds, knowing the
securities could be called in an environment of low interest rates.
We believed the Missouri Fund was relatively well structured, so we did not
make major changes to the portfolio during the period. We were able to reduce
some of the portfolio's concentrated credit positions to help lower the
Missouri Fund's risk. For example, we sold some of our Missouri Health and
Educational Facilities Authority revenue bonds for Maryville University of St.
Louis. Although we detected no credit problems with this issuer, we believed it
was prudent to reduce exposure to this strong-performing bond and increase the
portfolio's diversification. We also liquidated the Fund's holdings in
CCC-rated Puerto Rico revenue bonds issued for American Airlines. Airport and
airline bonds were strong perfomers during the period. We sold our American
Airlines position because we were wary of its risk and reinvested the proceeds
in other securities we believed offered better values. We looked to add issues
providing coupons of 5 percent or more and with maturities around 20 years.
The Nuveen Ohio Municipal Bond Fund also performed well during the past 12
months relative to its Lipper peer group and the Lehman Brothers index. The
Ohio Fund benefited from an overweighting in BBB-rated and lower-rated bonds.
For example, performance was helped by revenue refunding bonds issued for Emery
Air Freight Corporation and Emery Worldwide Airlines, which rose as airport and
airline bonds recovered off of low levels. An overweighting in the
strong-performing healthcare sector also helped performance, as did the Fund's
tobacco bonds, which performed better as the industry's litigation environment
improved.
The management strategies used in the Ohio Fund resembled that of the other
portfolios during the period. When making new purchases, we favored
intermediate-maturity premium-coupon bonds, which we believed offered our
shareholders the best available values. At the same time, we reduced our
weighting in pre-refunded bonds, whose short maturity dates hindered
performance during a time of rising short-term yields. We also sold some of our
concentrated lower-rated holdings to lock in recent gains and diversify the
Fund's assets.
The Nuveen Wisconsin Municipal Bond Fund, which outperformed its Lipper peer
group average and earned returns in line with the Lehman Brothers index during
the past 12 months, benefited from its relatively large weighting in
lower-rated and non-rated securities. In addition, a number of the individual
lower-rated holdings in the Fund were particularly strong performers. By
contrast, the Fund's shorter-maturity and pre-refunded securities detracted
from results. These bonds saw their prices fall and yields rise in line
Annual Report Page 7
with the Fed's short-term interest rate hikes during the period.
Wisconsin tends to be a challenging state in which to find suitable municipal
bonds for investment, but we were able to find more opportunities than usual
during the period. Accordingly, we were somewhat active in restructuring the
portfolio. As in the other Funds, we reduced our exposure to concentrated
positions in lower-rated bonds. We also increased the portfolio's
diversification by adding to the number of issuers whose bonds are held in the
Fund. When making new purchases, we invested further out on the yield curve,
preferring bonds in the 20-year maturity range, which, as mentioned, we
believed offered our shareholders the best values.
Annual Report Page 8
Nuveen Kansas Municipal Bond Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Kansas Nuveen Kansas Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer) Bond Index
----- ------- ----------
5/31/95 $10,000 $ 9,580 $10,000
6/30/95 9,895 9,479 9,913
7/31/95 9,961 9,543 10,007
8/31/95 10,079 9,656 10,134
9/30/95 10,124 9,699 10,198
10/31/95 10,324 9,890 10,346
11/30/95 10,533 10,091 10,518
12/31/95 10,673 10,225 10,619
1/31/96 10,690 10,241 10,699
2/29/96 10,559 10,115 10,627
3/31/96 10,356 9,921 10,491
4/30/96 10,318 9,884 10,461
5/31/96 10,364 9,929 10,457
6/30/96 10,505 10,064 10,571
7/31/96 10,595 10,150 10,667
8/31/96 10,589 10,144 10,665
9/30/96 10,773 10,321 10,814
10/31/96 10,875 10,418 10,937
11/30/96 11,061 10,596 11,137
12/31/96 11,033 10,570 11,184
1/31/97 11,028 10,564 11,205
2/28/97 11,130 10,663 11,308
3/31/97 11,013 10,551 11,157
4/30/97 11,139 10,671 11,251
5/31/97 11,319 10,844 11,420
6/30/97 11,412 10,933 11,542
7/31/97 11,751 11,257 11,862
8/31/97 11,621 11,132 11,750
9/30/97 11,748 11,255 11,890
10/31/97 11,842 11,345 11,966
11/30/97 11,915 11,414 12,037
12/31/97 12,100 11,592 12,213
1/31/98 12,219 11,706 12,338
2/28/98 12,201 11,688 12,342
3/31/98 12,251 11,736 12,353
4/30/98 12,163 11,652 12,298
5/31/98 12,375 11,856 12,492
6/30/98 12,426 11,904 12,541
7/31/98 12,466 11,942 12,572
8/31/98 12,658 12,126 12,767
9/30/98 12,815 12,277 12,926
10/31/98 12,783 12,246 12,926
11/30/98 12,834 12,295 12,972
12/31/98 12,849 12,310 13,004
1/31/99 12,973 12,428 13,159
2/28/99 12,916 12,373 13,101
3/31/99 12,907 12,364 13,119
4/30/99 12,957 12,413 13,152
5/31/99 12,848 12,308 13,076
6/30/99 12,628 12,098 12,888
7/31/99 12,630 12,099 12,934
8/31/99 12,445 11,923 12,830
9/30/99 12,372 11,852 12,836
10/31/99 12,149 11,639 12,697
11/30/99 12,250 11,735 12,832
12/31/99 12,100 11,592 12,735
1/31/00 11,963 11,461 12,681
2/29/00 12,154 11,644 12,828
3/31/00 12,486 11,962 13,109
4/30/00 12,385 11,865 13,031
5/31/00 12,284 11,768 12,964
6/30/00 12,607 12,077 13,307
7/31/00 12,817 12,279 13,492
8/31/00 13,015 12,468 13,700
9/30/00 12,953 12,409 13,629
10/31/00 13,074 12,525 13,777
11/30/00 13,143 12,591 13,882
12/31/00 13,476 12,910 14,225
1/31/01 13,572 13,002 14,366
2/28/01 13,656 13,082 14,411
3/31/01 13,766 13,188 14,541
4/30/01 13,608 13,036 14,384
5/31/01 13,760 13,182 14,539
6/30/2001 13,859 13,277 14,637
7/31/2001 14,054 13,463 14,854
8/31/2001 14,290 13,690 15,099
9/30/2001 14,198 13,602 15,047
10/31/2001 14,353 13,751 15,226
11/30/2001 14,247 13,649 15,098
12/31/2001 14,140 13,546 14,955
1/31/2002 14,326 13,724 15,214
2/28/2002 14,512 13,902 15,398
3/31/2002 14,235 13,637 15,096
4/30/2002 14,507 13,898 15,390
5/31/2002 14,594 13,982 15,484
6/30/2002 14,753 14,134 15,648
7/31/2002 14,927 14,300 15,849
8/31/2002 15,101 14,467 16,039
9/30/2002 15,464 14,814 16,391
10/31/2002 15,061 14,428 16,119
11/30/2002 15,017 14,386 16,052
12/31/2002 15,381 14,735 16,391
1/31/2003 15,234 14,594 16,349
2/28/2003 15,482 14,832 16,578
3/31/2003 15,482 14,831 16,588
4/30/2003 15,673 15,015 16,698
5/31/2003 16,059 15,384 17,088
6/30/2003 15,954 15,284 17,016
7/31/2003 15,324 14,681 16,420
8/31/2003 15,429 14,781 16,543
9/30/2003 15,850 15,185 17,029
10/31/2003 15,744 15,082 16,943
11/30/2003 15,922 15,254 17,120
12/31/2003 16,056 15,381 17,262
1/31/2004 16,144 15,466 17,361
2/29/2004 16,463 15,771 17,622
3/31/2004 16,335 15,649 17,561
4/30/2004 15,898 15,231 17,145
5/31/2004 15,895 15,227 17,083
6/30/2004 15,969 15,299 17,145
7/31/2004 16,199 15,519 17,370
8/31/2004 16,525 15,831 17,718
9/30/2004 16,647 15,948 17,813
10/31/2004 16,785 16,080 17,966
11/30/2004 16,623 15,924 17,818
12/31/2004 16,905 16,195 18,035
1/31/2005 17,125 16,406 18,204
2/28/2005 17,020 16,306 18,143
3/31/2005 16,850 16,143 18,029
4/30/2005 17,148 16,428 18,313
5/31/2005 17,318 16,591 18,443
================================================================================
Nuveen Kentucky Municipal Bond Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Kentucky Nuveen Kentucky Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer) Bond Index
----- ------- ----------
5/31/95 $10,000 $ 9,580 $10,000
6/30/95 9,900 9,484 9,913
7/31/95 9,966 9,548 10,007
8/31/95 10,079 9,656 10,134
9/30/95 10,125 9,700 10,198
10/31/95 10,285 9,853 10,346
11/30/95 10,472 10,033 10,518
12/31/95 10,586 10,141 10,619
1/31/96 10,633 10,187 10,699
2/29/96 10,583 10,139 10,627
3/31/96 10,403 9,966 10,491
4/30/96 10,365 9,930 10,461
5/31/96 10,404 9,967 10,457
6/30/96 10,509 10,068 10,571
7/31/96 10,597 10,151 10,667
8/31/96 10,598 10,152 10,665
9/30/96 10,752 10,301 10,814
10/31/96 10,860 10,404 10,937
11/30/96 11,036 10,572 11,137
12/31/96 10,993 10,531 11,184
1/31/97 11,013 10,550 11,205
2/28/97 11,102 10,635 11,308
3/31/97 10,991 10,529 11,157
4/30/97 11,081 10,615 11,251
5/31/97 11,222 10,750 11,420
6/30/97 11,333 10,857 11,542
7/31/97 11,639 11,150 11,862
8/31/97 11,556 11,071 11,750
9/30/97 11,678 11,188 11,890
10/31/97 11,760 11,266 11,966
11/30/97 11,821 11,325 12,037
12/31/97 11,988 11,485 12,213
1/31/98 12,091 11,583 12,338
2/28/98 12,100 11,591 12,342
3/31/98 12,129 11,619 12,353
4/30/98 12,051 11,545 12,298
5/31/98 12,231 11,717 12,492
6/30/98 12,282 11,766 12,541
7/31/98 12,311 11,794 12,572
8/31/98 12,472 11,948 12,767
9/30/98 12,589 12,060 12,926
10/31/98 12,564 12,036 12,926
11/30/98 12,615 12,085 12,972
12/31/98 12,626 12,096 13,004
1/31/99 12,722 12,188 13,159
2/28/99 12,697 12,164 13,101
3/31/99 12,715 12,181 13,119
4/30/99 12,743 12,207 13,152
5/31/99 12,682 12,149 13,076
6/30/99 12,495 11,970 12,888
7/31/99 12,513 11,987 12,934
8/31/99 12,336 11,818 12,830
9/30/99 12,286 11,770 12,836
10/31/99 12,107 11,599 12,697
11/30/99 12,184 11,672 12,832
12/31/99 12,067 11,560 12,735
1/31/00 11,992 11,489 12,681
2/29/00 12,163 11,652 12,828
3/31/00 12,405 11,884 13,109
4/30/00 12,341 11,823 13,031
5/31/00 12,265 11,750 12,964
6/30/00 12,511 11,985 13,307
7/31/00 12,698 12,164 13,492
8/31/00 12,874 12,333 13,700
9/30/00 12,833 12,294 13,629
10/31/00 12,938 12,395 13,777
11/30/00 13,007 12,461 13,882
12/31/00 13,284 12,726 14,225
1/31/01 13,365 12,804 14,366
2/28/01 13,434 12,870 14,411
3/31/01 13,540 12,971 14,541
4/30/01 13,422 12,858 14,384
5/31/01 13,541 12,973 14,539
6/30/2001 13,649 13,075 14,637
7/31/2001 13,844 13,263 14,854
8/31/2001 14,066 13,475 15,099
9/30/2001 13,959 13,373 15,047
10/31/2001 14,119 13,526 15,226
11/30/2001 14,035 13,445 15,098
12/31/2001 13,925 13,340 14,955
1/31/2002 14,099 13,506 15,214
2/28/2002 14,286 13,686 15,398
3/31/2002 14,057 13,467 15,096
4/30/2002 14,272 13,673 15,390
5/31/2002 14,383 13,779 15,484
6/30/2002 14,508 13,898 15,648
7/31/2002 14,646 14,031 15,849
8/31/2002 14,784 14,163 16,039
9/30/2002 15,044 14,412 16,391
10/31/2002 14,782 14,161 16,119
11/30/2002 14,788 14,167 16,052
12/31/2002 15,075 14,442 16,391
1/31/2003 15,013 14,383 16,349
2/28/2003 15,251 14,610 16,578
3/31/2003 15,202 14,564 16,588
4/30/2003 15,345 14,701 16,698
5/31/2003 15,682 15,024 17,088
6/30/2003 15,675 15,016 17,016
7/31/2003 15,139 14,503 16,420
8/31/2003 15,257 14,616 16,543
9/30/2003 15,655 14,998 17,029
10/31/2003 15,620 14,964 16,943
11/30/2003 15,821 15,156 17,120
12/31/2003 15,966 15,296 17,262
1/31/2004 16,041 15,367 17,361
2/29/2004 16,303 15,618 17,622
3/31/2004 16,234 15,552 17,561
4/30/2004 15,877 15,210 17,145
5/31/2004 15,823 15,158 17,083
6/30/2004 15,884 15,217 17,145
7/31/2004 16,107 15,430 17,370
8/31/2004 16,416 15,727 17,718
9/30/2004 16,492 15,799 17,813
10/31/2004 16,625 15,927 17,966
11/30/2004 16,479 15,787 17,818
12/31/2004 16,713 16,011 18,035
1/31/2005 16,908 16,198 18,204
2/28/2005 16,831 16,124 18,143
3/31/2005 16,738 16,035 18,029
4/30/2005 17,008 16,293 18,313
5/31/2005 17,171 16,450 18,443
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. Returns would be different for the other share classes. 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
Nuveen Michigan Municipal Bond Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Michigan Nuveen Michigan Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer) Bond Index
----- ------- ----------
5/31/95 $10,000 $ 9,580 $10,000
6/30/95 9,882 9,467 9,913
7/31/95 9,947 9,529 10,007
8/31/95 10,056 9,633 10,134
9/30/95 10,120 9,695 10,198
10/31/95 10,283 9,851 10,346
11/30/95 10,480 10,040 10,518
12/31/95 10,617 10,171 10,619
1/31/96 10,655 10,207 10,699
2/29/96 10,583 10,139 10,627
3/31/96 10,397 9,960 10,491
4/30/96 10,343 9,909 10,461
5/31/96 10,363 9,928 10,457
6/30/96 10,473 10,033 10,571
7/31/96 10,575 10,131 10,667
8/31/96 10,587 10,142 10,665
9/30/96 10,753 10,301 10,814
10/31/96 10,866 10,410 10,937
11/30/96 11,053 10,589 11,137
12/31/96 11,018 10,555 11,184
1/31/97 11,023 10,560 11,205
2/28/97 11,119 10,652 11,308
3/31/97 10,978 10,517 11,157
4/30/97 11,074 10,609 11,251
5/31/97 11,238 10,766 11,420
6/30/97 11,355 10,878 11,542
7/31/97 11,684 11,194 11,862
8/31/97 11,550 11,065 11,750
9/30/97 11,677 11,187 11,890
10/31/97 11,776 11,282 11,966
11/30/97 11,836 11,339 12,037
12/31/97 12,003 11,499 12,213
1/31/98 12,103 11,595 12,338
2/28/98 12,113 11,604 12,342
3/31/98 12,133 11,624 12,353
4/30/98 12,063 11,556 12,298
5/31/98 12,245 11,731 12,492
6/30/98 12,295 11,779 12,541
7/31/98 12,316 11,799 12,572
8/31/98 12,490 11,965 12,767
9/30/98 12,643 12,112 12,926
10/31/98 12,623 12,093 12,926
11/30/98 12,665 12,133 12,972
12/31/98 12,681 12,149 13,004
1/31/99 12,775 12,239 13,159
2/28/99 12,712 12,179 13,101
3/31/99 12,723 12,188 13,119
4/30/99 12,753 12,218 13,152
5/31/99 12,666 12,134 13,076
6/30/99 12,494 11,969 12,888
7/31/99 12,504 11,979 12,934
8/31/99 12,330 11,813 12,830
9/30/99 12,297 11,781 12,836
10/31/99 12,110 11,602 12,697
11/30/99 12,185 11,673 12,832
12/31/99 12,041 11,536 12,735
1/31/00 11,907 11,407 12,681
2/29/00 12,094 11,586 12,828
3/31/00 12,371 11,851 13,109
4/30/00 12,278 11,762 13,031
5/31/00 12,185 11,673 12,964
6/30/00 12,499 11,974 13,307
7/31/00 12,690 12,157 13,492
8/31/00 12,881 12,340 13,700
9/30/00 12,798 12,260 13,629
10/31/00 12,922 12,379 13,777
11/30/00 12,954 12,410 13,882
12/31/00 13,288 12,730 14,225
1/31/01 13,355 12,794 14,366
2/28/01 13,446 12,881 14,411
3/31/01 13,572 13,002 14,541
4/30/01 13,404 12,841 14,384
5/31/01 13,580 13,009 14,539
6/30/2001 13,732 13,156 14,637
7/31/2001 13,945 13,360 14,854
8/31/2001 14,207 13,611 15,099
9/30/2001 14,157 13,562 15,047
10/31/2001 14,360 13,757 15,226
11/30/2001 14,234 13,636 15,098
12/31/2001 14,066 13,476 14,955
1/31/2002 14,296 13,695 15,214
2/28/2002 14,489 13,880 15,398
3/31/2002 14,162 13,568 15,096
4/30/2002 14,419 13,814 15,390
5/31/2002 14,490 13,881 15,484
6/30/2002 14,661 14,046 15,648
7/31/2002 14,833 14,210 15,849
8/31/2002 15,031 14,400 16,039
9/30/2002 15,382 14,736 16,391
10/31/2002 15,085 14,451 16,119
11/30/2002 15,055 14,422 16,052
12/31/2002 15,394 14,747 16,391
1/31/2003 15,325 14,681 16,349
2/28/2003 15,579 14,925 16,578
3/31/2003 15,523 14,871 16,588
4/30/2003 15,688 15,029 16,698
5/31/2003 15,998 15,326 17,088
6/30/2003 15,875 15,208 17,016
7/31/2003 15,302 14,659 16,420
8/31/2003 15,443 14,795 16,543
9/30/2003 15,811 15,147 17,029
10/31/2003 15,753 15,092 16,943
11/30/2003 15,936 15,266 17,120
12/31/2003 16,006 15,334 17,262
1/31/2004 16,095 15,419 17,361
2/29/2004 16,419 15,729 17,622
3/31/2004 16,371 15,683 17,561
4/30/2004 15,992 15,320 17,145
5/31/2004 15,955 15,285 17,083
6/30/2004 16,001 15,329 17,145
7/31/2004 16,230 15,548 17,370
8/31/2004 16,543 15,848 17,718
9/30/2004 16,632 15,934 17,813
10/31/2004 16,807 16,101 17,966
11/30/2004 16,639 15,940 17,818
12/31/2004 16,892 16,182 18,035
1/31/2005 17,079 16,362 18,204
2/28/2005 16,967 16,254 18,143
3/31/2005 16,839 16,132 18,029
4/30/2005 17,131 16,411 18,313
5/31/2005 17,307 16,580 18,443
================================================================================
Nuveen Missouri Municipal Bond Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Missouri Nuveen Missouri Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer) Bond Index
----- ------- ----------
5/31/95 $10,000 $ 9,580 $10,000
6/30/95 9,887 9,472 9,913
7/31/95 9,943 9,526 10,007
8/31/95 10,057 9,634 10,134
9/30/95 10,131 9,706 10,198
10/31/95 10,283 9,851 10,346
11/30/95 10,454 10,015 10,518
12/31/95 10,568 10,124 10,619
1/31/96 10,625 10,179 10,699
2/29/96 10,562 10,119 10,627
3/31/96 10,357 9,922 10,491
4/30/96 10,304 9,872 10,461
5/31/96 10,351 9,916 10,457
6/30/96 10,455 10,016 10,571
7/31/96 10,542 10,099 10,667
8/31/96 10,560 10,116 10,665
9/30/96 10,715 10,265 10,814
10/31/96 10,822 10,368 10,937
11/30/96 11,019 10,557 11,137
12/31/96 10,976 10,515 11,184
1/31/97 10,974 10,513 11,205
2/28/97 11,083 10,617 11,308
3/31/97 10,956 10,496 11,157
4/30/97 11,056 10,592 11,251
5/31/97 11,208 10,737 11,420
6/30/97 11,329 10,853 11,542
7/31/97 11,658 11,169 11,862
8/31/97 11,539 11,055 11,750
9/30/97 11,672 11,182 11,890
10/31/97 11,753 11,259 11,966
11/30/97 11,823 11,327 12,037
12/31/97 12,002 11,498 12,213
1/31/98 12,105 11,597 12,338
2/28/98 12,101 11,593 12,342
3/31/98 12,130 11,621 12,353
4/30/98 12,072 11,565 12,298
5/31/98 12,252 11,737 12,492
6/30/98 12,302 11,786 12,541
7/31/98 12,331 11,813 12,572
8/31/98 12,513 11,987 12,767
9/30/98 12,652 12,121 12,926
10/31/98 12,625 12,095 12,926
11/30/98 12,677 12,145 12,972
12/31/98 12,695 12,162 13,004
1/31/99 12,802 12,264 13,159
2/28/99 12,763 12,227 13,101
3/31/99 12,758 12,222 13,119
4/30/99 12,810 12,272 13,152
5/31/99 12,737 12,202 13,076
6/30/99 12,560 12,033 12,888
7/31/99 12,578 12,050 12,934
8/31/99 12,422 11,900 12,830
9/30/99 12,382 11,862 12,836
10/31/99 12,179 11,668 12,697
11/30/99 12,244 11,729 12,832
12/31/99 12,143 11,633 12,735
1/31/00 12,032 11,526 12,681
2/29/00 12,180 11,669 12,828
3/31/00 12,413 11,892 13,109
4/30/00 12,372 11,852 13,031
5/31/00 12,294 11,778 12,964
6/30/00 12,555 12,027 13,307
7/31/00 12,733 12,198 13,492
8/31/00 12,900 12,358 13,700
9/30/00 12,847 12,308 13,629
10/31/00 12,979 12,434 13,777
11/30/00 13,061 12,513 13,882
12/31/00 13,355 12,794 14,225
1/31/01 13,439 12,874 14,366
2/28/01 13,510 12,943 14,411
3/31/01 13,619 13,047 14,541
4/30/01 13,489 12,923 14,384
5/31/01 13,638 13,065 14,539
6/30/2001 13,736 13,159 14,637
7/31/2001 13,924 13,339 14,854
8/31/2001 14,203 13,606 15,099
9/30/2001 14,134 13,540 15,047
10/31/2001 14,285 13,685 15,226
11/30/2001 14,188 13,592 15,098
12/31/2001 14,078 13,487 14,955
1/31/2002 14,256 13,657 15,214
2/28/2002 14,421 13,815 15,398
3/31/2002 14,177 13,582 15,096
4/30/2002 14,397 13,792 15,390
5/31/2002 14,483 13,875 15,484
6/30/2002 14,623 14,009 15,648
7/31/2002 14,777 14,156 15,849
8/31/2002 14,945 14,317 16,039
9/30/2002 15,209 14,570 16,391
10/31/2002 14,916 14,289 16,119
11/30/2002 14,879 14,254 16,052
12/31/2002 15,200 14,562 16,391
1/31/2003 15,122 14,487 16,349
2/28/2003 15,348 14,704 16,578
3/31/2003 15,353 14,708 16,588
4/30/2003 15,553 14,900 16,698
5/31/2003 15,877 15,211 17,088
6/30/2003 15,781 15,118 17,016
7/31/2003 15,163 14,526 16,420
8/31/2003 15,321 14,677 16,543
9/30/2003 15,735 15,074 17,029
10/31/2003 15,694 15,035 16,943
11/30/2003 15,881 15,214 17,120
12/31/2003 15,996 15,324 17,262
1/31/2004 16,082 15,407 17,361
2/29/2004 16,372 15,684 17,622
3/31/2004 16,299 15,615 17,561
4/30/2004 15,906 15,238 17,145
5/31/2004 15,833 15,168 17,083
6/30/2004 15,905 15,237 17,145
7/31/2004 16,112 15,435 17,370
8/31/2004 16,438 15,747 17,718
9/30/2004 16,526 15,832 17,813
10/31/2004 16,675 15,975 17,966
11/30/2004 16,525 15,831 17,818
12/31/2004 16,781 16,076 18,035
1/31/2005 16,978 16,264 18,204
2/28/2005 16,916 16,206 18,143
3/31/2005 16,779 16,075 18,029
4/30/2005 17,083 16,366 18,313
5/31/2005 17,250 16,526 18,443
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. Returns would be different for the other share classes. 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
Nuveen Ohio Municipal Bond Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Ohio Nuveen Ohio Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer) Bond Index
----- ------- ----------
5/31/1995 $10,000 $ 9,580 $10,000
6/30/1995 9,906 9,490 9,913
7/31/1995 9,971 9,553 10,007
8/31/1995 10,081 9,658 10,134
9/30/1995 10,137 9,711 10,198
10/31/1995 10,292 9,859 10,346
11/30/1995 10,473 10,033 10,518
12/31/1995 10,583 10,138 10,619
1/31/1996 10,612 10,167 10,699
2/29/1996 10,539 10,096 10,627
3/31/1996 10,377 9,941 10,491
4/30/1996 10,331 9,897 10,461
5/31/1996 10,360 9,925 10,457
6/30/1996 10,471 10,031 10,571
7/31/1996 10,565 10,121 10,667
8/31/1996 10,558 10,114 10,665
9/30/1996 10,698 10,249 10,814
10/31/1996 10,803 10,349 10,937
11/30/1996 10,973 10,512 11,137
12/31/1996 10,936 10,477 11,184
1/31/1997 10,939 10,479 11,205
2/28/1997 11,035 10,571 11,308
3/31/1997 10,901 10,443 11,157
4/30/1997 10,979 10,518 11,251
5/31/1997 11,125 10,658 11,420
6/30/1997 11,233 10,761 11,542
7/31/1997 11,517 11,033 11,862
8/31/1997 11,409 10,929 11,750
9/30/1997 11,527 11,043 11,890
10/31/1997 11,607 11,119 11,966
11/30/1997 11,667 11,177 12,037
12/31/1997 11,839 11,341 12,213
1/31/1998 11,958 11,456 12,338
2/28/1998 11,957 11,455 12,342
3/31/1998 11,987 11,483 12,353
4/30/1998 11,914 11,413 12,298
5/31/1998 12,097 11,589 12,492
6/30/1998 12,137 11,627 12,541
7/31/1998 12,168 11,656 12,572
8/31/1998 12,322 11,805 12,767
9/30/1998 12,467 11,944 12,926
10/31/1998 12,455 11,932 12,926
11/30/1998 12,506 11,981 12,972
12/31/1998 12,520 11,994 13,004
1/31/1999 12,635 12,104 13,159
2/28/1999 12,591 12,062 13,101
3/31/1999 12,600 12,070 13,119
4/30/1999 12,641 12,110 13,152
5/31/1999 12,574 12,046 13,076
6/30/1999 12,420 11,898 12,888
7/31/1999 12,417 11,896 12,934
8/31/1999 12,261 11,746 12,830
9/30/1999 12,203 11,690 12,836
10/31/1999 12,022 11,517 12,697
11/30/1999 12,108 11,599 12,832
12/31/1999 11,988 11,484 12,735
1/31/2000 11,928 11,427 12,681
2/29/2000 12,083 11,575 12,828
3/31/2000 12,317 11,799 13,109
4/30/2000 12,257 11,742 13,031
5/31/2000 12,173 11,662 12,964
6/30/2000 12,456 11,933 13,307
7/31/2000 12,637 12,107 13,492
8/31/2000 12,820 12,281 13,700
9/30/2000 12,770 12,234 13,629
10/31/2000 12,861 12,320 13,777
11/30/2000 12,940 12,397 13,882
12/31/2000 13,232 12,676 14,225
1/31/2001 13,312 12,753 14,366
2/28/2001 13,345 12,785 14,411
3/31/2001 13,450 12,885 14,541
4/30/2001 13,304 12,746 14,384
5/31/2001 13,396 12,834 14,539
6/30/2001 13,501 12,934 14,637
7/31/2001 13,702 13,127 14,854
8/31/2001 13,905 13,321 15,099
9/30/2001 13,803 13,223 15,047
10/31/2001 13,958 13,372 15,226
11/30/2001 13,866 13,283 15,098
12/31/2001 13,736 13,159 14,955
1/31/2002 13,941 13,355 15,214
2/28/2002 14,109 13,517 15,398
3/31/2002 13,828 13,247 15,096
4/30/2002 14,047 13,457 15,390
5/31/2002 14,142 13,548 15,484
6/30/2002 14,275 13,676 15,648
7/31/2002 14,460 13,852 15,849
8/31/2002 14,632 14,017 16,039
9/30/2002 14,972 14,343 16,391
10/31/2002 14,644 14,029 16,119
11/30/2002 14,599 13,985 16,052
12/31/2002 14,943 14,315 16,391
1/31/2003 14,858 14,234 16,349
2/28/2003 15,113 14,478 16,578
3/31/2003 15,106 14,472 16,588
4/30/2003 15,258 14,617 16,698
5/31/2003 15,648 14,991 17,088
6/30/2003 15,549 14,896 17,016
7/31/2003 14,915 14,289 16,420
8/31/2003 15,043 14,411 16,543
9/30/2003 15,479 14,829 17,029
10/31/2003 15,432 14,784 16,943
11/30/2003 15,656 14,998 17,120
12/31/2003 15,786 15,123 17,262
1/31/2004 15,833 15,168 17,361
2/29/2004 16,142 15,464 17,622
3/31/2004 16,052 15,378 17,561
4/30/2004 15,617 14,961 17,145
5/31/2004 15,552 14,899 17,083
6/30/2004 15,625 14,969 17,145
7/31/2004 15,853 15,187 17,370
8/31/2004 16,194 15,514 17,718
9/30/2004 16,283 15,599 17,813
10/31/2004 16,457 15,766 17,966
11/30/2004 16,291 15,607 17,818
12/31/2004 16,552 15,857 18,035
1/31/2005 16,742 16,039 18,204
2/28/2005 16,643 15,944 18,143
3/31/2005 16,515 15,821 18,029
4/30/2005 16,806 16,100 18,313
5/31/2005 16,952 16,240 18,443
================================================================================
Nuveen Wisconsin Municipal Bond Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Wisconsin Nuveen Wisconsin Lehman
Municipal Municipal Brothers
Bond Fund Bond Fund Municipal
(NAV) (Offer) Bond Index
----- ------- ----------
5/31/95 $10,000 $ 9,580 $10,000
6/30/95 9,859 9,445 9,913
7/31/95 9,974 9,555 10,007
8/31/95 10,080 9,657 10,134
9/30/95 10,144 9,718 10,198
10/31/95 10,303 9,870 10,346
11/30/95 10,472 10,032 10,518
12/31/95 10,622 10,175 10,619
1/31/96 10,646 10,199 10,699
2/29/96 10,562 10,118 10,627
3/31/96 10,342 9,908 10,491
4/30/96 10,301 9,868 10,461
5/31/96 10,336 9,902 10,457
6/30/96 10,434 9,996 10,571
7/31/96 10,524 10,082 10,667
8/31/96 10,505 10,064 10,665
9/30/96 10,648 10,200 10,814
10/31/96 10,761 10,309 10,937
11/30/96 10,927 10,468 11,137
12/31/96 10,886 10,429 11,184
1/31/97 10,889 10,432 11,205
2/28/97 10,981 10,519 11,308
3/31/97 10,849 10,393 11,157
4/30/97 10,941 10,481 11,251
5/31/97 11,101 10,635 11,420
6/30/97 11,194 10,724 11,542
7/31/97 11,560 11,075 11,862
8/31/97 11,403 10,924 11,750
9/30/97 11,554 11,069 11,890
10/31/97 11,649 11,160 11,966
11/30/97 11,721 11,229 12,037
12/31/97 11,910 11,410 12,213
1/31/98 12,063 11,556 12,338
2/28/98 12,064 11,557 12,342
3/31/98 12,088 11,580 12,353
4/30/98 11,995 11,491 12,298
5/31/98 12,234 11,720 12,492
6/30/98 12,270 11,755 12,541
7/31/98 12,294 11,777 12,572
8/31/98 12,498 11,973 12,767
9/30/98 12,690 12,157 12,926
10/31/98 12,642 12,111 12,926
11/30/98 12,690 12,157 12,972
12/31/98 12,690 12,157 13,004
1/31/99 12,809 12,271 13,159
2/28/99 12,758 12,222 13,101
3/31/99 12,768 12,232 13,119
4/30/99 12,803 12,265 13,152
5/31/99 12,702 12,168 13,076
6/30/99 12,463 11,939 12,888
7/31/99 12,448 11,925 12,934
8/31/99 12,230 11,716 12,830
9/30/99 12,137 11,627 12,836
10/31/99 11,868 11,369 12,697
11/30/99 11,965 11,462 12,832
12/31/99 11,828 11,332 12,735
1/31/00 11,734 11,242 12,681
2/29/00 11,961 11,459 12,828
3/31/00 12,292 11,776 13,109
4/30/00 12,197 11,685 13,031
5/31/00 12,062 11,556 12,964
6/30/00 12,449 11,927 13,307
7/31/00 12,681 12,148 13,492
8/31/00 12,900 12,358 13,700
9/30/00 12,816 12,277 13,629
10/31/00 12,930 12,387 13,777
11/30/00 13,020 12,473 13,882
12/31/00 13,403 12,840 14,225
1/31/01 13,466 12,900 14,366
2/28/01 13,569 12,999 14,411
3/31/01 13,660 13,086 14,541
4/30/01 13,466 12,900 14,384
5/31/01 13,611 13,040 14,539
6/30/2001 13,730 13,153 14,637
7/31/2001 13,972 13,386 14,854
8/31/2001 14,202 13,606 15,099
9/30/2001 14,101 13,509 15,047
10/31/2001 14,249 13,651 15,226
11/30/2001 14,134 13,540 15,098
12/31/2001 13,976 13,389 14,955
1/31/2002 14,168 13,573 15,214
2/28/2002 14,375 13,771 15,398
3/31/2002 14,074 13,483 15,096
4/30/2002 14,311 13,710 15,390
5/31/2002 14,463 13,856 15,484
6/30/2002 14,616 14,002 15,648
7/31/2002 14,783 14,162 15,849
8/31/2002 14,980 14,351 16,039
9/30/2002 15,278 14,637 16,391
10/31/2002 14,883 14,258 16,119
11/30/2002 14,865 14,240 16,052
12/31/2002 15,239 14,599 16,391
1/31/2003 15,118 14,483 16,349
2/28/2003 15,319 14,676 16,578
3/31/2003 15,285 14,643 16,588
4/30/2003 15,473 14,823 16,698
5/31/2003 15,824 15,160 17,088
6/30/2003 15,745 15,084 17,016
7/31/2003 15,188 14,550 16,420
8/31/2003 15,304 14,661 16,543
9/30/2003 15,720 15,060 17,029
10/31/2003 15,686 15,027 16,943
11/30/2003 15,831 15,166 17,120
12/31/2003 15,947 15,277 17,262
1/31/2004 16,033 15,359 17,361
2/29/2004 16,317 15,632 17,622
3/31/2004 16,219 15,538 17,561
4/30/2004 15,843 15,178 17,145
5/31/2004 15,773 15,110 17,083
6/30/2004 15,842 15,177 17,145
7/31/2004 16,067 15,392 17,370
8/31/2004 16,371 15,683 17,718
9/30/2004 16,441 15,751 17,813
10/31/2004 16,574 15,878 17,966
11/30/2004 16,409 15,719 17,818
12/31/2004 16,653 15,954 18,035
1/31/2005 16,835 16,128 18,204
2/28/2005 16,762 16,058 18,143
3/31/2005 16,625 15,927 18,029
4/30/2005 16,889 16,180 18,313
5/31/2005 17,026 16,311 18,443
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. Returns would be different for the other share classes. 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 5/31/05 Nuveen Kansas Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.66 $10.58 $10.67 $10.71
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0345 $0.0280 $0.0300 $0.0365
--------------------------------------------------------------
Inception Date 1/09/92 2/19/97 2/11/97 2/25/97
--------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
results. 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 for redemptions begins at 5% and declines periodically until after
6 years when the charge becomes 0%. 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. Class R shares have no sales charge and may be purchased under
limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05
A Shares NAV Offer
---------------------------------------------
1-Year 8.95% 4.35%
---------------------------------------------
5-Year 7.11% 6.19%
---------------------------------------------
10-Year 5.64% 5.19%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 8.21% 4.21%
---------------------------------------------
5-Year 6.32% 6.16%
---------------------------------------------
10-Year 4.99% 4.99%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 8.39%
---------------------------------------------
5-Year 6.52%
---------------------------------------------
10-Year 5.13%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 9.26%
---------------------------------------------
5-Year 7.32%
---------------------------------------------
10-Year 5.88%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/2/ 3.88% 3.72%
---------------------------------------------
SEC 30-Day Yield/3/ 3.37% 3.22%
---------------------------------------------
Taxable-Equivalent Yield/3,4/ 4.99% 4.77%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.18%
---------------------------------------------
SEC 30-Day Yield 2.62%
---------------------------------------------
Taxable-Equivalent Yield/4/ 3.88%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.37%
---------------------------------------------
SEC 30-Day Yield 2.82%
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.18%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/2/ 4.09%
---------------------------------------------
SEC 30-Day Yield 3.57%
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.29%
---------------------------------------------
Average Annual Total Returns as of 6/30/05
A Shares NAV Offer
------------------------------------------
1-Year 9.10% 4.50%
------------------------------------------
5-Year 6.68% 5.77%
------------------------------------------
10-Year 5.82% 5.37%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 8.37% 4.37%
------------------------------------------
5-Year 5.90% 5.74%
------------------------------------------
10-Year 5.16% 5.16%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 8.54%
------------------------------------------
5-Year 6.10%
------------------------------------------
10-Year 5.30%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 9.31%
------------------------------------------
5-Year 6.92%
------------------------------------------
10-Year 6.05%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $132,176
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.76
---------------------------------------------------------
Average Duration 6.02
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2005.
2Dividend Yield is the most recent dividend per share (annualized) divided by
the appropriate price per share. The SEC 30-Day Yield is a standardized
measure of the current market yield on the Fund's portfolio and is based on
the maximum offer price per share. The Dividend Yield also differs from the
SEC 30-Day Yield because the Fund may be paying out more or less than it is
earning and it may not include the effect of amortization of bond premium.
3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies
only to A Shares purchased at no-load pursuant to the Fund's policy permitting
waiver of the A Share load in certain specified circumstances.
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 at a specified tax rate. 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%.
Annual Report Page 12
Fund Spotlight as of 5/31/05 Nuveen Kansas Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 63.4%
AA 17.0%
A 9.9%
BBB 6.7%
NR 3.0%
Sectors/1/
Tax Obligation/Limited 25.2%
---------------------------------------
Tax Obligation/General 18.5%
---------------------------------------
Healthcare 18.0%
---------------------------------------
U.S. Guaranteed 9.9%
---------------------------------------
Water and Sewer 7.3%
---------------------------------------
Utilities 4.6%
---------------------------------------
Education and Civic Organizations 4.3%
---------------------------------------
Other 12.2%
---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to
change.
- --------------------------------------------------------------------------------
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including front and back end sales charges (loads) or redemption fees,
where applicable; and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees, where applicable; and other Fund
expenses. This Example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example below is based on an investment of $1,000 invested at the beginning
of the period and held for the period.
The information under "Actual Performance," together with the amount you
invested, allows you to estimate actual expenses incurred over the reporting
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60) and multiply the result by the cost
shown for your share class, in the row entitled "Expenses Incurred During
Period" to estimate the expenses incurred on your account during this period.
The information under "Hypothetical Performance," provides information about
hypothetical account values and hypothetical expenses based on the Fund's
actual expense ratio and an assumed rate of return of 5% per year before
expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expense you incurred for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other Funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front
and back end sales charges (loads) or redemption fees, where applicable.
Therefore, the hypothetical information is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds or share classes. In addition, if these transactional costs
were included, your costs would have been higher.
Hypothetical Performance
Actual Performance (5% annualized return before expenses)
--------------------------------------- ---------------------------------------
A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares
- ------------------------------------------------------------------------------------------------------------------
Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
- ------------------------------------------------------------------------------------------------------------------
Ending Account Value (5/31/05) $1,041.80 $1,038.30 $1,039.10 $1,042.80 $1,020.64 $1,016.95 $1,017.90 $1,021.59
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.38 $ 8.13 $ 7.17 $ 3.41 $ 4.33 $ 8.05 $ 7.09 $ 3.38
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .86%, 1.60%, 1.41% and .67% for Classes A, B, C and R,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
Annual Report Page 13
Fund Spotlight as of 5/31/05 Nuveen Kentucky Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------------
NAV $11.30 $11.31 $11.29 $11.29
--------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0380 $0.0310 $0.0325 $0.0395
--------------------------------------------------------------------
Latest Capital Gain and Ordinary
Income Distribution/2/ $0.0062 $0.0062 $0.0062 $0.0062
--------------------------------------------------------------------
Inception Date 5/04/87 2/05/97 10/04/93 2/07/97
--------------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
results. 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 and C share returns are actual. Class B 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 Class B) 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 for redemptions begins at 5% and declines periodically until after
6 years when the charge becomes 0%. 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. Class R shares have no sales charge and may be purchased under
limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05
A Shares NAV Offer
---------------------------------------------
1-Year 8.51% 3.93%
---------------------------------------------
5-Year 6.96% 6.05%
---------------------------------------------
10-Year 5.56% 5.11%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 7.80% 3.80%
---------------------------------------------
5-Year 6.18% 6.02%
---------------------------------------------
10-Year 4.96% 4.96%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 7.91%
---------------------------------------------
5-Year 6.38%
---------------------------------------------
10-Year 4.98%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 8.70%
---------------------------------------------
5-Year 7.19%
---------------------------------------------
10-Year 5.71%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/3/ 4.04% 3.86%
---------------------------------------------
SEC 30-Day Yield/4/ 3.35% 3.20%
---------------------------------------------
Taxable-Equivalent Yield/4,5/ 4.96% 4.74%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.29%
---------------------------------------------
SEC 30-Day Yield 2.60%
---------------------------------------------
Taxable-Equivalent Yield/5/ 3.85%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.45%
---------------------------------------------
SEC 30-Day Yield 2.80%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.15%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/3/ 4.20%
---------------------------------------------
SEC 30-Day Yield 3.54%
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.24%
---------------------------------------------
Average Annual Total Returns as of 6/30/05
A Shares NAV Offer
------------------------------------------
1-Year 8.74% 4.15%
------------------------------------------
5-Year 6.66% 5.75%
------------------------------------------
10-Year 5.72% 5.28%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 8.02% 4.02%
------------------------------------------
5-Year 5.89% 5.73%
------------------------------------------
10-Year 5.13% 5.13%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 8.13%
------------------------------------------
5-Year 6.08%
------------------------------------------
10-Year 5.15%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 8.93%
------------------------------------------
5-Year 6.87%
------------------------------------------
10-Year 5.88%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $496,063
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.55
---------------------------------------------------------
Average Duration 5.49
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2005.
2Paid December 3, 2004. Capital gains and/or ordinary income are subject to
federal taxation.
3Dividend Yield is the most recent dividend per share (annualized) divided by
the appropriate price per share. The SEC 30-Day Yield is a standardized
measure of the current market yield on the Fund's portfolio and is based on
the maximum offer price per share. The Dividend Yield also differs from the
SEC 30-Day Yield because the Fund may be paying out more or less than it is
earning and it may not include the effect of amortization of bond premium.
4The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies
only to A Shares purchased at no-load pursuant to the Fund's policy permitting
waiver of the A Share load in certain specified circumstances.
5The 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 at a specified tax rate. 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%.
Annual Report Page 14
Fund Spotlight as of 5/31/05 Nuveen Kentucky Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 66.7%
AA 9.0%
A 9.1%
BBB 12.3%
BB or Lower 1.2%
NR 1.7%
Sectors/1/
Tax Obligation/Limited 31.0%
---------------------------------------
U.S. Guaranteed 12.6%
---------------------------------------
Healthcare 11.6%
---------------------------------------
Utilities 8.7%
---------------------------------------
Water and Sewer 8.4%
---------------------------------------
Transportation 5.4%
---------------------------------------
Education and Civic Organizations 4.9%
---------------------------------------
Housing Single Family 4.4%
---------------------------------------
Other 13.0%
---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to
change.
- --------------------------------------------------------------------------------
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including front and back end sales charges (loads) or redemption fees,
where applicable; and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees, where applicable; and other Fund
expenses. This Example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example below is based on an investment of $1,000 invested at the beginning
of the period and held for the period.
The information under "Actual Performance," together with the amount you
invested, allows you to estimate actual expenses incurred over the reporting
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60) and multiply the result by the cost
shown for your share class, in the row entitled "Expenses Incurred During
Period" to estimate the expenses incurred on your account during this period.
The information under "Hypothetical Performance," provides information about
hypothetical account values and hypothetical expenses based on the Fund's
actual expense ratio and an assumed rate of return of 5% per year before
expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expense you incurred for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other Funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front
and back end sales charges (loads) or redemption fees, where applicable.
Therefore, the hypothetical information is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds or share classes. In addition, if these transactional costs
were included, your costs would have been higher.
Hypothetical Performance
Actual Performance (5% annualized return before expenses)
--------------------------------------- ---------------------------------------
A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares
- ------------------------------------------------------------------------------------------------------------------
Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
- ------------------------------------------------------------------------------------------------------------------
Ending Account Value (5/31/05) $1,041.90 $1,038.00 $1,038.90 $1,042.80 $1,020.89 $1,017.20 $1,018.15 $1,021.84
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.12 $ 7.88 $ 6.91 $ 3.16 $ 4.08 $ 7.80 $ 6.84 $ 3.13
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .81%, 1.55%, 1.36% and .62% for Classes A, B, C and R,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
Annual Report Page 15
Fund Spotlight as of 5/31/05 Nuveen Michigan Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------------
NAV $11.89 $11.92 $11.88 $11.89
--------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0415 $0.0340 $0.0360 $0.0435
--------------------------------------------------------------------
Latest Capital Gain and Ordinary
Income Distribution/2/ $0.0059 $0.0059 $0.0059 $0.0059
--------------------------------------------------------------------
Inception Date 6/27/85 2/03/97 6/22/93 2/03/97
--------------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
results. 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 and C share returns are actual. Class B 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 Class B) 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 for redemptions begins at 5% and declines periodically until after
6 years when the charge becomes 0%. 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. Class R shares have no sales charge and may be purchased under
limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05
A Shares NAV Offer
---------------------------------------------
1-Year 8.48% 3.95%
---------------------------------------------
5-Year 7.27% 6.36%
---------------------------------------------
10-Year 5.64% 5.18%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 7.73% 3.73%
---------------------------------------------
5-Year 6.47% 6.31%
---------------------------------------------
10-Year 5.05% 5.05%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 7.98%
---------------------------------------------
5-Year 6.68%
---------------------------------------------
10-Year 5.06%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 8.70%
---------------------------------------------
5-Year 7.48%
---------------------------------------------
10-Year 5.81%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/3/ 4.19% 4.01%
---------------------------------------------
SEC 30-Day Yield/4/ 3.37% 3.23%
---------------------------------------------
Taxable-Equivalent Yield/4,5/ 4.88% 4.68%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.42%
---------------------------------------------
SEC 30-Day Yield 2.62%
---------------------------------------------
Taxable-Equivalent Yield/5/ 3.80%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.64%
---------------------------------------------
SEC 30-Day Yield 2.82%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.09%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/3/ 4.39%
---------------------------------------------
SEC 30-Day Yield 3.57%
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.17%
---------------------------------------------
Average Annual Total Returns as of 6/30/05
A Shares NAV Offer
------------------------------------------
1-Year 8.91% 4.35%
------------------------------------------
5-Year 6.87% 5.96%
------------------------------------------
10-Year 5.83% 5.38%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 7.97% 3.97%
------------------------------------------
5-Year 6.06% 5.90%
------------------------------------------
10-Year 5.25% 5.25%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 8.31%
------------------------------------------
5-Year 6.28%
------------------------------------------
10-Year 5.25%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 9.03%
------------------------------------------
5-Year 7.08%
------------------------------------------
10-Year 6.00%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $252,300
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.35
---------------------------------------------------------
Average Duration 5.63
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2005.
2Paid December 3, 2004. Capital gains and/or ordinary income are subject to
federal taxation.
3Dividend Yield is the most recent dividend per share (annualized) divided by
the appropriate price per share. The SEC 30-Day Yield is a standardized
measure of the current market yield on the Fund's portfolio and is based on
the maximum offer price per share. The Dividend Yield also differs from the
SEC 30-Day Yield because the Fund may be paying out more or less than it is
earning and it may not include the effect of amortization of bond premium.
4The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies
only to A Shares purchased at no-load pursuant to the Fund's policy permitting
waiver of the A Share load in certain specified circumstances.
5The 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 at a specified tax rate. 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%.
Annual Report Page 16
Fund Spotlight as of 5/31/05 Nuveen Michigan Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 73.9%
AA 10.3%
A 5.2%
BBB 5.6%
BB or Lower 3.1%
NR 1.9%
Sectors/1/
Tax Obligation/General 32.2%
----------------------------
U.S. Guaranteed 17.7%
----------------------------
Tax Obligation/Limited 15.5%
----------------------------
Healthcare 11.0%
----------------------------
Water and Sewer 7.5%
----------------------------
Utilities 4.3%
----------------------------
Other 11.8%
----------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to
change.
- --------------------------------------------------------------------------------
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including front and back end sales charges (loads) or redemption fees,
where applicable; and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees, where applicable; and other Fund
expenses. This Example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example below is based on an investment of $1,000 invested at the beginning
of the period and held for the period.
The information under "Actual Performance," together with the amount you
invested, allows you to estimate actual expenses incurred over the reporting
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60) and multiply the result by the cost
shown for your share class, in the row entitled "Expenses Incurred During
Period" to estimate the expenses incurred on your account during this period.
The information under "Hypothetical Performance," provides information about
hypothetical account values and hypothetical expenses based on the Fund's
actual expense ratio and an assumed rate of return of 5% per year before
expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expense you incurred for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other Funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front
and back end sales charges (loads) or redemption fees, where applicable.
Therefore, the hypothetical information is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds or share classes. In addition, if these transactional costs
were included, your costs would have been higher.
Hypothetical Performance
Actual Performance (5% annualized return before expenses)
--------------------------------------- ---------------------------------------
A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares
- ------------------------------------------------------------------------------------------------------------------
Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
- ------------------------------------------------------------------------------------------------------------------
Ending Account Value (5/31/05) $1,040.20 $1,037.00 $1,037.30 $1,041.20 $1,020.64 $1,017.00 $1,017.95 $1,021.64
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.37 $ 8.07 $ 7.11 $ 3.36 $ 4.33 $ 8.00 $ 7.04 $ 3.33
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .86%, 1.59%, 1.40% and .66% for Classes A, B, C and R,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
Annual Report Page 17
Fund Spotlight as of 5/31/05 Nuveen Missouri Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $11.25 $11.26 $11.24 $11.26
--------------------------------------------------------------
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 quoted represent past performance which is no guarantee of future
results. 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 and C share returns are actual. Class B 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 Class B) 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 for redemptions begins at 5% and declines periodically until after
6 years when the charge becomes 0%. 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. Class R shares have no sales charge and may be purchased under
limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05
A Shares NAV Offer
---------------------------------------------
1-Year 8.97% 4.42%
---------------------------------------------
5-Year 7.01% 6.09%
---------------------------------------------
10-Year 5.61% 5.15%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 8.15% 4.15%
---------------------------------------------
5-Year 6.22% 6.06%
---------------------------------------------
10-Year 5.01% 5.01%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 8.39%
---------------------------------------------
5-Year 6.43%
---------------------------------------------
10-Year 5.02%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 9.20%
---------------------------------------------
5-Year 7.22%
---------------------------------------------
10-Year 5.78%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/2/ 4.27% 4.09%
---------------------------------------------
SEC 30-Day Yield/3/ 3.67% 3.52%
---------------------------------------------
Taxable-Equivalent Yield/3,4/ 5.44% 5.21%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.52%
---------------------------------------------
SEC 30-Day Yield 2.92%
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.33%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.74%
---------------------------------------------
SEC 30-Day Yield 3.12%
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.62%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/2/ 4.48%
---------------------------------------------
SEC 30-Day Yield 3.87%
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.73%
---------------------------------------------
Average Annual Total Returns as of 6/30/05
A Shares NAV Offer
------------------------------------------
1-Year 9.05% 4.50%
------------------------------------------
5-Year 6.68% 5.77%
------------------------------------------
10-Year 5.78% 5.33%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 8.32% 4.32%
------------------------------------------
5-Year 5.91% 5.75%
------------------------------------------
10-Year 5.19% 5.19%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 8.47%
------------------------------------------
5-Year 6.10%
------------------------------------------
10-Year 5.21%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 9.27%
------------------------------------------
5-Year 6.88%
------------------------------------------
10-Year 5.96%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $261,883
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.65
---------------------------------------------------------
Average Duration 5.68
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2005.
2Dividend Yield is the most recent dividend per share (annualized) divided by
the appropriate price per share. The SEC 30-Day Yield is a standardized
measure of the current market yield on the Fund's portfolio and is based on
the maximum offer price per share. The Dividend Yield also differs from the
SEC 30-Day Yield because the Fund may be paying out more or less than it is
earning and it may not include the effect of amortization of bond premium.
3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies
only to A Shares purchased at no-load pursuant to the Fund's policy permitting
waiver of the A Share load in certain specified circumstances.
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 at a specified tax rate. 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%.
Annual Report Page 18
Fund Spotlight as of 5/31/05 Nuveen Missouri Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 58.2%
AA 12.0%
A 5.9%
BBB 7.8%
NR 16.1%
Sectors/1/
Tax Obligation/Limited 19.0%
---------------------------------------
Tax Obligation/General 14.5%
---------------------------------------
Long-Term Care 10.6%
---------------------------------------
Healthcare 9.7%
---------------------------------------
Education and Civic Organizations 8.4%
---------------------------------------
Housing/Multifamily 8.3%
---------------------------------------
Transportation 7.0%
---------------------------------------
Water and Sewer 5.5%
---------------------------------------
Utilities 5.1%
---------------------------------------
Other 11.9%
---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to
change.
- --------------------------------------------------------------------------------
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including front and back end sales charges (loads) or redemption fees,
where applicable; and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees, where applicable; and other Fund
expenses. This Example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example below is based on an investment of $1,000 invested at the beginning
of the period and held for the period.
The information under "Actual Performance," together with the amount you
invested, allows you to estimate actual expenses incurred over the reporting
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60) and multiply the result by the cost
shown for your share class, in the row entitled "Expenses Incurred During
Period" to estimate the expenses incurred on your account during this period.
The information under "Hypothetical Performance," provides information about
hypothetical account values and hypothetical expenses based on the Fund's
actual expense ratio and an assumed rate of return of 5% per year before
expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expense you incurred for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other Funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front
and back end sales charges (loads) or redemption fees, where applicable.
Therefore, the hypothetical information is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds or share classes. In addition, if these transactional costs
were included, your costs would have been higher.
Hypothetical Performance
Actual Performance (5% annualized return before expenses)
--------------------------------------- ---------------------------------------
A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares
- ------------------------------------------------------------------------------------------------------------------
Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
- ------------------------------------------------------------------------------------------------------------------
Ending Account Value (5/31/05) $1,044.00 $1,040.00 $1,040.30 $1,044.10 $1,020.79 $1,017.10 $1,018.10 $1,021.79
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.23 $ 7.99 $ 6.97 $ 3.21 $ 4.18 $ 7.90 $ 6.89 $ 3.18
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .83%, 1.57%, 1.37% and .63% for Classes A, B, C and R,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
Annual Report Page 19
Fund Spotlight as of 5/31/05 Nuveen Ohio Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $11.65 $11.64 $11.63 $11.64
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0410 $0.0340 $0.0360 $0.0430
--------------------------------------------------------------
Inception Date 6/27/85 2/03/97 8/03/93 2/03/97
--------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
results. 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 and C share returns are actual. Class B 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 Class B) 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 for redemptions begins at 5% and declines periodically until after
6 years when the charge becomes 0%. 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. Class R shares have no sales charge and may be purchased under
limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05
A Shares NAV Offer
---------------------------------------------
1-Year 9.00% 4.42%
---------------------------------------------
5-Year 6.85% 5.93%
---------------------------------------------
10-Year 5.42% 4.97%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 8.22% 4.22%
---------------------------------------------
5-Year 6.05% 5.90%
---------------------------------------------
10-Year 4.83% 4.83%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 8.45%
---------------------------------------------
5-Year 6.27%
---------------------------------------------
10-Year 4.85%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 9.24%
---------------------------------------------
5-Year 7.06%
---------------------------------------------
10-Year 5.60%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/2/ 4.22% 4.05%
---------------------------------------------
SEC 30-Day Yield/3/ 3.29% 3.15%
---------------------------------------------
Taxable-Equivalent Yield/3,4/ 4.91% 4.70%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.51%
---------------------------------------------
SEC 30-Day Yield 2.54%
---------------------------------------------
Taxable-Equivalent Yield/4/ 3.79%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.71%
---------------------------------------------
SEC 30-Day Yield 2.74%
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.09%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/2/ 4.43%
---------------------------------------------
SEC 30-Day Yield 3.48%
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.19%
---------------------------------------------
Average Annual Total Returns as of 6/30/05
A Shares NAV Offer
------------------------------------------
1-Year 9.15% 4.56%
------------------------------------------
5-Year 6.49% 5.58%
------------------------------------------
10-Year 5.58% 5.13%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 8.37% 4.37%
------------------------------------------
5-Year 5.70% 5.54%
------------------------------------------
10-Year 4.98% 4.98%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 8.51%
------------------------------------------
5-Year 5.90%
------------------------------------------
10-Year 5.01%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 9.29%
------------------------------------------
5-Year 6.70%
------------------------------------------
10-Year 5.75%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $568,958
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.31
---------------------------------------------------------
Average Duration 5.77
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2005.
2Dividend Yield is the most recent dividend per share (annualized) divided by
the appropriate price per share. The SEC 30-Day Yield is a standardized
measure of the current market yield on the Fund's portfolio and is based on
the maximum offer price per share. The Dividend Yield also differs from the
SEC 30-Day Yield because the Fund may be paying out more or less than it is
earning and it may not include the effect of amortization of bond premium.
3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies
only to A Shares purchased at no-load pursuant to the Fund's policy permitting
waiver of the A Share load in certain specified circumstances.
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 at a specified tax rate. 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%.
Annual Report Page 20
Fund Spotlight as of 5/31/05 Nuveen Ohio Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 65.0%
AA 18.8%
A 5.7%
BBB 7.7%
BB or Lower 0.2%
NR 2.6%
Sectors/1/
Tax Obligation/General 24.2%
---------------------------------------
Healthcare 16.9%
---------------------------------------
U.S. Guaranteed 12.6%
---------------------------------------
Tax Obligation/Limited 11.6%
---------------------------------------
Utilities 7.7%
---------------------------------------
Education and Civic Organizations 7.1%
---------------------------------------
Water and Sewer 5.0%
---------------------------------------
Transportation 4.4%
---------------------------------------
Other 10.5%
---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to
change.
- --------------------------------------------------------------------------------
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including front and back end sales charges (loads) or redemption fees,
where applicable; and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees, where applicable; and other Fund
expenses. This Example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example below is based on an investment of $1,000 invested at the beginning
of the period and held for the period.
The information under "Actual Performance," together with the amount you
invested, allows you to estimate actual expenses incurred over the reporting
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60) and multiply the result by the cost
shown for your share class, in the row entitled "Expenses Incurred During
Period" to estimate the expenses incurred on your account during this period.
The information under "Hypothetical Performance," provides information about
hypothetical account values and hypothetical expenses based on the Fund's
actual expense ratio and an assumed rate of return of 5% per year before
expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expense you incurred for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other Funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front
and back end sales charges (loads) or redemption fees, where applicable.
Therefore, the hypothetical information is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds or share classes. In addition, if these transactional costs
were included, your costs would have been higher.
Hypothetical Performance
Actual Performance (5% annualized return before expenses)
--------------------------------------- ---------------------------------------
A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares
- ------------------------------------------------------------------------------------------------------------------
Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
- ------------------------------------------------------------------------------------------------------------------
Ending Account Value (5/31/05) $1,040.50 $1,036.80 $1,037.90 $1,041.70 $1,020.79 $1,017.10 $1,018.10 $1,021.79
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.22 $ 7.97 $ 6.96 $ 3.21 $ 4.18 $ 7.90 $ 6.89 $ 3.18
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .83%, 1.57%, 1.37% and .63% for Classes A, B, C and R,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
Annual Report Page 21
Fund Spotlight as of 5/31/05 Nuveen Wisconsin Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.54 $10.57 $10.57 $10.59
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0345 $0.0280 $0.0300 $0.0365
--------------------------------------------------------------
Inception Date 6/01/94 2/25/97 2/25/97 2/25/97
--------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
results. 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 for redemptions begins at 5% and declines periodically until after
6 years when the charge becomes 0%. 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. Class R shares have no sales charge and may be purchased under
limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05
A Shares NAV Offer
---------------------------------------------
1-Year 7.94% 3.36%
---------------------------------------------
5-Year 7.13% 6.21%
---------------------------------------------
10-Year 5.46% 5.01%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 7.25% 3.25%
---------------------------------------------
5-Year 6.36% 6.20%
---------------------------------------------
10-Year 4.89% 4.89%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 7.47%
---------------------------------------------
5-Year 6.58%
---------------------------------------------
10-Year 4.96%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 8.25%
---------------------------------------------
5-Year 7.36%
---------------------------------------------
10-Year 5.68%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/2/ 3.93% 3.76%
---------------------------------------------
SEC 30-Day Yield/3/ 3.27% 3.13%
---------------------------------------------
Taxable-Equivalent Yield/3,4/ 4.88% 4.67%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.18%
---------------------------------------------
SEC 30-Day Yield 2.52%
---------------------------------------------
Taxable-Equivalent Yield/4/ 3.76%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.41%
---------------------------------------------
SEC 30-Day Yield 2.72%
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.06%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/2/ 4.14%
---------------------------------------------
SEC 30-Day Yield 3.46%
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.16%
---------------------------------------------
Average Annual Total Returns as of 6/30/05
A Shares NAV Offer
------------------------------------------
1-Year 8.02% 3.44%
------------------------------------------
5-Year 6.57% 5.65%
------------------------------------------
10-Year 5.67% 5.22%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 7.23% 3.23%
------------------------------------------
5-Year 5.78% 5.62%
------------------------------------------
10-Year 5.11% 5.11%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 7.55%
------------------------------------------
5-Year 6.02%
------------------------------------------
10-Year 5.16%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 8.34%
------------------------------------------
5-Year 6.82%
------------------------------------------
10-Year 5.89%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $45,784
--------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.29
--------------------------------------------------------
Average Duration 5.61
--------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2005.
2Dividend Yield is the most recent dividend per share (annualized) divided by
the appropriate price per share. The SEC 30-Day Yield is a standardized
measure of the current market yield on the Fund's portfolio and is based on
the maximum offer price per share. The Dividend Yield also differs from the
SEC 30-Day Yield because the Fund may be paying out more or less than it is
earning and it may not include the effect of amortization of bond premium.
3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies
only to A Shares purchased at no-load pursuant to the Fund's policy permitting
waiver of the A Share load in certain specified circumstances.
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 at a specified tax rate. 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%.
Annual Report Page 22
Fund Spotlight as of 5/31/05 Nuveen Wisconsin Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 50.6%
AA 13.9%
A 14.2%
BBB 5.1%
BB or Lower 0.6%
NR 15.6%
Sectors/1/
Tax Obligation/Limited 65.7%
---------------------------------------
U.S. Guaranteed 12.6%
---------------------------------------
Housing/Multifamily 10.0%
---------------------------------------
Education and Civic Organizations 5.9%
---------------------------------------
Other 5.8%
---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to
change.
- --------------------------------------------------------------------------------
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including front and back end sales charges (loads) or redemption fees,
where applicable; and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees, where applicable; and other Fund
expenses. This Example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example below is based on an investment of $1,000 invested at the beginning
of the period and held for the period.
The information under "Actual Performance," together with the amount you
invested, allows you to estimate actual expenses incurred over the reporting
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60) and multiply the result by the cost
shown for your share class, in the row entitled "Expenses Incurred During
Period" to estimate the expenses incurred on your account during this period.
The information under "Hypothetical Performance," provides information about
hypothetical account values and hypothetical expenses based on the Fund's
actual expense ratio and an assumed rate of return of 5% per year before
expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expense you incurred for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other Funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front
and back end sales charges (loads) or redemption fees, where applicable.
Therefore, the hypothetical information is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds or share classes. In addition, if these transactional costs
were included, your costs would have been higher.
Hypothetical Performance
Actual Performance (5% annualized return before expenses)
--------------------------------------- ---------------------------------------
A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares
- ------------------------------------------------------------------------------------------------------------------
Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
- ------------------------------------------------------------------------------------------------------------------
Ending Account Value (5/31/05) $1,037.60 $1,034.70 $1,034.90 $1,038.60 $1,020.39 $1,016.75 $1,017.70 $1,021.39
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.62 $ 8.32 $ 7.36 $ 3.61 $ 4.58 $ 8.25 $ 7.29 $ 3.58
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .91%, 1.64%, 1.45% and .71% for Classes A, B, C and R,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
Annual Report Page 23
Portfolio of Investments
NUVEEN KANSAS MUNICIPAL BOND FUND
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 4.2%
$ 1,000 Kansas Development Finance Authority, Athletic Facility 6/14 at 100.00 A1 $ 1,067,940
Revenue Bonds, University of Kansas Athletic Corporation
Project, Series 2004K, 5.000%, 6/01/19
1,480 Kansas Development Finance Authority, Board of Regents, 4/15 at 100.00 AAA 1,601,153
Revenue Bonds, Kansas State University Housing System,
Series 2005A, 5.000%, 4/01/22 - MBIA Insured
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 1,561,710
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System, Series 1999, 5.375%, 2/01/19
955 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 1,037,092
Series 2001A, 5.500%, 7/01/16 - AMBAC Insured
270 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 293,209
Series 2001B, 5.500%, 7/01/16 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------
Healthcare - 17.7%
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 1,070,255
1,050 5.000%, 8/01/19 - AMBAC Insured 8/12 at 100.00 AAA 1,114,134
1,000 5.000%, 8/01/20 - AMBAC Insured 8/12 at 100.00 AAA 1,059,800
2,000 Colby, Kansas, Health Facilities Revenue Refunding Bonds, 8/08 at 100.00 N/R 1,978,380
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 1,397,258
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 5,178,469
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 1,188,732
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 1,099,692
1,075 5.000%, 8/15/15 - FSA Insured 8/11 at 100.00 AAA 1,147,186
Newton, Kansas, Hospital Revenue Refunding Bonds, Newton
Healthcare Corporation, Series 1998A:
1,000 5.700%, 11/15/18 11/08 at 100.00 BBB- 1,032,880
1,750 5.750%, 11/15/24 11/08 at 100.00 BBB- 1,796,988
100 Puerto Rico Industrial, Tourist, Educational, Medical and 7/05 at 102.00 AAA 101,478
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+ 5,251,834
Improvement Bonds, Via Christi Health System Inc., Series
1999-XI, 6.250%, 11/15/24
- --------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.8%
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 1,603,410
2,000 6.800%, 4/01/24 - RAAI Insured 4/09 at 102.00 AA 2,145,480
- --------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.1%
355 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 361,131
Securities Program Single Family Revenue Bonds, Series
1997A-1, 6.950%, 6/01/29 (Alternative Minimum Tax)
1,075 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 6/08 at 105.00 Aaa 1,111,722
Securities Program Single Family Revenue Bonds, Series
1998A-1, 6.500%, 12/01/22 (Alternative Minimum Tax)
440 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 12/09 at 105.00 Aaa 464,939
Securities Program Single Family Revenue Bonds, Series
2000A-2, 7.600%, 12/01/31 (Alternative Minimum Tax) - MBIA
Insured
260 Sedgwick and Shawnee Counties, Kansas, FNMA/GNMA 12/10 at 105.00 Aaa 268,239
Mortgage-Backed Securities Program Single Family Revenue
Bonds, Series 2001A, 6.300%, 12/01/32 (Alternative Minimum
Tax)
3,135 Sedgwick and Shawnee Counties, Kansas, FNMA/GNMA 12/12 at 105.00 Aaa 3,272,470
Mortgage-Backed Securities Program Single Family Revenue
Bonds, Series 2002B-1, 5.950%, 12/01/33 (Alternative
Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------
Industrials - 1.6%
1,000 Wichita Airport Authority, Kansas, Special Facilities 6/12 at 101.00 A- 1,071,350
Revenue Bonds, Cessna Citation Service Center, Series
2002A, 6.250%, 6/15/32 (Alternative Minimum Tax)
- ----
24
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Industrials (continued)
$ 1,000 Wichita, Kansas, Industrial Revenue Bonds, NMF America Inc. 8/07 at 101.00 AA- $ 1,041,610
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 526,100
Bonds, Catholic Care Center Inc., Series 2001, 5.750%,
11/15/23
- --------------------------------------------------------------------------------------------------------------------
Materials - 2.9%
3,700 Ford County, Kansas, Sewage and Solid Waste Disposal 6/08 at 102.00 A+ 3,879,524
Revenue Bonds, Excel Corporation/Cargill Inc. Project,
Series 1998, 5.400%, 6/01/28 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 18.3%
2,500 Butler and Sedgwick Counties Unified School District 385, No Opt. Call AAA 3,023,775
Andover, Kansas, General Obligation Refunding and
Improvement Bonds, Series 2000, 6.000%, 9/01/16 - FSA
Insured
2,615 Butler County Unified School District 394, Kansas, General 9/14 at 100.00 AAA 2,818,525
Obligation Bonds, Series 2004, 5.000%, 9/01/23 - FSA
Insured
1,170 Butler County Unified School District 490, Kansas, General 9/15 at 100.00 AAA 1,254,802
Obligation Bonds, Series 2005B, 5.000%, 9/01/25 - FSA
Insured
1,675 Cowley County Unified School District 465, Winfield, 10/13 at 100.00 AAA 1,855,833
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 817,523
5.250%, 12/01/21 - AMBAC Insured
560 Derby, Kansas, General Obligation Bonds, Series 2002B, 12/10 at 100.00 Aaa 605,332
5.000%, 12/01/18 - FSA Insured
650 Harvey County Unified School District 460, Hesston, Kansas, 9/12 at 100.00 AAA 693,050
General Obligation Bonds, Series 2002, 5.000%, 9/01/22 -
FGIC Insured
1,450 Leavenworth County Unified School District 464, Tonganoxie, 9/15 at 100.00 AAA 1,558,852
Kansas, General Obligation Bonds, Series 2005A, 5.000%,
9/01/26 - MBIA Insured
1,020 Miami County Unified School District 367, Osawatomie, 9/15 at 100.00 AAA 1,116,247
Kansas, General Obligation Bonds, Series 2005A, 5.000%,
9/01/20 - FSA Insured
1,100 Montgomery County Unified School District 445, Coffeyville, 4/12 at 100.00 AAA 1,169,201
Kansas, General Obligation Bonds, Series 2002, 5.000%,
4/01/22 - FGIC Insured
Puerto Rico, General Obligation and Public Improvement
Bonds, Series 2001A:
1,000 5.500%, 7/01/20 - MBIA Insured No Opt. Call AAA 1,191,860
330 5.375%, 7/01/28 7/11 at 100.00 BBB 355,568
1,070 Scott County Unified School District 466, Kansas, General 9/12 at 100.00 AAA 1,183,516
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 1,216,438
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 1,912,770
5.000%, 4/01/17
3,000 Wyandotte County Unified School District 500, Kansas, 9/12 at 100.00 AAA 3,325,920
General Obligation Bonds, Series 2002, 5.000%, 9/01/20
(Pre-refunded to 9/01/12) - FSA Insured
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 25.0%
3,000 Butler County Public Building Commission, Kansas, 10/10 at 100.00 Aaa 3,302,820
Improvement Revenue Bonds, Public Facilities Projects,
Series 2000, 5.550%, 10/01/21 - MBIA Insured
Kansas Department of Transportation, Highway Revenue Bonds,
Series 2004A:
1,000 5.000%, 3/01/20 3/14 at 100.00 AA+ 1,083,530
5,000 5.000%, 3/01/23 3/14 at 100.00 AA+ 5,375,350
500 Kansas Development Finance Authority, Lease Revenue Bonds, 10/12 at 100.00 AAA 533,445
Department of Administration, State Capitol Restoration
Parking Facility Project, Series 2002C, 5.000%, 10/01/21 -
FSA Insured
1,140 Kansas Development Finance Authority, Lease Revenue Bonds, 4/14 at 100.00 AAA 1,242,292
Department of Administration, State Capitol Restoration
Project, Series 2004G-1, 5.125%, 4/01/21 - MBIA Insured
1,000 Kansas Development Finance Authority, Revenue Bonds, State 10/11 at 100.00 AAA 1,081,840
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 2,308,429
Projects, Series 2002N, 5.250%, 10/01/18 - AMBAC Insured
- ----
25
Portfolio of Investments
NUVEEN KANSAS MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 5,000 Kansas Development Finance Authority, Board of Regents, 4/13 at 102.00 AAA $ 5,380,150
Revenue Bonds, 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 2,574,533
Projects, Series 2003J, 5.250%, 8/01/20 - AMBAC Insured
1,800 Overland Park Development Corporation, Kansas, First Tier 1/11 at 101.00 N/R 1,974,816
Revenue Bonds, Overland Park Convention Center, Series
2001A, 7.375%, 1/01/32
Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Bonds, Series 2002E:
3,135 6.000%, 8/01/26 - AGC Insured No Opt. Call AAA 3,995,620
630 5.500%, 8/01/29 2/12 at 100.00 BBB- 677,534
1,000 Virgin Islands Public Finance Authority, Senior Lien 10/08 at 101.00 BBB 1,048,880
Revenue Refunding Bonds, Matching Fund Loan Note, Series
1998A, 5.625%, 10/01/25
2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,284,080
Taxes Loan Note, Series 1999A, 6.375%, 10/01/19
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed*** - 9.8%
2,000 Augusta, Kansas, Waterworks System Revenue Bonds, Series 10/08 at 101.50 AA*** 2,229,220
2000A, 6.150%, 10/01/20 (Pre-refunded to 10/01/08) - RAAI
Insured
12,175 Johnson County, Kansas, Residual Revenue and Refunding No Opt. Call Aaa 9,501,492
Bonds, Series 1992, 0.000%, 5/01/12
1,010 Wichita, Kansas, Revenue Bonds, CSJ Health System of 11/05 at 100.00 A+*** 1,190,719
Wichita, Inc., Series 1985-XXV, 7.200%, 10/01/15
- --------------------------------------------------------------------------------------------------------------------
Utilities - 4.5%
1,000 Burlington, Kansas, Environmental Improvement Revenue No Opt. Call A3 1,029,340
Bonds, Kansas City Power and Light Company Project, Series
1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07)
500 Pratt, Kansas, Electric System Revenue Bonds, Series 5/10 at 100.00 AAA 540,955
2001-1, 5.250%, 5/01/18 - AMBAC Insured
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,071,550
Series 2005RR, 5.000%, 7/01/30 - XLCA 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 364,999
785 5.250%, 11/01/27 - AMBAC Insured 11/12 at 100.00 AAA 855,297
1,000 Wyandotte County-Kansas City Unified Government, Kansas, 9/14 at 100.00 AAA 1,075,420
Utility System Revenue Bonds, Series 2004B, 5.000%,
9/01/24 - FSA Insured
1,000 Wynadotte County-Kansas City Unified Government, Kansas, 5/11 at 100.00 AAA 1,064,110
Industrial Revenue Bonds, Board of Public Utilities Office
Building Complex, Series 2001, 5.000%, 5/01/21 - MBIA
Insured
- --------------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.2%
1,040 Chisholm Creek Utility Authority, Kansas, Water and 9/12 at 100.00 Aaa 1,138,862
Wastewater Facilities Revenue Bonds, Series 2002, 5.250%,
9/01/22 - MBIA Insured
2,300 Kansas Development Finance Authority, Water Pollution 11/12 at 100.00 AAA 2,455,411
Control Revolving Fund Leveraged Bonds, Series 2002-II,
5.000%, 11/01/23
5,500 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/13 at 100.00 AAA 5,953,912
Series 2003, 5.000%, 10/01/22 - FGIC Insured
- --------------------------------------------------------------------------------------------------------------------
$123,155 Total Long-Term Investments (cost $121,375,388) - 98.5% 130,157,983
- --------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.5% 2,017,901
------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 132,175,884
------------------------------------------------------------------------------------------------------
* 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.
- ----
26
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.0%
$ 4,970 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 5,029,342
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- --------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 4.8%
1,000 Campbellsville, Kentucky, Revenue Bonds, Campbellsville 3/15 at 100.00 N/R 1,017,710
University, Series 2005, 5.700%, 3/01/34
8,960 Columbia, Kentucky, Educational Development Revenue Bonds, 4/11 at 101.00 BBB- 9,745,792
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 5,997,543
Bellarmine College Project, Series 1999, 5.250%, 5/01/29
1,500 Kentucky Economic Development Finance Authority, College 10/12 at 100.00 AAA 1,573,530
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 2,578,850
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System, Series 1999, 5.375%, 2/01/29
3,000 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 3,080,880
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, University of the Sacred
Heart, Series 2001, 5.250%, 9/01/31
- --------------------------------------------------------------------------------------------------------------------
Energy - 1.9%
9,000 Ashland, Kentucky, Sewerage and Solid Waste Revenue Bonds, 8/05 at 102.00 Baa2 9,432,000
Ashland Inc. Project, Series 1995, 7.125%, 2/01/22
(Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------
Healthcare - 11.5%
1,310 Christian County, Kentucky, Hospital Revenue Bonds, Jennie 7/06 at 102.00 A- 1,356,020
Stuart Medical Center, Series 1996A, 6.000%, 7/01/17
3,500 Christian County, Kentucky, Hospital Revenue Refunding 7/06 at 102.00 A- 3,632,440
Bonds, Jennie Stuart Medical Center, Series 1997A, 6.000%,
7/01/13
4,820 Clark County, Kentucky, Hospital Revenue Refunding and 3/07 at 102.00 BBB- 5,027,983
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 10,030,575
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., Series 1997:
500 5.500%, 10/01/07 No Opt. Call BB- 505,845
500 5.600%, 10/01/08 4/08 at 102.00 BB- 508,100
3,500 5.850%, 10/01/17 4/08 at 102.00 BB- 3,430,525
1,500 5.875%, 10/01/22 4/08 at 102.00 BB- 1,450,050
6,000 Kentucky Economic Development Finance Authority, Revenue 6/08 at 101.00 AA 6,148,560
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 1,057,410
1,000 5.250%, 9/01/24 9/11 at 100.00 AA 1,051,230
10,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 3,442,083
System Revenue Bonds, Norton Healthcare Inc., Series
2000B, 0.000%, 10/01/28 - MBIA Insured
1,665 McCracken County, Kentucky, Hospital Facilities Revenue 11/05 at 101.00 AAA 1,702,696
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- 17,573,985
System, Series 2002A, 5.625%, 11/15/30
- --------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 0.6%
3,325 Henderson, Kentucky, Senior Tax-Exempt Residential 5/09 at 102.00 N/R 3,119,050
Facilities Revenue Bonds, Pleasant Pointe Project, Series
1999A, 6.125%, 5/01/29
- ----
27
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.3%
$ 2,000 Kentucky Housing Corporation, Housing Revenue Bonds, Series 11/10 at 100.00 AAA $ 2,117,300
2000F, 5.850%, 7/01/20 (Alternative Minimum Tax)
595 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/09 at 101.00 AAA 610,887
1998F, 5.000%, 7/01/18 (Alternative Minimum Tax)
9,480 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 9,752,076
1999A, 5.200%, 1/01/31
1,580 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 1,622,439
1999B, 5.250%, 1/01/28 (Alternative Minimum Tax)
5,000 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/14 at 100.00 AAA 4,974,700
2004F, 3.900%, 7/01/31 (Alternative Minimum Tax)
2,500 Kentucky Housing Corporation, Housing Revenue Bonds, Series 7/14 at 100.00 AAA 2,485,450
2005H, 4.000%, 1/01/33 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.5%
4,840 Florence, Kentucky, Housing Facilities Revenue Bonds, 8/09 at 101.00 A 5,182,624
Bluegrass RHF Housing Inc., Series 1999, 6.375%, 8/15/29 -
ACA Insured
555 Jefferson County, Kentucky, First Mortgage Revenue Bonds, 11/05 at 101.00 BBB 565,539
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 1,813,950
3,500 5.500%, 11/15/30 5/08 at 102.00 BBB 3,521,875
Kentucky Economic Development Finance Authority, Mortgage
Revenue Bonds, South Central Nursing Homes Inc., Series
1997A:
2,000 6.000%, 1/01/27 (Mandatory put 7/01/20) - MBIA Insured 1/08 at 105.00 AAA 2,215,700
3,700 6.000%, 1/01/27 (Mandatory put 1/01/24) - MBIA Insured 1/08 at 105.00 AAA 4,099,045
- --------------------------------------------------------------------------------------------------------------------
Materials - 2.6%
2,370 Hancock County, Kentucky, Solid Waste Disposal Revenue 5/06 at 102.00 BBB 2,439,346
Bonds, Willamette Industries Inc. Project, Series 1996,
6.600%, 5/01/26 (Alternative Minimum Tax) (a)
1,000 Jefferson County, Kentucky, Pollution Control Revenue 7/05 at 102.00 AA- 1,027,490
Bonds, E.I. DuPont de Nemours and Company, Series 1982A,
6.300%, 7/01/12
4,240 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 5/06 at 102.00 N/R 4,395,142
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 2,118,160
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 2,908,069
Bonds, Westvaco Corporation, Series 1996, 6.375%, 4/01/26
(Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 3.3%
2,500 Jefferson County, Kentucky, General Obligation Refunding 5/09 at 100.00 AA 2,728,700
Bonds, Series 1999C, 6.150%, 5/15/16 (Alternative Minimum
Tax)
Louisville and Jefferson County Metropolitan Government,
Kentucky, General Obligation Bonds, Series 2004A-B:
1,195 5.000%, 11/01/16 - AMBAC Insured 11/14 at 100.00 AAA 1,320,045
1,000 5.000%, 11/01/17 - AMBAC Insured 11/14 at 100.00 AAA 1,099,620
1,175 Louisville, Kentucky, General Obligation Bonds, Series 11/11 at 101.00 AA 1,273,947
2001A, 5.000%, 11/01/21
3,000 Louisville, Kentucky, General Obligation Bonds, Series 10/12 at 100.00 AAA 3,196,740
2002A, 5.000%, 10/01/23 - FGIC Insured
4,400 Puerto Rico, Public Improvement Bonds, TICS/TOCS, Series No Opt. Call AAA 6,574,216
2001, 5.955%, 7/01/19 - FSA Insured (IF)
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 30.8%
1,305 Ballard County School District Finance Corporation, 6/14 at 100.00 Aaa 1,408,447
Kentucky, School Building Revenue Bonds, Series 2004,
5.000%, 6/01/21 - AMBAC Insured
1,875 Bell County Public Properties Corporation, Kentucky, First 3/11 at 102.00 AAA 2,115,038
Mortgage Revenue Bonds, Judicial Center Project, Series
2000, 5.850%, 9/01/28 - AMBAC Insured
- ----
28
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 1,465 Boone County, Kentucky, Public Properties Corporation, 9/12 at 101.00 Aa3 $ 1,606,856
First Mortgage Bonds, AOC Judicial Facility, Series 2001,
5.125%, 9/01/22
Boone County School District Finance Corporation, Kentucky,
School Building Revenue Bonds, Series 2004B:
1,460 5.000%, 5/01/20 - FSA Insured 5/14 at 100.00 Aaa 1,580,508
2,580 5.000%, 5/01/21 - FSA Insured 5/14 at 100.00 Aaa 2,782,865
Bowling Green, Kentucky, General Obligation and Special
Revenue Bonds, Series 2002B:
1,785 5.000%, 6/01/23 6/12 at 100.00 Aa2 1,897,526
1,230 5.000%, 6/01/24 6/12 at 100.00 Aa2 1,307,539
1,665 5.000%, 6/01/25 6/12 at 100.00 Aa2 1,774,157
Butler County School District Finance Corporation,
Kentucky, Revenue Bonds, School Buildings, Series 2004C:
1,220 5.000%, 6/01/20 6/14 at 100.00 Aa3 1,315,282
1,255 5.000%, 6/01/22 6/14 at 100.00 Aa3 1,345,159
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- 1,837,394
2,795 5.500%, 6/01/20 6/10 at 101.00 AA- 3,067,485
4,500 Kenton County Public Properties Corporation, Kentucky, 3/09 at 101.00 Aa3 4,635,675
First Mortgage Revenue Bonds, Courthouse Facilities
Project, Series 1998A, 5.000%, 3/01/29
Kenton County School District Finance Corporation,
Kentucky, School Building Revenue Bonds, Series 2004:
2,115 5.000%, 6/01/17 - MBIA Insured 6/14 at 100.00 Aaa 2,314,529
3,510 5.000%, 6/01/18 - MBIA Insured 6/14 at 100.00 Aaa 3,829,936
3,690 5.000%, 6/01/19 - MBIA Insured 6/14 at 100.00 Aaa 4,008,742
2,000 Kentucky Asset/Liability Commission, General Fund Revenue 5/15 at 100.00 AAA 2,141,180
Project Notes, First Series 2005, 5.000%, 5/01/25 (WI,
settling 6/08/05) - MBIA Insured
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 828,405
1,000 6.000%, 6/01/30 6/10 at 102.00 AA 1,116,620
2,365 Kentucky Local Correctional Facilities Authority, No Opt. Call AAA 2,672,639
Multi-County Lease Revenue Bonds, Series 2004,
5.250%, 11/01/14 - MBIA Insured
Kentucky State Property and Buildings Commission, Revenue
Bonds, Project 81, Series 2003:
1,000 5.000%, 11/01/19 - AMBAC Insured 11/13 at 100.00 AAA 1,089,480
3,740 5.000%, 11/01/21 - AMBAC Insured 11/13 at 100.00 AAA 4,056,105
2,845 5.000%, 11/01/23 - AMBAC Insured 11/13 at 100.00 AAA 3,070,580
4,000 Kentucky State Property and Buildings Commission, Revenue No Opt. Call AAA 4,486,840
Bonds, Project 84, Series 2005, 5.000%, 8/01/18 - MBIA
Insured
4,000 Kentucky Turnpike Authority, Economic Development Road 7/11 at 100.00 AAA 4,348,440
Revenue Refunding Bonds, Revitalization Project, Series
2001B, 5.150%, 7/01/19 - FSA Insured
6,935 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 7,568,790
Revenue Bonds, Revitalization Project, Series 2005B,
5.000%, 7/01/20 - AMBAC Insured
Letcher County School District Finance Corporation,
Kentucky, School Building Revenue Bonds, Series 2004:
1,430 5.000%, 6/01/18 - FSA Insured 6/14 at 100.00 Aaa 1,560,344
1,585 5.000%, 6/01/20 - FSA Insured 6/14 at 100.00 Aaa 1,716,888
11,000 Lexington-Fayette Urban County Government, Kentucky, First 7/08 at 102.00 AAA 11,694,320
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 1,882,535
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 723,281
Kentucky, School Building Revenue Bonds, Series 2000,
5.750%, 6/01/20
- ----
29
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 1,525 McCracken County Public Properties Corporation, Kentucky, 9/06 at 102.00 AAA $ 1,606,618
Public Project Revenue Bonds, Court Facilities, Series
1995, 5.900%, 9/01/26 - AMBAC Insured
5,100 Oldham County School District Finance Corporation, 4/11 at 101.00 Aa3 5,451,186
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 1,341,192
1,635 5.000%, 5/01/20 - MBIA Insured 5/14 at 100.00 Aaa 1,769,953
1,715 5.000%, 5/01/21 - MBIA Insured 5/14 at 100.00 Aaa 1,849,850
1,360 Owen County School District Finance Corporation, Kentucky, 4/11 at 101.00 Aa3 1,467,372
School Building Revenue Bonds, Series 2001, 5.000%, 4/01/21
Pendleton County, Kentucky, Leasing Trust Revenue Bonds,
Kentucky Association of Counties, Series 1993A:
16,460 6.500%, 3/01/19 9/05 at 100.00 A 16,494,237
500 6.400%, 3/01/19 No Opt. Call A 614,150
4,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 5,159,720
Transportation Authority, Reset Option Long Certificates
II-R-66, Series 1996Y, 7.953%, 1/01/13 - MBIA Insured (IF)
6,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 7,136,880
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
2,545 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,954,185
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 1,055,120
Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured
3,185 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 3,812,795
Government Facilities Revenue Bonds, Series 1993L, 5.500%,
7/01/21 - FSA Insured
2,755 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 3,511,303
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC
Insured
1,360 Shelby County School District Finance Corporation, 5/14 at 100.00 Aaa 1,466,937
Kentucky, Revenue Bonds, School Buildings, Series 2004,
5.000%, 5/01/21 - MBIA Insured
2,185 Spencer County School District Finance Corporation, 7/14 at 100.00 Aaa 2,362,946
Kentucky, Revenue Bonds, School Buildings, Series 2004,
5.000%, 7/01/21 - FSA Insured
1,010 Virgin Islands Public Finance Authority, Gross Receipts 10/14 at 100.00 AAA 1,125,382
Taxes Loan Note, Series 2003, 5.250%, 10/01/21 - FSA
Insured
7,000 Warren County Justice Center Expansion Corporation, 9/07 at 102.00 AAA 7,406,560
Kentucky, First Mortgage Revenue Bonds, AOC Judicial
Facility, Series 1997A, 5.250%, 9/01/24 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------
Transportation - 5.3%
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 5,353,000
2,195 5.000%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured 10/13 at 100.00 AAA 2,292,919
1,250 Kenton County Airport Board, Kentucky, Airport Revenue 3/06 at 102.00 AAA 1,298,850
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 5,303,678
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 5,107,850
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 1,068,120
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 6,008,100
Kentucky, Special Facilities Revenue Bonds, Airis
Louisville LLC Project, Series 1999A, 5.500%, 3/01/19
(Alternative Minimum Tax)
- ----
30
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed *** - 12.5%
$ 5,085 Campbellsville, Kentucky, Industrial Building Revenue 3/09 at 102.00 A+*** $ 5,618,061
Bonds, Campbellsville University Project, Series 1999,
5.500%, 3/01/29 (Pre-refunded to 3/01/09)
3,155 Florence Public Properties Corporation, Kentucky, First 6/07 at 102.00 AAA 3,373,799
Mortgage Revenue Bonds, Administrative Office Complex
Project, Series 1997, 5.500%, 6/01/27 (Pre-refunded to
6/01/07) - MBIA Insured
1,260 Floyd County Public Properties Corporation, Kentucky, First 3/06 at 102.00 N/R*** 1,309,921
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*** 3,707,620
Mortgage Revenue Bonds, Floyd County Justice Center
Project, Series 1996B, 6.200%, 9/01/26 (Pre-refunded to
3/01/06)
2,000 Jefferson County Collegiate Housing Foundation, Kentucky, 9/09 at 102.00 N/R*** 2,337,620
Student Housing Revenue Bonds, University of Louisville
Project, Series 1999A, 7.125%, 9/01/29 (Pre-refunded to
9/01/09)
420 Kentucky Infrastructure Authority, Governmental Agencies 8/05 at 102.00 AA*** 430,311
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 448,604
Fund Revenue Bonds, Project 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 550,725
Bonds, Project 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 72, Series 2001:
4,375 5.375%, 10/01/18 (Pre-refunded to 10/01/11) - MBIA Insured 10/11 at 100.00 AAA 4,915,094
5,860 5.375%, 10/01/19 (Pre-refunded to 10/01/11) - MBIA Insured 10/11 at 100.00 AAA 6,583,417
2,000 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,205,920
Refunding Bonds, Project 74, Series 2002, 5.000%, 2/01/21
(Pre-refunded to 2/01/12) - FSA Insured
Kentucky State Property and Buildings Commission, Revenue
Refunding Bonds, Project 79, Series 2003:
5,780 5.125%, 10/01/19 (Pre-refunded to 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 6,486,836
5,000 5.000%, 10/01/21 (Pre-refunded to 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 5,566,500
6,500 5.000%, 10/01/22 (Pre-refunded to 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 7,236,450
1,365 McCreary County School District Finance Corporation, 8/05 at 102.00 Aa3*** 1,398,538
Kentucky, School Building Revenue Bonds, Second Series
1995, 5.600%, 8/01/16 (Pre-refunded to 8/01/05)
1,310 Puerto Rico, General Obligation and Public Improvement 7/06 at 101.50 BBB*** 1,365,203
Bonds, Series 1996, 5.400%, 7/01/25 (Pre-refunded to
7/01/06)
2,000 Puerto Rico, General Obligation and Public Improvement 7/07 at 100.00 BBB*** 2,102,440
Refunding Bonds, Series 1997, 5.375%, 7/01/25
(Pre-refunded to 7/01/07)
2,600 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 2,911,922
Bonds, Series 2000, 5.750%, 7/01/26 (Pre-refunded to
7/01/10) - MBIA Insured
245 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 311,851
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC
Insured
2,800 Russell, Kentucky, Health System Revenue Bonds, Franciscan 1/10 at 100.00 Baa2*** 3,061,828
Health Partnership Inc. - Our Lady of Bellefonte Hospital,
Series 1997, 5.500%, 7/01/15 (Pre-refunded to 1/01/10)
- --------------------------------------------------------------------------------------------------------------------
Utilities - 8.6%
6,000 Boone County, Kentucky, Collateralized Pollution Control 7/05 at 101.00 AAA 6,076,380
Revenue Refunding Bonds, Cincinnati Gas and Electric
Company Project, Series 1994A, 5.500%, 1/01/24 - MBIA
Insured
Owensboro, Kentucky, Electric Light and Power System
Revenue Bonds, Series 1991B:
7,100 0.000%, 1/01/11 - AMBAC Insured No Opt. Call AAA 5,846,992
6,475 0.000%, 1/01/12 - AMBAC Insured No Opt. Call AAA 5,087,149
5,810 0.000%, 1/01/15 - AMBAC Insured No Opt. Call AAA 3,954,925
7,900 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 4,873,510
13,300 0.000%, 1/01/18 - AMBAC Insured No Opt. Call AAA 7,802,046
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 3,515,460
Series 2003NN, 5.250%, 7/01/23 - MBIA Insured
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 5,439,550
Series 2005RR, 5.000%, 7/01/24 - FGIC Insured
- ----
31
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Water and Sewer - 8.3%
$ 1,405 Christian County Water District, Kentucky, Waterworks 10/09 at 101.00 Aaa $ 1,565,507
Revenue Bonds, Series 1999, 6.000%, 1/01/30 - AMBAC Insured
Kentucky Infrastructure Authority, Governmental Agencies
Program Revenue Bonds, Series 1995G:
445 6.350%, 8/01/11 8/05 at 102.00 AA 456,165
825 6.375%, 8/01/14 8/05 at 102.00 AA 845,732
1,000 Kentucky Rural Water Finance Corporation, Multimodal Public 2/11 at 102.00 AA- 1,090,620
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 6,340,200
2,500 5.200%, 5/15/25 - MBIA Insured 11/07 at 101.00 AAA 2,622,450
3,200 Louisville and Jefferson County Metropolitan Sewer 5/08 at 101.00 AAA 3,345,952
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 17,727,520
District, Kentucky, Sewer and Drainage System Revenue
Bonds, Series 2001A, 5.500%, 5/15/34 - MBIA Insured
6,920 Northern Kentucky Water District, Revenue Refunding Bonds, 2/12 at 100.00 Aaa 7,269,391
Series 2002A, 5.000%, 2/01/27 - FGIC Insured
- --------------------------------------------------------------------------------------------------------------------
$479,365 Total Long-Term Investments (cost $460,357,650) - 99.0% 491,119,956
- --------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.0% 4,942,665
-------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 496,062,621
-------------------------------------------------------------------------------------------------------
* 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.
(a)The issuer has received a preliminary adverse determination from
the Internal Revenue Service (the "IRS") regarding the tax-exempt
status of the bonds' coupon payments. The Fund will continue to
treat coupon payments as tax-exempt income until such time that
it is formally determined that the interest on the bonds should
be treated as taxable.
(WI)Security purchased on a when-issued basis.
(IF)Inverse floating rate security.
See accompanying notes to financial statements.
- ----
32
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND
May 31, 2005
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 Baa3 $ 1,977,640
Pollution Control Revenue Refunding Bonds, General Motors
Corporation, Series 1995, 6.200%, 9/01/20
- -----------------------------------------------------------------------------------------------------------------------
Consumer Staples - 0.4%
915 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 925,925
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- -----------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 3.9%
Michigan Technological University, General Revenue Bonds,
Series 2004A:
1,230 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,323,874
1,850 5.000%, 10/01/29 - MBIA Insured 10/13 at 100.00 AAA 1,959,058
6,150 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 6,550,181
Series 1999, 5.125%, 11/15/29 - FGIC Insured
- -----------------------------------------------------------------------------------------------------------------------
Healthcare - 10.9%
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 999,950
1,000 5.375%, 7/01/28 7/08 at 101.00 Baa3 994,060
3,530 Lake View Community Hospital Authority, Michigan, Hospital 2/07 at 101.00 N/R 3,595,270
Revenue Refunding Bonds, Series 1997, 6.250%, 2/15/13
3,755 Michigan State Hospital Finance Authority, Revenue 8/05 at 100.00 BB- 3,757,704
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 3,272,850
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17
550 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call BBB 571,445
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- 1,028,440
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 1,509,913
Refunding Bonds, Chelsea Community Hospital, Series 1998,
5.375%, 5/15/19
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 3/12 at 101.00 A+ 1,076,730
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 2,367,860
Bonds, Henry Ford Health System, Series 1999A, 6.000%,
11/15/24
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 515,215
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
1,600 Pontiac Hospital Finance Authority, Michigan, Hospital 8/05 at 100.00 BB 1,513,632
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 3,090,870
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 1,058,810
2,000 5.250%, 11/15/35 - MBIA Insured 11/11 at 100.00 AAA 2,116,460
- -----------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.8%
1,190 Michigan Housing Development Authority, GNMA Collateralized 6/05 at 102.00 Aaa 1,215,299
Limited Obligation Multifamily Revenue Refunding Bonds,
Parc Point Apartments, Series 1995A, 6.500%, 10/01/15
6,000 Michigan Housing Development Authority, Section 8 Assisted No Opt. Call AA- 2,689,080
Mortgage Revenue Bonds, Series 1983I, 0.000%, 4/01/14
620 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 633,249
Revenue Bonds, Series 1995B, 6.150%, 10/01/15 - MBIA
Insured
- ----
33
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 0.1%
$ 180 Michigan Housing Development Authority, Single Family 6/12 at 100.00 AAA $ 187,906
Mortgage Revenue Bonds, Series 2002B, 5.500%, 6/01/30
(Alternative Minimum Tax) - MBIA Insured
- -----------------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.9%
2,500 Kalamazoo Economic Development Corporation, Michigan, 5/07 at 102.00 BB+ 2,504,750
Limited Obligation Revenue and Refunding Bonds, Friendship
Village of Kalamazoo, Series 1997A, 6.250%, 5/15/27
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 1,011,180
Presbyterian Villages of Michigan Obligated Group, Series
2005, 5.250%, 11/15/25
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 BBB+ 144,193
260 5.375%, 7/01/28 7/08 at 101.00 BBB+ 265,086
3,300 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 6/08 at 100.00 BBB- 3,311,880
Clark Retirement Community Inc., Series 1998, 5.250%,
6/01/18
- -----------------------------------------------------------------------------------------------------------------------
Materials - 0.7%
1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,781,395
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
- -----------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 31.8%
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA 1,115,710
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 1,272,819
2002, 5.000%, 10/01/21
1,625 Brighton Township Sanitary Sewer Drainage District, 4/09 at 100.00 AAA 1,736,638
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 1,121,000
Counties, Michigan, General Obligation Bonds, Series 2003,
5.250%, 5/01/22
Caledonia Community Schools, Kent, Allegan and Barry
Counties, Michigan, General Obligation Bonds, Series 2005:
1,000 5.000%, 5/01/25 - MBIA Insured 5/15 at 100.00 AAA 1,074,810
1,135 5.000%, 5/01/26 - MBIA Insured 5/15 at 100.00 AAA 1,217,038
1,195 Carman-Ainsworth Community School District, Genesee County, 5/12 at 100.00 AAA 1,334,827
Michigan, General Obligation Bonds, Series 2002, 5.500%,
5/01/19 - FGIC Insured
1,850 Chippewa Valley Schools, Macomb County, Michigan, General 5/15 at 100.00 AAA 1,994,652
Obligation Bonds, Series 2005, 5.000%, 5/01/24 - MBIA
Insured
1,800 Coopersville Area Public Schools, Ottawa and Muskegon 5/09 at 100.00 AAA 1,881,864
Counties, Michigan, Unlimited Tax General Obligation
School Building and Site Bonds, Series 1999, 5.000%,
5/01/29 - MBIA Insured
6,085 Detroit, Michigan, General Obligation Bonds, Series 4/14 at 100.00 AAA 6,700,680
2004A-1, 5.250%, 4/01/20 - AMBAC Insured
1,000 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 1,110,390
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 2,210,160
250 5.125%, 5/01/31 - FSA Insured 5/12 at 100.00 AAA 263,595
1,245 Edwardsburg Public School, Cass County, Michigan, General 5/14 at 100.00 AAA 1,334,179
Obligation Bonds, Series 2004, 5.000%, 5/01/24 - FSA
Insured
1,125 Ferndale Public School District, Oakland County, Michigan, No Opt. Call AAA 1,208,205
General Obligation Bonds, Series 2004, 5.000%, 5/01/23 -
FGIC Insured
Fitzgerald Public School District, Macomb County, Michigan,
General Obligation Bonds, Series 2004B:
2,125 5.000%, 5/01/18 - AMBAC Insured 11/14 at 100.00 AAA 2,326,089
1,125 5.000%, 5/01/19 - AMBAC Insured 11/14 at 100.00 AAA 1,225,879
2,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AA 2,087,780
General Obligation Refunding Bonds, Series 2001, 5.000%,
5/01/26
- ----
34
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 4,350 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA $ 4,558,496
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 1,045,490
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 2,150,540
Obligation Bonds, Series 2003, 5.000%, 5/01/24
1,000 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,075,510
Obligation School Building and Site Bonds, Series 2004,
5.000%, 5/01/22 - FSA Insured
1,030 Kent County, Michigan, General Obligation Bonds, Series 12/14 at 100.00 AAA 1,117,952
2004A, 5.000%, 12/01/22
1,300 Lansing Community College, Michigan, General Obligation 5/13 at 100.00 AAA 1,410,383
Bonds, Series 2003, 5.000%, 5/01/20 - MBIA Insured
1,000 Livonia Municipal Building Authority, Wayne County, 5/10 at 100.00 AAA 1,051,490
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 2,467,368
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 2,157,260
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA
Insured
2,800 Michigan Municipal Bond Authority, Local Government Loan No Opt. Call AAA 2,549,512
Program Revenue Bonds, Pontiac School District, Series
1991C, 0.000%, 6/15/08 - FSA Insured
3,250 Michigan, General Obligation Bonds, Environmental 5/13 at 100.00 AA 3,581,142
Protection Program, Series 2003A, 5.250%, 5/01/21
2,000 Muskegon Public Schools, Muskegon County, Michigan, General 5/14 at 100.00 AAA 2,165,080
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 1,265,747
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 608,670
1,020 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 590,254
3,000 Southgate Community School District, Wayne County, 5/09 at 100.00 AAA 3,099,420
Michigan, General Obligation Bonds, Series 1999, 5.000%,
5/01/25 - FGIC Insured
1,625 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,786,899
Michigan, General Obligation Bonds, Series 2004, 5.250%,
5/01/22 - MBIA Insured
1,170 Waverly Community Schools, Ingham County, Michigan, General 5/15 at 100.00 AAA 1,270,456
Obligation Bonds, Series 2005, 5.000%, 5/01/21 - FSA
Insured
3,270 West Ottawa Public School District, Ottawa County, No Opt. Call AAA 1,990,351
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 6,142,673
Tax General Obligation QSBLF Bonds, Series 1996, 5.500%,
5/01/25 - MBIA Insured
Zeeland Public Schools, Ottawa and Allegan Counties,
Michigan, General Obligation Bonds, Series 2005:
3,170 5.000%, 5/01/22 - FGIC Insured 5/15 at 100.00 AAA 3,431,335
3,350 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 3,600,613
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 15.3%
1,655 Detroit, Michigan, Building Authority Revenue Bonds, 2/07 at 101.00 A 1,698,791
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 11,531,960
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 2,419,971
3,295 0.000%, 6/01/18 - MBIA Insured No Opt. Call AAA 1,902,467
1,650 6.875%, 6/01/24 - MBIA Insured 6/05 at 101.00 AAA 1,671,896
- ----
35
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 250 Michigan Municipal Bond Authority, Wayne County, Local 6/05 at 100.00 AAA $ 250,380
Government Loan Program Revenue Bonds, Series 1991A,
4.750%, 12/01/09 - FGIC Insured
4,055 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 4,366,424
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/24
Michigan State Building Authority, Revenue Bonds,
Facilities Program, Series 2001I:
2,720 5.500%, 10/15/19 10/11 at 100.00 AA- 3,022,110
5,000 5.000%, 10/15/24 10/11 at 100.00 AA- 5,324,850
2,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 2,162,740
Facilities Program, Series 2003II, 5.000%, 10/15/22 - MBIA
Insured
1,500 Michigan, Certificates of Participation, Series 2000, 6/10 at 100.00 AAA 1,632,210
5.500%, 6/01/20 - AMBAC Insured
6,000 Michigan House of Representatives, Certificates of No Opt. Call AAA 2,630,940
Participation, Series 1998, 0.000%, 8/15/23 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------
Transportation - 1.2%
3,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 3,146,760
Metropolitan Airport, Series 1998B, 5.000%, 12/01/28 -
MBIA Insured
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed *** - 17.4%
185 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 196,448
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,818,800
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 8,088,730
Residual Option Long Series II-R-103, 8.430%, 7/01/20
(Pre-refunded to 1/01/10) (IF)
2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,244,420
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to
1/01/10) - FGIC Insured
1,000 Frankenmuth School District, Saginaw and Tuscola Counties, 5/10 at 100.00 AAA 1,114,400
Michigan, Unlimited Tax General Obligation School Building
and Site Bonds, Series 2000, 5.625%, 5/01/16 (Pre-refunded
to 5/01/10) - FGIC Insured
2,000 Jonesville Community Schools, Hillsdale and Jackson 5/09 at 100.00 AAA 2,200,820
Counties, Michigan, Unlimited Tax General Obligation
Building and Site Bonds, Series 1999, 5.750%, 5/01/29
(Pre-refunded to 5/01/09) - FGIC Insured
3,750 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 6/05 at 100.00 AA*** 4,015,538
Spectrum Health, Series 2001A, 5.500%, 1/15/31
(Pre-refunded to 6/02/05)
2,000 Macomb Township Building Authority, Macomb County, 4/08 at 101.00 AAA 2,184,960
Michigan, General Obligation Bonds, Series 2000, 6.000%,
4/01/27 (Pre-refunded to 4/01/08) - FGIC Insured
1,220 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,362,435
Development Inc., Series 2001, 5.375%,
9/01/21 (Pre-refunded to 9/01/11) - MBIA Insured
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 5,668,450
Bonds, Ascension Health Credit Group, Series 1999A,
6.125%, 11/15/26 (Pre-refunded to 11/15/09)
Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, Presbyterian Villages of Michigan Obligated Group,
Series 1997:
600 6.375%, 1/01/15 (Pre-refunded to 1/01/07) 1/07 at 102.00 N/R*** 642,078
500 6.375%, 1/01/25 (Pre-refunded to 1/01/07) 1/07 at 102.00 N/R*** 535,065
75 Michigan South Central Power Agency, Power Supply System No Opt. Call A3*** 85,912
Revenue Bonds, Series 2000, 6.000%, 5/01/12
2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,200,580
5.000%, 11/01/25 (Pre-refunded to 11/01/11) - FSA Insured
1,500 Portage Lake Water and Sewerage Authority, Houghton County, 10/05 at 102.00 AAA 1,546,785
Michigan, Limited Tax General Obligation Refunding Bonds,
Series 1995, 6.200%, 10/01/20 (Pre-refunded to 10/01/05) -
AMBAC Insured
1,215 Potterville Public Schools, Easton County, Michigan, 5/09 at 100.00 AAA 1,336,998
Unlimited Tax School Building and Site Bonds, Series 1999,
5.750%, 5/01/20 (Pre-refunded to 5/01/09) - FSA Insured
- ----
36
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed *** (continued)
$ 1,235 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA $ 1,383,274
Counties, Michigan, General Obligation Bonds, Series
2000I, 5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC
Insured
1,085 Romulus Tax Increment Finance Authority, Wayne County, 11/06 at 100.00 N/R*** 1,136,896
Michigan, Limited Obligation Development Revenue Bonds,
Series 1994, 6.750%, 11/01/19 (Pre-refunded to 11/01/06)
2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,723,950
General Obligation Bonds, Series 2000, 5.125%, 3/01/17
(Pre-refunded to 3/01/10) - AMBAC Insured
7,000 Vicksburg Community Schools, Kalamazoo and St. Joseph 5/06 at 37.24 AAA 2,539,740
Counties, Michigan, General Obligation Bonds, Series 1991,
0.000%, 5/01/20 (Pre-refunded to 5/01/06) - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------
Utilities - 4.2%
1,000 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,083,320
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 1,079,490
Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC
Insured
925 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 1,024,299
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,300 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 3,502,483
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 1,341,970
Collateralized Limited Obligation Revenue Refunding Bonds,
Detroit Edison Company, Series 1992AA, 6.950%, 9/01/22 -
FGIC Insured
4,000 Puerto Rico Electric Power Authority, Power Revenue No Opt. Call AAA 2,508,240
Refunding Bonds, Series 1989O, 0.000%, 7/01/17 - MBIA
Insured
- --------------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.4%
4,455 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, No Opt. Call AAA 2,430,203
Series 1999A, 0.000%, 7/01/19 - FGIC Insured
3,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/11 at 100.00 AAA 3,189,030
Revenue Bonds, Series 2001A, 5.125%, 7/01/31 - FGIC Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2001A:
2,500 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 2,602,900
3,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 3,305,310
5,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 5,355,850
Bonds, Series 2003A, 5.000%, 7/01/25 - MBIA Insured
1,625 Lansing, Michigan, Sewerage Disposal System Revenue Bonds, 5/14 at 100.00 AAA 1,752,774
Series 2003, 5.000%, 5/01/21 - FGIC Insured
- --------------------------------------------------------------------------------------------------------------------
$253,570 Total Long-Term Investments (cost $229,991,818) - 98.8% 249,246,508
- --------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.2% 3,053,970
-------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 252,300,478
-------------------------------------------------------------------------------------------------------
* 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.
- ----
37
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.8%
$ 3,225 St. Louis Industrial Development Authority, Missouri, No Opt. Call AAA $ 2,138,530
Senior Lien Revenue Bonds, St. Louis Convention Center
Headquarters Hotel, Series 2000A, 0.000%, 7/15/15 - AMBAC
Insured
- -------------------------------------------------------------------------------------------------------------------
Consumer Staples - 4.6%
3,000 Cape Girardeau County Industrial Development Authority, 5/08 at 101.00 AA- 3,097,080
Missouri, Solid Waste Disposal Revenue Bonds, Procter &
Gamble 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- 9,055,638
Revenue Bonds, Procter and Gamble Inc., Series 1999,
5.200%, 3/15/29 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 8.4%
Curators of the University of Missouri, System Facilities
Revenue Bonds, Series 2003A:
1,000 5.000%, 11/01/21 11/13 at 100.00 AA 1,087,000
1,200 5.000%, 11/01/31 11/13 at 100.00 AA 1,269,612
1,000 Kansas City Metropolitan Community Colleges Building 7/11 at 100.00 Aaa 1,108,410
Corporation, Missouri, Leasehold Revenue Bonds, Junior
College District of Metropolitan Kansas City, Series 2001,
5.500%, 7/01/18 - FGIC Insured
4,190 Missouri Higher Education Loan Authority, Subordinate Lien 8/05 at 101.00 A2 4,325,337
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 AAA 1,168,320
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 1,038,780
1,750 5.750%, 6/15/17 6/07 at 101.00 Baa2 1,811,915
1,100 Missouri Health and Educational Facilities Authority, 10/08 at 100.00 N/R 1,106,424
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 1,083,920
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 960,975
Revenue Bonds, Stephens College, Series 1999, 6.000%,
6/01/24
1,100 Missouri Health and Educational Facilities Authority, 6/10 at 100.00 Baa2 1,184,524
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 1,502,705
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) 6/05 at 100.00 N/R 653,504
1,000 7.750%, 12/01/13 (Alternative Minimum Tax) 6/05 at 100.00 N/R 1,018,900
500 7.875%, 12/01/24 (Alternative Minimum Tax) 6/05 at 100.00 N/R 510,700
2,060 Southeast Missouri State University, System Facilities 4/11 at 100.00 Aaa 2,153,586
Revenue Refunding and Improvement Bonds, Series 2001,
5.000%, 4/01/26 - MBIA Insured
- -------------------------------------------------------------------------------------------------------------------
Healthcare - 9.6%
1,250 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 1,315,425
Facilities Revenue Bonds, Freeman Health System, Series
2004, 5.500%, 2/15/29
1,000 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AAA 1,065,440
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 1,059,910
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+ 2,935,708
Revenue Bonds, Lake Regional Health System, Series 2003,
5.700%, 2/15/34
1,000 Missouri Health and Educational Facilities Authority, 5/15 at 100.00 AA 1,066,200
Revenue Bonds, BJC Health System, Series 2005A, 5.000%,
5/15/22
- ----
38
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+ $ 1,542,900
1,300 5.250%, 2/15/28 2/08 at 102.00 BBB+ 1,316,913
500 Missouri Health and Educational Facilities Authority, 11/06 at 100.00 BBB+ 503,535
Revenue Bonds, Capital Region Medical Center, Series 1998,
5.250%, 11/01/23
Missouri Health and Educational Facilities Authority,
Revenue Bonds, St. Anthony's Medical Center, Series 2000:
1,220 6.250%, 12/01/12 12/10 at 101.00 A 1,373,269
2,000 6.250%, 12/01/30 12/10 at 101.00 A 2,165,820
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 1,586,900
4,740 0.000%, 9/01/21 - MBIA Insured No Opt. Call AAA 2,318,334
6,300 0.000%, 9/01/22 - MBIA Insured No Opt. Call AAA 2,923,830
1,000 New Liberty Hospital District, Missouri, Revenue Bonds, 12/11 at 100.00 AAA 1,054,110
Series 2001, 5.000%, 12/01/21 - AMBAC Insured
2,880 Taney County Industrial Development Authority, Missouri, 5/08 at 101.00 BBB 2,931,322
Hospital Revenue Bonds, Skaggs Community Hospital
Association, Series 1998, 5.400%, 5/15/28
- -------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 8.2%
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 1,423,963
2,530 6.300%, 1/20/38 (Alternative Minimum Tax) 7/13 at 103.00 AAA 2,726,708
70 Missouri Housing Development Commission, FHA-Insured 7/05 at 100.00 Aaa 70,085
Mortgage Loan Housing Development Refunding Bonds, Series
1992, 6.600%, 7/01/24 (Pre-refunded to 7/01/05)
885 Missouri Housing Development Commission, Multifamily 12/05 at 103.00 N/R 910,258
Housing Revenue Bonds, Primm Place Apartments, Series
1995A, 6.250%, 12/01/17 (Alternative Minimum Tax)
2,545 Missouri Housing Development Commission, Multifamily 4/08 at 102.00 N/R 2,502,804
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:
271 6.200%, 5/20/19 5/12 at 105.00 Aaa 292,832
975 6.300%, 5/20/37 5/12 at 105.00 Aaa 1,046,965
1,805 St. Louis County Industrial Development Authority, 1/09 at 105.00 AAA 1,866,280
Missouri, GNMA Collateralized Subordinate Lien Housing
Revenue Refunding Bonds, Southfield and Oak Forest II
Apartments, Series 2002A, 5.200%, 1/20/36
9,105 St. Louis County Industrial Development Authority, 8/06 at 105.00 AAA 9,684,989
Missouri, GNMA Mortgage-Backed Multifamily Housing Revenue
Bonds, Covington Manor Apartments, Series 1996A, 6.875%,
8/20/36 (Alternative Minimum Tax)
925 Universal City Industrial Development Authority, Missouri, 8/07 at 102.00 Aaa 962,833
GNMA Collateralized Revenue Refunding Bonds, River Valley
Apartments, Series 1997A, 5.900%, 2/20/37
- -------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 2.2%
240 Missouri Housing Development Commission, GNMA/FNMA Single 1/07 at 102.00 AAA 241,606
Family Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1996D, 6.125%, 3/01/28 (Alternative Minimum Tax)
85 Missouri Housing Development Commission, GNMA/FNMA Single 3/07 at 105.00 AAA 85,624
Family Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1997A-2, 7.300%, 3/01/28 (Alternative Minimum Tax)
230 Missouri Housing Development Commission, Single Family 3/06 at 105.00 AAA 231,688
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:
420 6.375%, 9/01/20 (Alternative Minimum Tax) 9/06 at 102.00 AAA 422,549
340 6.450%, 9/01/27 (Alternative Minimum Tax) 9/06 at 102.00 AAA 342,128
- ----
39
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -------------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 235 Missouri Housing Development Commission, Single Family 9/06 at 105.00 AAA $ 237,247
Mortgage Revenue Bonds, Homeownership Loan Program, Series
1996B, 7.550%, 9/01/27 (Alternative Minimum Tax)
185 Missouri Housing Development Commission, Single Family 3/08 at 105.00 AAA 186,289
Mortgage Revenue Bonds, Homeownership Loan Program, Series
1998B-2, 6.400%, 3/01/29 (Alternative Minimum Tax)
520 Missouri Housing Development Commission, Single Family 9/09 at 100.00 AAA 539,386
Mortgage Revenue Bonds, Homeownership Loan Program, Series
2000A-1, 6.300%, 9/01/25 (Alternative Minimum Tax)
300 Missouri Housing Development Commission, Single Family 3/10 at 100.00 AAA 317,403
Mortgage Revenue Bonds, Homeownership Loan Program, Series
2000B-1, 6.200%, 9/01/25 (Alternative Minimum Tax)
3,000 Missouri Housing Development Commission, Single Family 9/14 at 100.00 AAA 3,256,980
Mortgage Revenue Bonds, Homeownership Loan Program, Series
2005A-1, 5.900%, 9/01/35 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------
Long-Term Care - 10.5%
1,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,055,760
Revenue Bonds, Lutheran Senior Services - Heisinger
Project, Series 2004, 5.500%, 2/01/35
4,250 Kansas City Industrial Development Authority, Missouri, 11/08 at 102.00 N/R 3,965,972
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 1,024,780
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 5,357,100
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 1,615,410
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 1,360,982
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 3,870,075
Revenue Bonds, Lutheran Senior Services, Series 1996A,
6.375%, 2/01/27
3,500 Missouri Health and Educational Facilities Authority, 2/07 at 102.00 N/R 3,648,960
Revenue Bonds, Lutheran Senior Services, Series 1997,
5.875%, 2/01/23
1,800 St. Louis County Industrial Development Authority, 9/06 at 102.00 N/R 1,868,364
Missouri, Revenue Refunding Bonds, Friendship Village of
West County, Series 1996A, 6.250%, 9/01/10
2,425 St. Louis County Industrial Development Authority, 8/05 at 104.00 AAA 2,532,767
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 1,280,532
Missouri, GNMA Collateralized Healthcare Facilities
Revenue Bonds, Mary, Queen and Mother Association, Series
2001, 5.400%, 9/20/34
- -------------------------------------------------------------------------------------------------------------------
Materials - 0.4%
1,000 Sugar Creek, Missouri, Industrial Development Revenue 6/13 at 101.00 BBB 1,040,770
Bonds, Lafarge North America Inc., Series 2003A, 5.650%,
6/01/37 (Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 14.4%
1,500 Branson Reorganized School District R-4, Taney County, 3/15 at 100.00 AAA 1,610,625
Missouri, General Obligation Bonds, Series 2005, 5.000%,
3/01/25 (WI, settling 6/01/05) - FSA Insured
1,465 Camdenton Reorganized School District R3, Camden County, 3/12 at 100.00 AAA 1,603,120
Missouri, General Obligation Bonds, Series 2004, 5.250%,
3/01/24 - FSA Insured
1,500 Camdenton Reorganized School District R3, Camden County, No Opt. Call AAA 1,660,920
Missouri, General Obligation Bonds, Series 2005, 5.250%,
3/01/24 - FSA Insured
2,000 Cass County Reorganized School District R-II, Raymore and 3/12 at 100.00 AAA 2,176,080
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+ 584,609
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 1,358,093
General Obligation Bonds, Series 2002B, 5.000%, 3/01/22 -
FSA Insured
- ----
40
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,000 Greene County Reorganized School District R8, Missouri, 3/12 at 100.00 AAA $ 1,088,040
General Obligation Bonds, Series 2002, 5.250%, 3/01/20 -
FSA Insured
2,500 Hickman Mills C-1 School District, Jackson County, 3/13 at 100.00 AAA 2,710,975
Missouri, General Obligation Bonds, Series 2003, 5.000%,
3/01/21 - FSA Insured
1,000 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA 1,099,610
General Obligation Refunding and Improvement Bonds, Series
2002, 5.250%, 3/01/18 - FSA Insured
1,450 Jackson County Reorganized School District R-7, Lees 3/14 at 100.00 Aaa 1,562,186
Summit, Missouri, General Obligation Bonds, Series 2004,
5.000%, 3/01/21 - MBIA Insured
1,000 Jefferson City School District, Missouri, General No Opt. Call Aa2 1,138,270
Obligation Bonds, Series 1991A, 6.700%, 3/01/11
3,000 Kansas City, Missouri, General Obligation Bonds, Series 2/14 at 100.00 AA 3,223,410
2004F, 5.000%, 2/01/24
1,000 Pevely, Missouri, General Obligation Bonds, Series 2004, 3/13 at 100.00 AA 1,064,360
5.250%, 3/01/24 - RAAI Insured
2,275 Platte County Reorganized School District R3, Missouri, 3/14 at 100.00 AAA 2,465,031
General Obligation Bonds, Series 2004, 5.000%, 3/01/20 -
MBIA Insured
750 Polk County R-1 School District, Bolivar, Missouri, General 3/10 at 100.00 AA+ 824,340
Obligation Bonds, Missouri Direct Deposit Program, Series
2000, 5.700%, 3/01/20
1,345 St. Louis County Pattonville School District R3, Missouri, No Opt. Call AAA 1,644,276
General Obligation Bonds, Series 2000, 6.500%, 3/01/14 -
FGIC Insured
1,900 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 2,102,597
General Obligation Bonds, Series 2004, 5.250%, 3/01/20 -
FSA Insured
1,605 St. Louis Board of Education, Missouri, General Obligation 4/13 at 100.00 AAA 1,742,276
Refunding Bonds, Series 2003A, 5.000%, 4/01/20 - FSA
Insured
Springfield School District R12, Missouri, General
Obligation Bonds, Series 2003:
2,875 5.125%, 3/01/20 - FGIC Insured 3/13 at 100.00 AAA 3,142,605
3,000 5.000%, 3/01/22 - FGIC Insured 3/13 at 100.00 AAA 3,245,400
1,500 5.000%, 3/01/23 - FGIC Insured 3/13 at 100.00 AAA 1,619,775
- -------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 19.0%
830 Brentwood, Missouri, Tax Increment Refunding Bonds, 4/09 at 100.00 AA 853,149
Promenade Project, Series 2002, 4.700%, 4/01/19 - RAAI
Insured
1,875 Christian County Public Building Corporation, Missouri, 6/10 at 100.00 AA 2,032,875
Leasehold Revenue Bonds, Justice Center Project, Series
2000, 5.450%, 6/01/15 - RAAI Insured
1,035 Dunklin County, Missouri, Certificates of Participation, 12/14 at 100.00 AAA 1,125,945
Series 2004, 5.000%, 12/01/19 - FGIC Insured
2,750 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R 2,843,115
Revenue Bonds, Gravois Bluffs Redevelopment Project,
Series 2002, 6.125%, 10/01/21
3,000 Harrisonville, Missouri, Lease Participation Certificates, 12/13 at 100.00 AAA 3,195,450
Series 2003, 5.000%, 12/01/22 - XLCA Insured
3,490 Howard Bend Levee District, St. Louis County, Missouri, 3/09 at 101.00 N/R 3,684,498
Levee District Improvement Bonds, Series 1999, 5.850%,
3/01/19
1,200 Kansas City Land Clearance Redevelopment Authority, 12/05 at 102.00 AAA 1,240,944
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 1,428,727
1,000 5.500%, 9/01/18 - FSA Insured 9/12 at 100.00 AAA 1,119,220
3,885 Missouri Association of Rural Education, Pulaski County, 3/09 at 100.00 AAA 4,107,067
Certificates of Participation, Waynesville School District
R-6, Series 2004, 5.100%, 3/01/24 - MBIA Insured
1,500 Missouri Development Finance Board, Kansas City, 4/10 at 100.00 AAA 1,655,820
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+ 4,169,880
Infrastructure Facilities Revenue Bonds, Santa Fe
Redevelopment Project, Series 2001, 5.250%, 4/01/23
- ----
41
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND (continued)
May 31, 2005
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 $ 2,060,340
Facilities Revenue Bonds, Riverside-Quindaro Bend Levee
District L-385, Series 2001, 5.800%, 3/01/20
450 Monarch-Chesterfield Levee District, St. Louis County, 3/10 at 101.00 AAA 501,404
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 1,872,994
2002, 5.250%, 2/01/15 - MBIA Insured
900 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 A 1,006,020
Transportation Authority, Series 1996Y, 5.500%, 7/01/36
3,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call BBB 3,429,450
Government Facilities Revenue Bonds, Series 1993L, 5.500%,
7/01/21
1,170 Riverside, Missouri, Tax Increment Revenue Bonds, L-385 5/15 at 100.00 BBB 1,217,198
Levee Project, Series 2004, 5.250%, 5/01/20
600 St. Joseph Industrial Development Authority, Missouri, Tax 11/14 at 100.00 N/R 607,668
Increment Bonds, Shoppes at North Village Project, Series
2005A, 5.500%, 11/01/27
1,240 St. Louis Municipal Finance Corporation, Missouri, 2/12 at 100.00 Aaa 1,399,476
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 1,822,258
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 3,324,001
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
6.125%, 6/01/21 - AMBAC Insured
2,500 Springfield Public Building Corporation, Missouri, Lease 3/14 at 100.00 Aaa 2,666,725
Revenue Bonds, Series 2004, 5.000%, 3/01/24 - AMBAC Insured
1,945 Springfield Center City Development Corporation, Missouri, 6/12 at 100.00 Aaa 2,046,354
Lease Revenue Bonds, Jordan Valley Park Exposition Center,
Series 2002A, 5.000%, 6/01/27 - AMBAC Insured
- -------------------------------------------------------------------------------------------------------------------
Transportation - 7.0%
2,000 Kansas City, Missouri, Passenger Facility Charge Revenue 4/11 at 101.00 AAA 2,081,260
Bonds, Kansas City International Airport, Series 2001,
5.000%, 4/01/23 (Alternative Minimum Tax) - AMBAC Insured
5,000 St. Louis, Missouri, Airport Revenue Bonds, Airport 7/11 at 100.00 AAA 5,230,350
Development Program, Series 2001A, 5.000%, 7/01/26 - MBIA
Insured
St. Louis, Missouri, Airport Revenue Refunding Bonds,
Series 2003A:
3,450 5.250%, 7/01/16 - FSA Insured 7/13 at 100.00 AAA 3,811,664
1,000 5.250%, 7/01/18 - FSA Insured 7/13 at 100.00 AAA 1,097,520
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 1,083,220
2,400 7.050%, 9/01/24 9/09 at 102.00 N/R 2,582,328
2,250 St. Louis, Missouri, Revenue Refunding Bonds, Parking 12/06 at 102.00 AAA 2,368,193
Facility, Series 1996, 5.375%, 12/15/21 - MBIA Insured
- -------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed *** - 3.8%
2,285 Branson Public Building Corporation, Missouri, Leasehold 11/06 at 101.00 N/R*** 2,410,561
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 3,107,700
Revenue Bonds, Series 1983, 0.000%, 12/01/14
1,025 Excelsior Springs School District, Missouri, Leasehold No Opt. Call AAA 731,235
Revenue Bonds, Series 1994, 0.000%, 3/01/14 - FSA Insured
235 Greene County, Missouri, Single Family Mortgage Revenue No Opt. Call Aaa 151,751
Bonds, Series 1984, 0.000%, 3/01/16
1,895 Missouri Health and Educational Facilities Authority, No Opt. Call Aaa 2,356,679
Revenue Bonds, BJC Health System, Series 1994A, 6.750%,
5/15/14
950 Texas County, Missouri, Hospital Revenue Bonds, Texas 6/10 at 100.00 N/R*** 1,120,069
County Memorial Hospital, Series 2000, 7.250%, 6/15/25
(Pre-refunded to 6/15/10)
- ----
42
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -------------------------------------------------------------------------------------------------------------------
Utilities - 5.1%
$ 2,710 Columbia, Missouri, Water and Electric Revenue Bonds, 10/12 at 100.00 AAA $ 2,860,351
Series 2002A, 5.000%, 10/01/26 - AMBAC Insured
1,195 Nixa, Missouri, Electric System Revenue Bonds, Series 2005, 4/13 at 100.00 AAA 1,256,148
5.000%, 4/01/25 - XLCA Insured
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,077,410
Series 2002II, 5.125%, 7/01/26 - FSA Insured
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 2,343,640
Series 2003NN, 5.250%, 7/01/23 - MBIA Insured
2,000 Sikeston, Missouri, Electric System Revenue Bonds, Series No Opt. Call AAA 2,233,300
1992, 6.200%, 6/01/10 - MBIA Insured
3,030 Sikeston, Missouri, Electric System Revenue Refunding No Opt. Call AAA 3,612,578
Bonds, Series 1996, 6.000%, 6/01/14 - MBIA Insured
- -------------------------------------------------------------------------------------------------------------------
Water and Sewer - 5.4%
1,825 Kansas City, Missouri, Sewerage System Revenue Bonds, 1/12 at 100.00 AA 1,995,418
Series 2002D-1, 5.375%, 1/01/22
3,385 Metropolitan St. Louis Sewerage District, Missouri, Revenue 5/14 at 100.00 AAA 3,672,353
Bonds, Wastewater System, Series 2004A, 5.000%, 5/01/20 -
MBIA Insured
1,635 Missouri Environmental Improvement and Energy Resources 4/09 at 100.00 AA 1,764,819
Authority, Water Facility Revenue Refunding Bonds,
Tri-County Water Authority, Series 1999, 6.000%, 4/01/22 -
RAAI Insured
1,600 Missouri Development Finance Board, Independence, 11/14 at 100.00 AAA 1,717,328
Infrastructure Facilities Revenue Bonds, Water System
Improvement Projects, Series 2004, 5.000%, 11/01/24 -
AMBAC Insured
1,000 Missouri Environmental Improvement and Energy Resources 7/15 at 100.00 Aaa 1,081,850
Authority, Water Pollution Control and Drinking Water
Revenue Bonds, State Revolving Fund Program, Series 2005A,
5.000%, 7/01/25
435 Missouri Environmental Improvement and Energy Resources 10/05 at 100.00 Aaa 436,492
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 7/05 at 100.00 Aaa 366,121
Authority, Water Pollution Control Revenue Bonds, State
Revolving Fund Program - Multi-Participants, Series 1992A,
6.550%, 7/01/14
250 Missouri Environmental Improvement and Energy Resources 7/05 at 101.00 Aaa 252,763
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 787,523
1,000 5.250%, 12/01/28 - MBIA Insured 12/11 at 100.00 Aaa 1,074,480
1,000 West Plains, Missouri, Sewerage System Revenue Bonds, 7/12 at 100.00 AAA 1,077,710
Series 2004, 5.125%, 7/01/24 - FSA Insured
- -------------------------------------------------------------------------------------------------------------------
$253,626 Total Long-Term Investments (cost $243,884,069) - 99.4% 260,225,555
- -------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 0.6% 1,657,908
-----------------------------------------------------------------------------------------------------
Net Assets - 100% $ 261,883,463
-----------------------------------------------------------------------------------------------------
* 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.
See accompanying notes to financial statements.
- ----
43
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.2%
$ 6,885 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 6,967,207
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- --------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 7.0%
4,090 Cleveland State University, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 4,409,470
Series 2003A, 5.000%, 6/01/23 - FGIC Insured
1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,229,172
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 5,287,650
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 1,100,160
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 1,288,284
2,000 5.000%, 12/01/26 12/11 at 100.00 Baa1 2,057,520
2,730 Ohio Higher Educational Facilities Commission, Revenue 11/14 at 100.00 AA 2,957,982
Bonds, Denison University, Series 2004, 5.000%, 11/01/20
1,315 Ohio Higher Educational Facilities Commission, Revenue 12/14 at 100.00 AAA 1,407,892
Bonds, University of Dayton, Series 2004, 5.000%, 12/01/25
- AMBAC Insured
910 Ohio Higher Education Facilities Commission, Revenue Bonds, No Opt. Call AA 1,143,379
Case Western Reserve University, Series 1990B, 6.500%,
10/01/20
3,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 AA 3,327,630
Case Western Reserve University, Series 2002B, 5.500%,
10/01/22
1,750 Ohio Higher Education Facilities Commission, General 10/13 at 100.00 AA 1,877,610
Revenue Bonds, Oberlin College, Series 2003, 5.125%,
10/01/24
Ohio Higher Education Facilities Commission, Revenue Bonds,
Wittenburg University, Series 2005:
1,000 5.000%, 12/01/24 12/15 at 100.00 Baa1 1,032,170
1,000 5.000%, 12/01/29 12/15 at 100.00 Baa1 1,020,480
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 2,002,046
1,900 5.000%, 12/01/23 - MBIA Insured 6/14 at 100.00 AAA 2,041,683
2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA 2,181,480
Series 2001A, 5.250%, 6/01/24 - FGIC Insured
1,675 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,810,424
Series 2004A, 5.000%, 6/01/21 - AMBAC Insured
University of Cincinnati, Ohio, General Receipts Bonds,
Series 2004D:
1,325 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AAA 1,420,705
1,005 5.000%, 6/01/26 - AMBAC Insured 6/14 at 100.00 AAA 1,072,898
1,025 University of Cincinnati, Ohio, General Receipts Bonds, 12/14 at 100.00 AAA 1,109,983
Series 2004E, 5.000%, 6/01/21 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------
Healthcare - 16.8%
7,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 7,197,750
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.375%, 11/15/24
1,065 Akron, Bath and Copley Joint Township Hospital District, 11/13 at 100.00 Aaa 1,155,717
Ohio, Hospital Revenue Bonds, Children's Hospital Medical
Center, Series 2003, 5.250%, 11/15/25 - FSA Insured
11,900 Cuyahoga County, Ohio, Hospital Revenue and Improvement 2/09 at 101.00 A- 12,621,854
Bonds, MetroHealth System, Series 1999, 6.125%, 2/15/24
1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/07 at 102.00 AAA 1,058,400
Improvement Bonds, MetroHealth System, Series 1997,
5.625%, 2/15/17 - MBIA Insured
4,400 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa3 4,910,796
Clinic Health System, Series 2003A, 6.000%, 1/01/32
- ----
44
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
$ 2,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A $ 2,647,900
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 1,628,928
5,275 5.875%, 11/01/25 11/06 at 101.00 Aa2 5,440,002
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- 1,005,704
2,000 5.875%, 6/01/21 6/06 at 102.00 AA- 2,087,040
5,690 Lorain County, Ohio, Hospital Facilities Revenue Refunding 11/05 at 102.00 AAA 5,852,108
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+ 2,087,560
Improvement Bonds, The Community Hospital, Series 1996,
6.375%, 5/15/11
2,000 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,078,480
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+ 4,377,657
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 4,355,720
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 1,560,030
7,000 6.250%, 4/01/20 - MBIA Insured No Opt. Call AAA 8,726,480
9,500 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A2 10,589,270
Kettering Medical Center, Series 1999, 6.750%, 4/01/22
7,390 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA 8,016,672
Initiatives, Series 2001, 5.375%, 9/01/21
2,520 Montgomery County, Ohio, Revenue Bonds, Catholic Health No Opt. Call AA 2,637,432
Initiatives, Series 2004A, 5.000%, 5/01/32
1,250 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 1,305,738
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- 2,201,880
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 1,267,608
Union Hospital Project, Series 2001, 5.250%, 10/01/31 -
RAAI Insured
- -----------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.2%
1,090 Clark County, Ohio, Multifamily Housing Revenue Bonds, 11/08 at 103.00 N/R 876,502
Church of God Retirement Home, Series 1998, 6.250%,
11/01/30 (Alternative Minimum Tax)
10,000 Franklin County, Ohio, GNMA Collateralized Mortgage Revenue 10/07 at 103.00 Aaa 10,391,000
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 3,188,206
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 2,961,840
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 6,711,835
Assisted Mortgage Loan Revenue Refunding Bonds, Series
1999G, 5.950%, 2/01/23
- -----------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 2.5%
935 Ohio Housing Finance Agency, GNMA Mortgage-Backed 7/09 at 100.00 Aaa 940,479
Securities Program Residential Mortgage Revenue Bonds,
Series 1999C, 5.750%, 9/01/30 (Alternative Minimum Tax)
2,420 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,513,364
Securities Program Residential Mortgage Revenue Bonds,
Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
- ----
45
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 2,655 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa $ 2,757,430
Securities Program Residential Mortgage Revenue Bonds,
Series 1997C, 5.750%, 9/01/28 (Alternative Minimum Tax)
2,795 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 2,888,381
Securities Program Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum Tax)
- FSA Insured
5,165 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 5,302,182
Securities Program Residential Mortgage Remarketed Revenue
Bonds, Series 1997A-1, 6.150%, 3/01/29 (Alternative
Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------
Industrials - 0.8%
2,400 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/08 at 102.00 N/R 2,456,976
Revenue Bonds, Jergens Inc., 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- 519,725
675 5.450%, 6/01/22 (Alternative Minimum Tax) 6/12 at 102.00 AA- 714,244
1,020 Ohio, Economic Development Revenue Bonds, Enterprise Bond No Opt. Call AA- 1,093,542
Fund Loan Pool, Series 2002-7, 5.850%, 12/01/22
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.5%
3,120 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 11/05 at 102.00 Aa2 3,212,446
Heinzerling Foundation, Series 1995, 6.200%, 11/01/20
2,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/12 at 100.00 AA 2,103,500
Presbyterian Retirement Services, Series 2002A, 5.125%,
7/01/22 - RAAI Insured
475 Franklin County, Ohio, FHA-Insured Hospital Revenue 8/05 at 100.00 N/R 476,083
Refunding Mortgage Loan Bonds, Worthington Christian
Village Nursing Home, Series 1992, 7.000%, 8/01/16
1,250 Hamilton, Ohio, Healthcare Facilities Revenue Bonds, Twin 10/08 at 101.00 BBB 1,264,913
Towers, Series 1998A, 5.125%, 10/01/23
1,625 Napoleon, Ohio, FHA-Insured Healthcare Facilities Mortgage 3/06 at 101.00 Aa2 1,661,595
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+ 1,022,370
Bonds, Cargill Inc., Series 2004A, 4.800%, 3/01/22
- -----------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 24.0%
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 7,474,860
9,500 5.250%, 12/01/21 - MBIA Insured 12/05 at 102.00 AAA 9,783,765
600 Anthony Wayne Local School District, Lucas, Wood and Fulton No Opt. Call AAA 433,272
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 768,026
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 3,009,925
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 2,523,100
Bonds, Series 2004A, 5.000%, 12/01/15 - AMBAC Insured
Chesapeake-Union Exempt Village School District, Ohio,
General Obligation Bonds, Series 1986:
125 8.500%, 12/01/05 No Opt. Call N/R 128,271
125 8.500%, 12/01/06 No Opt. Call N/R 134,395
125 8.500%, 12/01/07 No Opt. Call N/R 140,194
125 8.500%, 12/01/08 No Opt. Call N/R 145,430
130 8.500%, 12/01/09 No Opt. Call N/R 156,098
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 2,218,540
6,745 5.375%, 12/01/16 - MBIA Insured 12/11 at 100.00 AAA 7,482,026
1,255 5.375%, 12/01/17 - MBIA Insured 12/11 at 100.00 AAA 1,390,590
- ----
46
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 2,620 Cleveland Municipal School District, Cuyahoga County, Ohio, 6/14 at 100.00 AAA $ 2,833,897
General Obligation Bonds, Series 2004, 5.000%, 12/01/20 -
FSA Insured
Columbus, Franklin County, Ohio, General Obligation Bonds,
Series 1985:
590 9.375%, 4/15/06 No Opt. Call AAA 622,415
500 9.375%, 4/15/07 No Opt. Call AAA 557,765
1,000 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,130,900
Various Purpose Refunding Bonds, Series 1993B, 5.250%,
10/01/13
1,345 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,589,360
Bonds, Series 1993, 5.650%, 5/15/18
2,675 Cuyahoga County, Ohio, General Obligation Bonds, Series 12/14 at 100.00 AA+ 2,896,784
2004, 5.000%, 12/01/22
Cuyahoga Falls, Ohio, General Obligation Bonds, Series 2004:
1,245 5.000%, 12/01/18 - MBIA Insured 6/14 at 100.00 Aaa 1,359,465
1,440 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 Aaa 1,556,424
1,170 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,314,226
5.250%, 12/01/15 - AMBAC Insured
750 Defiance, Ohio, Waterworks System Improvement Bonds, Series 6/05 at 102.00 AAA 767,085
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 829,720
1,000 0.000%, 12/01/11 - FGIC Insured No Opt. Call AAA 793,360
1,000 Evergreen Local School District, Ohio, Unlimited Tax 12/09 at 101.00 Aaa 1,102,030
General Obligation School Improvement Bonds, Series 1999,
5.625%, 12/01/24 - FGIC Insured
1,005 Findlay, Ohio, General Obligation Bonds, Series 2004, 7/14 at 100.00 AAA 1,131,228
5.250%, 7/01/15 - MBIA Insured
4,040 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 4,381,420
Refunding Bonds, Series 1993, 5.375%, 12/01/20
1,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 1,114,550
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 436,703
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 1,025,790
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 Aa2 3,293,100
Obligation Bonds, Series 2001, 5.500%, 12/01/28
3,810 Greater Cleveland Regional Transit Authority, Ohio, General 12/14 at 100.00 Aaa 4,186,085
Obligation Bonds, Series 2004, 5.000%, 12/01/17 - MBIA
Insured
1,200 Heath City School District, Licking County, Ohio, Unlimited 12/10 at 100.00 Aaa 1,310,352
Tax General Obligation School Improvement Bonds, Series
2000A, 5.500%, 12/01/27 - FGIC Insured
1,270 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,370,927
Obligation Bonds, Series 2003, 5.000%, 12/01/23 - MBIA
Insured
1,400 Kent City School District, Portage County, Ohio, General 12/14 at 100.00 AAA 1,523,018
Obligation Library Improvement Bonds, Series 2004, 5.000%,
12/01/20 - FGIC Insured
1,070 Kettering, Ohio, Limited Tax General Obligation Bonds, 6/05 at 100.00 Aa3 1,073,371
Series 1991, 6.650%, 12/01/12
555 Lake County, Ohio, Limited Tax Sewer District Improvement No Opt. Call Aa2 650,854
Bonds, Series 2000, 5.600%, 12/01/20
1,440 Lakewood, Ohio, General Obligation Bonds, Series 1995B, 12/05 at 102.00 Aa3 1,488,355
5.750%, 12/01/15
3,385 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 3,572,868
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%, 12/01/05 No Opt. Call A+ 158,722
155 7.750%, 12/01/06 No Opt. Call A+ 165,839
285 Lucas County, Ohio, General Obligation Bonds, Various No Opt. Call A1 290,079
Improvements, Series 1992, 6.650%, 12/01/12
1,265 Monroe Local School District, Butler County, Ohio, General No Opt. Call Aaa 1,539,442
Obligation Bonds, Series 2002, 5.750%, 12/01/20 - AMBAC
Insured
- ----
47
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,000 Ohio, Full Faith and Credit General Obligation No Opt. Call AA+ $ 1,135,370
Infrastructure Improvement Bonds, Series 1994,
6.000%, 8/01/10
8,140 Ohio, General Obligation Higher Education Capital 2/11 at 100.00 AA+ 8,633,365
Facilities Bonds, Series 2001A, 5.000%, 2/01/20
730 Ohio, General Obligation Bonds, Common Schools, Series 3/14 at 100.00 AA+ 787,816
2004B, 5.000%, 3/15/21
3,315 Ohio, General Obligation Bonds, Conservation Projects, 3/14 at 100.00 AA+ 3,659,992
Series 2004A, 5.000%, 3/01/15
6,055 Ohio, General Obligation Bonds, Infrastructure 2/13 at 100.00 AA+ 6,533,587
Improvements, Series 2003F, 5.000%, 2/01/22
4,035 Olentangy Local School District, Delaware and Franklin 12/09 at 101.00 AA 4,197,086
Counties, Ohio, Various Purpose Bonds, Series 1999,
5.000%, 12/01/27
Olentangy Local School District, Delaware and Franklin
Counties, Ohio, General Obligation Bonds, Series 2004A:
400 5.250%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 442,096
3,055 5.250%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 3,366,732
1,495 Otsego Local School District, Wood, Henry and Lucas 12/14 at 100.00 Aaa 1,673,069
Counties, Ohio, General Obligation Bonds, Series 2004,
5.375%, 12/01/22 - FSA Insured
3,315 South Point Local School District, Lawrence County, Ohio, 12/14 at 100.00 AAA 3,570,785
General Obligation Bonds, Series 2004, 5.000%, 12/01/24 -
FSA Insured
3,500 Springfield City School District, Clark County, Ohio, 12/11 at 102.00 Aaa 3,865,435
General Obligation Bonds, Series 2001, 5.200%, 12/01/23 -
FGIC Insured
30 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 31,895
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 1,313,359
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 1,564,811
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 2,436,194
Facilities Construction and Improvement Bonds, Series
2001, 5.000%, 12/01/24 - FGIC Insured
3,755 Toledo City School District, Lucas County, General 12/13 at 100.00 Aaa 4,062,422
Obligation Bonds, Series 2003B, 5.000%, 12/01/22 - FGIC
Insured
1,500 Upper Arlington City School District, Ohio, General 6/15 at 100.00 AAA 1,637,505
Obligation Bonds, Series 2005, 5.000%, 12/01/20 - FSA
Insured
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 1,512,857
1,515 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 Aaa 1,679,105
2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,091,100
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 - MBIA Insured
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 11.4%
1,850 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/14 at 100.00 AA 1,967,457
Revenue Bonds, R.I.T.A. Project, Series 2004, 5.000%,
11/15/19 - RAAI Insured
6,300 Cleveland, Ohio, Certificates of Participation, Cleveland 11/07 at 102.00 AAA 6,670,692
Stadium Project, Series 1997, 5.250%, 11/15/27 - AMBAC
Insured
1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,467,878
Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured
1,210 Groveport, Ohio, Special Obligation Income Tax Receipts 12/12 at 100.00 Aaa 1,290,973
Bonds, 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 2,487,772
1,000 5.000%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 1,077,700
2,535 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 2,724,035
3,300 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series No Opt. Call Aaa 1,120,383
2000B, 0.000%, 12/01/28 - AMBAC Insured
- ----
48
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 1,000 Butler County, Hamilton, Ohio, Limited Tax General 11/11 at 101.00 Aaa $ 1,115,020
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 1,660,690
Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/16 -
AMBAC Insured
1,000 Ohio, State Appropriation Lease Bonds, Parks and Recreation 2/15 at 100.00 AAA 1,110,780
Capital Facilities, Series 2005A-II, 5.250%, 2/01/19 - FSA
Insured
1,000 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,104,050
Capital Facilities, Series 2004A-II, 5.000%, 12/01/15
1,490 Ohio, State Appropriation Lease Bonds, Mental Health 6/13 at 100.00 AA 1,628,466
Capital Facilities, Series 2003B-II, 5.000%, 6/01/16
1,050 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,114,764
Administrative Building Fund Projects, Series 2002A,
5.000%, 4/01/22 - FSA Insured
2,000 Ohio State Building Authority, State Facilities Bonds, No Opt. Call AAA 2,184,540
Worker's Compensation Facilities Project, Series 2003A,
5.000%, 4/01/11 - FGIC Insured
1,900 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 2,041,113
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
Ohio State Building Authority, State Facilities Bonds,
Adult Correctional Building Fund Project, Series 2005A:
3,135 5.000%, 4/01/23 (WI, settling 6/01/05) - FSA Insured 4/15 at 100.00 AAA 3,386,333
5,390 5.000%, 4/01/24 (WI, settling 6/01/05) - FSA Insured 4/15 at 100.00 AAA 5,808,480
870 Ohio Department of Transportation, Certificates of 10/05 at 100.00 AAA 872,627
Participation, Panhandle Rail Line, Series 1992A, 6.500%,
4/15/12 - FSA Insured
11,700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 15,092,181
Transportation Authority, Reset Option Long Certificates
II-R-66, Series 1996Y, 7.953%, 1/01/13 - MBIA Insured (IF)
6,550 Puerto Rico Public Buildings Authority, Guaranteed Revenue No Opt. Call AAA 9,132,207
Bonds, Reset Option Long Trust Certificates II-R56, Series
1993L, 7.953%, 7/01/18 (IF)
- --------------------------------------------------------------------------------------------------------------------
Transportation - 4.3%
1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 1,049,250
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 AAA 6,735,015
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- 6,910,350
Series II-R51, Series 1998A, 7.933%, 2/15/24 (IF)
7,500 Ohio Turnpike Commission, Revenue Bonds, ROL II-R75, No Opt. Call Aaa 9,802,950
7.933%, 2/15/12 (IF)
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed *** - 12.4%
730 Athens, Ohio, Sanitary Sewer System Mortgage Revenue Bonds, 12/09 at 100.00 N/R*** 829,083
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 1,034,740
Obligation School Improvement Bonds, Series 1995, 5.800%,
12/01/16 (Pre-refunded to 12/01/05) - FGIC Insured
3,000 Butler County, Ohio, Sewer System Revenue Bonds, Series 12/06 at 101.00 AAA 3,132,300
1996, 5.250%, 12/01/21 (Pre-refunded to 12/01/06) - AMBAC
Insured
3,805 Cleveland, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,289,567
5.250%, 12/01/22 (Pre-refunded to 12/01/12) - MBIA Insured
7,045 Columbus, Ohio, General Obligation Bonds, Series 2000, 11/10 at 101.00 AAA 7,857,429
5.250%, 11/15/17 (Pre-refunded to 11/15/10)
5,830 Cuyahoga County, Ohio, Limited Tax General Obligation 12/10 at 100.00 AA+*** 6,597,869
Capital Improvement Bonds, Series 2000, 5.750%, 12/01/16
(Pre-refunded to 12/01/10)
Cuyahoga County, Ohio, Hospital Revenue Bonds, Cleveland
Clinic Foundation - Meridia Health System, Series 1995:
250 6.250%, 8/15/14 (Pre-refunded to 8/15/05) 8/05 at 102.00 AAA 256,725
3,000 6.250%, 8/15/24 (Pre-refunded to 8/15/05) 8/05 at 102.00 AAA 3,080,700
- ----
49
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed *** (continued)
$ 1,600 Greene County, Ohio, Water System Revenue Bonds, Series 12/07 at 102.00 AAA $ 1,753,968
1996, 6.125%, 12/01/21 (Pre-refunded to 12/01/07) - FGIC
Insured
1,000 Huron County, Ohio, Limited Tax General Obligation 12/07 at 102.00 AAA 1,089,640
Correctional Facility Bonds, Series 1996, 5.850%, 12/01/16
(Pre-refunded to 12/01/07) - MBIA Insured
1,000 Kettering City School District, Montgomery County, Ohio, 12/05 at 101.00 AAA 1,022,150
General Obligation Bonds, Series 1994, 5.250%, 12/01/22
(Pre-refunded to 12/01/05) - FGIC Insured
1,190 Lorain, Ohio, Hospital Revenue Refunding Bonds, Lakeland 11/05 at 100.00 A1*** 1,210,658
Community Hospital Inc., Series 1992, 6.500%, 11/15/12
1,750 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,912,138
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 (Pre-refunded to 12/01/09) -
FGIC Insured
2,000 Montgomery County, Ohio, Health System Revenue Bonds, 1/08 at 102.00 Baa2*** 2,172,900
Franciscan Medical Center - Dayton Campus, Series 1997,
5.500%, 7/01/18 (Pre-refunded to 1/01/08)
5,610 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA*** 6,200,172
Initiatives, Series 2001, 5.375%, 9/01/21 (Pre-refunded to
9/01/11)
North Royalton City School District, Ohio, School
Improvement Bonds, Series 1994:
2,200 6.000%, 12/01/14 (Pre-refunded to 12/01/09) - MBIA Insured 12/09 at 102.00 AAA 2,511,168
2,400 6.100%, 12/01/19 (Pre-refunded to 12/01/09) - MBIA Insured 12/09 at 102.00 AAA 2,749,488
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 3,238,056
6,460 0.000%, 1/15/15 (Pre-refunded to 1/15/11) - FGIC Insured 1/11 at 67.04 AAA 3,557,005
5,065 Ohio Water Development Authority, Pure Water Loan Revenue No Opt. Call AAA 5,886,796
Bonds, Series 1990I, 6.000%, 12/01/16 - AMBAC Insured
2,000 Ohio Water Development Authority, Revenue Bonds, Fresh 6/08 at 101.00 AAA 2,144,240
Water Development, Series 1998, 5.125%, 12/01/23
(Pre-refunded to 6/01/08) - FSA Insured
500 Pickerington Local School District, Fairfield County, Ohio, No Opt. Call AAA 397,950
General Obligation Bonds, Series 1993, 0.000%, 12/01/11 -
AMBAC Insured
2,340 Stow, Ohio, General Obligation Construction Bonds, Safety 12/05 at 102.00 Aa3*** 2,426,159
Center, Series 1995, 6.200%, 12/01/20 (Pre-refunded to
12/01/05)
University of Cincinnati, Ohio, General Receipts Bonds,
Series 2001A:
1,500 5.750%, 6/01/18 (Pre-refunded to 6/01/11) - FGIC Insured 6/11 at 101.00 AAA 1,719,540
1,520 5.750%, 6/01/19 (Pre-refunded to 6/01/11) - FGIC Insured 6/11 at 101.00 AAA 1,742,467
1,910 Vandalia, Ohio, General Obligation Bonds, Series 1996, 12/06 at 101.00 Aa3*** 2,010,944
5.850%, 12/01/21 (Pre-refunded to 12/01/06)
- --------------------------------------------------------------------------------------------------------------------
Utilities - 7.6%
1,535 Cleveland Public Power System, Ohio, First Mortgage Revenue No Opt. Call AAA 1,112,384
Bonds, Series 1994A, 0.000%, 11/15/13 - MBIA Insured
2,500 Cleveland Public Power System, Ohio, First Mortgage Revenue 11/06 at 102.00 AAA 2,608,275
Refunding Bonds, Series 1996-1, 5.000%, 11/15/24 - MBIA
Insured
565 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 629,992
Series 2001, 5.500%, 12/01/17 - AMBAC Insured
Ohio Municipal Electric Generation Agency, Beneficial
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2004:
1,000 5.000%, 2/15/20 - AMBAC Insured 2/14 at 100.00 AAA 1,077,040
3,775 5.000%, 2/15/21 - AMBAC Insured 2/14 at 100.00 AAA 4,051,443
1,465 5.000%, 2/15/22 - AMBAC Insured 2/14 at 100.00 AAA 1,567,828
3,295 5.000%, 2/15/23 - AMBAC Insured 2/14 at 100.00 AAA 3,521,268
8,250 Ohio Air Quality Development Authority, Revenue Refunding 9/05 at 102.00 Baa3 8,433,480
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 5,279,300
Funding Limited Partnership Project, Series 1997, 5.625%,
1/01/23 (Alternative Minimum Tax) - AMBAC Insured
500 Ohio Water Development Authority, Collateralized Water 8/05 at 100.00 Baa2 510,750
Revenue Refunding Bonds, Dayton Power and Light Company,
Series 1992A, 6.400%, 8/15/27
- ----
50
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$ 8,550 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R $ 8,628,489
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- 950,608
Refunding Bonds, Series 1989O, 0.000%, 7/01/17
4,460 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 4,851,142
Environmental Control Facilities Financing Authority,
Co-Generation Facility Revenue Bonds, Series 2000A,
6.625%, 6/01/26 (Alternative Minimum Tax)
- --------------------------------------------------------------------------------------------------------------------
Water and Sewer - 4.9%
2,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ 2,127,680
5.000%, 12/01/23
Cincinnati, Ohio, Water System Revenue Bonds, ROLS
RR-II-R212:
1,300 8.791%, 12/01/11 (IF) 6/11 at 100.00 AAA 1,670,019
1,640 8.795%, 12/01/12 (IF) 6/11 at 100.00 AAA 2,072,911
550 8.817%, 12/01/13 (IF) 6/11 at 100.00 AAA 702,686
10,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 11,758,500
Refunding and Improvement Bonds, Series 1993G, 5.500%,
1/01/21 - MBIA Insured
1,160 Hebron, Ohio, Mortgage Revenue Bonds, Waterworks System 6/14 at 100.00 N/R 1,210,286
Improvements, Series 2004, 5.875%, 12/01/25
1,260 Lancaster, Ohio, Wastewater System Improvement Revenue 12/14 at 100.00 AAA 1,351,048
Bonds, Series 2004, 5.000%, 12/01/25 - AMBAC Insured
4,260 Ohio Water Development Authority, Community Assistance 12/07 at 102.00 AAA 4,547,891
Bonds, Series 1997, 5.375%, 12/01/24 - AMBAC Insured
1,255 Ohio Water Development Authority, Revenue Bonds, Fresh 6/14 at 100.00 AAA 1,408,672
Water Development, Series 2004, 5.250%, 12/01/15
620 Toledo, Ohio, Sewerage System Mortgage Revenue Bonds, 11/06 at 100.00 AAA 634,100
Series 1994, 6.350%, 11/15/17 - AMBAC Insured
390 Toledo, Ohio, Water System Mortgage Revenue Bonds, Series 11/06 at 100.00 AAA 398,932
1994, 6.450%, 11/15/24 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------
$523,525 Total Long-Term Investments (cost $518,685,257) - 98.8% 562,146,653
- --------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.2% 6,811,621
------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 568,958,274
------------------------------------------------------------------------------------------------------
* 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.
- ----
51
Portfolio of Investments
NUVEEN WISCONSIN MUNICIPAL BOND FUND
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.8%
$ 475 Ashland Housing Authority, Wisconsin, Student Housing 4/08 at 100.00 Aaa $ 485,811
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- 521,060
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 381,670
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System, Series 1999, 5.375%, 2/01/29
200 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 207,362
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, University of the Sacred
Heart, Series 2001, 5.250%, 9/01/21
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 1,068,530
Environmental Control Facilities Financing Authority,
Higher Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.500%, 12/01/31
- ----------------------------------------------------------------------------------------------------------------
Healthcare - 2.1%
500 Puerto Rico Industrial, Tourist, Educational, Medical and 7/05 at 102.00 AAA 507,390
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 458,806
Environmental Control Facilities Financing Authority,
FHA-Insured Mortgage Hospital Revenue Bonds, Doctor Pila
Hospital, Series 1995A, 5.875%, 8/01/12
- ----------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 9.8%
675 Kenosha Housing Authority, Wisconsin, GNMA Collateralized 5/08 at 102.00 N/R 707,494
Multifamily Housing Revenue Bonds, Villa Ciera Inc.,
Series 2000A, 5.900%, 11/20/30
570 Lake Delton Community Development Agency, Wisconsin, GNMA 1/12 at 102.00 N/R 591,215
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 1,021,530
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 208,624
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 508,080
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 306,582
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 361,620
750 6.000%, 12/01/31 (Alternative Minimum Tax) 12/06 at 102.00 AAA 773,693
- ----------------------------------------------------------------------------------------------------------------
Housing/Single Family - 0.5%
190 Puerto Rico Housing Bank and Finance Agency, Affordable 10/05 at 102.00 AAA 194,963
Housing Mortgage Subsidy Program Single Family Mortgage
Revenue Bonds, Series 1995I, 6.250%, 4/01/29 (Alternative
Minimum Tax)
50 Virgin Islands Housing Finance Corporation, Single Family 9/05 at 102.00 AAA 50,965
Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed
Securities Program, Series 1995A, 6.450%, 3/01/16
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.4%
1,120 Waukesha County Housing Authority, Wisconsin, Housing 6/05 at 101.00 N/R 1,121,534
Revenue Bonds, Arboretum Project, Series 1998, 5.250%,
12/01/21 (Alternative Minimum Tax) (Mandatory put 12/01/12)
- ----------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 0.5%
250 Guam, General Obligation Bonds, Series 1993A, 5.400%, 11/05 at 100.00 B 250,145
11/15/18
- ----
52
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 64.5%
$ 1,500 Ashwaubenon Community Development Authority, Wisconsin, 6/12 at 100.00 Aa2 $ 1,596,315
Lease Revenue Refunding Bonds, Arena Project, Series 2002,
5.150%, 6/01/29
1,000 De Forest Redevelopment Authority, Wisconsin, Redevelopment 2/08 at 100.00 N/R 1,022,800
Lease Revenue Bonds, Series 1999B, 5.100%, 2/01/18
100 Glendale Community Development Authority, Wisconsin, 10/11 at 100.00 A3 108,067
Community Development Lease Revenue Refunding Bonds, Tax
Increment District 6, Series 2001, 5.000%, 10/01/19
2,000 Glendale Community Development Authority, Wisconsin, 10/14 at 100.00 A3 2,139,120
Community Development Lease Revenue Bonds, Bayshore Public
Parking Project, Series 2004A, 5.000%, 10/01/24
350 Green Bay Brown County Professional Football Stadium 2/11 at 100.00 AAA 376,051
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 1,383,239
1,650 5.100%, 6/01/29 6/09 at 100.00 Aa2 1,743,951
500 Jackson Community Development Authority, Wisconsin, Revenue 12/09 at 100.00 N/R 510,445
Refunding Bonds, Series 1999, 5.100%, 12/01/17
960 Madison Community Development Authority, Wisconsin, Lease 3/12 at 100.00 Aa2 972,835
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 419,468
1,000 4.950%, 8/01/20 8/11 at 100.00 A 1,050,130
2,000 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/12 at 100.00 AAA 2,098,460
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 2,695,425
Bonds, Public Schools, Series 2003A, 5.125%, 8/01/21 -
AMBAC Insured
1,500 Neenah Community Development Authority, Wisconsin, Lease 12/14 at 100.00 A1 1,598,655
Revenue Bonds, Series 2004A, 5.000%, 12/01/26
1,000 Onalaska Community Development Authority, Wisconsin, 10/13 at 100.00 A3 1,036,240
Community Development Lease Revenue Bonds, Series 2003,
4.875%, 10/01/27
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 995,418
400 5.500%, 12/15/19 - MBIA Insured No Opt. Call AAA 469,284
2,195 5.500%, 12/15/20 - MBIA Insured No Opt. Call AAA 2,591,483
500 5.500%, 12/15/26 - MBIA Insured No Opt. Call AAA 594,775
375 Sturgeon Bay Waterfront Redevelopment Authority, Wisconsin, 10/08 at 100.00 N/R 387,934
Lease Revenue Bonds, Series 1998A, 5.200%, 10/01/21
600 Virgin Islands Public Finance Authority, Senior Lien 10/08 at 101.00 BBB 629,328
Revenue Refunding Bonds, Matching Fund Loan Note, Series
1998A, 5.625%, 10/01/25
500 Wauwatosa Redevelopment Authority, Milwaukee County, 12/07 at 100.00 AAA 531,250
Wisconsin, Lease Revenue Bonds, Series 1997, 5.650%,
12/01/16 - MBIA Insured
1,000 Weston Community Development Authority, Wisconsin, Lease 10/14 at 100.00 N/R 1,101,840
Revenue Bonds, Series 2004A, 5.250%, 10/01/21
1,000 Weston Community Development Authority, Wisconsin, Lease 10/15 at 100.00 N/R 1,054,010
Revenue Bonds, Series 2005A, 5.000%, 10/01/21
Wisconsin Center District, Junior Dedicated Tax Revenue
Refunding Bonds, Series 1999:
1,000 5.250%, 12/15/23 - FSA Insured No Opt. Call AAA 1,156,090
500 5.250%, 12/15/27 - FSA Insured No Opt. Call AAA 571,175
2,000 Wisconsin Center District, Senior Dedicated Tax Revenue No Opt. Call AAA 666,680
Refunding Bonds, Series 2003A, 0.000%, 12/15/28 - FSA
Insured
- ----
53
Portfolio of Investments
NUVEEN WISCONSIN MUNICIPAL BOND FUND (continued)
May 31, 2005
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed *** - 12.4%
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*** $ 2,202,280
700 5.800%, 6/01/29 (Pre-refunded to 6/01/09) 6/09 at 100.00 Aa2*** 773,416
1,500 Cudahy Community Development Authority, Wisconsin, 6/06 at 100.00 N/R*** 1,546,230
Redevelopment Lease Revenue Bonds, Series 1995, 6.000%,
6/01/11 (Pre-refunded to 6/01/06)
600 Southeast Wisconsin Professional Baseball Park District, 3/07 at 101.00 AAA 635,862
Sales Tax Revenue Bonds, Series 1996, 5.800%, 12/15/26
(Pre-refunded to 3/13/07) - MBIA Insured
475 Wisconsin Center District, Junior Dedicated Tax Revenue 12/06 at 101.00 AAA 499,538
Bonds, Series 1996B, 5.700%, 12/15/20 (Pre-refunded to
12/15/06)
- ------------------------------------------------------------------------------------------------------------------
$43,405 Total Long-Term Investments (cost $42,469,261) - 98.0% 44,884,868
- ------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 2.0% 899,380
----------------------------------------------------------------------------------------------------
Net Assets - 100% $ 45,784,248
----------------------------------------------------------------------------------------------------
* 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.
- ----
54
Statement of Assets and Liabilities
May 31, 2005
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- -----------------------------------------------------------------------------------------------------------------
Assets
Investments, at market value
(cost $121,375,388,
$460,357,650, $229,991,818,
$243,884,069, $518,685,257
and $42,469,261,
respectively) $130,157,983 $491,119,956 $249,246,508 $260,225,555 $562,146,653 $44,884,868
Cash 335,426 1,662,964 271,958 728,059 368,948 262,478
Receivables:
Interest 1,612,417 6,003,171 2,479,450 3,746,747 9,540,693 789,549
Investments sold 590,000 1,428,000 1,769,199 40,626 7,401,072 --
Shares sold 80,714 224,280 51,234 23,481 1,457,386 47,482
Other assets 271 30,414 18,521 4,858 38,553 100
- -----------------------------------------------------------------------------------------------------------------
Total assets 132,776,811 500,468,785 253,836,870 264,769,326 580,953,305 45,984,477
- -----------------------------------------------------------------------------------------------------------------
Liabilities
Payables:
Investments purchased -- 2,136,740 -- 1,585,245 9,143,676 --
Shares redeemed 42,223 150,880 406,071 131,989 305,451 --
Accrued expenses:
Management fees 60,591 220,470 114,213 118,495 251,522 20,922
12b-1 distribution and
service fees 39,396 118,501 62,229 59,383 110,125 12,902
Other 43,908 147,382 91,316 70,824 193,001 22,184
Dividends payable 414,809 1,632,191 862,563 919,927 1,991,256 144,221
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 600,927 4,406,164 1,536,392 2,885,863 11,995,031 200,229
- -----------------------------------------------------------------------------------------------------------------
Net assets $132,175,884 $496,062,621 $252,300,478 $261,883,463 $568,958,274 $45,784,248
- -----------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $ 97,860,721 $427,105,791 $181,302,034 $232,170,757 $358,528,925 $36,324,601
Shares outstanding 9,180,134 37,789,025 15,246,434 20,642,033 30,766,473 3,444,893
Net asset value per share $ 10.66 $ 11.30 $ 11.89 $ 11.25 $ 11.65 $ 10.54
Offering price per share (net
asset value per share
plus maximum sales charge of
4.20% of offering price) $ 11.13 $ 11.80 $ 12.41 $ 11.74 $ 12.16 $ 11.00
- -----------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 10,030,568 $ 21,215,968 $ 8,937,548 $ 9,197,306 $ 25,621,218 $ 4,599,736
Shares outstanding 948,336 1,876,377 750,053 817,165 2,201,417 435,366
Net asset value and offering
price per share $ 10.58 $ 11.31 $ 11.92 $ 11.26 $ 11.64 $ 10.57
- -----------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 22,835,549 $ 46,159,803 $ 38,386,253 $ 19,954,554 $ 45,791,476 $ 4,797,112
Shares outstanding 2,140,411 4,087,374 3,231,180 1,775,333 3,937,693 453,903
Net asset value and offering
price per share $ 10.67 $ 11.29 $ 11.88 $ 11.24 $ 11.63 $ 10.57
- -----------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $ 1,449,046 $ 1,581,059 $ 23,674,643 $ 560,846 $139,016,655 $ 62,799
Shares outstanding 135,333 140,023 1,990,633 49,807 11,942,697 5,930
Net asset value and offering
price per share $ 10.71 $ 11.29 $ 11.89 $ 11.26 $ 11.64 $ 10.59
- -----------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- -----------------------------------------------------------------------------------------------------------------
Capital paid-in $125,674,041 $465,012,342 $231,057,570 $246,537,044 $525,360,914 $43,274,419
Undistributed
(Over-distribution of) net
investment income (172,364) (392,659) (282,649) (117,110) (130,879) (25,375)
Accumulated net realized gain
(loss) from investments (2,108,388) 680,632 2,270,867 (877,957) 266,843 119,597
Net unrealized appreciation
of investments 8,782,595 30,762,306 19,254,690 16,341,486 43,461,396 2,415,607
- -----------------------------------------------------------------------------------------------------------------
Net assets $132,175,884 $496,062,621 $252,300,478 $261,883,463 $568,958,274 $45,784,248
- -----------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
55
Statement of Operations
Year Ended May 31, 2005
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- -----------------------------------------------------------------------------------------------------------
Investment Income $ 6,536,413 $25,207,928 $13,091,395 $13,516,173 $29,679,190 $2,309,492
- -----------------------------------------------------------------------------------------------------------
Expenses
Management fees 703,756 2,573,891 1,357,696 1,399,467 2,960,238 256,035
12b-1 service fees - Class A 189,607 838,178 363,021 461,146 704,926 75,090
12b-1 distribution and
service fees - Class B 104,634 200,270 90,524 88,370 248,330 45,358
12b-1 distribution and
service fees - Class C 168,299 339,852 283,290 151,943 336,802 34,744
Shareholders' servicing agent
fees and expenses 76,574 238,617 147,938 120,706 341,139 27,909
Custodian's fees and expenses 51,863 125,150 86,088 78,949 147,311 27,613
Trustees' fees and expenses 2,911 11,298 5,249 5,809 12,137 1,027
Professional fees 16,420 30,839 18,852 17,867 33,771 8,184
Shareholders' reports -
printing and mailing expenses 16,309 53,205 34,635 25,707 68,676 6,576
Federal and state
registration fees 9,259 9,747 11,801 9,501 9,380 8,099
Other expenses 5,210 16,079 9,361 9,263 18,422 2,728
- -----------------------------------------------------------------------------------------------------------
Total expenses before
custodian fee credit 1,344,842 4,437,126 2,408,455 2,368,728 4,881,132 493,363
Custodian fee credit (16,576) (36,805) (14,293) (16,192) (19,064) (6,307)
- -----------------------------------------------------------------------------------------------------------
Net expenses 1,328,266 4,400,321 2,394,162 2,352,536 4,862,068 487,056
- -----------------------------------------------------------------------------------------------------------
Net investment income 5,208,147 20,807,607 10,697,233 11,163,637 24,817,122 1,822,436
- -----------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain
Net realized gain from
investments 648,814 2,819,853 2,844,854 305,056 2,017,144 618,419
Net change in unrealized
appreciation (depreciation)
of investments 5,016,120 15,787,210 6,924,697 10,714,383 21,508,002 1,176,131
- -----------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain 5,664,934 18,607,063 9,769,551 11,019,439 23,525,146 1,794,550
- -----------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations $10,873,081 $39,414,670 $20,466,784 $22,183,076 $48,342,268 $3,616,986
- -----------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
56
Statement of Changes in Net Assets
Kansas Kentucky
-------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/05 5/31/04 5/31/05 5/31/04
- ------------------------------------------------------------------------------------------------
Operations
Net investment income $ 5,208,147 $ 5,778,679 $ 20,807,607 $ 22,222,767
Net realized gain (loss) from
investments 648,814 (1,665,829) 2,819,853 (1,975,667)
Net change in unrealized appreciation
(depreciation) of investments 5,016,120 (5,728,328) 15,787,210 (16,569,142)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 10,873,081 (1,615,478) 39,414,670 3,677,958
- ------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (3,962,833) (4,349,593) (18,216,210) (19,890,380)
Class B (381,736) (440,052) (756,793) (841,490)
Class C (820,547) (1,002,336) (1,711,635) (2,003,684)
Class R (53,886) (54,894) (65,978) (58,747)
From accumulated net realized gains
from investments:
Class A -- -- (215,689) (1,451,394)
Class B -- -- (10,824) (73,792)
Class C -- -- (23,312) (163,017)
Class R -- -- (808) (4,045)
- ------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (5,219,002) (5,846,875) (21,001,249) (24,486,549)
- ------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 13,008,347 14,588,942 36,364,254 41,174,702
Proceeds from shares issued to
shareholders due
to reinvestment of distributions 2,503,435 2,860,449 10,446,197 12,028,415
- ------------------------------------------------------------------------------------------------
15,511,782 17,449,391 46,810,451 53,203,117
Cost of shares redeemed (16,594,442) (24,476,334) (46,733,307) (54,176,868)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions (1,082,660) (7,026,943) 77,144 (973,751)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 4,571,419 (14,489,296) 18,490,565 (21,782,342)
Net assets at the beginning of year 127,604,465 142,093,761 477,572,056 499,354,398
- ------------------------------------------------------------------------------------------------
Net assets at the end of year $132,175,884 $127,604,465 $496,062,621 $477,572,056
- ------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the end of
year $ (172,364) $ (157,348) $ (392,659) $ (371,032)
- ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
57
Statement of Changes in Net Assets (continued)
Michigan Missouri
-------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/05 5/31/04 5/31/05 5/31/04
- -----------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 10,697,233 $ 12,067,974 $ 11,163,637 $ 11,707,553
Net realized gain (loss) from investments 2,844,854 (381,658) 305,056 443,606
Net change in unrealized appreciation (depreciation) of investments 6,924,697 (12,892,193) 10,714,383 (12,919,701)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 20,466,784 (1,205,877) 22,183,076 (768,542)
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (7,893,894) (8,999,938) (10,019,105) (10,177,283)
Class B (340,481) (426,071) (333,110) (410,400)
Class C (1,429,875) (1,693,924) (770,457) (888,249)
Class R (1,081,592) (1,182,789) (22,605) (23,566)
From accumulated net realized gains from investments:
Class A (79,663) (2,004,173) -- --
Class B (4,292) (114,034) -- --
Class C (16,800) (422,817) -- --
Class R (10,474) (251,531) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (10,857,071) (15,095,277) (11,145,277) (11,499,498)
- -----------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 18,075,991 19,888,293 18,867,537 24,186,720
Proceeds from shares issued to shareholders due
to reinvestment of distributions 4,094,961 5,922,909 5,028,242 5,132,188
- -----------------------------------------------------------------------------------------------------------------------------
22,170,952 25,811,202 23,895,779 29,318,908
Cost of shares redeemed (30,077,327) (43,387,219) (26,422,230) (33,456,713)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions (7,906,375) (17,576,017) (2,526,451) (4,137,805)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 1,703,338 (33,877,171) 8,511,348 (16,405,845)
Net assets at the beginning of year 250,597,140 284,474,311 253,372,115 269,777,960
- -----------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $252,300,478 $250,597,140 $261,883,463 $253,372,115
- -----------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the end
of year $ (282,649) $ (206,743) $ (117,110) $ (134,854)
- -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
58
Ohio Wisconsin
-------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/05 5/31/04 5/31/05 5/31/04
- ------------------------------------------------------------------------------------------------
Operations
Net investment income $ 24,817,122 $ 27,168,316 $ 1,822,436 $ 1,992,279
Net realized gain (loss) from
investments 2,017,144 1,763,995 618,419 389,437
Net change in unrealized appreciation
(depreciation) of investments 21,508,002 (33,135,955) 1,176,131 (2,742,604)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 48,342,268 (4,203,644) 3,616,986 (360,888)
- ------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (15,605,959) (17,203,763) (1,501,243) (1,678,781)
Class B (967,497) (1,085,124) (155,227) (174,560)
Class C (1,757,417) (1,982,379) (159,807) (173,583)
Class R (6,476,706) (7,215,607) (4,591) (7,838)
From accumulated net realized gains
from investments:
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class R -- -- -- --
- ------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (24,807,579) (27,486,873) (1,820,868) (2,034,762)
- ------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 35,431,676 37,222,137 5,456,300 6,672,641
Proceeds from shares issued to
shareholders due to reinvestment of
distributions 12,146,363 13,107,814 983,002 1,197,776
- ------------------------------------------------------------------------------------------------
47,578,039 50,329,951 6,439,302 7,870,417
Cost of shares redeemed (60,281,341) (79,991,538) (10,861,710) (10,096,228)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions (12,703,302) (29,661,587) (4,422,408) (2,225,811)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 10,831,387 (61,352,104) (2,626,290) (4,621,461)
Net assets at the beginning of year 558,126,887 619,478,991 48,410,538 53,031,999
- ------------------------------------------------------------------------------------------------
Net assets at the end of year $568,958,274 $558,126,887 $ 45,784,248 $ 48,410,538
- ------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the
end of year $ (130,879) $ (99,771) $ (25,375) $ (21,572)
- ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
59
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 is
comprised of 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.
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
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.
Investment 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 or, in the absence of a pricing service for a
particular security, the Board of Trustees of the Funds, or its designee, may
establish fair market value using a wide variety of market data including
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, market quotes or indications of value from
securities dealers, evaluations of anticipated cash flows or collateral,
general market conditions and other information and analysis, including the
obligor's credit characteristics considered relevant by the pricing service or
the Board of Trustees' designee. 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 transactions are determined on the specific identification method.
Securities purchased 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, 2005,
Kentucky, Missouri, and Ohio had outstanding when-issued purchase commitments
of $2,136,740, $1,585,245 and $9,143,676, 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.
Investment income also includes paydown gains and losses, if any.
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 distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions 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, 2005, have been designated Exempt Interest Dividends. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
Flexible Sales Charge Program
Each Fund offers Class A, B, C and R Shares. Class A Shares are generally sold
with an up-front 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
- ----
60
an up-front 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 an up-front 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, 2005, 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 valued 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 instruments during the fiscal year ended May 31, 2005.
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. However, the Trust has not had prior claims or losses pursuant to
these contracts and expects the risk of loss to be remote.
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.
- ----
61
Notes to Financial Statements (continued)
2. Fund Shares
Transactions in Fund shares were as follows:
Kansas
--------------------------------------------------
Year Ended Year Ended
5/31/05 5/31/04
------------------------ ------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------
Shares sold:
Class A 860,345 $ 9,059,917 793,968 $ 8,303,025
Class A - automatic conversion of
Class B shares 16,697 175,515 -- --
Class B 50,553 525,883 59,064 615,299
Class C 286,374 3,012,008 526,585 5,524,723
Class R 22,111 235,024 13,736 145,895
Shares issued to shareholders due to
reinvestment of distributions:
Class A 178,604 1,868,759 200,112 2,092,048
Class B 16,620 172,552 19,035 197,536
Class C 43,366 453,981 53,905 564,187
Class R 775 8,143 636 6,678
- --------------------------------------------------------------------------------------------
1,475,445 15,511,782 1,667,041 17,449,391
- --------------------------------------------------------------------------------------------
Shares redeemed:
Class A (872,910) (9,130,553) (1,557,318) (16,264,216)
Class B (189,055) (1,973,960) (188,261) (1,938,824)
Class B - automatic conversion to
Class A shares (16,834) (175,515) -- --
Class C (506,754) (5,261,246) (586,380) (6,086,120)
Class R (5,092) (53,168) (17,937) (187,174)
- --------------------------------------------------------------------------------------------
(1,590,645) (16,594,442) (2,349,896) (24,476,334)
- --------------------------------------------------------------------------------------------
Net increase (decrease) (115,200) $ (1,082,660) (682,855) $ (7,026,943)
- --------------------------------------------------------------------------------------------
Kentucky
--------------------------------------------------
Year Ended Year Ended
5/31/05 5/31/04
------------------------ ------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------
Shares sold:
Class A 2,723,044 $ 30,401,710 2,858,255 $ 31,892,416
Class A - automatic conversion of
Class B shares 8,847 98,597 -- --
Class B 124,020 1,384,507 249,021 2,763,418
Class C 376,990 4,202,352 572,512 6,394,052
Class R 24,848 277,088 11,133 124,816
Shares issued to shareholders due to
reinvestment of distributions:
Class A 816,581 9,066,627 932,474 10,375,268
Class B 38,395 426,521 45,210 503,135
Class C 81,054 898,778 98,888 1,099,196
Class R 4,891 54,271 4,573 50,816
- --------------------------------------------------------------------------------------------
4,198,670 46,810,451 4,772,066 53,203,117
- --------------------------------------------------------------------------------------------
Shares redeemed:
Class A (3,450,812) (38,405,653) (3,709,929) (41,162,021)
Class B (195,043) (2,166,368) (244,740) (2,709,713)
Class B - automatic conversion to
Class A shares (8,845) (98,597) -- --
Class C (538,433) (5,973,276) (930,718) (10,295,377)
Class R (7,976) (89,413) (899) (9,757)
- --------------------------------------------------------------------------------------------
(4,201,109) (46,733,307) (4,886,286) (54,176,868)
- --------------------------------------------------------------------------------------------
Net increase (decrease) (2,439) $ 77,144 (114,220) $ (973,751)
- --------------------------------------------------------------------------------------------
- ----
62
Michigan
--------------------------------------------------
Year Ended Year Ended
5/31/05 5/31/04
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
Shares sold:
Class A 1,128,179 $ 13,206,864 1,173,770 $ 13,773,949
Class A - automatic conversion of Class B shares 7,126 84,229 -- --
Class B 50,547 593,221 103,810 1,221,861
Class C 329,227 3,867,933 344,503 4,053,427
Class R 27,710 323,744 71,099 839,056
Shares issued to shareholders due to reinvestment
of distributions:
Class A 234,783 2,744,586 341,045 4,005,239
Class B 10,815 126,702 17,765 208,791
Class C 42,194 492,748 60,648 711,144
Class R 62,508 730,925 84,936 997,735
- -------------------------------------------------------------------------------------------------------
1,893,089 22,170,952 2,197,576 25,811,202
- -------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (1,847,113) (21,589,536) (2,625,909) (30,776,396)
Class B (186,090) (2,178,934) (157,814) (1,844,648)
Class B - automatic conversion to Class A shares (7,114) (84,229) -- --
Class C (368,694) (4,319,715) (774,769) (9,064,066)
Class R (162,717) (1,904,913) (144,833) (1,702,109)
- -------------------------------------------------------------------------------------------------------
(2,571,728) (30,077,327) (3,703,325) (43,387,219)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (678,639) $ (7,906,375) (1,505,749) $(17,576,017)
- -------------------------------------------------------------------------------------------------------
Missouri
--------------------------------------------------
Year Ended Year Ended
5/31/05 5/31/04
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
Shares sold:
Class A 1,445,635 $ 15,863,183 1,896,429 $ 20,766,655
Class A - automatic conversion of Class B shares 1,348 15,131 -- --
Class B 55,120 613,519 106,461 1,175,381
Class C 204,601 2,273,655 204,008 2,244,513
Class R 9,178 102,049 15 171
Shares issued to shareholders due to reinvestment
of distributions:
Class A 416,123 4,592,030 418,334 4,614,441
Class B 16,069 177,389 18,993 209,608
Class C 23,149 255,193 27,661 305,073
Class R 328 3,630 278 3,066
- -------------------------------------------------------------------------------------------------------
2,171,551 23,895,779 2,672,179 29,318,908
- -------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (1,809,311) (20,035,159) (2,434,553) (26,768,972)
Class B (136,397) (1,506,122) (295,500) (3,248,762)
Class B - automatic conversion to Class A shares (1,347) (15,131) -- --
Class C (438,686) (4,815,752) (311,727) (3,408,979)
Class R (4,471) (50,066) (2,688) (30,000)
- -------------------------------------------------------------------------------------------------------
(2,390,212) (26,422,230) (3,044,468) (33,456,713)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (218,661) $ (2,526,451) (372,289) $ (4,137,805)
- -------------------------------------------------------------------------------------------------------
- ----
63
Notes to Financial Statements (continued)
Ohio
--------------------------------------------------
Year Ended Year Ended
5/31/05 5/31/04
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
Shares sold:
Class A 2,421,794 $ 27,855,344 2,304,454 $ 26,549,245
Class A - automatic conversion of Class B shares 21,765 251,838 -- --
Class B 97,298 1,117,174 267,211 3,083,903
Class C 433,897 4,997,158 489,022 5,609,952
Class R 106,356 1,210,162 171,767 1,979,037
Shares issued to shareholders due to reinvestment
of distributions:
Class A 574,748 6,582,720 599,545 6,881,391
Class B 30,755 351,735 34,215 392,111
Class C 59,538 680,583 66,384 760,754
Class R 396,161 4,531,325 442,465 5,073,558
- -------------------------------------------------------------------------------------------------------
4,142,312 47,578,039 4,375,063 50,329,951
- -------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (3,375,812) (38,603,590) (4,517,200) (51,533,122)
Class B (240,240) (2,754,861) (352,580) (4,031,327)
Class B - automatic conversion to Class A shares (21,798) (251,838) -- --
Class C (553,070) (6,309,352) (894,505) (10,208,729)
Class R (1,081,810) (12,361,700) (1,243,807) (14,218,360)
- -------------------------------------------------------------------------------------------------------
(5,272,730) (60,281,341) (7,008,092) (79,991,538)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,130,418) $(12,703,302) (2,633,029) $(29,661,587)
- -------------------------------------------------------------------------------------------------------
Wisconsin
--------------------------------------------------
Year Ended Year Ended
5/31/05 5/31/04
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
Shares sold:
Class A 384,826 $ 4,015,568 464,905 $ 4,873,006
Class A - automatic conversion of Class B shares 2,773 28,862 -- --
Class B 32,963 337,963 38,553 404,420
Class C 102,831 1,073,682 132,785 1,393,067
Class R 22 225 197 2,148
Shares issued to shareholders due to reinvestment
of distributions:
Class A 76,575 795,272 94,737 985,477
Class B 7,840 81,577 9,370 97,772
Class C 9,739 101,361 10,299 107,357
Class R 461 4,792 687 7,170
- -------------------------------------------------------------------------------------------------------
618,030 6,439,302 751,533 7,870,417
- -------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (861,604) (8,991,707) (704,255) (7,287,114)
Class B (51,401) (534,937) (158,637) (1,626,947)
Class B - automatic conversion to Class A shares (2,767) (28,862) -- --
Class C (113,481) (1,182,323) (114,245) (1,182,167)
Class R (11,929) (123,881) -- --
- -------------------------------------------------------------------------------------------------------
(1,041,182) (10,861,710) (977,137) (10,096,228)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (423,152) $ (4,422,408) (225,604) $ (2,225,811)
- -------------------------------------------------------------------------------------------------------
- ----
64
3. Securities Transactions
Purchases and sales (including maturities) of investments in long-term
municipal securities for the fiscal year ended May 31, 2005, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- -----------------------------------------------------------------------------------
Purchases $27,402,512 $72,382,705 $39,780,872 $42,574,515 $62,354,023 $ 7,089,624
Sales and
maturities 30,152,046 70,233,418 43,054,102 41,452,529 71,634,865 11,586,495
- -----------------------------------------------------------------------------------
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 the treatment of paydown gains and losses on investments,
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, 2005, the cost of investments was as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ------------------------------------------------------------------------------------------------
Cost of investments $121,361,688 $460,265,975 $230,076,021 $243,833,505 $518,251,548 $42,460,330
- ------------------------------------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 2005, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ---------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $8,889,507 $31,238,718 $19,489,993 $16,712,936 $44,170,788 $2,424,538
Depreciation (93,212) (384,737) (319,506) (320,886) (275,683) --
- ---------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $8,796,295 $30,853,981 $19,170,487 $16,392,050 $43,895,105 $2,424,538
- ---------------------------------------------------------------------------------------------------------------------
The tax components of undistributed net investment income and net realized
gains at May 31, 2005, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $228,746 $1,115,012 $ 451,304 $752,256 $1,398,403 $106,215
Undistributed net ordinary income** -- 3 9,969 -- 28,265 3,699
Undistributed net long-term capital gains -- 713,500 2,473,706 -- 266,844 119,596
- ------------------------------------------------------------------------------------------------------
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 9, 2005, paid on June 1, 2005.
** 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,
2005 and May 31, 2004, was designated for purposes of the dividends paid
deduction as follows:
2005 Kansas Kentucky Michigan Missouri Ohio Wisconsin
- --------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $5,262,204 $20,944,156 $10,809,668 $11,148,920 $24,974,764 $1,838,398
Distributions from net ordinary income** -- 20,309 16,192 -- -- --
Distributions from net long-term capital gains -- 250,633 111,229 -- -- --
- --------------------------------------------------------------------------------------------------------------------
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 -- -- --
- --------------------------------------------------------------------------------------------------------------------
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2005, the 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 Missouri
------------------------------------
Expiration year:
2008 $ -- $ --
2009 414,885 673,391
2010 -- 204,566
2011 -- --
2012 1,614,137 --
------------------------------------
$2,029,022 $877,957
------------------------------------
- ----
65
Notes to Financial Statements (continued)
At May 31, 2005, Kansas elected to defer $79,367 of net realized losses from
investments incurred from November 1, 2004 through May 31, 2005 ("post-October
losses") in accordance with Federal income tax regulations. The post-October
losses were treated as having arisen on the first day of the following fiscal
year.
5. Management Fee and Other Transactions with Affiliates
As approved by the Board of Trustees, effective August 1, 2004, a complex-wide
management fee structure was adopted for all funds sponsored by the Adviser, or
its predecessor and its affiliates. This fee structure separates each fund's
management fee into two components - a complex-level component, based on the
aggregate amount of all fund assets managed by the Adviser, and a specific
fund-level component, based only on the amount of assets within each individual
fund. This pricing structure enables Nuveen fund shareholders to benefit from
growth in the assets within each individual fund as well as from growth in the
amount of complex-wide assets managed by the Adviser. Under no circumstances
will this pricing structure result in a fund paying management fees at a rate
higher than would otherwise have been applicable had the complex-wide
management fee structure not been implemented. As of June 30, 2005, the
complex-level fee rate was .1900%; that is the funds' effective management fees
were reduced by approximately .0010%.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Fund-Level Fee Rate
---------------------------------------------------
For the first $125 million .3500%
For the next $125 million .3375
For the next $250 million .3250
For the next $500 million .3125
For the next $1 billion .3000
For the next $3 billion .2750
For net assets over $5 billion .2500
---------------------------------------------------
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
Complex-Level Assets /(1)/ Complex-Level Fee Rate
-----------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion /(2)/ .1400
-----------------------------------------------------------------
(1)The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in
the U.S.
(2)With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level fee
rate for such complex-wide Managed Assets shall be .1400% until such time as
a different rate or rates is determined.
Each Fund paid through July 31, 2004, an annual management fee, payable
monthly, at the rates set forth below, which were based upon the average daily
net assets of each Fund as follows:
Average Daily Net Assets Management Fee Rate
---------------------------------------------------
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
---------------------------------------------------
- ----
66
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 their 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.
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 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, 2005, Nuveen Investments, LLC (the
"Distributor"), a wholly owned subsidiary of Nuveen 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) $181,225 $748,425 $173,590 $242,010 $433,692 $98,297
Paid to authorized dealers (unaudited) 157,894 651,028 150,464 211,129 377,610 84,807
- ---------------------------------------------------------------------------------------------
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, 2005, 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) $61,604 $167,478 $72,991 $76,572 $132,713 $28,458
- -------------------------------------------------------------------------------------
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, 2005, the Distributor retained such 12b-1 fees as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- --------------------------------------------------------------------------------------
12b-1 fees retained (unaudited) $106,859 $189,239 $109,692 $84,355 $236,877 $45,670
- --------------------------------------------------------------------------------------
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, 2005, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
------------------------------------------------------------------------------
CDSC retained (unaudited) $33,390 $36,516 $34,617 $17,649 $40,286 $9,125
------------------------------------------------------------------------------
6. Announcement Regarding Parent Company of Adviser
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an
amount equal to most or all of its remaining Nuveen shares for current payment
but for future settlement. The settlement of transactions (C) and (D) above
would likely be deemed an "assignment" (as defined in the 1940 Act) of the
investment management agreements between the Funds and the Adviser, which would
result in the automatic termination of each agreement under the 1940 Act. The
Board of Trustees will consider approval of new ongoing investment management
agreements for each Fund and the submission of those agreements for approval by
each respective Fund's shareholders. Those agreements, if approved by a Fund's
shareholders, would take effect upon such approval. There can be no assurance
that these approvals will be obtained.
- ----
67
Notes to Financial Statements (continued)
7. Subsequent Event - Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on July 1, 2005, to shareholders of record on June 9,
2005, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
-------------------------------------------------------------
Dividend
per
share:
Class A $.0345 $.0380 $.0415 $.0400 $.0410 $.0345
Class B .0280 .0310 .0340 .0330 .0340 .0280
Class C .0300 .0325 .0360 .0350 .0360 .0300
Class R .0365 .0395 .0435 .0420 .0430 .0365
-------------------------------------------------------------
- ----
68
Financial Highlights
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ---------------------- --------
KANSAS
Net
Beginning Net Realized/ Net Ending Ending
Net Invest- Unrealized 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)
2005 $10.20 $.44 $ .46 $ .90 $(.44) $-- $(.44) $10.66 8.95% $ 97,861
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
Class B (2/97)
2005 10.12 .36 .46 .82 (.36) -- (.36) 10.58 8.21 10,031
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
Class C (2/97)
2005 10.21 .38 .46 .84 (.38) -- (.38) 10.67 8.39 22,836
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
Class R (2/97)
2005 10.24 .46 .47 .93 (.46) -- (.46) 10.71 9.26 1,449
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
- -----------------------------------------------------------------------------------------------------
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)
2005 .88% 4.17% .88% 4.17% .87% 4.18% 21%
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
Class B (2/97)
2005 1.63 3.42 1.63 3.42 1.61 3.43 21
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
Class C (2/97)
2005 1.43 3.62 1.43 3.62 1.42 3.63 21
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
Class R (2/97)
2005 .68 4.37 .68 4.37 .67 4.38 21
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
- ------------------------------------------------------------------------------
(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.
- ----
69
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------- --------
KENTUCKY
Net
Beginning Net Realized/ Net Ending Ending
Net Invest- Unrealized 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)
2005 $10.88 $.48 $ .43 $ .91 $(.48) $(.01) $(.49) $11.30 8.51% $427,106
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
Class B (2/97)
2005 10.88 .40 .44 .84 (.40) (.01) (.41) 11.31 7.80 21,216
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
Class C (10/93)
2005 10.87 .42 .43 .85 (.42) (.01) (.43) 11.29 7.91 46,160
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
Class R (2/97)
2005 10.87 .51 .42 .93 (.50) (.01) (.51) 11.29 8.70 1,581
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
- -----------------------------------------------------------------------------------------------------
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)
2005 .83% 4.35% .83% 4.35% .82% 4.36% 15%
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
Class B (2/97)
2005 1.57 3.60 1.57 3.60 1.57 3.61 15
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
Class C (10/93)
2005 1.37 3.80 1.37 3.80 1.37 3.81 15
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
Class R (2/97)
2005 .63 4.54 .63 4.54 .62 4.55 15
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
- ------------------------------------------------------------------------------
(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.
- ----
70
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ----------------------- --------
MICHIGAN
Net
Beginning Net Realized/ Net Ending Ending
Net Invest- Unrealized 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)
2005 $11.45 $.51 $ .45 $ .96 $(.51) $(.01) $(.52) $11.89 8.48% $181,302
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
Class B (2/97)
2005 11.47 .42 .46 .88 (.42) (.01) (.43) 11.92 7.73 8,938
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
Class C (6/93)
2005 11.43 .44 .46 .90 (.44) (.01) (.45) 11.88 7.98 38,386
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
Class R (2/97)
2005 11.45 .53 .45 .98 (.53) (.01) (.54) 11.89 8.70 23,675
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
- ------------------------------------------------------------------------------------------------------
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)
2005 .86% 4.32% .86% 4.32% .86% 4.33% 16%
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
Class B (2/97)
2005 1.61 3.57 1.61 3.57 1.60 3.58 16
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
Class C (6/93)
2005 1.41 3.77 1.41 3.77 1.40 3.78 16
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
Class R (2/97)
2005 .66 4.52 .66 4.52 .66 4.53 16
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
- ------------------------------------------------------------------------------
(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.
- ----
71
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ---------------------- --------
MISSOURI
Net
Beginning Net Realized/ Net Ending Ending
Net Invest- Unrealized 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)
2005 $10.78 $.48 $ .47 $ .95 $(.48) $ -- $(.48) $11.25 8.97% $232,171
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
Class B (2/97)
2005 10.79 .40 .47 .87 (.40) -- (.40) 11.26 8.15 9,197
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
Class C (2/94)
2005 10.77 .42 .47 .89 (.42) -- (.42) 11.24 8.39 19,955
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
Class R (2/97)
2005 10.79 .50 .47 .97 (.50) -- (.50) 11.26 9.20 561
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
- -----------------------------------------------------------------------------------------------------
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)
2005 .84% 4.35% .84% 4.35% .83% 4.35% 16%
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
Class B (2/97)
2005 1.58 3.60 1.58 3.60 1.58 3.60 16
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
Class C (2/94)
2005 1.39 3.80 1.39 3.80 1.38 3.81 16
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
Class R (2/97)
2005 .64 4.54 .64 4.54 .64 4.55 16
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
- ------------------------------------------------------------------------------
(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.
- ----
72
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ---------------------- --------
OHIO
Net
Beginning Net Realized/ Net Ending Ending
Net Invest- Unrealized 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)
2005 $11.17 $.51 $ .48 $ .99 $(.51) $ -- $(.51) $11.65 9.00% $358,529
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
Class B (2/97)
2005 11.16 .42 .48 .90 (.42) -- (.42) 11.64 8.22 25,621
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
Class C (8/93)
2005 11.15 .45 .48 .93 (.45) -- (.45) 11.63 8.45 45,791
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
Class R (2/97)
2005 11.16 .53 .48 1.01 (.53) -- (.53) 11.64 9.24 139,017
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
- -----------------------------------------------------------------------------------------------------
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)
2005 .84% 4.43% .84% 4.43% .83% 4.44% 11%
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
Class B (2/97)
2005 1.58 3.69 1.58 3.69 1.58 3.69 11
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
Class C (8/93)
2005 1.38 3.88 1.38 3.88 1.38 3.89 11
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
Class R (2/97)
2005 .64 4.64 .64 4.64 .64 4.64 11
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
- ------------------------------------------------------------------------------
(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.
- ----
73
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date)
Investment Operations Less Distributions
--------------------------- ---------------------- -------
WISCONSIN
Net
Beginning Net Realized/ Net Ending Ending
Net Invest- Unrealized 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)
2005 $10.16 $.42 $ .37 $ .79 $(.41) $ -- $(.41) $10.54 7.94% $36,325
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
Class B (2/97)
2005 10.18 .34 .39 .73 (.34) -- (.34) 10.57 7.25 4,600
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
Class C (2/97)
2005 10.18 .36 .39 .75 (.36) -- (.36) 10.57 7.47 4,797
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
Class R (2/97)
2005 10.20 .44 .39 .83 (.44) -- (.44) 10.59 8.25 63
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
- ----------------------------------------------------------------------------------------------------
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)
2005 .92% 3.99% .92% 3.99% .90% 4.00% 15%
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
Class B (2/97)
2005 1.67 3.24 1.67 3.24 1.66 3.25 15
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
Class C (2/97)
2005 1.47 3.44 1.47 3.44 1.45 3.45 15
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
Class R (2/97)
2005 .72 4.21 .72 4.21 .71 4.22 15
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
- ------------------------------------------------------------------------------
(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.
- ----
74
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, 2005, 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 in the period then ended and
the financial highlights for each of the four 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, 2005 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion. The financial highlights of the Funds for the year ended May 31,
2001 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 28, 2005
- ----
75
ANNUAL Investment Management Agreement Approval Process
At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds,
including the independent trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM (the "Adviser").
The Approval Process
To assist the Board in its evaluation of an advisory contract with the
Adviser, the independent trustees received a report in adequate time in advance
of their meeting which outlined, among other things, the services provided by
the Adviser; the organization of the Adviser, including the responsibilities of
various departments and key personnel; the respective Fund's past performance
as well as the Fund's performance compared to funds of similar investment
objectives compiled by an independent third party (a "Peer Group") as described
below and if available, with recognized or, in certain cases, customized
benchmarks; the profitability of the Adviser and certain industry profitability
analyses for advisers to unaffiliated investment companies; the expenses of the
Adviser in providing the various services; the advisory fees of the Adviser,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of the Adviser's management fees with
the fees the Adviser assesses to other types of investment products or
accounts, if any; the soft dollar practices of the Adviser; and the expenses of
each Fund, including comparisons of the Fund's expense ratios (after any fee
waivers) with the expense ratios of its Peer Group. This information
supplements that received by the Board throughout the year regarding Fund
performance, expense ratios, portfolio composition, trade execution and sales
activity.
In addition to the foregoing materials, independent legal counsel to the
independent trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards
of directors have fulfilled their duties and factors to be considered by the
board in voting on advisory agreements.
At the Board meeting, the Adviser made a presentation to and responded to
questions from the Board. After the presentations and after reviewing the
written materials, the independent trustees met privately with their legal
counsel to review the Board's duties in reviewing advisory contracts and
consider the renewal of the advisory contracts. It is with this background that
the trustees considered the advisory contracts with the Adviser. The
independent trustees, in consultation with independent counsel, reviewed the
factors set out in judicial decisions and SEC directives relating to the
renewal of advisory contracts. As outlined in more detail below, the trustees
considered all factors they believed relevant with respect to each Fund,
including the following: (a) the nature, extent and quality of the services to
be provided by the Adviser; (b) the investment performance of the Fund and the
Adviser; (c) the costs of the services to be provided and profits to be
realized by the Adviser and its affiliates from the relationship with the Fund;
(d) the extent to which economies of scale would be realized as the Fund grows;
and (e) whether fee levels reflect these economies of scale for the benefit of
Fund investors.
A. Nature, Extent and Quality of Services
In evaluating the nature, extent and quality of the Adviser's services, the
trustees reviewed information concerning the types of services that the Adviser
or its affiliates provide and are expected to provide to the Funds; narrative
and statistical information concerning the respective Fund's performance record
and how such performance compares to the Fund's Peer Group and, if available,
recognized benchmarks or, in certain cases, customized benchmarks (as described
in further detail in Section B below); information describing the Adviser's
organization and its various departments, the experience and responsibilities
of key personnel, and available resources. In the discussion of key personnel,
the trustees received materials regarding the changes or additions in personnel
of the Adviser. The trustees further noted the willingness of the personnel of
the Adviser to engage in open, candid discussions with the Board. The trustees
further considered the quality of the Adviser's investment process in making
portfolio management decisions, including any refinements or improvements to
the portfolio management processes, enhancements to technology and systems that
are available to portfolio managers, and any additions of new personnel which
may strengthen or expand the research and investment capabilities of the
Adviser. In their review of advisory contracts for the fixed income funds, the
trustees also noted that Nuveen won the Lipper Award for Best Fund Family:
Fixed Income-Large Asset Class, for 2004. Given the trustees' experience with
the Funds, other Nuveen funds and the Adviser, the trustees noted that they
were familiar with and continue to have a good understanding of the
organization, operations and personnel of the Adviser.
In addition to advisory services, the independent trustees considered the
quality of the administrative or non-advisory services provided. In this
regard, the Adviser provides the Fund with such administrative and other
services (exclusive of, and in addition to, any such services provided by
others for the Funds) and officers and other personnel as are necessary for the
operations of the respective Fund. In addition to investment management
services, the Adviser and its affiliates provide each Fund with a wide range of
services, including: preparing shareholder reports; providing daily accounting;
providing quarterly financial statements; overseeing and coordinating the
activities of other service providers; administering and organizing Board
meetings and preparing the Board materials for such meetings; providing legal
support (such as helping to prepare registration statements, amendments thereto
and proxy statements and responding to regulatory inquiries); and performing
other Fund administrative tasks necessary for the operation of the Fund (such
as tax reporting and fulfilling regulatory filing requirements). In addition,
in evaluating the administrative services, the trustees considered, in
particular, the Adviser's policies and procedures for assuring compliance with
applicable laws and
- ----
76
regulations in light of the new SEC regulations governing compliance. The
trustees noted the Adviser's focus on compliance and its compliance systems. In
their review, the trustees considered, among other things, the additions of
experienced personnel to the Adviser's compliance group and modifications and
other enhancements to the Adviser's computer systems. In addition to the
foregoing, the trustees also noted that the Adviser outsources certain services
that cannot be replicated without significant costs or at the same level of
expertise. Such outsourcing has been a beneficial and efficient use of
resources by keeping expenses low while obtaining quality services.
With respect to services provided to the Funds, the trustees also noted,
among other things, the enhancements the Adviser has implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify the Adviser's computer systems as necessary to
support the innovations of the municipal investment team (such as, the ability
to assess certain historical data in order to create customized benchmarks,
perform attribution analysis and facilitate the use of derivatives as hedging
instruments).
Based on their review, the trustees found that, overall, the nature, extent
and quality of services provided (and expected to be provided) to the
respective Funds under the Investment Management Agreements were of a high
level and were quite satisfactory.
B. The Investment Performance of the Fund and the Adviser
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group, if available. Among other things, the
Board received materials reflecting a Fund's historic performance, the Fund's
performance compared to its Peer Group if available and its performance
compared to recognized and, in certain cases, customized benchmarks (as
applicable). Further, in evaluating the performance information, in certain
limited instances, the Trustees noted that the closest Peer Group for a Fund
still would not adequately reflect such Fund's investment objectives and
strategies, thereby limiting the usefulness of the comparisons of such Fund's
performance with that of the Peer Group. The trustees evaluated, among other
things, a Fund's one, three and five year total returns (as available) for the
periods ending December 31, 2004 relative to the unaffiliated funds in its
respective Peer Group (including the returns of individual peers as well as the
Peer Group average) as well as additional performance information with respect
to all funds in the Peer Group subject to the following. Certain state
municipal funds do not have a corresponding Peer Group in which case their
performance is measured against a state-specific municipal index compiled by an
independent third party. Such indices measure bond performance rather than fund
performance. The two open-end Funds that utilize such indices are the Nuveen
New Mexico Municipal Bond Fund and the Nuveen Wisconsin Municipal Bond Fund.
Based on their review, the trustees determined that each Fund's absolute and
relative investment performance over time had been satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
In evaluating the management fees and expenses that a Fund is expected to
bear, the trustees considered the respective Fund's current management fee
structure and the Fund's expected expense ratios in absolute terms as well as
compared with the fees and respective expense ratios of the unaffiliated funds
in its Peer Group. The trustees reviewed the financial information of the
Adviser, including its respective revenues, expenses and profitability. In
reviewing fees, the trustees, among other things, reviewed comparisons of the
Fund's gross management fees (fees after fund-level and complex-wide level
breakpoints but before reimbursement and fee waivers), net management fees
(after breakpoints and reimbursements and fee waivers) and total expense ratios
(before and after waivers) with those of the unaffiliated funds in its Peer
Group and peer averages. In this regard, the trustees noted that the relative
ranking of the Nuveen Funds on fees and expenses was aided by the significant
level of fee reductions provided by the fund-level and complex-wide breakpoint
schedules, and the fee waivers and reimbursements provided by Nuveen for
certain Funds launched since 1999. The complex-wide breakpoint schedule was
instituted in 2004 and is described in further detail below in Section D
entitled "Economies of Scale." In addition to the foregoing, in their review of
the fee and expense information provided for the municipal funds, including, in
particular, the expense ratios of the unaffiliated funds in the Peer Group, the
trustees determined that such Funds' net total expense ratios were within an
acceptable range compared to such peers.
2. Comparisons with the Fees of Other Clients
The trustees further compared the fees of the Adviser to the fees the
Adviser or an affiliate thereof assessed for other types of clients. Such other
clients included clients investing in municipal funds, such as municipal
managed accounts. With respect to municipal managed accounts, the advisory fees
for such accounts are generally lower than those charged to the comparable
Fund. The trustees noted, however, the additional services that are provided
and the costs incurred by Nuveen in managing and operating registered
investment companies, such as the Funds, compared to individually managed
separate accounts. For instance, as described above, the Adviser and its
affiliates provide numerous services to the Funds including, but not limited
to, preparing shareholder reports; providing daily accounting; preparing
quarterly financial statements; overseeing and coordinating the activities of
other service providers; administering and organizing Board meetings and
preparing the Board materials for such meetings; providing legal support; and
administering all other aspects of the Fund's operations. Further, the trustees
noted the increased compliance requirements for funds in light of new SEC
regulations and other legislation. These services are generally not required to
- ----
77
the same extent, if at all, for separate accounts. In addition to the
differences in services, the trustees also considered, among other things, the
differences in product distribution, investor profiles and account sizes.
Accordingly, the trustees believe that the nature and number of services
provided to operate a Fund merit the higher fees than those to separate managed
accounts.
3. Profitability of the Adviser
In conjunction with its review of fees, the trustees also considered the
profitability of the Adviser. The trustees reviewed the Adviser's revenues,
expenses and profitability margins (on both a pre-tax and after-tax basis). In
reviewing profitability, the trustees recognized that one of the most difficult
issues in determining profitability is establishing a method of allocating
expenses. Accordingly, the trustees reviewed the Adviser's assumptions and
methodology of allocating expenses. In this regard, the methods of allocation
used appeared reasonable but the Board noted the inherent limitations in
allocating costs among various advisory products. The trustees also recognized
that individual fund or product line profitability of other advisers is
generally not publicly available. Further, profitability may be affected by
numerous factors including the types of funds managed, expense allocations,
business mix, etc., and therefore comparability of profitability is somewhat
limited. Nevertheless, to the extent available, the trustees considered the
Adviser's profit margin compared to the profitability of various
publicly-traded investment management companies and/or investment management
companies that publicly disclose some or all of their financial results
compiled by three independent third-party service providers. The trustees also
reviewed the revenues, expenses and profit margins of various unaffiliated
advisory firms with similar amounts of assets under management for the last
year prepared by the Adviser. Based on their review, the trustees were
satisfied that the Adviser's level of profitability from its relationship with
each Fund was reasonable in light of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to the Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Adviser and its
affiliates are expected to receive that are directly attributable to their
management of the Funds, if any. See Section E below for additional
information. Based on their review of the overall fee arrangements of the
applicable Fund, the trustees determined that the advisory fees and expenses of
the respective Fund were reasonable.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
In reviewing the compensation, the trustees have long understood the
benefits of economies of scale as the assets of a fund grows and have sought to
ensure that shareholders share in these benefits. One method for shareholders
to share in economies of scale is to include breakpoints in the advisory fee
schedules that reduce fees as fund assets grow. Accordingly, the trustees
received and reviewed the schedules of advisory fees for each Fund, including
fund-level breakpoints thereto. In addition, after lengthy negotiations with
management, the Board in May, 2004 approved a complex-wide fee arrangement
pursuant to which fees of the funds in the Nuveen complex, including the Funds,
are reduced as the assets in the fund complex reach certain levels. The
complex-wide fee arrangement was introduced on August 1, 2004 and the trustees
reviewed data regarding the reductions of fees for the Funds for the period of
August 1, 2004 to December 31, 2004. In evaluating the complex-wide fee
arrangement, the trustees considered, among other things, the historic and
expected fee savings to shareholders as assets grow, the amount of fee
reductions at various asset levels, and that the arrangement would extend to
all Funds in the Nuveen complex. The trustees also considered the impact, if
any, the complex-wide fee arrangement may have on the level of services
provided. Based on their review, the trustees concluded that the breakpoint
schedule and complex-wide fee arrangement currently was acceptable and
desirable in providing benefits from economies of scale to shareholders.
E. Indirect Benefits
In evaluating fees, the trustees also considered any indirect benefits or
profits the Adviser or its affiliates may receive as a result of its
relationship with each Fund. In this regard, the trustees considered any
benefits from soft dollar arrangements. The trustees noted that although the
Adviser manages a large amount of assets, it has very little, if any, brokerage
to allocate. This is due to the fact that the Adviser typically manages the
portfolios of the municipal funds in the Nuveen complex and municipal bonds
generally trade on a principal basis. Accordingly, the Adviser does not
currently have any soft dollar arrangements and does not pay excess brokerage
commissions (or spreads on principal transactions) in order to receive research
services.
In addition to soft dollar arrangements, the trustees also considered any
other revenues, if any, received by the Adviser or its affiliates. In this
regard, for Funds with 12b-1 plans, the trustees received and considered the
amount 12b-1 fees retained by Nuveen during the last calendar year. The
trustees noted that the vast majority of the 12b-1 fees received by Nuveen are
ultimately paid to other financial advisers.
F. Other Considerations
Nuveen, until recently, was a majority owned subsidiary of St. Paul
Travelers. As noted, St. Paul earlier this year announced its intention to
divest its equity stake in Nuveen. Nuveen is the parent of the Adviser.
Pursuant to a series of transactions, St. Paul has begun to reduce its interest
in Nuveen which will ultimately result in a change of control of Nuveen and
therefore the Adviser. As mandated by the 1940 Act, such a change in control
would result in an assignment of the advisory agreement with the Adviser and
the automatic termination of such agreement. Accordingly, the Board also
considered the approval of a New Investment
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78
Management Agreement with each Fund in light of, and which would take effect
upon, the anticipated change of control. More specifically, the Board
considered for each Fund a New Investment Management Agreement on substantially
identical terms to the existing Investment Management Agreement, to take effect
after the change of control has occurred and the contract has been approved by
Fund shareholders. In its review, the Board considered whether the various
transactions necessary to divest St. Paul's interest will have an impact on the
various factors they considered in approving the Adviser, such as the scope and
quality of services to be provided following the change of control. In
reviewing the St. Paul transactions, the Board considered, among other things,
the impact, if any, on the operations and organizational structure of the
Adviser; the possible benefits and costs of the transactions to the respective
Fund; the potential implications of any arrangements used by the Adviser to
finance certain of the transactions; the ability of the Adviser to perform its
duties after the transactions; whether a Fund's fee structure or expense ratio
would change; any changes to the current practices of the respective Fund; any
changes to the terms of the advisory agreement; and any anticipated changes to
the operations of the Adviser. Based on its review, the Board determined that
St. Paul's divestiture would not affect the nature and quality of services
provided by the Adviser, the terms of the Investment Management Agreements,
including the fees thereunder, and would not materially affect the organization
or operations of the Adviser. Accordingly, the Board determined that their
analysis of the various factors regarding their approval of the Adviser would
continue to apply after the change of control.
G. Approval
The trustees did not identify any single factor discussed previously as
all-important or controlling. The trustees, including a majority of independent
trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the Adviser's fees are reasonable in light of the
services provided to each Fund, that the renewal of the Investment Management
Agreements should be approved, and that the new, post-change of control
Investment Management Agreements be approved and recommended to shareholders.
- ----
79
Notes
- --------------------------------------------------------------------------------
80
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
nine. 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 155
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./4/;
Chairman and Director (since 1997) of Nuveen
Asset Management; 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. 155
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- -------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Trustee 1993 Retired (1989) as Senior Vice President of 155
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 155
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive 1996); Director and Vice Chairman, United
Chicago, IL 60606 Fire Group, a publicly held company; Adjunct
Faculty Member, University of Iowa;
Director, Gazette Companies; Life Trustee of
Coe College; Director, Iowa College
Foundation; formerly, Director, Alliant
Energy; 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, 155
3/16/48 School of Business at the University of
333 W. Wacker Drive Connecticut (since 2003); previously, Senior
Chicago, IL 60606 Vice President and Director of Research at
the Federal Reserve Bank of Chicago
(1995-2003); Director (since 1997), Credit
Research Center at Georgetown University;
Director of Xerox Corporation (since 2004).
- -------------------------------------------------------------------------------------------------------------------------
David J. Kundert Trustee 2005 Retired (2004) as Chairman, JPMorgan Fleming 153
10/28/42 Asset Management, President and CEO, Banc
333 W. Wacker Drive One Investment Advisors Corporation, and
Chicago, IL 60606 President, One Group Mutual Funds; prior
thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One
Investment Management Group; Board of
Regents, Luther College; currently a member
of the American and Wisconsin Bar
Associations.
- ----
81
Trustees and Officers (continued)
================================================================================
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
- ---------------------------------------------------------------------------------------------------------------
William J. Schneider Trustee 1997 Chairman, formerly, Senior Partner and Chief 155
9/24/44 Operating Officer, (retired, 2004);
333 W. Wacker Drive Miller-Valentine Partners Ltd., a real
Chicago, IL 60606 estate investment company; formerly, Vice
President, Miller-Valentine Realty, a
construction company; Board Member and Chair
of the Finance Committee, member of the
Audit Committee of Premier Health Partners,
the not-for-profit company of Miami Valley
Hospital; Board Member, formerly Chair,
Dayton Development Coalition; President,
Dayton Philharmonic Orchestra Association;
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 155
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).
- ---------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Trustee 2005 Senior Vice President for Business and 155
1/22/50 Finance (since 1997), Northwestern
333 W. Wacker Drive University; Director (since 2003), Chicago
Chicago, IL 60606 Board of Options Exchange; Director (since
2003), National Mentor Holdings, a
privately-held, national provider of home
and community-based services; Chairman
(since 1997), Board of Directors, Rubicon,
an insurance company owned by Northwestern
University; Director (since 1997), Evanston
Chamber of Commerce and Evanston Inventure,
a business development organization.
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 Officer
- ---------------------------------------------------------------------------------------------------------------
Officers of the Funds:
- ---------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant 155
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./4/;
Managing Director (since 2002), Assistant
Secretary and Associate General Counsel,
formerly, Vice President (since 2000), of
Nuveen Asset Management, Managing Director
(since 2004) and Assistant Secretary (since
1994) of Nuveen Investments, Inc.; 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.
- ---------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), previously, 155
9/22/63 Vice President (since 2002), formerly,
333 W. Wacker Drive Assistant Vice President (since 1999) of
Chicago, IL 60606 Nuveen Investments, LLC; Chartered Financial
Analyst.
- ---------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 155
2/3/66 and Assistant Assistant Vice President (since 2000) of
333 W. Wacker Drive Secretary Nuveen Investments, LLC.
Chicago, IL 60606
- ----
82
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 Officer
- ----------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC 155
11/28/67 and Treasurer (since 1999); Vice President and Treasurer
333 W. Wacker Drive of Nuveen Investments, Inc. (since 1999);
Chicago, IL 60606 Vice President and Treasurer of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp./4/ (since 1999); Vice
President and Treasurer of Nuveen Asset
Management (since 2002) and of Nuveen
Investments Advisers Inc.; 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 1998 Vice President (since 2002) and Assistant 155
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./4/; and (since
2005) Nuveen Asset Management.
- ----------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, 155
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./4/; Managing Director (since
2005) of Nuveen Asset Management.
- ----------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen 155
3/2/64 Investments, LLC; Managing Director (since
333 W. Wacker Drive 2001), formerly, Vice President (since 1995)
Chicago, IL 60606 of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp./4/; Managing
Director (since 2001) of Nuveen Asset
Management; Vice President (since 2002) of
Nuveen Investment Advisers Inc.; Chartered
Financial Analyst.
- ----------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 155
5/31/54 and Controller Controller (since 1998) of Nuveen
333 W. Wacker Drive Investments, LLC; formerly, Vice President
Chicago, IL 60606 and Funds Controller (1998-2004) of Nuveen
Investments, Inc.; Certified Public
Accountant.
- ----------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of 155
4/13/56 and Chief Compliance (since 2004) of Nuveen
333 W. Wacker Drive Compliance Investments, LLC, Nuveen Investments
Chicago, IL 60606 Officer Advisers Inc., Nuveen Asset Management and
Rittenhouse Asset Management, Inc.;
previously, Vice President and Deputy
Director of Compliance (2004) of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp./4/; formerly, Senior Attorney
(1994 to 2004), The Northern Trust Company.
- ----------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 155
3/22/63 Investments, LLC; Certified Public
333 W. Wacker Drive Accountant.
Chicago, IL 60606
- ----------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999) of Nuveen 155
8/27/61 Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
- ----
83
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 Officer
- --------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and 155
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./4/;
Vice President (since 2005), Assistant
Secretary of Nuveen Investments, Inc. and of
Nuveen Asset Management; Vice President
(since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of
Rittenhouse Asset Management; Vice President
and Assistant Secretary of Nuveen
Investments Advisers Inc. (since 2002);
Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002).
(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.
(4)Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
- ----
84
- --------------------------------------------------------------------------------
Fund Information
================================================================================
Fund Manager Legal Counsel Transfer Agent and
Nuveen Asset Management* 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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or offer
price and reinvested dividends and capital gains distributions, if any) 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.
Average Duration: Duration is a measure of the expected period over which a
bond's principal and interest will be paid, and consequently is a measure of
the sensitivity of a bond's (or bond fund's) value to changes when market
interest rates change. Generally, the longer a bond or Fund's duration, the
more the price of the bond or Fund will change as interest rates change.
Dividend Yield (also known as Market 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 30-Day 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 at a specified assumed tax rate, the yield of a
municipal bond investment.
*NAC and NIAC Merge into NAM--Effective Jan. 1, 2005, the asset management
services and operations of Nuveen Advisory Corp. (NAC) and Nuveen Institutional
Advisory Corp (NIAC) became part of Nuveen Asset Management (NAM). This
internal consolidation is intended to simplify the delivery of services to the
investment management clients of Nuveen investments. It does not affect the
investment objectives or portfolio management of any Fund.
================================================================================
Quarterly Portfolio of Investments and Proxy Voting information: Each Fund's
(i) quarterly portfolio of investments, (ii) information regarding how the
Funds voted proxies relating to portfolio securities held during the 12-month
period ended June 30, 2004, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments at (800) 257-8787 or on Nuveen's website at www.nuveen.com.
You may also obtain this and other Fund information directly from the
Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee
for this information. Visit the SEC on-line at http://www.sec.gov or in person
at the SEC's Public Reference Room in Washington, D.C. Call the SEC at
1-202-942-8090 for room hours and operation. You may also request fund
information by sending an e-mail request to publicinfo@sec.gov or by writing to
the SEC's Public Reference Section at 450 Fifth Street NW, Washington, D.C.
20549.
================================================================================
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.
- ----
85
[PHOTO]
Learn more
about Nuveen Funds at
www.nuveen.com/mf
Nuveen Investments:
SERVING Investors
For GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past
century, Nuveen Investments has adhered to the belief that the best
approach to investing is to apply conservative risk-management principles
to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity
and fixed-income solutions that are integral to a well-diversified core
portfolio. Our clients have come to appreciate this diversity, as well as
our continued adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different
needs.
Managing approximately $124 billion in assets, Nuveen Investments offers
access to a number of different asset classes and investing solutions
through a variety of products. Nuveen Investments markets its capabilities
under four distinct brands: Nuveen, a leader in tax-free investments; NWQ,
a leader in value-style equities; Rittenhouse, a leader in growth-style
equities; and Symphony, a leading institutional manager of market-neutral
alternative investment portfolios.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers and
for a prospectus, where applicable, talk to your financial advisor, or call
us at (800) 257-8787. Please read the information carefully before you
invest.
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MAN-MS6-0505D
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. There were no amendments to or waivers
from the code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/mf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors determined that the registrant has at least
one "audit committee financial expert" (as defined in Item 3 of Form N-CSR)
serving on its Audit Committee. The registrant's audit committee financial
expert is Jack B. Evans, Chairman of the Audit Committee, who is "independent"
for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Office of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show 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, 2005 to Funds Billed to Funds Billed to Funds Billed to Funds
- ------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Kansas Municipal Bond Fund 8,785 0 905 0
Kentucky Municipal Bond Fund 17,066 0 3,347 0
Michigan Municipal Bond Fund 11,545 0 1,758 0
Missouri Municipal Bond Fund 11,758 0 1,796 0
Ohio Municipal Bond Fund 18,763 0 3,890 0
Wisconsin Municipal Bond Fund 6,803 0 320 0
--------------------------------------------------------------------------
Total $ 74,720 $ 0 $ 12,016 $ 0
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 Municipal Bond Fund 0 0 0 0
Kentucky Municipal Bond Fund 0 0 0 0
Michigan Municipal Bond Fund 0 0 0 0
Missouri Municipal Bond Fund 0 0 0 0
Ohio Municipal Bond Fund 0 0 0 0
Wisconsin Municipal Bond Fund 0 0 0 0
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 Municipal Bond Fund 9,172 0 174 0
Kentucky Municipal Bond Fund 18,269 0 612 0
Michigan Municipal Bond Fund 12,367 0 334 0
Missouri Municipal Bond Fund 12,440 0 328 0
Ohio Municipal Bond Fund 20,545 0 724 0
Wisconsin Municipal Bond Fund 6,989 0 60 0
--------------------------------------------------------------------------
Total $ 79,782 $ 0 $ 2,232 $ 0
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 Municipal Bond Fund N/A N/A N/A N/A
Kentucky Municipal Bond Fund N/A N/A N/A N/A
Michigan Municipal Bond Fund N/A N/A N/A N/A
Missouri Municipal Bond Fund N/A N/A N/A N/A
Ohio Municipal Bond Fund N/A N/A N/A N/A
Wisconsin Municipal Bond Fund N/A N/A N/A N/A
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance, and tax planning.
SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by PricewaterhouseCoopers
LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity
controlling, controlled by or under common control with NAM ("Control
Affiliate") 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, 2005 Service Providers Service Providers Service Providers
- --------------------------------------------------------------------------------------------------
Nuveen Multistate Trust IV $ 0 $ 49,500 $ 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 above "Tax Fees" are fees billed to the Adviser for Fund tax return
preparation.
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
- --------------------------------------------------------------------------------------------------
Nuveen Multistate Trust IV $ 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 tables also show 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 tables show 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, 2005 Billed to Trust reporting of the Trust) engagements) Total
- -------------------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Kansas Municipal Bond Fund 905 49,500 0 50,405
Kentucky Municipal Bond Fund 3,347 49,500 0 52,847
Michigan Municipal Bond Fund 1,758 49,500 0 51,258
Missouri Municipal Bond Fund 1,796 49,500 0 51,296
Ohio Municipal Bond Fund 3,890 49,500 0 53,390
Wisconsin Municipal Bond Fund 320 49,500 0 49,820
---------------------------------------------------------------------------------------
Total $ 12,016 $ 0
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax Fees" billed
to Adviser in the amount of $49,500 from previous table.
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 Municipal Bond Fund 174 0 0 174
Kentucky Municipal Bond Fund 612 0 0 612
Michigan Municipal Bond Fund 334 0 0 334
Missouri Municipal Bond Fund 328 0 0 328
Ohio Municipal Bond Fund 724 0 0 724
Wisconsin Municipal Bond Fund 60 0 0 60
---------------------------------------------------------------------------------------
Total $ 2,232 $ 0 $ 0 $ 2,232
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
See Portfolio of Investments in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable to this registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. 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 second fiscal quarter of the period covered by this
report that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, 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 the code is posted on registrant's website at www.nuveen.com/mf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investors Resources drop down menu box, click on Fund
governance and then Code of Conduct.)
(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 8, 2005
----------------------------------------------------------------
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 8, 2005
----------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
-------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date August 8, 2005
----------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.