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, 2006
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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.
NUVEEN INVESTMENTS MUTUAL FUNDS
Annual Report Dependable, tax-free income
dated May 31, 2006 because it's not what you earn, it's what you keep.(R)
[GRAPHIC]
[GRAPHIC]
Nuveen Investments
Municipal Bond Funds
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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[GRAPHIC]
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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
".....a municipal bond investment like your Fund may help you achieve and
benefit from greater portfolio diversification - a potential way to reduce some
of the risk that comes with investing."
Dear Shareholder:
I am pleased to report that over the 12-month period covered by this report
your Fund continued to provide you with attractive monthly tax-free income. For
more details about the management strategy and performance of your Fund, please
read the Portfolio Managers' Comments, the Dividend Information and Fund
Spotlight sections of this report.
As I've noted in past letters, a municipal bond investment like your Fund may
help you achieve and benefit from greater portfolio diversification --- a
potential way to reduce some of the risk that comes with investing. Since one
part of your portfolio may be going up when another is going down, portfolio
diversification may help smooth your investment returns over time. Your
financial advisor can explain these advantages in more detail. I urge you to
contact him or her soon for more information on this important investment
strategy.
As you look through this report, be sure to review the inside front cover. This
contains information on how you can receive future Fund reports and other Fund
information faster by using e-mails and the internet. Sign up is quick and easy
- - just follow the step-by-step instructions.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help
you to secure your financial objectives. We are grateful that you have chosen
us as a partner as you pursue your financial goals, and 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 17, 2006
Annual Report l Page 1
Portfolio Managers' Comments
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 6 years of investment experience, began managing
the Kansas, Missouri and Wisconsin Funds in 2003. Cathryn has 10 years of
investment experience and began managing the Kentucky and Ohio Funds in 2004,
and the Michigan Fund in 2005.
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What factors had the greatest influence on the U.S. economy and municipal
market during the 12-month period ended May 31, 2006?
The U.S. economy continued to grow steadily throughout this 12-month period,
despite the damage caused by hurricanes Katrina and Rita, and the effects of
rising oil prices. The economy expanded by 3.3 percent during the second
quarter of 2005, 4.1 percent during the third quarter, 1.7 percent during the
fourth quarter, and a robust 5.3 percent during the first quarter of 2006.
Rising energy costs led to increased concerns about inflation, even though the
core inflation rate - which excludes volatile energy and food prices - showed
only modest growth. Nevertheless, the Federal Reserve Board continued to raise
short-term interest rates throughout the period, bringing the benchmark federal
funds rate to 5 percent in May 2006, up from 3 percent a year earlier. (On June
29, 2006, after the close of this reporting period, the fed funds rate was
raised to 5.25 percent.)
Interestingly, long-term bonds, which are generally the most
interest-rate-sensitive, saw their yields go up less than those of shorter-term
bonds during the reporting period. This situation led to a flattening yield
curve in both the taxable and tax-exempt fixed-income markets, as shorter-term
interest rates approached the levels of longer-term rates.
Municipal bonds generally outperformed their taxable counterparts during the
period, primarily because strong demand was coupled with reduced issuance as
the period progressed. Although 2005 was a record year for municipal bond new
issue supply, the situation changed dramatically in early 2006. For the first
five months of this calendar year, issuance totaled about $134 billion
nationwide, a 19 percent decline compared to the same period in 2005. For the
full 12-month reporting period, new municipal supply was approximately $404
billion, 6 percent greater than the previous 12 months.
Lower-rated municipal securities continued to perform well. State and local
governments benefited from generally strong economies, which boosted their
fiscal strength and helped make many issuers more creditworthy. As the prices
of lower-rated securities rose, their yield advantage over higher-rated
securities generally shrank, meaning that investors were being offered lower
levels of incremental income in exchange for taking on additional credit risk.
How did the Funds perform during the 12 months ended May 31, 2006?
The nearby table 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, 2006. Each Fund's performance is compared with the national
Lehman Brothers Municipal Bond Index, as well as with its Lipper peer fund
category average. The factors determining the performance of each Fund are
discussed later in the report.
Over the 12-month period, the total returns of the Nuveen Kentucky, Michigan,
Missouri and Ohio Municipal Bond Funds all outperformed their respective Lipper
peer group category averages, while the returns of the Kansas and Wisconsin
Funds underperformed their Lipper peer group category average. The Nuveen
Missouri Municipal Bond Fund performed in line with the national
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Annual Report Page 2
Class A Shares--
Average Annual Total Returns as of 5/31/06
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1-Year 5-Year 10-Year
---------------------
Nuveen Kansas Municipal Bond Fund
A Shares at NAV 1.28% 4.97% 5.40%
A Shares at Offer -2.99% 4.07% 4.95%
Lipper Kansas Municipal Debt Funds
Category Average/1/ 1.83% 4.23% 4.70%
Lehman Brothers Municipal Bond Index/2/ 1.89% 5.27% 5.95%
-------------------------------------------------------------
Nuveen Kentucky Municipal Bond Fund
A Shares at NAV 1.38% 5.15% 5.28%
A Shares at Offer -2.91% 4.26% 4.84%
Lipper Kentucky Municipal Debt Funds
Category Average/1/ 1.11% 4.18% 4.82%
Lehman Brothers Municipal Bond Index/2/ 1.89% 5.27% 5.95%
-------------------------------------------------------------
Nuveen Michigan Municipal Bond Fund
A Shares at NAV 1.48% 5.28% 5.42%
A Shares at Offer -2.77% 4.38% 4.96%
Lipper Michigan Municipal Debt Funds
Category Average/1/ 1.22% 4.39% 5.01%
Lehman Brothers Municipal Bond Index/2/ 1.89% 5.27% 5.95%
-------------------------------------------------------------
Nuveen Missouri Municipal Bond Fund
A Shares at NAV 1.88% 5.21% 5.44%
A Shares at Offer -2.37% 4.31% 4.99%
Lipper Missouri Municipal Debt Funds
Category Average/1/ 1.16% 4.53% 5.04%
Lehman Brothers Municipal Bond Index/2/ 1.89% 5.27% 5.95%
-------------------------------------------------------------
Nuveen Ohio Municipal Bond Fund
A Shares at NAV 1.30% 5.09% 5.18%
A Shares at Offer -2.95% 4.19% 4.73%
Lipper Ohio Municipal Debt Funds
Category Average/1/ 0.98% 4.27% 4.90%
Lehman Brothers Municipal Bond Index/2/ 1.89% 5.27% 5.95%
-------------------------------------------------------------
Nuveen Wisconsin Municipal Bond Fund
A Shares at NAV 1.11% 4.81% 5.23%
A Shares at Offer -3.12% 3.91% 4.78%
Lipper Other States Municipal Debt
Funds Category Average/1/ 1.63% 4.23 4.83%
Lehman Brothers Municipal Bond Index/2/ 1.89% 5.27% 5.95%
-------------------------------------------------------------
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 percent 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.
Lehman Brothers Municipal Bond Index, and the other five Funds trailed the
Lehman Brothers Municipal Bond Index by varying degrees. Although we believe
that comparing the performance of state Funds with that of an unmanaged,
national municipal index may offer some insights into how the Funds 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.
What type of economic environment did the six states profiled in this report
experience during the period?
The Kansas economy accelerated during the period, thanks in part to growth from
the state's manufacturing, construction and government sectors. As of May 2006,
Kansas's jobless rate was 4.5 percent, modestly below the national average of
4.6 percent. According to Moody's, the state's general fund revenues for the
2006 fiscal year exceeded forecasted amounts by nearly 3 percent. For the
12-month period, Kansas municipal issuance was approximately $3.2 billion, a 7
percent decline compared to the prior 12 months. In May 2006, the state
maintained a credit rating of Aa1 from Moody's and AA+ from Standard & Poor's,
which in July 2005 also upgraded the state's outlook from negative to stable.
Despite lagging behind some other southern and border states, Kentucky's
economy continued to expand over the 12-month period, led by the state's
government, manufacturing, education and health services sectors. Kentucky's
unemployment rate was 5.6 percent in May 2006, a full percentage point above
the national average. The state's revenue collections in both the 2005 and 2006
fiscal years exceeded projections by nearly three percentage
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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,
2006. The Lipper categories contained 9,8 and 5 funds in the Lipper Kansas
Municipal Debt Funds Category, 17, 16 and 9 funds in the Lipper Kentucky
Municipal Debt Funds Category, 33, 32 and 26 funds in the Lipper Michigan
Municipal Debt Funds Category, 21, 20 and 17 funds in the Lipper Missouri
Municipal Debt Funds Category, 42, 38 and 32 funds in the Lipper Ohio
Municipal Debt Funds Category and 74, 70 and 46 funds in the Lipper Other
States Municipal Debt Funds Category for the respective one-, five- and
ten-year periods ended May 31, 2006. 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
points, creating a budget surplus in both years. The state was an active issuer
of municipal debt during the past 12 months, with $4 billion worth of new bonds
issued, representing a 43 percent year-over-year increase, well above the 6
percent national average. Kentucky's credit ratings at period end were AA- and
Aa2 by Standard & Poor's and Moody's, respectively. Both rating services
reconfirmed these ratings in April 2006.
Michigan's economy continued to face substantial challenges over this reporting
period, due in large part to its heavy dependence on the troubled automotive
industry. As of May 2006, the state's unemployment rate was 6.0 percent, one of
the nation's highest and well above the 4.6 percent national average. However,
the state's finances continued to be managed conservatively, and at period end
Michigan's general obligation debt was rated AA and Aa2 by Standard & Poor's
and Moody's, respectively. The state's issued $14 billion worth of municipal
debt during this 12-month reporting period - a 39 percent year-over-year
increase.
Missouri's economy, while slowing down, continued to perform well due in part
to growth in its professional and business services industries. The state's
unemployment rate as of May 2006 was 4.4 percent, lower than the national
average. According to Moody's, tax revenues for fiscal 2006 were above
expectations and outpaced the prior year's collections by 6 percent. During the
12-month period, Missouri issued $7.9 billion worth of new municipal debt, a 68
percent rise over the prior period's supply. Thanks to the state's financial
strength and relatively low debt levels, Missouri maintained the strongest
possible credit ratings of AAA and Aaa from Standard & Poor's and Moody's,
respectively.
Like Michigan's, Ohio's economy was hurt by its exposure to the auto industry -
a significant employer in the state. In May 2006, Ohio's jobless rate was 5.3
percent, 0.7 percent higher than the national average. The state issued more
than $13 billion worth of municipal debt during the 12-month period,
representing a 28 percent year-over-year increase. Despite the problems within
certain sectors of the state's economy, Ohio maintained credit ratings of AA+
and Aa1 from Standard & Poor's and Moody's, respectively, as of the end of this
reporting period.
Wisconsin saw record job growth in 2005, in part because of its shift toward a
more service-oriented economy. While there was growth in the manufacturing,
government, education and health services sectors, Wisconsin still ended May
2006 with an unemployment rate of 4.7 percent, slightly above the national
average. At period end, the state maintained a credit rating of Aa3 from
Moody's and AA- from Standard & Poor's, which in November 2005 revised
Wisconsin's credit outlook from stable to positive. Municipal issuance was
approximately $7.5 billion for the 12-month period, a 22 percent increase
compared to the prior 12 months.
What strategies were used to manage the Funds during the period? How did these
strategies influence performance?
For all six Funds, our overall portfolio management approach focused on several
broad themes: careful duration management, credit quality, and bond swaps.
During the period, we sought to manage each Fund's duration - meaning its level
of interest rate risk - to keep it within a target range relative to the
municipal bond market generally. Accordingly, as some of the Funds' bonds
exited the portfolio through calls, maturity or sales, we generally focused on
adding premium-coupon intermediate bonds. These generally had coupons that were
higher than the prevailing interest rates and 10- to 20-year maturities - the
part of the yield curve we believed offered our shareholders the best
risk/reward tradeoff over this period.
Throughout the past year, it continued to be a good time to own lower-rated
bonds, whose prices generally performed well when compared with those of
higher-rated securities. However, this positive performance made it steadily
more challenging to find attractive, lower-rated investment opportunities,
particularly in those states with more limited new issuance. When assessing
potential purchases, we relied on Nuveen's experienced credit research team to
help us identify securities that we believed would offer attractive value
potential relative to their risk.
Annual Report Page 4
Our third theme was to make use of bond swaps, particularly late in the
reporting period. As interest rates rose, we sold certain portfolio holdings
with relatively low yields, purchased during a lower-rate environment. At the
same time, we bought higher-yielding bonds with similar risk characteristics.
This approach enabled us to generate more distributable income potential for
shareholders without greatly increasing the Funds' overall risk profile.
Although each of the six Funds discussed in this report were managed with
similar strategies in mind, there also were differences in how the portfolios
were structured and the individual market conditions in each state. Below we
provide more specific information about the performance and management of each
Fund.
Nuveen Kansas Municipal Bond Fund
The Nuveen Kansas Municipal Bond Fund's Class A return on NAV for the one-year
period ended May 31, 2006, trailed both the national Lehman Brothers Municipal
Bond Index and its Lipper category average. Overall, the Fund benefited from
our duration positioning during the period, with our holdings of intermediate
and longer bonds generally adding to relative performance as shorter-term
interest rates rose and the yield curve flattened. At the same time, the Fund's
performance was constrained by some of our credit quality allocations.
Specifically, we were slightly overweighted in AA rated bonds and slightly
underweighted in A rated bonds, and both positions detracted modestly from
results. However, we were significantly overweighted in the BBB rated and
non-rated categories, both of which were significant positives. Sector
positioning provided another performance negative for the Fund over this
period, with our underweighting in the strong-performing industrial development
revenue bonds hurting overall results as these securities appreciated along
with the lower-rated bond market.
As mentioned, we looked for bond swap opportunities to maintain the portfolio's
risk level while improving distributable income from the swapped position. We
were fairly active in employing this strategy in the Kansas Fund. For example,
we sold Kansas Board of Regents bonds and in their place we bought Butler
County Unified School District bonds with roughly the same maturity and a
higher yield. The new bond added roughly 15 basis points (0.15 percent) of
distributable income from the swapped position without significantly altering
the Fund's duration or credit risk levels.
Nuveen Kentucky Municipal Bond Fund
The return of the Nuveen Kentucky Municipal Bond Fund's Class A on NAV outpaced
its Lipper peer group average over the one-year period, but fell short of the
return of the national Lehman Brothers Municipal Bond Index. The Fund benefited
from its credit quality allocation, with a slight overweight in BBB rated bonds
contributing to results as lower-rated securities generally performed well.
Although the portfolio's overall yield curve positioning was a modest negative,
our overweighting in intermediate-maturity bonds performed well for the Fund
and helped offset some of the underperformance generated elsewhere on the curve.
We were fairly active in managing the Fund's duration, in part because of the
significant number of bond calls the Fund faced during the 12-month period. To
keep duration in line with our target level, we were selling some of our
shorter-duration bonds and looking to invest in the better-valued intermediate
part of the yield curve. Even with the increase in issuance, the supply of new
municipal bond was relatively limited in Kentucky. We were not always able to
find suitable in-state opportunities to add to the portfolio. In those
instances, we were fairly active in adding Puerto Rico bonds, which are
generally income tax exempt in all 50 states. As in-state opportunities became
available during the period, however, we looked to sell some of our Puerto Rico
bonds and replace them with suitable Kentucky securities.
Nuveen Michigan Municipal Bond Fund
Over the one-year period, the return of the Nuveen Michigan Municipal Bond
Fund's Class A on NAV lagged the national Lehman Brothers Municipal Bond Index
but outperformed its Lipper category average. The Fund was helped by its yield
curve positioning, with our emphasis on the
Annual Report Page 5
long-intermediate section of the curve adding to results. The portfolio's
underweighting in very short-term bonds also contributed positively to
performance. At period end, more than 10 percent of the portfolio was invested
in the health care sector. Because many health care bonds are lower-rated, they
tended to boost portfolio performance during these 12 months. In addition, a
handful of the Fund's holdings were pre-refunded during the period - including
one health care bond issue - which also added to the overall results.
On the negative side, the Fund's credit quality allocation detracted modestly
from performance, as we were slightly underweighted in BBB rated bonds. In
addition, our weighting in bonds issued by the State of Michigan generally
constrained the Fund's return, in part because they generally were higher-rated
and did not perform as well as lower-rated bonds during this reporting period.
Several zero-coupon bonds also underperformed for the Fund as a result of their
significant interest-rate sensitivity in what was generally a rising rate
environment.
There were relatively few sector shifts in the portfolio during the 12 month
period. As part of our efforts to manage the portfolio's duration, we looked
for opportunities to sell some of the Fund's shorter-maturity investments,
replacing them with intermediate-duration bonds with coupons higher than the
prevailing rates for their maturities.
Nuveen Missouri Municipal Bond Fund
The return of the Nuveen Missouri Municipal Bond Fund's Class A on NAV
outperformed its Lipper peer group average over the one-year period, and turned
in results in line with the national Lehman Brothers Municipal Bond Index. The
Fund's weighting in lower-rated bonds - especially in BBB rated bonds - was a
big help, while being underweighted in the weaker-performing AA sector also
contributed positively to relative performance. On the negative side, the
Fund's sector allocations detracted modestly. Specifically, performance was
hurt by a slight underweight in industrial revenue bonds - which performed well
- - and a slight overweight to pre-refunded and insured bonds, two categories
that generally lagged during the period. Making up for some of that lost
ground, however, was positive performance from our holdings in the health care,
housing, transportation, and utilities sectors.
Throughout the period, we kept on the lookout for attractively valued
lower-rated bonds, and we did find a number of opportunities to add to the
Fund's lower-rated exposure. For example, we purchased non-rated Fenton tax
increment finance bonds and two Missouri Development Finance Board bond issues,
one with an A+ rating and the other rated BBB+.
Market conditions also provided us with periodic opportunities to swap some of
the portfolio's holdings purchased in recent years for newer bonds paying
higher yields. For example, we sold AA rated bonds issued by the Curators of
the University of Missouri and simultaneously bought AA+ rated North Kansas
City School District bonds. Since both bond issues offered nearly identical
durations, we increased the distributable income potential from the position
while essentially maintaining its interest rate risk.
Nuveen Ohio Municipal Bond Fund
Over the one-year period, the return of the Nuveen Ohio Municipal Bond Fund's
Class A on NAV outperformed its Lipper peer group average but trailed the
national Lehman Brothers Municipal Bond Index. A number of the Fund's holdings
were advance refunded during the period, which helped performance. Also adding
to results was our health care sector weighting - these bonds performed well -
and generally favorable bond selection. In contrast, the portfolio's yield
curve positioning had a negative influence on relative performance.
Specifically, we were underweighted in longer-maturity bonds and overweighted
in shorter-maturity inverse floating rate securities, with both positions
detracting from performance.
During the period, we maintained our disciplined approach to duration
management. Accordingly, we looked to sell some of the portfolio's
shorter-duration bonds and, when possible, buy longer-dated securities to
maintain the Fund's duration at an appropriate level. Most of our new
Annual Report Page 6
purchases were focused on intermediate bonds with coupons higher than the
prevailing interest rates for their maturities. We believed these premium bonds
offered shareholders the best risk/reward tradeoff. Among the new purchases in
this part of the yield curve were Ohio Higher Education bonds issued for Case
Western University.
As with the other Funds, we took advantage of rising interest rates through the
use of bond swaps, selling some holdings with lower-yields and replacing them
with better-yielding securities with similar risk characteristics. For example,
we sold Ohio Building Authority Correction Facilities bonds and used the
proceeds to buy Franklin County Convention Facility bonds, potentially
generating more distributable income while keeping the Fund's overall risk
relatively consistent.
Nuveen Wisconsin Municipal Bond Fund
The return of the Nuveen Wisconsin Municipal Bond Fund's Class A on NAV lagged
both its Lipper peer group average and the national Lehman Brothers Municipal
Bond Index over the one year period. Many of the portfolio's weakest performers
were non-callable bonds, including two tax revenue bond issues from the
Wisconsin Center District. Because non-callable bonds tend to be particularly
sensitive to interest rate increases, their prices suffered as interest rates
rose. On the positive side, a number of the Fund's housing bond issues were
strong performers, as housing bonds tended to perform well in the rising
interest rate environment.
Issuance in the state was greater than usual during the period, giving us a
variety of investment opportunities and enabling us to further diversify the
portfolio. As one example, we added Sun Prairie Community Development Authority
tax-increment financing bonds. We also established a new position in Wisconsin
HEDA Home Ownership bonds. These and other new opportunities enabled us to
scale back our weighting in certain names that were occupying a
greater-than-desired portion of the portfolio.
Another strategy during the period was to manage the Fund's call exposure to
protect the portfolio's future income stream. Accordingly, we were selling some
of our shorter-dated bonds prior to their calls or maturities and, when
possible, using the proceeds to buy new longer-maturity bonds. We also took
advantage of selected opportunities in the Puerto Rico municipal market, as
U.S. territorial bonds are generally fully income-tax-exempt for residents in
all 50 states.
Dividend Information
Each Fund seeks to pay dividends at a rate that reflects the past and projected
performance of the Fund. To permit a Fund to maintain a more stable monthly
dividend, the Fund may pay dividends at a rate that may be more or less than
the amount of net investment income actually earned by the Fund during the
period. If the Fund has cumulatively earned more than it has paid in dividends,
it will 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.
During the period, the Nuveen Michigan, Missouri, Ohio, and Wisconsin Municipal
Bond Funds experienced one monthly dividend decrease, while the Nuveen Kansas
and Kentucky Municipal Bond Funds had no changes in their monthly dividends.
The Class A, C and R shares of the Nuveen Michigan Municipal Bond Fund had one
monthly dividend decrease, while the Class B shares had one monthly dividend
decrease and one monthly dividend increase during the period. The dividend
reductions reflected the low-interest-rate environment of the past several
years. As bonds matured, were called, or were sold from the portfolios, the
bonds purchased to replace the older holdings generally were offering lower
prevailing yields.
As of May 31, 2006, the Nuveen Kansas, Kentucky, Michigan, Missouri, Ohio, and
Wisconsin Municipal Bond Funds had negative UNII for financial statement
purposes and positive UNII balances for tax purposes.
Annual Report Page 7
Nuveen Kansas Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Kansas Nuveen Kansas Lehman Brothers
Municipal Bond Fund Municipal Bond Fund Municipal Bond
(NAV) (Offer) Index
------------------- ------------------- ----------------
5/31/96 10,000 9,580 10,000
6/30/96 10,136 9,710 10,109
7/31/96 10,222 9,793 10,201
8/31/96 10,217 9,788 10,199
9/30/96 10,395 9,958 10,342
10/31/96 10,493 10,052 10,459
11/30/96 10,672 10,224 10,650
12/31/96 10,645 10,198 10,695
1/31/97 10,640 10,193 10,715
2/28/97 10,739 10,288 10,814
3/31/97 10,626 10,180 10,670
4/30/97 10,747 10,296 10,759
5/31/97 10,921 10,463 10,921
6/30/97 11,011 10,548 11,038
7/31/97 11,338 10,862 11,343
8/31/97 11,212 10,741 11,237
9/30/97 11,335 10,859 11,371
10/31/97 11,426 10,946 11,443
11/30/97 11,496 11,013 11,511
12/31/97 11,675 11,185 11,679
1/31/98 11,790 11,294 11,799
2/28/98 11,772 11,277 11,803
3/31/98 11,820 11,324 11,813
4/30/98 11,735 11,242 11,760
5/31/98 11,940 11,439 11,946
6/30/98 11,989 11,486 11,993
7/31/98 12,028 11,523 12,023
8/31/98 12,213 11,700 12,209
9/30/98 12,364 11,845 12,361
10/31/98 12,334 11,815 12,361
11/30/98 12,383 11,863 12,405
12/31/98 12,398 11,877 12,436
1/31/99 12,517 11,991 12,584
2/28/99 12,462 11,938 12,528
3/31/99 12,453 11,930 12,546
4/30/99 12,501 11,976 12,577
5/31/99 12,396 11,876 12,504
6/30/99 12,184 11,673 12,324
7/31/99 12,186 11,674 12,369
8/31/99 12,008 11,503 12,270
9/30/99 11,937 11,436 12,275
10/31/99 11,722 11,230 12,142
11/30/99 11,819 11,323 12,271
12/31/99 11,675 11,185 12,179
1/31/00 11,543 11,058 12,126
2/29/00 11,727 11,234 12,267
3/31/00 12,047 11,541 12,536
4/30/00 11,950 11,448 12,462
5/31/00 11,852 11,354 12,397
6/30/00 12,164 11,653 12,725
7/31/00 12,366 11,847 12,902
8/31/00 12,557 12,030 13,101
9/30/00 12,498 11,973 13,033
10/31/00 12,614 12,085 13,175
11/30/00 12,681 12,148 13,275
12/31/00 13,003 12,457 13,603
1/31/01 13,095 12,545 13,738
2/28/01 13,176 12,622 13,782
3/31/01 13,282 12,724 13,906
4/30/01 13,130 12,578 13,755
5/31/01 13,277 12,719 13,904
6/30/01 13,372 12,810 13,997
7/31/01 13,560 12,990 14,204
8/31/01 13,788 13,209 14,439
9/30/01 13,699 13,124 14,390
10/31/01 13,849 13,267 14,561
11/30/01 13,746 13,169 14,439
12/31/01 13,643 13,070 14,301
1/31/02 13,822 13,241 14,549
2/28/02 14,002 13,414 14,725
3/31/02 13,735 13,158 14,436
4/30/02 13,997 13,410 14,718
5/31/02 14,082 13,490 14,807
6/30/02 14,235 13,637 14,964
7/31/02 14,402 13,798 15,156
8/31/02 14,571 13,959 15,338
9/30/02 14,920 14,294 15,674
10/31/02 14,532 13,921 15,414
11/30/02 14,489 13,880 15,351
12/31/02 14,840 14,217 15,674
1/31/03 14,698 14,081 15,635
2/28/03 14,938 14,311 15,853
3/31/03 14,938 14,310 15,863
4/30/03 15,122 14,487 15,968
5/31/03 15,494 14,844 16,341
6/30/03 15,393 14,746 16,272
7/31/03 14,786 14,165 15,702
8/31/03 14,886 14,261 15,820
9/30/03 15,293 14,651 16,285
10/31/03 15,190 14,552 16,203
11/30/03 15,363 14,718 16,372
12/31/03 15,492 14,841 16,507
1/31/04 15,576 14,922 16,602
2/29/04 15,884 15,217 16,852
3/31/04 15,761 15,099 16,793
4/30/04 15,340 14,695 16,395
5/31/04 15,336 14,692 16,336
6/30/04 15,408 14,761 16,395
7/31/04 15,630 14,973 16,611
8/31/04 15,944 15,274 16,944
9/30/04 16,062 15,387 17,034
10/31/04 16,195 15,515 17,181
11/30/04 16,038 15,365 17,039
12/31/04 16,311 15,626 17,247
1/31/05 16,523 15,829 17,408
2/28/05 16,422 15,732 17,350
3/31/05 16,258 15,575 17,241
4/30/05 16,546 15,851 17,513
5/31/05 16,710 16,008 17,637
6/30/05 16,811 16,105 17,746
7/31/05 16,692 15,991 17,667
8/31/05 16,889 16,180 17,845
9/30/05 16,737 16,034 17,725
10/31/05 16,617 15,919 17,617
11/30/05 16,703 16,001 17,702
12/31/05 16,853 16,145 17,854
1/31/06 16,877 16,168 17,902
2/28/06 16,997 16,283 18,022
3/31/06 16,874 16,166 17,898
4/30/06 16,849 16,141 17,893
5/31/06 16,921 16,211 17,973
================================================================================
Nuveen Kentucky Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Kentucky Nuveen Kentucky Lehman Brothers
Municipal Bond Municipal Bond Municipal Bond
Fund (NAV) Fund (Offer) Index
--------------- --------------- ---------------
5/31/96 10,000 9,580 10,000
6/30/96 10,101 9,677 10,109
7/31/96 10,185 9,757 10,201
8/31/96 10,186 9,758 10,199
9/30/96 10,335 9,901 10,342
10/31/96 10,438 10,000 10,459
11/30/96 10,607 10,162 10,650
12/31/96 10,566 10,122 10,695
1/31/97 10,585 10,140 10,715
2/28/97 10,670 10,222 10,814
3/31/97 10,564 10,120 10,670
4/30/97 10,650 10,203 10,759
5/31/97 10,786 10,333 10,921
6/30/97 10,892 10,435 11,038
7/31/97 11,186 10,717 11,343
8/31/97 11,107 10,641 11,237
9/30/97 11,225 10,753 11,371
10/31/97 11,303 10,829 11,443
11/30/97 11,362 10,885 11,511
12/31/97 11,522 11,038 11,679
1/31/98 11,621 11,133 11,799
2/28/98 11,630 11,141 11,803
3/31/98 11,657 11,168 11,813
4/30/98 11,583 11,096 11,760
5/31/98 11,755 11,262 11,946
6/30/98 11,805 11,309 11,993
7/31/98 11,833 11,336 12,023
8/31/98 11,987 11,484 12,209
9/30/98 12,100 11,591 12,361
10/31/98 12,075 11,568 12,361
11/30/98 12,125 11,616 12,405
12/31/98 12,136 11,626 12,436
1/31/99 12,228 11,715 12,584
2/28/99 12,204 11,691 12,528
3/31/99 12,221 11,707 12,546
4/30/99 12,248 11,733 12,577
5/31/99 12,189 11,677 12,504
6/30/99 12,010 11,505 12,324
7/31/99 12,026 11,521 12,369
8/31/99 11,857 11,359 12,270
9/30/99 11,808 11,312 12,275
10/31/99 11,637 11,148 12,142
11/30/99 11,710 11,219 12,271
12/31/99 11,598 11,111 12,179
1/31/00 11,526 11,042 12,126
2/29/00 11,690 11,199 12,267
3/31/00 11,923 11,422 12,536
4/30/00 11,862 11,364 12,462
5/31/00 11,789 11,294 12,397
6/30/00 12,024 11,519 12,725
7/31/00 12,204 11,692 12,902
8/31/00 12,374 11,854 13,101
9/30/00 12,335 11,817 13,033
10/31/00 12,435 11,913 13,175
11/30/00 12,501 11,976 13,275
12/31/00 12,768 12,231 13,603
1/31/01 12,846 12,307 13,738
2/28/01 12,912 12,370 13,782
3/31/01 13,014 12,467 13,906
4/30/01 12,901 12,359 13,755
5/31/01 13,015 12,469 13,904
6/30/01 13,118 12,567 13,997
7/31/01 13,306 12,748 14,204
8/31/01 13,520 12,952 14,439
9/30/01 13,417 12,853 14,390
10/31/01 13,570 13,000 14,561
11/30/01 13,490 12,923 14,439
12/31/01 13,384 12,822 14,301
1/31/02 13,551 12,982 14,549
2/28/02 13,731 13,154 14,725
3/31/02 13,511 12,944 14,436
4/30/02 13,718 13,142 14,718
5/31/02 13,824 13,244 14,807
6/30/02 13,944 13,358 14,964
7/31/02 14,077 13,486 15,156
8/31/02 14,210 13,613 15,338
9/30/02 14,459 13,852 15,674
10/31/02 14,208 13,611 15,414
11/30/02 14,214 13,617 15,351
12/31/02 14,489 13,881 15,674
1/31/03 14,430 13,824 15,635
2/28/03 14,658 14,043 15,853
3/31/03 14,612 13,998 15,863
4/30/03 14,749 14,130 15,968
5/31/03 15,073 14,440 16,341
6/30/03 15,066 14,433 16,272
7/31/03 14,551 13,940 15,702
8/31/03 14,664 14,049 15,820
9/30/03 15,047 14,415 16,285
10/31/03 15,013 14,382 16,203
11/30/03 15,206 14,568 16,372
12/31/03 15,346 14,701 16,507
1/31/04 15,418 14,770 16,602
2/29/04 15,669 15,011 16,852
3/31/04 15,603 14,948 16,793
4/30/04 15,260 14,619 16,395
5/31/04 15,208 14,569 16,336
6/30/04 15,267 14,626 16,395
7/31/04 15,481 14,831 16,611
8/31/04 15,778 15,116 16,944
9/30/04 15,851 15,185 17,034
10/31/04 15,979 15,308 17,181
11/30/04 15,839 15,173 17,039
12/31/04 16,064 15,389 17,247
1/31/05 16,252 15,569 17,408
2/28/05 16,177 15,497 17,350
3/31/05 16,088 15,412 17,241
4/30/05 16,347 15,660 17,513
5/31/05 16,504 15,811 17,637
6/30/05 16,603 15,905 17,746
7/31/05 16,496 15,804 17,667
8/31/05 16,685 15,984 17,845
9/30/05 16,534 15,840 17,725
10/31/05 16,414 15,724 17,617
11/30/05 16,499 15,806 17,702
12/31/05 16,656 15,956 17,854
1/31/06 16,697 15,996 17,902
2/28/06 16,814 16,108 18,022
3/31/06 16,675 15,974 17,898
4/30/06 16,641 15,942 17,893
5/31/06 16,730 16,027 17,973
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 8
Nuveen Michigan Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Michigan Nuveen Michigan Lehman Brothers
Municipal Bond Municipal Bond Municipal Bond
Fund (NAV) Fund (Offer) Index
--------------- --------------- ---------------
5/31/96 10,000 9,580 10,000
6/30/96 10,106 9,682 10,109
7/31/96 10,205 9,776 10,201
8/31/96 10,216 9,787 10,199
9/30/96 10,377 9,941 10,342
10/31/96 10,486 10,045 10,459
11/30/96 10,666 10,218 10,650
12/31/96 10,632 10,185 10,695
1/31/97 10,637 10,190 10,715
2/28/97 10,730 10,279 10,814
3/31/97 10,593 10,149 10,670
4/30/97 10,687 10,238 10,759
5/31/97 10,845 10,389 10,921
6/30/97 10,958 10,497 11,038
7/31/97 11,275 10,802 11,343
8/31/97 11,146 10,678 11,237
9/30/97 11,268 10,795 11,371
10/31/97 11,364 10,887 11,443
11/30/97 11,422 10,942 11,511
12/31/97 11,583 11,097 11,679
1/31/98 11,679 11,189 11,799
2/28/98 11,689 11,198 11,803
3/31/98 11,708 11,217 11,813
4/30/98 11,641 11,152 11,760
5/31/98 11,816 11,320 11,946
6/30/98 11,865 11,366 11,993
7/31/98 11,885 11,386 12,023
8/31/98 12,053 11,546 12,209
9/30/98 12,201 11,688 12,361
10/31/98 12,181 11,670 12,361
11/30/98 12,221 11,708 12,405
12/31/98 12,237 11,723 12,436
1/31/99 12,328 11,810 12,584
2/28/99 12,267 11,752 12,528
3/31/99 12,277 11,762 12,546
4/30/99 12,307 11,790 12,577
5/31/99 12,223 11,710 12,504
6/30/99 12,057 11,550 12,324
7/31/99 12,066 11,560 12,369
8/31/99 11,899 11,399 12,270
9/30/99 11,867 11,368 12,275
10/31/99 11,686 11,195 12,142
11/30/99 11,759 11,265 12,271
12/31/99 11,620 11,132 12,179
1/31/00 11,491 11,008 12,126
2/29/00 11,670 11,180 12,267
3/31/00 11,938 11,436 12,536
4/30/00 11,848 11,351 12,462
5/31/00 11,758 11,264 12,397
6/30/00 12,062 11,555 12,725
7/31/00 12,246 11,731 12,902
8/31/00 12,430 11,908 13,101
9/30/00 12,350 11,831 13,033
10/31/00 12,470 11,946 13,175
11/30/00 12,500 11,975 13,275
12/31/00 12,823 12,284 13,603
1/31/01 12,887 12,346 13,738
2/28/01 12,975 12,430 13,782
3/31/01 13,097 12,547 13,906
4/30/01 12,935 12,391 13,755
5/31/01 13,104 12,554 13,904
6/30/01 13,252 12,695 13,997
7/31/01 13,457 12,892 14,204
8/31/01 13,710 13,134 14,439
9/30/01 13,661 13,087 14,390
10/31/01 13,857 13,275 14,561
11/30/01 13,736 13,159 14,439
12/31/01 13,574 13,004 14,301
1/31/02 13,795 13,216 14,549
2/28/02 13,982 13,395 14,725
3/31/02 13,667 13,093 14,436
4/30/02 13,915 13,330 14,718
5/31/02 13,983 13,395 14,807
6/30/02 14,148 13,554 14,964
7/31/02 14,314 13,713 15,156
8/31/02 14,505 13,896 15,338
9/30/02 14,844 14,220 15,674
10/31/02 14,556 13,945 15,414
11/30/02 14,528 13,917 15,351
12/31/02 14,855 14,231 15,674
1/31/03 14,788 14,167 15,635
2/28/03 15,034 14,402 15,853
3/31/03 14,979 14,350 15,863
4/30/03 15,139 14,503 15,968
5/31/03 15,438 14,789 16,341
6/30/03 15,319 14,676 16,272
7/31/03 14,766 14,146 15,702
8/31/03 14,903 14,277 15,820
9/30/03 15,258 14,617 16,285
10/31/03 15,202 14,564 16,203
11/30/03 15,378 14,732 16,372
12/31/03 15,446 14,797 16,507
1/31/04 15,532 14,880 16,602
2/29/04 15,844 15,178 16,852
3/31/04 15,798 15,134 16,793
4/30/04 15,432 14,784 16,395
5/31/04 15,396 14,750 16,336
6/30/04 15,441 14,792 16,395
7/31/04 15,662 15,004 16,611
8/31/04 15,964 15,294 16,944
9/30/04 16,050 15,376 17,034
10/31/04 16,219 15,538 17,181
11/30/04 16,057 15,382 17,039
12/31/04 16,301 15,616 17,247
1/31/05 16,482 15,789 17,408
2/28/05 16,373 15,685 17,350
3/31/05 16,250 15,567 17,241
4/30/05 16,531 15,837 17,513
5/31/05 16,701 16,000 17,637
6/30/05 16,817 16,110 17,746
7/31/05 16,706 16,004 17,667
8/31/05 16,903 16,193 17,845
9/30/05 16,746 16,042 17,725
10/31/05 16,632 15,933 17,617
11/30/05 16,703 16,002 17,702
12/31/05 16,852 16,144 17,854
1/31/06 16,894 16,184 17,902
2/28/06 17,024 16,309 18,022
3/31/06 16,891 16,182 17,898
4/30/06 16,861 16,153 17,893
5/31/06 16,949 16,237 17,973
================================================================================
Nuveen Missouri Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Missouri Nuveen Missouri Lehman Brothers
Municipal Bond Municipal Bond Municipal Bond
Fund (NAV) Fund (Offer) Index
--------------- --------------- ---------------
5/31/96 10,000 9,580 10,000
6/30/96 10,101 9,677 10,109
7/31/96 10,185 9,757 10,201
8/31/96 10,202 9,774 10,199
9/30/96 10,352 9,917 10,342
10/31/96 10,456 10,017 10,459
11/30/96 10,646 10,199 10,650
12/31/96 10,604 10,159 10,695
1/31/97 10,602 10,157 10,715
2/28/97 10,707 10,258 10,814
3/31/97 10,585 10,141 10,670
4/30/97 10,682 10,233 10,759
5/31/97 10,828 10,373 10,921
6/30/97 10,945 10,485 11,038
7/31/97 11,263 10,790 11,343
8/31/97 11,148 10,680 11,237
9/30/97 11,277 10,803 11,371
10/31/97 11,354 10,878 11,443
11/30/97 11,423 10,943 11,511
12/31/97 11,595 11,108 11,679
1/31/98 11,695 11,204 11,799
2/28/98 11,691 11,200 11,803
3/31/98 11,719 11,227 11,813
4/30/98 11,663 11,173 11,760
5/31/98 11,837 11,340 11,946
6/30/98 11,885 11,386 11,993
7/31/98 11,913 11,412 12,023
8/31/98 12,089 11,581 12,209
9/30/98 12,223 11,710 12,361
10/31/98 12,198 11,685 12,361
11/30/98 12,248 11,733 12,405
12/31/98 12,265 11,750 12,436
1/31/99 12,368 11,848 12,584
2/28/99 12,331 11,813 12,528
3/31/99 12,326 11,808 12,546
4/30/99 12,376 11,856 12,577
5/31/99 12,306 11,789 12,504
6/30/99 12,135 11,625 12,324
7/31/99 12,152 11,641 12,369
8/31/99 12,001 11,497 12,270
9/30/99 11,963 11,460 12,275
10/31/99 11,766 11,272 12,142
11/30/99 11,829 11,332 12,271
12/31/99 11,732 11,239 12,179
1/31/00 11,624 11,136 12,126
2/29/00 11,768 11,273 12,267
3/31/00 11,993 11,489 12,536
4/30/00 11,953 11,451 12,462
5/31/00 11,878 11,379 12,397
6/30/00 12,129 11,620 12,725
7/31/00 12,301 11,785 12,902
8/31/00 12,463 11,939 13,101
9/30/00 12,412 11,890 13,033
10/31/00 12,539 12,012 13,175
11/30/00 12,619 12,089 13,275
12/31/00 12,903 12,361 13,603
1/31/01 12,983 12,438 13,738
2/28/01 13,052 12,504 13,782
3/31/01 13,158 12,605 13,906
4/30/01 13,032 12,485 13,755
5/31/01 13,176 12,622 13,904
6/30/01 13,270 12,713 13,997
7/31/01 13,452 12,887 14,204
8/31/01 13,721 13,145 14,439
9/30/01 13,655 13,082 14,390
10/31/01 13,801 13,222 14,561
11/30/01 13,708 13,132 14,439
12/31/01 13,601 13,030 14,301
1/31/02 13,773 13,194 14,549
2/28/02 13,932 13,347 14,725
3/31/02 13,697 13,121 14,436
4/30/02 13,909 13,325 14,718
5/31/02 13,992 13,404 14,807
6/30/02 14,128 13,534 14,964
7/31/02 14,276 13,677 15,156
8/31/02 14,439 13,832 15,338
9/30/02 14,694 14,076 15,674
10/31/02 14,410 13,805 15,414
11/30/02 14,375 13,771 15,351
12/31/02 14,685 14,068 15,674
1/31/03 14,610 13,996 15,635
2/28/03 14,828 14,206 15,853
3/31/03 14,833 14,210 15,863
4/30/03 15,026 14,395 15,968
5/31/03 15,339 14,695 16,341
6/30/03 15,246 14,606 16,272
7/31/03 14,649 14,034 15,702
8/31/03 14,802 14,180 15,820
9/30/03 15,202 14,563 16,285
10/31/03 15,163 14,526 16,203
11/30/03 15,343 14,698 16,372
12/31/03 15,454 14,805 16,507
1/31/04 15,537 14,885 16,602
2/29/04 15,817 15,153 16,852
3/31/04 15,747 15,086 16,793
4/30/04 15,367 14,721 16,395
5/31/04 15,296 14,654 16,336
6/30/04 15,366 14,721 16,395
7/31/04 15,566 14,912 16,611
8/31/04 15,881 15,214 16,944
9/30/04 15,966 15,296 17,034
10/31/04 16,110 15,433 17,181
11/30/04 15,965 15,295 17,039
12/31/04 16,212 15,532 17,247
1/31/05 16,402 15,713 17,408
2/28/05 16,343 15,657 17,350
3/31/05 16,211 15,530 17,241
4/30/05 16,504 15,811 17,513
5/31/05 16,666 15,966 17,637
6/30/05 16,754 16,051 17,746
7/31/05 16,665 15,965 17,667
8/31/05 16,859 16,151 17,845
9/30/05 16,724 16,021 17,725
10/31/05 16,634 15,935 17,617
11/30/05 16,723 16,021 17,702
12/31/05 16,891 16,181 17,854
1/31/06 16,921 16,210 17,902
2/28/06 17,058 16,342 18,022
3/31/06 16,920 16,209 17,898
4/30/06 16,905 16,195 17,893
5/31/06 16,977 16,264 17,973
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 Ohio Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Ohio Nuveen Ohio Lehman Brothers
Municipal Bond Municipal Bond Municipal Bond
Fund (NAV) Fund (Offer) Index
-------------- -------------- --------------
5/31/96 10,000 9,580 10,000
6/30/96 10,107 9,683 10,109
7/31/96 10,198 9,770 10,201
8/31/96 10,191 9,763 10,199
9/30/96 10,326 9,893 10,342
10/31/96 10,428 9,990 10,459
11/30/96 10,591 10,146 10,650
12/31/96 10,556 10,113 10,695
1/31/97 10,558 10,115 10,715
2/28/97 10,651 10,204 10,814
3/31/97 10,522 10,081 10,670
4/30/97 10,597 10,152 10,759
5/31/97 10,738 10,287 10,921
6/30/97 10,842 10,387 11,038
7/31/97 11,117 10,650 11,343
8/31/97 11,012 10,550 11,237
9/30/97 11,127 10,659 11,371
10/31/97 11,203 10,733 11,443
11/30/97 11,262 10,789 11,511
12/31/97 11,427 10,947 11,679
1/31/98 11,543 11,058 11,799
2/28/98 11,541 11,057 11,803
3/31/98 11,570 11,084 11,813
4/30/98 11,500 11,017 11,760
5/31/98 11,677 11,186 11,946
6/30/98 11,715 11,223 11,993
7/31/98 11,745 11,251 12,023
8/31/98 11,894 11,394 12,209
9/30/98 12,034 11,529 12,361
10/31/98 12,022 11,517 12,361
11/30/98 12,071 11,564 12,405
12/31/98 12,085 11,577 12,436
1/31/99 12,196 11,684 12,584
2/28/99 12,153 11,643 12,528
3/31/99 12,162 11,651 12,546
4/30/99 12,202 11,689 12,577
5/31/99 12,137 11,627 12,504
6/30/99 11,988 11,484 12,324
7/31/99 11,985 11,482 12,369
8/31/99 11,834 11,337 12,270
9/30/99 11,779 11,284 12,275
10/31/99 11,605 11,117 12,142
11/30/99 11,687 11,196 12,271
12/31/99 11,571 11,085 12,179
1/31/00 11,514 11,030 12,126
2/29/00 11,663 11,173 12,267
3/31/00 11,889 11,389 12,536
4/30/00 11,831 11,334 12,462
5/31/00 11,750 11,256 12,397
6/30/00 12,023 11,518 12,725
7/31/00 12,198 11,686 12,902
8/31/00 12,374 11,854 13,101
9/30/00 12,326 11,809 13,033
10/31/00 12,414 11,892 13,175
11/30/00 12,490 11,966 13,275
12/31/00 12,772 12,236 13,603
1/31/01 12,850 12,310 13,738
2/28/01 12,882 12,341 13,782
3/31/01 12,983 12,438 13,906
4/30/01 12,842 12,303 13,755
5/31/01 12,931 12,388 13,904
6/30/01 13,032 12,484 13,997
7/31/01 13,226 12,671 14,204
8/31/01 13,422 12,858 14,439
9/30/01 13,323 12,764 14,390
10/31/01 13,473 12,907 14,561
11/30/01 13,384 12,822 14,439
12/31/01 13,259 12,702 14,301
1/31/02 13,456 12,891 14,549
2/28/02 13,619 13,047 14,725
3/31/02 13,347 12,786 14,436
4/30/02 13,559 12,990 14,718
5/31/02 13,651 13,077 14,807
6/30/02 13,779 13,200 14,964
7/31/02 13,957 13,371 15,156
8/31/02 14,123 13,530 15,338
9/30/02 14,452 13,845 15,674
10/31/02 14,135 13,541 15,414
11/30/02 14,091 13,499 15,351
12/31/02 14,423 13,818 15,674
1/31/03 14,342 13,739 15,635
2/28/03 14,588 13,975 15,853
3/31/03 14,581 13,969 15,863
4/30/03 14,728 14,109 15,968
5/31/03 15,104 14,470 16,341
6/30/03 15,008 14,378 16,272
7/31/03 14,397 13,792 15,702
8/31/03 14,520 13,910 15,820
9/30/03 14,941 14,314 16,285
10/31/03 14,896 14,270 16,203
11/30/03 15,112 14,477 16,372
12/31/03 15,237 14,597 16,507
1/31/04 15,283 14,641 16,602
2/29/04 15,581 14,926 16,852
3/31/04 15,494 14,844 16,793
4/30/04 15,074 14,441 16,395
5/31/04 15,011 14,381 16,336
6/30/04 15,082 14,449 16,395
7/31/04 15,302 14,659 16,611
8/31/04 15,631 14,975 16,944
9/30/04 15,717 15,057 17,034
10/31/04 15,885 15,218 17,181
11/30/04 15,725 15,064 17,039
12/31/04 15,976 15,305 17,247
1/31/05 16,160 15,481 17,408
2/28/05 16,065 15,390 17,350
3/31/05 15,941 15,272 17,241
4/30/05 16,222 15,540 17,513
5/31/05 16,363 15,676 17,637
6/30/05 16,463 15,771 17,746
7/31/05 16,351 15,664 17,667
8/31/05 16,565 15,869 17,845
9/30/05 16,411 15,722 17,725
10/31/05 16,284 15,601 17,617
11/30/05 16,358 15,671 17,702
12/31/05 16,523 15,829 17,854
1/31/06 16,553 15,857 17,902
2/28/06 16,682 15,981 18,022
3/31/06 16,535 15,841 17,898
4/30/06 16,504 15,810 17,893
5/31/06 16,576 15,880 17,973
================================================================================
Nuveen Wisconsin Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Wisconsin Nuveen Wisconsin Lehman Brothers
Municipal Bond Municipal Bond Municipal Bond
Fund (NAV) Fund (Offer) Index
---------------- ----------------- ----------------
5/31/96 10,000 9,580 10,000
6/30/96 10,095 9,671 10,109
7/31/96 10,182 9,754 10,201
8/31/96 10,163 9,737 10,199
9/30/96 10,302 9,869 10,342
10/31/96 10,411 9,974 10,459
11/30/96 10,572 10,128 10,650
12/31/96 10,532 10,090 10,695
1/31/97 10,535 10,093 10,715
2/28/97 10,624 10,178 10,814
3/31/97 10,496 10,055 10,670
4/30/97 10,585 10,141 10,759
5/31/97 10,740 10,289 10,921
6/30/97 10,830 10,375 11,038
7/31/97 11,184 10,715 11,343
8/31/97 11,032 10,569 11,237
9/30/97 11,179 10,710 11,371
10/31/97 11,271 10,797 11,443
11/30/97 11,341 10,864 11,511
12/31/97 11,523 11,039 11,679
1/31/98 11,671 11,180 11,799
2/28/98 11,672 11,182 11,803
3/31/98 11,695 11,204 11,813
4/30/98 11,605 11,118 11,760
5/31/98 11,836 11,339 11,946
6/30/98 11,872 11,373 11,993
7/31/98 11,894 11,395 12,023
8/31/98 12,092 11,584 12,209
9/30/98 12,278 11,762 12,361
10/31/98 12,231 11,717 12,361
11/30/98 12,278 11,762 12,405
12/31/98 12,278 11,762 12,436
1/31/99 12,393 11,872 12,584
2/28/99 12,343 11,825 12,528
3/31/99 12,353 11,834 12,546
4/30/99 12,387 11,866 12,577
5/31/99 12,289 11,773 12,504
6/30/99 12,058 11,551 12,324
7/31/99 12,043 11,537 12,369
8/31/99 11,833 11,336 12,270
9/30/99 11,743 11,249 12,275
10/31/99 11,482 11,000 12,142
11/30/99 11,576 11,090 12,271
12/31/99 11,444 10,963 12,179
1/31/00 11,353 10,876 12,126
2/29/00 11,573 11,087 12,267
3/31/00 11,893 11,393 12,536
4/30/00 11,801 11,305 12,462
5/31/00 11,670 11,180 12,397
6/30/00 12,045 11,539 12,725
7/31/00 12,269 11,753 12,902
8/31/00 12,480 11,956 13,101
9/30/00 12,399 11,879 13,033
10/31/00 12,510 11,985 13,175
11/30/00 12,596 12,067 13,275
12/31/00 12,967 12,423 13,603
1/31/01 13,028 12,481 13,738
2/28/01 13,128 12,577 13,782
3/31/01 13,216 12,661 13,906
4/30/01 13,028 12,481 13,755
5/31/01 13,169 12,616 13,904
6/30/01 13,284 12,726 13,997
7/31/01 13,518 12,951 14,204
8/31/01 13,741 13,164 14,439
9/30/01 13,643 13,070 14,390
10/31/01 13,786 13,207 14,561
11/30/01 13,675 13,100 14,439
12/31/01 13,522 12,954 14,301
1/31/02 13,708 13,132 14,549
2/28/02 13,908 13,324 14,725
3/31/02 13,617 13,045 14,436
4/30/02 13,846 13,264 14,718
5/31/02 13,993 13,405 14,807
6/30/02 14,141 13,547 14,964
7/31/02 14,303 13,702 15,156
8/31/02 14,493 13,884 15,338
9/30/02 14,782 14,161 15,674
10/31/02 14,400 13,795 15,414
11/30/02 14,382 13,778 15,351
12/31/02 14,744 14,125 15,674
1/31/03 14,627 14,012 15,635
2/28/03 14,821 14,199 15,853
3/31/03 14,788 14,167 15,863
4/30/03 14,970 14,341 15,968
5/31/03 15,310 14,667 16,341
6/30/03 15,234 14,594 16,272
7/31/03 14,695 14,077 15,702
8/31/03 14,806 14,184 15,820
9/30/03 15,209 14,571 16,285
10/31/03 15,176 14,538 16,203
11/30/03 15,317 14,674 16,372
12/31/03 15,429 14,781 16,507
1/31/04 15,512 14,860 16,602
2/29/04 15,787 15,124 16,852
3/31/04 15,692 15,033 16,793
4/30/04 15,328 14,685 16,395
5/31/04 15,260 14,619 16,336
6/30/04 15,327 14,684 16,395
7/31/04 15,545 14,892 16,611
8/31/04 15,839 15,174 16,944
9/30/04 15,907 15,239 17,034
10/31/04 16,036 15,362 17,181
11/30/04 15,875 15,209 17,039
12/31/04 16,112 15,435 17,247
1/31/05 16,288 15,604 17,408
2/28/05 16,218 15,536 17,350
3/31/05 16,085 15,409 17,241
4/30/05 16,340 15,654 17,513
5/31/05 16,473 15,781 17,637
6/30/05 16,558 15,863 17,746
7/31/05 16,487 15,795 17,667
8/31/05 16,636 15,937 17,845
9/30/05 16,484 15,792 17,725
10/31/05 16,380 15,692 17,617
11/30/05 16,467 15,776 17,702
12/31/05 16,632 15,933 17,854
1/31/06 16,655 15,956 17,902
2/28/06 16,805 16,099 18,022
3/31/06 16,632 15,933 17,898
4/30/06 16,587 15,890 17,893
5/31/06 16,657 15,957 17,973
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
Fund Spotlight as of 5/31/06 Nuveen Kansas Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.38 $10.30 $10.38 $10.42
--------------------------------------------------------------
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 5/31/06
A Shares NAV Offer
---------------------------------------------
1-Year 1.28% -2.99%
---------------------------------------------
5-Year 4.97% 4.07%
---------------------------------------------
10-Year 5.40% 4.95%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 0.54% -3.35%
---------------------------------------------
5-Year 4.21% 4.04%
---------------------------------------------
10-Year 4.73% 4.73%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 0.67%
---------------------------------------------
5-Year 4.41%
---------------------------------------------
10-Year 4.86%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 1.41%
---------------------------------------------
5-Year 5.19%
---------------------------------------------
10-Year 5.65%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/2/ 3.99% 3.82%
---------------------------------------------
SEC 30-Day Yield/3/ 3.80% 3.64%
---------------------------------------------
Taxable-Equivalent Yield/3,4/ 5.63% 5.39%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.26%
---------------------------------------------
SEC 30-Day Yield 3.05%
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.52%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.47%
---------------------------------------------
SEC 30-Day Yield 3.25%
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.81%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/2/ 4.20%
---------------------------------------------
SEC 30-Day Yield 4.00%
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.93%
---------------------------------------------
Average Annual Total Returns as of 6/30/06
A Shares NAV Offer
------------------------------------------
1-Year 0.23% -3.99%
------------------------------------------
5-Year 4.73% 3.83%
------------------------------------------
10-Year 5.21% 4.77%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.61% -4.46%
------------------------------------------
5-Year 3.94% 3.77%
------------------------------------------
10-Year 4.55% 4.55%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year -0.38%
------------------------------------------
5-Year 4.15%
------------------------------------------
10-Year 4.67%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.37%
------------------------------------------
5-Year 4.93%
------------------------------------------
10-Year 5.46%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $131,804
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.29
---------------------------------------------------------
Average Duration 5.47
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2006. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2006.
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 of the 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 11
Fund Spotlight as of 5/31/06 Nuveen Kansas Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 65.2%
AA 15.7%
A 10.1%
BBB 6.0%
N/R 3.0%
Industries/1/
Tax Obligation/Limited 28.7%
---------------------------------------
Tax Obligation/General 18.2%
---------------------------------------
Health Care 18.0%
---------------------------------------
U.S. Guaranteed 10.6%
---------------------------------------
Water and Sewer 7.0%
---------------------------------------
Education and Civic Organizations 3.9%
---------------------------------------
Other 13.6%
---------------------------------------
1As a percentage of total holdings as of May 31, 2006. 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 (12/01/05) $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 (5/31/06) $1,013.20 $1,010.40 $1,010.50 $1,014.30 $1,020.79 $1,017.05 $1,018.05 $1,021.79
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.17 $ 7.92 $ 6.92 $ 3.16 $ 4.18 $ 7.95 $ 6.94 $ 3.18
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .83%, 1.58%, 1.38% 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 12
Fund Spotlight as of 5/31/06 Nuveen Kentucky Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
-----------------------------------------------------------------------
NAV $10.96 $10.97 $10.96 $10.96
-----------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0380 $0.0310 $0.0325 $0.0395
-----------------------------------------------------------------------
Latest Capital Gain Distribution/2/ $0.0363 $0.0363 $0.0363 $0.0363
-----------------------------------------------------------------------
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 5/31/06
A Shares NAV Offer
---------------------------------------------
1-Year 1.38% -2.91%
---------------------------------------------
5-Year 5.15% 4.26%
---------------------------------------------
10-Year 5.28% 4.84%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 0.62% -3.26%
---------------------------------------------
5-Year 4.38% 4.21%
---------------------------------------------
10-Year 4.67% 4.67%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 0.88%
---------------------------------------------
5-Year 4.59%
---------------------------------------------
10-Year 4.72%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 1.64%
---------------------------------------------
5-Year 5.37%
---------------------------------------------
10-Year 5.47%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/3/ 4.16% 3.99%
---------------------------------------------
SEC 30-Day Yield/4/ 3.65% 3.49%
---------------------------------------------
Taxable-Equivalent Yield/4,5/ 5.41% 5.17%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.39%
---------------------------------------------
SEC 30-Day Yield 2.90%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.30%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.56%
---------------------------------------------
SEC 30-Day Yield 3.10%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.59%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/3/ 4.32%
---------------------------------------------
SEC 30-Day Yield 3.84%
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.69%
---------------------------------------------
Average Annual Total Returns as of 6/30/06
A Shares NAV Offer
------------------------------------------
1-Year 0.39% -3.85%
------------------------------------------
5-Year 4.91% 4.00%
------------------------------------------
10-Year 5.14% 4.68%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.46% -4.29%
------------------------------------------
5-Year 4.12% 3.94%
------------------------------------------
10-Year 4.52% 4.52%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year -0.21%
------------------------------------------
5-Year 4.31%
------------------------------------------
10-Year 4.56%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.55%
------------------------------------------
5-Year 5.10%
------------------------------------------
10-Year 5.31%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $465,394
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.17
---------------------------------------------------------
Average Duration 5.70
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2006. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2006.
2Paid December 5, 2005. Capital gains 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 of the 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 13
Fund Spotlight as of 5/31/06 Nuveen Kentucky Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 74.3%
AA 8.5%
A 4.9%
BBB 10.1%
BB or Lower 1.3%
N/R 0.9%
Industries/1/
Tax Obligation/Limited 32.2%
---------------------------------------
U.S. Guaranteed 11.5%
---------------------------------------
Health Care 11.5%
---------------------------------------
Utilities 9.9%
---------------------------------------
Water and Sewer 8.5%
---------------------------------------
Tax Obligation/General 6.3%
---------------------------------------
Education and Civic Organizations 4.8%
---------------------------------------
Transportation 4.6%
---------------------------------------
Other 10.7%
---------------------------------------
1As a percentage of total holdings as of May 31, 2006. 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 (12/01/05) $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 (5/31/06) $1,014.00 $1,011.10 $1,011.90 $1,015.80 $1,020.84 $1,017.10 $1,018.15 $1,021.84
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.12 $ 7.87 $ 6.82 $ 3.12 $ 4.13 $ 7.90 $ 6.84 $ 3.13
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .82%, 1.57%, 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 14
Fund Spotlight as of 5/31/06 Nuveen Michigan Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
- -------------------------------------------------------------------------------------------
NAV $11.45 $11.48 $11.44 $11.45
- -------------------------------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0395 $0.0325 $0.0340 $0.0415
- -------------------------------------------------------------------------------------------
Latest Capital Gain and Ordinary Income Distribution/2/ $0.1321 $0.1321 $0.1321 $0.1321
- -------------------------------------------------------------------------------------------
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 5/31/06
A Shares NAV Offer
---------------------------------------------
1-Year 1.48% -2.77%
---------------------------------------------
5-Year 5.28% 4.38%
---------------------------------------------
10-Year 5.42% 4.96%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 0.71% -3.14%
---------------------------------------------
5-Year 4.49% 4.32%
---------------------------------------------
10-Year 4.81% 4.81%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 0.91%
---------------------------------------------
5-Year 4.70%
---------------------------------------------
10-Year 4.85%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 1.69%
---------------------------------------------
5-Year 5.49%
---------------------------------------------
10-Year 5.61%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/3/ 4.14% 3.97%
---------------------------------------------
SEC 30-Day Yield/4/ 3.66% 3.51%
---------------------------------------------
Taxable-Equivalent Yield/4,5/ 5.30% 5.09%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.40%
---------------------------------------------
SEC 30-Day Yield 2.92%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.23%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.57%
---------------------------------------------
SEC 30-Day Yield 3.12%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.52%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/3/ 4.35%
---------------------------------------------
SEC 30-Day Yield 3.86%
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.59%
---------------------------------------------
Average Annual Total Returns as of 6/30/06
A Shares NAV Offer
------------------------------------------
1-Year 0.43% -3.76%
------------------------------------------
5-Year 4.97% 4.08%
------------------------------------------
10-Year 5.27% 4.82%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.25% -4.06%
------------------------------------------
5-Year 4.20% 4.03%
------------------------------------------
10-Year 4.66% 4.66%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year -0.13%
------------------------------------------
5-Year 4.39%
------------------------------------------
10-Year 4.70%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.64%
------------------------------------------
5-Year 5.18%
------------------------------------------
10-Year 5.46%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $237,084
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.35
---------------------------------------------------------
Average Duration 5.32
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2006. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2006.
2Paid December 5, 2005. 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 of the 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 15
Fund Spotlight as of 5/31/06 Nuveen Michigan Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 73.1%
AA 10.3%
A 5.5%
BBB 6.1%
BB or Lower 3.0%
N/R 2.0%
Industries/1/
Tax Obligation/General 32.5%
----------------------------
U.S. Guaranteed 19.4%
----------------------------
Tax Obligation/Limited 10.7%
----------------------------
Water and Sewer 10.5%
----------------------------
Health Care 10.4%
----------------------------
Utilities 4.4%
----------------------------
Other 12.1%
----------------------------
1As a percentage of total holdings as of May 31, 2006. 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 (12/01/05) $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 (5/31/06) $1,014.80 $1,011.70 $1,012.80 $1,015.80 $1,020.64 $1,016.90 $1,017.90 $1,021.64
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.32 $ 8.07 $ 7.08 $ 3.32 $ 4.33 $ 8.10 $ 7.09 $ 3.33
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .86%, 1.61%, 1.41% 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 16
Fund Spotlight as of 5/31/06 Nuveen Missouri Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $10.98 $10.99 $10.97 $10.99
--------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0375 $0.0305 $0.0325 $0.0395
--------------------------------------------------------------
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 5/31/06
A Shares NAV Offer
---------------------------------------------
1-Year 1.88% -2.37%
---------------------------------------------
5-Year 5.21% 4.31%
---------------------------------------------
10-Year 5.44% 4.99%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 1.12% -2.79%
---------------------------------------------
5-Year 4.43% 4.26%
---------------------------------------------
10-Year 4.83% 4.83%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 1.34%
---------------------------------------------
5-Year 4.64%
---------------------------------------------
10-Year 4.87%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 2.10%
---------------------------------------------
5-Year 5.42%
---------------------------------------------
10-Year 5.63%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/2/ 4.10% 3.93%
---------------------------------------------
SEC 30-Day Yield/3/ 4.03% 3.86%
---------------------------------------------
Taxable-Equivalent Yield/3,4/ 5.97% 5.72%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.33%
---------------------------------------------
SEC 30-Day Yield 3.28%
---------------------------------------------
Taxable-Equivalent Yield/4/ 4.86%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/2/ 3.56%
---------------------------------------------
SEC 30-Day Yield 3.48%
---------------------------------------------
Taxable-Equivalent Yield/4/ 5.16%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/2/ 4.31%
---------------------------------------------
SEC 30-Day Yield 4.23%
---------------------------------------------
Taxable-Equivalent Yield/4/ 6.27%
---------------------------------------------
Average Annual Total Returns as of 6/30/06
A Shares NAV Offer
------------------------------------------
1-Year 1.04% -3.17%
------------------------------------------
5-Year 4.99% 4.10%
------------------------------------------
10-Year 5.30% 4.85%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 0.28% -3.59%
------------------------------------------
5-Year 4.22% 4.05%
------------------------------------------
10-Year 4.69% 4.69%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 0.50%
------------------------------------------
5-Year 4.41%
------------------------------------------
10-Year 4.73%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 1.26%
------------------------------------------
5-Year 5.21%
------------------------------------------
10-Year 5.50%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $262,229
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.50
---------------------------------------------------------
Average Duration 5.48
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2006. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2006.
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 of the 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 17
Fund Spotlight as of 5/31/06 Nuveen Missouri Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 59.7%
AA 13.6%
A 5.0%
BBB 8.6%
N/R 13.1%
Industries/1/
Tax Obligation/Limited 18.1%
---------------------------------------
Tax Obligation/General 17.0%
---------------------------------------
Transportation 9.2%
---------------------------------------
Education and Civic Organizations 8.4%
---------------------------------------
Health Care 8.2%
---------------------------------------
Long-Term Care 8.0%
---------------------------------------
Housing/Multifamily 6.8%
---------------------------------------
U.S. Guaranteed 6.3%
---------------------------------------
Water and Sewer 5.5%
---------------------------------------
Other 12.5%
---------------------------------------
1As a percentage of total holdings as of May 31, 2006. 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 (12/01/05) $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 (5/31/06) $1,015.20 $1,011.40 $1,012.50 $1,016.30 $1,020.84 $1,017.10 $1,018.10 $1,021.84
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.12 $ 7.87 $ 6.87 $ 3.12 $ 4.13 $ 7.90 $ 6.89 $ 3.13
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .82%, 1.57%, 1.37% 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 18
Fund Spotlight as of 5/31/06 Nuveen Ohio Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
- -------------------------------------------------------------------------------------------
NAV $11.27 $11.25 $11.24 $11.25
- -------------------------------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0390 $0.0320 $0.0340 $0.0410
- -------------------------------------------------------------------------------------------
Latest Capital Gain and Ordinary Income Distribution/2/ $0.0430 $0.0430 $0.0430 $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 5/31/06
A Shares NAV Offer
---------------------------------------------
1-Year 1.30% -2.95%
---------------------------------------------
5-Year 5.09% 4.19%
---------------------------------------------
10-Year 5.18% 4.73%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 0.47% -3.40%
---------------------------------------------
5-Year 4.31% 4.14%
---------------------------------------------
10-Year 4.58% 4.58%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 0.68%
---------------------------------------------
5-Year 4.51%
---------------------------------------------
10-Year 4.61%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 1.51%
---------------------------------------------
5-Year 5.32%
---------------------------------------------
10-Year 5.38%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/3/ 4.15% 3.98%
---------------------------------------------
SEC 30-Day Yield/4/ 3.62% 3.47%
---------------------------------------------
Taxable-Equivalent Yield/4,5/ 5.36% 5.14%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.41%
---------------------------------------------
SEC 30-Day Yield 2.87%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.25%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.63%
---------------------------------------------
SEC 30-Day Yield 3.07%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.55%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/3/ 4.37%
---------------------------------------------
SEC 30-Day Yield 3.82%
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.66%
---------------------------------------------
Average Annual Total Returns as of 6/30/06
A Shares NAV Offer
------------------------------------------
1-Year 0.14% -4.05%
------------------------------------------
5-Year 4.81% 3.92%
------------------------------------------
10-Year 5.01% 4.57%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.60% -4.42%
------------------------------------------
5-Year 4.03% 3.86%
------------------------------------------
10-Year 4.40% 4.40%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year -0.39%
------------------------------------------
5-Year 4.24%
------------------------------------------
10-Year 4.44%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.35%
------------------------------------------
5-Year 5.00%
------------------------------------------
10-Year 5.21%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $543,160
---------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.07
---------------------------------------------------------
Average Duration 5.68
---------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2006. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2006.
2Paid December 5, 2005. 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 of the 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 19
Fund Spotlight as of 5/31/06 Nuveen Ohio Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 72.2%
AA 17.5%
A 1.7%
BBB 5.8%
BB or Lower 0.2%
N/R 2.6%
Industries/1/
Tax Obligation/General 24.3%
---------------------------------------
U.S. Guaranteed 20.6%
---------------------------------------
Tax Obligation/Limited 12.3%
---------------------------------------
Health Care 10.4%
---------------------------------------
Education and Civic Organizations 7.9%
---------------------------------------
Utilities 6.5%
---------------------------------------
Water and Sewer 4.9%
---------------------------------------
Other 13.1%
---------------------------------------
1As a percentage of total holdings as of May 31, 2006. 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 (12/01/05) $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 (5/31/06) $1,013.30 $1,009.60 $1,010.70 $1,014.40 $1,020.84 $1,017.10 $1,018.10 $1,021.84
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.12 $ 7.87 $ 6.87 $ 3.11 $ 4.13 $ 7.90 $ 6.89 $ 3.13
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .82%, 1.57%, 1.37% 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 20
Fund Spotlight as of 5/31/06 Nuveen Wisconsin Municipal Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
- -------------------------------------------------------------------------------------------
NAV $10.20 $10.22 $10.23 $10.25
- -------------------------------------------------------------------------------------------
Latest Monthly Dividend/1/ $0.0325 $0.0260 $0.0280 $0.0345
- -------------------------------------------------------------------------------------------
Latest Capital Gain and Ordinary Income Distribution/2/ $0.0482 $0.0482 $0.0482 $0.0482
- -------------------------------------------------------------------------------------------
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 5/31/06
A Shares NAV Offer
---------------------------------------------
1-Year 1.11% -3.12%
---------------------------------------------
5-Year 4.81% 3.91%
---------------------------------------------
10-Year 5.23% 4.78%
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 0.26% -3.61%
---------------------------------------------
5-Year 4.03% 3.86%
---------------------------------------------
10-Year 4.65% 4.65%
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 0.49%
---------------------------------------------
5-Year 4.23%
---------------------------------------------
10-Year 4.70%
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 1.34%
---------------------------------------------
5-Year 5.03%
---------------------------------------------
10-Year 5.47%
---------------------------------------------
Tax-Free Yields
A Shares NAV Offer
---------------------------------------------
Dividend Yield/3/ 3.82% 3.66%
---------------------------------------------
SEC 30-Day Yield/4/ 3.80% 3.64%
---------------------------------------------
Taxable-Equivalent Yield/4,5/ 5.67% 5.43%
---------------------------------------------
B Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.05%
---------------------------------------------
SEC 30-Day Yield 3.05%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.55%
---------------------------------------------
C Shares NAV
---------------------------------------------
Dividend Yield/3/ 3.28%
---------------------------------------------
SEC 30-Day Yield 3.25%
---------------------------------------------
Taxable-Equivalent Yield/5/ 4.85%
---------------------------------------------
R Shares NAV
---------------------------------------------
Dividend Yield/3/ 4.04%
---------------------------------------------
SEC 30-Day Yield 3.99%
---------------------------------------------
Taxable-Equivalent Yield/5/ 5.96%
---------------------------------------------
Average Annual Total Returns as of 6/30/06
A Shares NAV Offer
------------------------------------------
1-Year 0.12% -4.06%
------------------------------------------
5-Year 4.53% 3.63%
------------------------------------------
10-Year 5.08% 4.64%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year -0.63% -4.46%
------------------------------------------
5-Year 3.76% 3.58%
------------------------------------------
10-Year 4.50% 4.50%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year -0.49%
------------------------------------------
5-Year 3.98%
------------------------------------------
10-Year 4.55%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 0.26%
------------------------------------------
5-Year 4.73%
------------------------------------------
10-Year 5.32%
------------------------------------------
Portfolio Statistics
Net Assets ($000) $45,543
--------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.72
--------------------------------------------------------
Average Duration 6.29
--------------------------------------------------------
- --------------------------------------------------------------------------------
1Paid June 1, 2006. This is the latest monthly tax-exempt dividend declared
during the period ended May 31, 2006.
2Paid December 5, 2005. 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 of the 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 21
Fund Spotlight as of 5/31/06 Nuveen Wisconsin Municipal Bond Fund
================================================================================
Bond Credit Quality/1/
[CHART]
AAA/U.S. Guaranteed 58.1%
AA 8.9%
A 16.4%
BBB 3.2%
BB or Lower 0.6%
N/R 12.8%
Industries/1/
Tax Obligation/Limited 68.8%
----------------------------
U.S. Guaranteed 12.0%
----------------------------
Housing/Multifamily 9.8%
----------------------------
Other 9.4%
----------------------------
1As a percentage of total holdings as of May 31, 2006. 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 (12/01/05) $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 (5/31/06) $1,011.40 $1,007.60 $1,008.80 $1,012.50 $1,020.59 $1,016.80 $1,017.85 $1,021.59
- ------------------------------------------------------------------------------------------------------------------
Expenses Incurred During Period $ 4.36 $ 8.16 $ 7.11 $ 3.36 $ 4.38 $ 8.20 $ 7.14 $ 3.38
- ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net
expense ratio of .87%, 1.63%, 1.42% 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 22
Portfolio of Investments
NUVEEN KANSAS MUNICIPAL BOND FUND
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 3.9%
$ 1,000 Kansas Development Finance Authority, Athletic Facility 6/14 at 100.00 A1 $ 1,034,640
Revenue Bonds, University of Kansas Athletic Corporation
Project, Series 2004K, 5.000%, 6/01/19
1,200 Kansas Development Finance Authority, Board of Regents, 4/15 at 100.00 AAA 1,254,396
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- 1,529,295
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 1,001,499
Series 2001A, 5.500%, 7/01/16 - AMBAC Insured
270 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 283,146
Series 2001B, 5.500%, 7/01/16 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
4,925 Total Education and Civic Organizations 5,102,976
- ---------------------------------------------------------------------------------------------------------------------
Health Care - 17.8%
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 1,038,517
1,050 5.000%, 8/01/19 - AMBAC Insured 8/12 at 100.00 AAA 1,083,065
1,000 5.000%, 8/01/20 - AMBAC Insured 8/12 at 100.00 AAA 1,028,770
2,000 Colby, Kansas, Health Facilities Revenue Refunding Bonds, 8/08 at 100.00 N/R 2,000,180
Citizens Medical Center Inc., Series 1998, 5.625%, 8/15/16
680 Kansas Development Finance Authority, Health Facilities 11/15 at 100.00 A2 693,280
Revenue Bonds, Hays Medical Center Inc., Series 2005L,
5.000%, 11/15/20
4,580 Kansas Development Finance Authority, Health Facilities 6/10 at 101.00 AA 5,003,146
Revenue Bonds, Sisters of Charity of Leavenworth Health
Services Corporation, Series 2000K, 6.500%, 12/01/16
1,285 Kansas Development Finance Authority, Hospital Revenue 12/12 at 100.00 AA 1,355,495
Bonds, Susan B. Allen Memorial Hospital, Series 2002Q,
5.375%, 12/15/16 - RAAI Insured
1,110 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial 7/09 at 100.00 AA 1,158,085
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 1,065,744
1,075 5.000%, 8/15/15 - FSA Insured 8/11 at 100.00 AAA 1,112,991
Newton, Kansas, Hospital Revenue Refunding Bonds, Newton
Healthcare Corporation, Series 1998A:
1,000 5.700%, 11/15/18 11/08 at 100.00 BBB- 1,015,150
1,750 5.750%, 11/15/24 11/08 at 100.00 BBB- 1,771,718
100 Puerto Rico Industrial, Tourist, Educational, Medical and 7/06 at 101.00 AAA 100,118
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+ 5,083,434
Improvement Bonds, Via Christi Health System Inc., Series
1999-XI, 6.250%, 11/15/24
- ---------------------------------------------------------------------------------------------------------------------
22,440 Total Health Care 23,509,693
- ---------------------------------------------------------------------------------------------------------------------
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 1,581,315
2,000 6.800%, 4/01/24 - RAAI Insured 4/09 at 102.00 AA 2,107,660
- ---------------------------------------------------------------------------------------------------------------------
3,500 Total Housing/Multifamily 3,688,975
- ---------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.4%
190 Sedgwick and Shawnee Counties, Kansas, FNMA/GNMA 12/10 at 105.00 Aaa 194,843
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 3,260,776
Mortgage-Backed Securities Program Single Family Revenue
Bonds, Series 2002B-1, 5.950%, 12/01/33 (Alternative
Minimum Tax)
- ----
23
Portfolio of Investments
NUVEEN KANSAS MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 255 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa $ 265,855
Securities Program Single Family Revenue Bonds, Series
1997A-1, 6.950%, 6/01/29 (Alternative Minimum Tax)
485 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 6/08 at 105.00 Aaa 494,070
Securities Program Single Family Revenue Bonds, Series
1998A-1, 6.500%, 12/01/22 (Alternative Minimum Tax)
290 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 12/09 at 105.00 Aaa 296,560
Securities Program Single Family Revenue Bonds, Series
2000A-2, 7.600%, 12/01/31 - MBIA Insured (Alternative
Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
4,355 Total Housing/Single Family 4,512,104
- ---------------------------------------------------------------------------------------------------------------------
Industrials - 1.6%
1,000 Wichita Airport Authority, Kansas, Special Facilities 6/12 at 101.00 A- 1,061,560
Revenue Bonds, Cessna Citation Service Center, Series
2002A, 6.250%, 6/15/32 (Alternative Minimum Tax)
1,000 Wichita, Kansas, Industrial Revenue Bonds, NMF America Inc. 8/07 at 101.00 A+ 1,023,040
Series 2000-II, 5.800%, 8/01/15 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
2,000 Total Industrials 2,084,600
- ---------------------------------------------------------------------------------------------------------------------
Long-Term Care - 0.3%
500 Sedgwick County, Kansas, Healthcare Facilities Revenue 11/09 at 100.00 A 514,720
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+ 3,806,634
Revenue Bonds, Excel Corporation/Cargill Inc. Project,
Series 1998, 5.400%, 6/01/28 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 18.0%
2,500 Butler and Sedgwick Counties Unified School District 385, No Opt. Call AAA 2,882,300
Andover, Kansas, General Obligation Refunding and
Improvement Bonds, Series 2000, 6.000%, 9/01/16 - FSA
Insured
Butler County Unified School District 394, Kansas, General
Obligation Bonds, Series 2004:
1,055 5.000%, 9/01/20 - FSA Insured 9/14 at 100.00 AAA 1,105,397
2,615 5.000%, 9/01/23 - FSA Insured 9/14 at 100.00 AAA 2,728,831
1,170 Butler County Unified School District 490, Kansas, General 9/15 at 100.00 AAA 1,219,631
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 1,807,174
Kansas, General Obligation Bonds, Series 2003, 5.250%,
10/01/23 - MBIA Insured
560 Derby, Kansas, General Obligation Bonds, Series 2002B, 12/10 at 100.00 Aaa 586,516
5.000%, 12/01/18 - FSA Insured
2,000 Johnson County Unified School District 232, Kansas, General 9/15 at 100.00 Aaa 2,147,560
Obligation Bonds, Series 2005A, 5.250%, 9/01/20 - FSA
Insured
1,450 Leavenworth County Unified School District 464, Tonganoxie, 9/15 at 100.00 AAA 1,509,276
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 1,073,550
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 1,141,360
Kansas, General Obligation Bonds, Series 2002, 5.000%,
4/01/22 - FGIC Insured
3,000 Neosho County Unified School District 413, Kansas, General 9/14 at 100.00 Aaa 3,094,920
Obligation Bonds, Series 2006, 5.000%, 9/01/31 - FSA
Insured
Puerto Rico, General Obligation and Public Improvement
Bonds, Series 2001A:
1,000 5.500%, 7/01/20 - MBIA Insured No Opt. Call AAA 1,121,800
330 5.375%, 7/01/28 7/11 at 100.00 BBB 339,563
1,250 Sedgwick County Unified School District 259, Wichita, 9/10 at 100.00 AA 1,167,950
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 1,861,020
5.000%, 4/01/17
- ---------------------------------------------------------------------------------------------------------------------
22,520 Total Tax Obligation/General 23,786,848
- ---------------------------------------------------------------------------------------------------------------------
- ----
24
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 28.4%
$ 3,000 Butler County Public Building Commission, Kansas, 10/10 at 100.00 Aaa $ 3,197,280
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+ 1,045,320
5,000 5.000%, 3/01/23 3/14 at 100.00 AA+ 5,206,550
5,000 Kansas Development Finance Authority, Board of Regents, 4/13 at 102.00 AAA 5,253,950
Revenue Bonds, Scientific Research and Development
Facilities Projects, Series 2003C, 5.000%, 10/01/23 -
AMBAC Insured
500 Kansas Development Finance Authority, Lease Revenue Bonds, 10/12 at 100.00 AAA 519,000
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 1,199,360
Department of Administration, State Capitol Restoration
Project, Series 2004G-1, 5.125%, 4/01/21 - MBIA Insured
Kansas Development Finance Authority, Revenue Bonds,
Department of Administration, Comprehensive Transportation
Program, Series 2006A:
3,900 5.000%, 11/01/23 - FGIC Insured 11/16 at 100.00 AAA 4,098,705
3,000 5.000%, 11/01/25 - FGIC Insured 11/16 at 100.00 AAA 3,140,070
1,000 Kansas Development Finance Authority, Revenue Bonds, State 10/11 at 100.00 AAA 1,046,080
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 2,226,426
Projects, Series 2002N, 5.250%, 10/01/18 - AMBAC Insured
2,355 Kansas Development Finance Authority, Revenue Bonds, State 8/13 at 100.00 AAA 2,495,311
Projects, Series 2003J, 5.250%, 8/01/20 -AMBAC Insured
1,155 Kansas Development Finance Authority, Revenue Bonds, State 4/14 at 101.00 AAA 1,207,356
Projects, Series 2004A, 5.000%, 4/01/22 - FGIC Insured
1,500 Kansas Development Finance Authority, Revenue Bonds, State 5/15 at 100.00 AAA 1,574,205
Projects, Series 2005H, 5.000%, 5/01/20 - MBIA Insured
1,800 Overland Park Development Corporation, Kansas, First Tier 1/11 at 101.00 N/R 1,970,028
Revenue Bonds, Overland Park Convention Center, Series
2001A, 7.375%, 1/01/32
2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,193,680
Taxes Loan Note, Series 1999A, 6.375%, 10/01/19
1,000 Virgin Islands Public Finance Authority, Senior Lien 10/08 at 101.00 BBB 1,034,610
Revenue Refunding Bonds, Matching Fund Loan Note, Series
1998A, 5.625%, 10/01/25
- -------------------------------------------------------------------------------------------------------------------------
35,435 Total Tax Obligation/Limited 37,407,931
- -------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 10.5% (3)
750 Derby, Kansas, General Obligation Bonds, Series 2001A, 12/11 at 100.00 Aaa 793,598
5.250%, 12/01/21 (Pre-refunded 12/01/11) - AMBAC Insured
12,175 Johnson County, Kansas, Residual Revenue and Refunding No Opt. Call Aaa 9,622,146
Bonds, Series 1992, 0.000%, 5/01/12 (ETM)
Wellington, Kansas, Electric, Water, and Sewer Utility
System Revenue Bonds, Series 2002:
335 5.250%, 11/01/25 (Pre-refunded 11/01/12) - AMBAC Insured 11/12 at 100.00 AAA 361,468
785 5.250%, 11/01/27 (Pre-refunded 11/01/12) - AMBAC Insured 11/12 at 100.00 AAA 847,023
1,010 Wichita, Kansas, Revenue Bonds, CSJ Health System of 11/06 at 100.00 A+ (3) 1,132,190
Wichita, Inc., Series 1985-XXV, 7.200%, 10/01/15 (ETM)
1,000 Wyandotte County Unified School District 500, Kansas, 9/12 at 100.00 AAA 1,063,740
General Obligation Bonds, Series 2002, 5.000%, 9/01/20
(Pre-refunded 9/01/12) - FSA Insured
- -------------------------------------------------------------------------------------------------------------------------
16,055 Total U.S. Guaranteed 13,820,165
- -------------------------------------------------------------------------------------------------------------------------
Utilities - 2.4%
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,034,270
Series 2005RR, 5.000%, 7/01/30 - XLCA Insured
1,000 Wyandotte County-Kansas City Unified Government, Kansas, 9/14 at 100.00 AAA 1,040,020
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 1,037,100
Industrial Revenue Bonds, Board of Public Utilities Office
Building Complex, Series 2001, 5.000%, 5/01/21 - MBIA
Insured
- -------------------------------------------------------------------------------------------------------------------------
3,000 Total Utilities 3,111,390
- -------------------------------------------------------------------------------------------------------------------------
- ----
25
Portfolio of Investments
NUVEEN KANSAS MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.0%
$ 1,040 Chisholm Creek Utility Authority, Kansas, Water and 9/12 at 100.00 Aaa $ 1,103,523
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 2,386,756
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 5,712,300
Series 2003, 5.000%, 10/01/22 - FGIC Insured
- ---------------------------------------------------------------------------------------------------------------------
8,840 Total Water and Sewer 9,202,579
- ---------------------------------------------------------------------------------------------------------------------
$ 127,270 Total Investments (cost $126,003,114) - 99.0% 130,548,615
- ---------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.0% 1,254,902
-------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 131,803,517
-------------------------------------------------------------------------------------------------------
(1) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(2) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's
or Moody's rating. Ratings below BBB by Standard & Poor's Group
or Baa by Moody's Investor Service, Inc. are considered to be
below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such investments
are normally considered to be equivalent to AAA rated
securities.
(ETM) Escrowed to maturity.
N/R Not rated.
See accompanying notes to financial statements.
- ----
26
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.1%
$ 4,865 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 4,954,078
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 1,001,810
University, Series 2005, 5.700%, 3/01/34
6,535 Columbia, Kentucky, Educational Development Revenue Bonds, 4/11 at 101.00 BBB- 6,951,606
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 5,993,451
Bellarmine College Project, Series 1999, 5.250%, 5/01/29
1,000 Kentucky Asset/Liability Commission, General Receipts 10/15 at 100.00 AAA 1,067,560
Revenue Bonds, University of Kentucky, Series 2005,
5.000%, 10/01/16 - FGIC Insured
1,500 Kentucky Economic Development Finance Authority, College 10/12 at 100.00 AAA 1,532,955
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- 2,529,075
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 3,038,850
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, University of the Sacred
Heart, Series 2001, 5.250%, 9/01/31
- ---------------------------------------------------------------------------------------------------------------------
21,465 Total Education and Civic Organizations 22,115,307
- ---------------------------------------------------------------------------------------------------------------------
Health Care - 11.4%
4,340 Clark County, Kentucky, Hospital Revenue Refunding and 3/07 at 102.00 BBB- 4,474,887
Improvement Bonds, Clark Regional Medical Center Project,
Series 1997, 6.200%, 4/01/13
10,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 3,499,780
System Revenue Bonds, Norton Healthcare Inc., Series
2000B, 0.000%, 10/01/28 - MBIA Insured
9,500 Kentucky Economic Development Finance Authority, Hospital 2/07 at 102.00 AAA 9,788,990
Revenue Refunding Bonds, Pikeville, United Methodist
Hospital of Kentucky Inc. Project, Series 1997, 5.700%,
2/01/28 - CONNIE LEE/AMBA 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- 503,365
500 5.600%, 10/01/08 4/08 at 102.00 BB- 505,725
3,500 5.850%, 10/01/17 4/08 at 102.00 BB- 3,482,500
1,500 5.875%, 10/01/22 4/08 at 102.00 BB- 1,478,970
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 1,034,650
1,000 5.250%, 9/01/24 9/11 at 100.00 AA 1,033,710
6,080 Kentucky Economic Development Finance Authority, Revenue 6/08 at 101.00 AA 6,152,413
Refunding and Improvement Bonds, Catholic Health
Initiatives, Series 1998A, 5.000%, 12/01/27
1,665 McCracken County, Kentucky, Hospital Facilities Revenue 11/06 at 100.00 AAA 1,683,298
Refunding Bonds, Mercy Health System, Series 1994A,
6.300%, 11/01/06 - MBIA Insured
2,195 Rockcastle County, Kentucky, First Mortgage Revenue Bonds, 6/15 at 100.00 BBB- 2,184,903
Rockcastle Hospital and Respiratory Care Center Inc.
Project, Series 2005, 5.550%, 6/01/30
16,500 Russell, Kentucky, Revenue Bonds, Bon Secours Health 11/12 at 100.00 A- 17,159,340
System, Series 2002A, 5.625%, 11/15/30
- ---------------------------------------------------------------------------------------------------------------------
58,620 Total Health Care 52,982,531
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 0.6%
3,265 Henderson, Kentucky, Senior Tax - Exempt Residential 5/09 at 102.00 N/R 3,301,992
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, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.9%
$ 425 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/09 at 101.00 AAA $ 425,638
1998F, 5.000%, 7/01/18 (Alternative Minimum Tax)
9,480 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 9,657,940
1999A, 5.200%, 1/01/31
710 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 714,700
1999B, 5.250%, 1/01/28 (Alternative Minimum Tax)
4,760 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/14 at 100.00 AAA 4,734,962
2004F, 3.900%, 7/01/31 (Alternative Minimum Tax)
2,470 Kentucky Housing Corporation, Housing Revenue Bonds, Series 7/14 at 100.00 AAA 2,409,065
2005H, 4.000%, 1/01/33 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
17,845 Total Housing/Single Family 17,942,305
- ---------------------------------------------------------------------------------------------------------------------
Long-Term Care - 4.0%
4,840 Florence, Kentucky, Housing Facilities Revenue Bonds, 8/09 at 101.00 A 5,087,324
Bluegrass RHF Housing Inc., Series 1999, 6.375%, 8/15/29 -
ACA Insured
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 2,154,460
3,700 6.000%, 1/01/27 (Mandatory put 1/01/24) - MBIA Insured 1/08 at 105.00 AAA 3,985,751
2,000 Kentucky Economic Development Finance Authority, 11/15 at 103.00 AAA 2,107,900
Multifamily Housing Revenue Bonds, Christian Care
Communities Projects, Series 2005, 5.250%, 11/20/25
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 1,798,128
3,500 5.500%, 11/15/30 5/08 at 102.00 BBB 3,501,750
- ---------------------------------------------------------------------------------------------------------------------
17,840 Total Long-Term Care 18,635,313
- ---------------------------------------------------------------------------------------------------------------------
Materials - 1.1%
2,000 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 4/07 at 102.00 Baa2 2,077,120
Weyerhaeuser Company - TJ International Project, Series
1997, 6.550%, 4/15/27 (Alternative Minimum Tax)
2,820 Wickliffe, Kentucky, Solid Waste Disposal Facility Revenue 10/06 at 102.00 BBB 2,888,413
Bonds, Westvaco Corporation, Series 1996, 6.375%, 4/01/26
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
4,820 Total Materials 4,965,533
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 5.4%
Bowling Green, Kentucky, General Obligation and Special
Revenue Bonds, Series 2002B:
1,785 5.000%, 6/01/23 6/12 at 100.00 Aa2 1,851,223
1,230 5.000%, 6/01/24 6/12 at 100.00 Aa2 1,274,317
1,665 5.000%, 6/01/25 6/12 at 100.00 Aa2 1,722,676
2,500 Jefferson County, Kentucky, General Obligation Refunding 5/09 at 100.00 AA 2,635,900
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 1,268,935
1,000 5.000%, 11/01/17 - AMBAC Insured 11/14 at 100.00 AAA 1,057,500
1,175 Louisville, Kentucky, General Obligation Bonds, Series 11/11 at 101.00 AA+ 1,220,191
2001A, 5.000%, 11/01/21
3,000 Louisville, Kentucky, General Obligation Bonds, Series 10/12 at 100.00 AAA 3,112,650
2002A, 5.000%, 10/01/23 - FGIC Insured
5,000 Puerto Rico, General Obligation and Public Improvement 7/14 at 100.00 AAA 5,374,250
Bonds, Series 2004A, 5.250%, 7/01/21 - MBIA Insured
4,400 Puerto Rico, Public Improvement Bonds, TICS/TOCS, Series No Opt. Call AAA 5,771,084
2001, 8.621%, 7/01/19 - FSA Insured (IF)
- ---------------------------------------------------------------------------------------------------------------------
22,950 Total Tax Obligation/General 25,288,726
- ---------------------------------------------------------------------------------------------------------------------
- ----
28
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 32.0%
$ 1,305 Ballard County School District Finance Corporation, 6/14 at 100.00 Aaa $ 1,362,250
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 2,049,263
Mortgage Revenue Bonds, Judicial Center Project, Series
2000, 5.850%, 9/01/28 - AMBAC Insured
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 1,526,415
2,580 5.000%, 5/01/21 - FSA Insured 5/14 at 100.00 Aaa 2,692,075
1,465 Boone County, Kentucky, Public Properties Corporation, 9/12 at 101.00 Aa3 1,557,324
First Mortgage Bonds, AOC Judicial Facility, Series 2001,
5.125%, 9/01/22
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 1,269,752
1,255 5.000%, 6/01/22 6/14 at 100.00 Aa3 1,301,887
4,500 Kenton County Public Properties Corporation, Kentucky, 3/09 at 101.00 Aa3 4,550,220
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 2,229,993
3,510 5.000%, 6/01/18 - MBIA Insured 6/14 at 100.00 Aaa 3,690,590
3,690 5.000%, 6/01/19 - MBIA Insured 6/14 at 100.00 Aaa 3,869,666
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 805,673
1,000 6.000%, 6/01/30 6/10 at 102.00 AA 1,081,230
2,000 Kentucky Asset/Liability Commission, General Fund Revenue 5/15 at 100.00 AAA 2,079,420
Project Notes, First Series 2005, 5.000%, 5/01/25 - MBIA
Insured
2,365 Kentucky Local Correctional Facilities Authority, No Opt. Call AAA 2,560,704
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 1,047,440
3,740 5.000%, 11/01/21 - AMBAC Insured 11/13 at 100.00 AAA 3,890,161
2,845 5.000%, 11/01/23 - AMBAC Insured 11/13 at 100.00 AAA 2,952,655
4,000 Kentucky State Property and Buildings Commission, Revenue No Opt. Call AAA 4,300,200
Bonds, Project 84, Series 2005, 5.000%, 8/01/18 - MBIA
Insured
Kentucky State Property and Buildings Commission, Revenue
Bonds, Project 85, Series 2005:
5,000 5.000%, 8/01/15 - FSA Insured No Opt. Call AAA 5,357,300
2,795 5.000%, 8/01/22 - FSA Insured 8/15 at 100.00 AAA 2,932,039
5,085 5.000%, 8/01/25 - FSA Insured 8/15 at 100.00 AAA 5,314,740
10,000 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 10,464,000
Revenue Bonds, Revitalization Project, Series 2005B,
5.000%, 7/01/23 - AMBAC Insured
5,000 Kentucky Turnpike Authority, Economic Development Road 7/16 at 100.00 AAA 5,239,950
Revenue Bonds, Revitalization Project, Series 2006B,
5.000%, 7/01/24 (WI/DD, Settling 6/21/06) - AMBAC Insured
4,000 Kentucky Turnpike Authority, Economic Development Road 7/11 at 100.00 AAA 4,203,360
Revenue Refunding Bonds, Revitalization Project, Series
2001B, 5.150%, 7/01/19 - FSA 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 1,503,574
1,585 5.000%, 6/01/20 - FSA Insured 6/14 at 100.00 Aaa 1,657,799
11,000 Lexington-Fayette Urban County Government, Kentucky, First 7/08 at 102.00 AAA 11,411,950
Mortgage Bonds, Public Facilities Corporation, Series
1998, 5.125%, 10/01/31 - FSA Insured
- ----
29
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -----------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 1,695 Louisville and Jefferson County Visitors and Convention 6/14 at 101.00 AAA $ 1,807,768
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 699,985
Kentucky, School Building Revenue Bonds, Series 2000,
5.750%, 6/01/20
1,525 McCracken County Public Properties Corporation, Kentucky, 9/06 at 102.00 AAA 1,563,079
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 5,372,187
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 1,292,693
1,635 5.000%, 5/01/20 - MBIA Insured 5/14 at 100.00 Aaa 1,709,376
1,715 5.000%, 5/01/21 - MBIA Insured 5/14 at 100.00 Aaa 1,789,500
1,360 Owen County School District Finance Corporation, Kentucky, 4/11 at 101.00 Aa3 1,410,266
School Building Revenue Bonds, Series 2001, 5.000%, 4/01/21
500 Pendleton County, Kentucky, Leasing Trust Revenue Bonds, No Opt. Call A 587,690
Kentucky Association of Counties, Series 1993A, 6.400%,
3/01/19 (4)
2,545 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,807,288
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 1,026,050
Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured
3,185 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 3,577,488
Government Facilities Revenue Bonds, Series 1993L, 5.500%,
7/01/21 - FSA Insured
5,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 5,461,800
Government Facilities Revenue Refunding Bonds, Series
2002F, 5.250%, 7/01/21 - CIFG Insured
2,755 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call Aa1 3,292,666
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC
Insured
4,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 4,781,920
Transportation Authority, Reset Option Long Certificates
II-R-66, Series 1996Y, 7.278%, 7/01/36 - MBIA Insured (IF)
6,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 6,717,660
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,360 Shelby County School District Finance Corporation, 5/14 at 100.00 Aaa 1,419,078
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 2,286,144
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 1,088,275
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 7,248,010
Kentucky, First Mortgage Revenue Bonds, AOC Judicial
Facility, Series 1997A, 5.250%, 9/01/24 - MBIA Insured
- -----------------------------------------------------------------------------------------------------------------------
140,020 Total Tax Obligation/Limited 148,840,553
- -----------------------------------------------------------------------------------------------------------------------
Transportation - 4.5%
Guam International Airport Authority, Revenue Bonds, Series
2003C:
5,000 5.250%, 10/01/22 - MBIA Insured (Alternative Minimum Tax) 10/10 at 100.00 AAA 5,206,750
2,195 5.000%, 10/01/23 - MBIA Insured (Alternative Minimum Tax) 10/13 at 100.00 AAA 2,240,085
1,250 Kenton County Airport Board, Kentucky, Airport Revenue 9/06 at 102.00 AAA 1,276,725
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 5,187,423
Bonds, Cincinnati/Northern Kentucky International Airport,
Series 2003B, 5.000%, 3/01/23 - MBIA Insured (Alternative
Minimum Tax)
1,000 Louisville and Jefferson County Regional Airport Authority, 7/13 at 100.00 AAA 1,040,410
Kentucky, Airport System Revenue Bonds, Series 2003C,
5.250%, 7/01/22 - FSA Insured (Alternative Minimum Tax)
- ----
30
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$ 6,000 Louisville and Jefferson County Regional Airport Authority, 3/09 at 101.00 Baa3 $ 6,143,100
Kentucky, Special Facilities Revenue Bonds, Airis
Louisville LLC Project, Series 1999A, 5.500%, 3/01/19
(Alternative Minimum Tax)
- -------------------------------------------------------------------------------------------------------------------------
20,535 Total Transportation 21,094,493
- -------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 11.4% (3)
5,085 Campbellsville, Kentucky, Industrial Building Revenue 3/09 at 102.00 BBB- (3) 5,412,220
Bonds, Campbellsville University Project, Series 1999,
5.500%, 3/01/29 (Pre-refunded 3/01/09)
Fayette County School District Finance Corporation,
Kentucky, School Building Revenue Bonds, Series 2000:
1,665 5.500%, 6/01/18 (Pre-refunded 6/01/10) 6/10 at 101.00 AA- (3) 1,789,092
2,795 5.500%, 6/01/20 (Pre-refunded 6/01/10) 6/10 at 101.00 AA- (3) 3,003,311
3,155 Florence Public Properties Corporation, Kentucky, First 6/07 at 102.00 AAA 3,275,269
Mortgage Revenue Bonds, Administrative Office Complex
Project, Series 1997, 5.500%, 6/01/27 (Pre-refunded
6/01/07) - MBIA Insured
2,000 Jefferson County Collegiate Housing Foundation, Kentucky, 9/09 at 102.00 N/R (3) 2,231,380
Student Housing Revenue Bonds, University of Louisville
Project, Series 1999A, 7.125%, 9/01/29 (Pre-refunded
9/01/09)
400 Kentucky State Property and Buildings Commission, Agency 5/10 at 100.00 AAA 429,508
Fund Revenue Bonds, Project 66A, Series 2000, 5.750%,
5/01/20 (Pre-refunded 5/01/10) - MBIA Insured
500 Kentucky State Property and Buildings Commission, Revenue 11/09 at 100.00 AAA 528,865
Bonds, Project 64, Series 1999, 5.500%, 5/01/18
(Pre-refunded 11/01/09) - MBIA Insured
5,860 Kentucky State Property and Buildings Commission, Revenue 10/11 at 100.00 AAA 6,311,747
Refunding Bonds, Project 72, Series 2001, 5.375%, 10/01/19
(Pre-refunded 10/01/11) - MBIA Insured
2,000 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,119,960
Refunding Bonds, Project 74, Series 2002, 5.000%, 2/01/21
(Pre-refunded 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 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 6,225,580
5,000 5.000%, 10/01/21 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 5,345,950
6,500 5.000%, 10/01/22 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 6,949,735
245 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 296,109
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC
Insured (ETM)
1,310 Puerto Rico, General Obligation and Public Improvement 7/06 at 101.50 BBB (3) 1,331,654
Bonds, Series 1996, 5.400%, 7/01/25 (Pre-refunded 7/01/06)
2,600 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 2,800,694
Bonds, Series 2000, 5.750%, 7/01/26 (Pre-refunded 7/01/10)
- MBIA Insured
2,000 Puerto Rico, General Obligation and Public Improvement 7/07 at 100.00 BBB (3) 2,038,280
Refunding Bonds, Series 1997, 5.375%, 7/01/25
(Pre-refunded 7/01/07)
2,800 Russell, Kentucky, Health System Revenue Bonds, Franciscan 1/10 at 100.00 Baa2 (3) 2,949,800
Health Partnership Inc. - Our Lady of Bellefonte Hospital,
Series 1997, 5.500%, 7/01/15 (Pre-refunded 1/01/10)
- -------------------------------------------------------------------------------------------------------------------------
49,695 Total U.S. Guaranteed 53,039,154
- -------------------------------------------------------------------------------------------------------------------------
Utilities - 9.8%
1,175 Boone County, Kentucky, Collateralized Pollution Control 7/15 at 100.00 AAA 1,166,446
Revenue Bonds, Dayton Power & Light Company, Series 2005A,
4.700%, 1/01/28 - FGIC Insured
6,000 Boone County, Kentucky, Collateralized Pollution Control 7/06 at 100.00 AAA 6,009,060
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 5,927,790
6,475 0.000%, 1/01/12 - AMBAC Insured No Opt. Call AAA 5,179,676
5,810 0.000%, 1/01/15 - AMBAC Insured No Opt. Call AAA 3,997,512
7,900 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 4,890,021
13,300 0.000%, 1/01/18 - AMBAC Insured No Opt. Call AAA 7,796,859
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 3,301,980
Series 2003NN, 5.250%, 7/01/23 - MBIA Insured
- ----
31
Portfolio of Investments
NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$ 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA $ 5,232,000
Series 2005RR, 5.000%, 7/01/24 - FGIC Insured
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,122,040
Series 2005SS, 5.000%, 7/01/17 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------------
57,760 Total Utilities 45,623,384
- ---------------------------------------------------------------------------------------------------------------------
Water and Sewer - 8.4%
1,405 Christian County Water District, Kentucky, Waterworks 10/09 at 101.00 Aaa 1,512,314
Revenue Bonds, Series 1999, 6.000%, 1/01/30 - AMBAC Insured
1,000 Kentucky Rural Water Finance Corporation, Multimodal Public 2/11 at 102.00 AA- 1,061,130
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 6,182,880
2,500 5.200%, 5/15/25 - MBIA Insured 11/07 at 101.00 AAA 2,565,925
3,200 Louisville and Jefferson County Metropolitan Sewer 5/08 at 101.00 AAA 3,273,984
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 17,253,600
District, Kentucky, Sewer and Drainage System Revenue
Bonds, Series 2001A, 5.500%, 5/15/34 - MBIA Insured
7,225 Northern Kentucky Water District, Revenue Refunding Bonds, 2/12 at 100.00 Aaa 7,401,651
Series 2002A, 5.000%, 2/01/27 - FGIC Insured
- ---------------------------------------------------------------------------------------------------------------------
37,330 Total Water and Sewer 39,251,484
- ---------------------------------------------------------------------------------------------------------------------
$ 457,010 Total Long-Term Investments (cost $441,743,297) - 98.4% 458,034,853
- ---------------------------------------------------------------------------------------------------------------------
- ------------
Short-Term Investments - 0.8%
3,700 Puerto Rico Government Development Bank, Adjustable A-1 3,700,000
Refunding Bonds, Variable Rate Demand Obligations, Series
1985, 3.160%, 12/01/15 - MBIA Insured (5)
- ---------------------------------------------------------------------------------------------------------------------
$ 3,700 Total Short-Term Investments (cost $ 3,700,000) 3,700,000
- ---------------------------------------------------------------------------------------------------------------------
- ------------
Total Investments (cost $445,443,297) - 99.2% 461,734,853
--------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 3,659,627
--------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 465,394,480
--------------------------------------------------------------------------------------------------------
(1) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(2) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's
or Moody's rating. Ratings below BBB by Standard & Poor's Group
or Baa by Moody's Investor Service, Inc. are considered to be
below investment grade. The ratings shown for inverse floating
rate investments represent those of the underlying bonds and
not the inverse floating rate investments themselves. Inverse
floating rate investments likely present greater credit risk to
the holders of such investments than to those holders of the
underlying bonds.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such investments
are normally considered to be equivalent to AAA rated
securities.
(4) The Internal Revenue Service (the "IRS") has formally
determined that the interest received from the bonds' coupon
payments should be considered taxable. The issuer has stated
that if they are not able to resolve this taxability matter
with the IRS, or to have the IRS determination of taxability
overturned, the issuer will take steps to ensure that the
bondholders will be made whole with respect to any federal tax
liability. The Adviser will continue to monitor the ongoing
progress of this taxability matter and act in what it believes
is in the best interest of shareholders.
(5) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect at
the end of the reporting period. This rate changes periodically
based on market conditions or a specified market index.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
See accompanying notes to financial statements.
- ----
32
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.8%
$ 2,000 Michigan Strategic Fund, Multi-Modal Interchangeable Rate 9/06 at 101.00 B $ 1,845,060
Pollution Control Revenue Refunding Bonds, General Motors
Corporation, Series 1995, 6.200%, 9/01/20
- ---------------------------------------------------------------------------------------------------------------------
Consumer Staples - 0.4%
900 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 916,479
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ---------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 4.3%
630 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- 620,556
Charter School Revenue Bonds, Series 2005, 5.125%, 11/01/35
Michigan Technological University, General Revenue Bonds,
Series 2004A:
1,230 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,274,981
1,850 5.000%, 10/01/29 - MBIA Insured 10/13 at 100.00 AAA 1,903,040
6,150 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 6,386,468
Series 1999, 5.125%, 11/15/29 - FGIC Insured
- ---------------------------------------------------------------------------------------------------------------------
9,860 Total Education and Civic Organizations 10,185,045
- ---------------------------------------------------------------------------------------------------------------------
Health Care - 10.3%
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 994,250
1,000 5.375%, 7/01/28 7/08 at 101.00 Baa3 954,580
3,530 Lake View Community Hospital Authority, Michigan, Hospital 2/07 at 101.00 N/R 3,593,717
Revenue Refunding Bonds, Series 1997, 6.250%, 2/15/13
2,200 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 2,316,556
Bonds, Henry Ford Health System, Series 1999A, 6.000%,
11/15/24
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 10/06 at 102.00 BBB- 1,013,390
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 1,496,063
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+ 1,053,660
Refunding Bonds, Crittenton Hospital, Series 2002A,
5.625%, 3/01/27
380 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call A- 388,607
Refunding Bonds, Gratiot Community Hospital, Series 1995,
6.100%, 10/01/07
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 3,206,070
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 486,555
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/37
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 494,450
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
3,755 Michigan State Hospital Finance Authority, Revenue 8/06 at 100.00 BB- 3,756,878
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993A, 6.500%, 8/15/18
1,600 Pontiac Hospital Finance Authority, Michigan, Hospital 8/06 at 100.00 Ba2 1,509,920
Revenue Refunding Bonds, NOMC Obligated Group, Series
1993, 6.000%, 8/01/23
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 1,032,480
2,000 5.250%, 11/15/35 - MBIA Insured 11/11 at 100.00 AAA 2,062,040
- ---------------------------------------------------------------------------------------------------------------------
23,940 Total Health Care 24,359,216
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.7%
1,155 Michigan Housing Development Authority, GNMA Collateralized 6/06 at 101.00 Aaa 1,167,797
Limited Obligation Multifamily Revenue Refunding Bonds,
Parc Point Apartments, Series 1995A, 6.500%, 10/01/15
- ----
33
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
$ 6,000 Michigan Housing Development Authority, Section 8 Assisted No Opt. Call AA $ 2,943,780
Mortgage Revenue Bonds, Series 1983I, 0.000%, 4/01/14
- ---------------------------------------------------------------------------------------------------------------------
7,155 Total Housing/Multifamily 4,111,577
- ---------------------------------------------------------------------------------------------------------------------
Industrials - 0.8%
2,000 Michigan Strategic Fund, Solid Waste Disposal Limited No Opt. Call BBB 1,991,580
Obligation Revenue Bonds, Waste Management Inc., Series
2004, 4.500%, 12/01/13 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.0%
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 1,013,230
Presbyterian Villages of Michigan Obligated Group, Series
2005, 5.250%, 11/15/25
3,300 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 6/08 at 100.00 BBB- 3,314,454
Clark Retirement Community Inc., Series 1998, 5.250%,
6/01/18
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+ 141,714
260 5.375%, 7/01/28 7/08 at 101.00 BBB+ 261,563
- ---------------------------------------------------------------------------------------------------------------------
4,700 Total Long-Term Care 4,730,961
- ---------------------------------------------------------------------------------------------------------------------
Materials - 0.7%
1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,721,335
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 32.1%
1,175 Birmingham, Michigan, General Obligation Bonds, Series 10/12 at 100.50 AAA 1,226,253
2002, 5.000%, 10/01/21
1,020 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AA 1,083,046
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:
2,000 5.000%, 5/01/23 - MBIA Insured 5/15 at 100.00 AAA 2,089,900
2,085 5.000%, 5/01/24 - MBIA Insured 5/15 at 100.00 AAA 2,174,030
1,000 5.000%, 5/01/25 - MBIA Insured 5/15 at 100.00 AAA 1,041,200
295 Cedar Springs Public School District, Kent and Newaygo 5/13 at 100.00 AAA 305,133
Counties, Michigan, General Obligation Bonds, Series 2003,
5.125%, 5/01/32
1,850 Chippewa Valley Schools, Macomb County, Michigan, General 5/15 at 100.00 AAA 1,928,995
Obligation Bonds, Series 2005, 5.000%, 5/01/24 - MBIA
Insured
6,085 Detroit, Michigan, General Obligation Bonds, Series 4/14 at 100.00 AAA 6,422,170
2004A-1, 5.250%, 4/01/20 - AMBAC Insured
11,000 Detroit-Wayne County Stadium Authority, Michigan, Limited 2/07 at 102.00 AAA 11,306,897
Tax General Obligation Building Authority Stadium Bonds,
Series 1997, 5.250%, 2/01/27 - FGIC Insured
1,245 Edwardsburg Public School, Cass County, Michigan, General 5/14 at 100.00 AAA 1,293,169
Obligation Bonds, Series 2004, 5.000%, 5/01/24 - FSA
Insured
2,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AA 2,047,580
General Obligation Refunding Bonds, Series 2001, 5.000%,
5/01/26
4,350 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA 4,466,450
Michigan, General Obligation Refunding Bonds, Series 2001,
5.125%, 5/01/29
2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA 2,072,600
Obligation Bonds, Series 2003, 5.000%, 5/01/24
1,000 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,040,730
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 1,079,759
2004A, 5.000%, 12/01/22
1,300 Lansing Community College, Michigan, General Obligation 5/13 at 100.00 AAA 1,354,925
Bonds, Series 2003, 5.000%, 5/01/20 - MBIA Insured
- ----
34
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,000 Livonia Municipal Building Authority, Wayne County, 5/10 at 100.00 AAA $ 1,027,850
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 2,513,133
Tax General School Building and Site Bonds, Series
1992-II, 0.000%, 5/01/08 - FGIC Insured
1,500 Michigan Municipal Bond Authority, General Obligation 6/15 at 100.00 AAA 1,567,995
Bonds, Detroit City School District, Series 2005, 5.000%,
6/01/18 - FSA Insured
2,800 Michigan Municipal Bond Authority, Local Government Loan No Opt. Call AAA 2,594,396
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 3,454,880
Protection Program, Series 2003A, 5.250%, 5/01/21
2,000 Muskegon Public Schools, Muskegon County, Michigan, General 5/14 at 100.00 AAA 2,086,880
Obligation Bonds, Series 2004, 5.000%, 5/01/20 - FSA
Insured
1,620 Oakridge Public Schools, Muskegon County, Michigan, General 5/15 at 100.00 AAA 1,689,174
Obligation Bonds, Series 2005, 5.000%, 5/01/24 - MBIA
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 612,120
1,020 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 592,345
1,400 South Redford School District, Wayne County, Michigan, 11/14 at 100.00 AAA 1,462,006
General Obligation Bonds, Series 2004, 5.000%, 5/01/21 -
FGIC Insured
1,500 Southgate Community School District, Wayne County, 5/09 at 100.00 AAA 1,522,890
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 1,738,848
Michigan, General Obligation Bonds, Series 2004, 5.250%,
5/01/22 - MBIA Insured
1,150 Wayne Westland Community Schools, Michigan, General 11/14 at 100.00 AAA 1,213,618
Obligation Bonds, Series 2004, 5.000%, 5/01/17 - FSA
Insured
1,915 West Bloomfield School District, Oakland County, Michigan, 5/15 at 100.00 AAA 2,006,843
General Obligation Bonds, Series 2005, 5.000%, 5/01/20 -
FSA Insured
3,270 West Ottawa Public School District, Ottawa County, No Opt. Call AAA 2,001,632
Michigan, General Obligation Refunding Bonds, Series 1992,
0.000%, 5/01/17 - FGIC Insured
5,175 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 5,882,630
Tax General Obligation QSBLF Bonds, Series 1996, 5.500%,
5/01/25 - MBIA Insured
3,170 Zeeland Public Schools, Ottawa and Allegan Counties, 5/15 at 100.00 AAA 3,312,492
Michigan, General Obligation Bonds, Series 2005, 5.000%,
5/01/22 - FGIC Insured
- ---------------------------------------------------------------------------------------------------------------------
75,530 Total Tax Obligation/General 76,212,569
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 10.6%
1,445 Detroit, Michigan, Building Authority Revenue Bonds, 2/07 at 101.00 A 1,454,291
District Court Madison Center, Series 1996A,
6.150%, 2/01/11
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 2,432,524
3,295 0.000%, 6/01/18 - MBIA Insured No Opt. Call AAA 1,908,266
1,650 6.875%, 6/01/24 - MBIA Insured 6/06 at 100.00 AAA 1,679,601
6,000 Michigan House of Representatives, Certificates of No Opt. Call AAA 2,652,900
Participation, Series 1998, 0.000%, 8/15/23 - AMBAC Insured
250 Michigan Municipal Bond Authority, Wayne County, Local 6/06 at 100.00 AAA 250,197
Government Loan Program Revenue Bonds, Series 1991A,
4.750%, 12/01/09 - FGIC Insured
Michigan State Building Authority, Revenue Bonds,
Facilities Program, Series 2001I:
2,720 5.500%, 10/15/19 10/11 at 100.00 AA- 2,917,934
5,000 5.000%, 10/15/24 10/11 at 100.00 AA- 5,156,600
4,400 Michigan State Building Authority, Revenue Bonds, 10/15 at 100.00 AAA 4,557,960
Facilities Program, Series 2005II, 5.000%, 10/15/30 -
AMBAC Insured
- ----
35
Portfolio of Investments
NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 2,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA $ 2,077,440
Facilities Program, Series 2003II, 5.000%, 10/15/22 - MBIA
Insured
- -------------------------------------------------------------------------------------------------------------------------
30,745 Total Tax Obligation/Limited 25,087,713
- -------------------------------------------------------------------------------------------------------------------------
Transportation - 1.3%
3,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 3,063,690
Metropolitan Airport, Series 1998B, 5.000%, 12/01/28 -
MBIA Insured
- -------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 19.2% (3)
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA (3) 1,087,740
Michigan, General Obligation Bonds, Series 2002-3, 5.500%,
5/01/18 (Pre-refunded 5/01/12)
1,625 Brighton Township Sanitary Sewer Drainage District, 4/09 at 100.00 AAA 1,693,185
Livingston County, Michigan, Limited Tax General
Obligation Bonds, Series 2000, 5.250%, 10/01/19
(Pre-refunded 4/01/09) - FSA Insured
1,195 Carman-Ainsworth Community School District, Genesee County, 5/12 at 100.00 AAA 1,299,849
Michigan, General Obligation Bonds, Series 2002, 5.500%,
5/01/19 (Pre-refunded 5/01/12) - FGIC Insured
1,205 Cedar Springs Public School District, Kent and Newaygo 5/13 at 100.00 AAA 1,294,604
Counties, Michigan, General Obligation Bonds, Series 2003,
5.125%, 5/01/32 (Pre-refunded 5/01/13)
1,800 Coopersville Area Public Schools, Ottawa and Muskegon 5/09 at 100.00 AAA 1,865,340
Counties, Michigan, Unlimited Tax General Obligation
School Building and Site Bonds, Series 1999, 5.000%,
5/01/29 (Pre-refunded 5/01/09) - MBIA Insured
1,000 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 1,089,390
General Obligation Bonds, Series 2002A, 5.375%, 5/01/24
(Pre-refunded 5/01/13) - 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 (Pre-refunded 5/01/12) - FSA Insured 5/12 at 100.00 AAA 2,175,480
250 5.125%, 5/01/31 (Pre-refunded 5/01/12) - FSA Insured 5/12 at 100.00 AAA 267,015
2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,153,540
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded
1/01/10) - FGIC Insured
6,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 7,497,945
Residual Option Long Series II-R-103, 7.758%, 7/01/20
(Pre-refunded to 1/01/10) (IF)
2,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,701,875
Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) -
FGIC Insured
1,000 Frankenmuth School District, Saginaw and Tuscola Counties, 5/10 at 100.00 AAA 1,069,250
Michigan, Unlimited Tax General Obligation School Building
and Site Bonds, Series 2000, 5.625%, 5/01/16 (Pre-refunded
5/01/10) - FGIC Insured
1,000 Hastings Area School System, Barry County, Michigan, 5/11 at 100.00 AAA 1,055,710
Unlimited Tax General Obligation, Building and Site Bonds,
Series 2001, 5.000%, 5/01/26 (Pre-refunded 5/01/11) - MBIA
Insured
2,500 Kalamazoo Economic Development Corporation, Michigan, 5/07 at 102.00 BB+ (3) 2,603,550
Limited Obligation Revenue and Refunding Bonds, Friendship
Village of Kalamazoo, Series 1997A, 6.250%, 5/15/27
(Pre-refunded 5/15/07)
3,750 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (3) 4,073,663
Spectrum Health, Series 2001A, 5.500%, 1/15/31
(Pre-refunded 7/15/11)
75 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 (3) 82,190
Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM)
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 5,427,950
Bonds, Ascension Health Credit Group, Series 1999A,
6.125%, 11/15/26 (Pre-refunded 11/15/09)
2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,119,640
5.000%, 11/01/25 (Pre-refunded 11/01/11) - FSA Insured
1,220 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,309,877
Development Inc., Series 2001, 5.375%, 9/01/21
(Pre-refunded 9/01/11) - MBIA Insured
1,500 Michigan, Certificates of Participation, Series 2000, 6/10 at 100.00 AAA 1,596,555
5.500%, 6/01/20 (Pre-refunded 6/01/10) - AMBAC Insured
160 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 166,784
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
- ----
36
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -----------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (3) (continued)
$ 1,235 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA $ 1,326,106
Counties, Michigan, General Obligation Bonds, Series
2000I, 5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC
Insured
1,500 Southgate Community School District, Wayne County, 5/09 at 100.00 AAA 1,554,450
Michigan, General Obligation Bonds, Series 1999, 5.000%,
5/01/25 (Pre-refunded 5/01/09) - FGIC Insured
- -----------------------------------------------------------------------------------------------------------------------
42,015 Total U.S. Guaranteed 45,511,688
- -----------------------------------------------------------------------------------------------------------------------
Utilities - 4.3%
1,000 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,038,610
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 1,050,720
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 990,139
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,300 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 3,430,416
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 1,281,110
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 2,466,560
Refunding Bonds, Series 1989O, 0.000%, 7/01/17 - MBIA
Insured
- -----------------------------------------------------------------------------------------------------------------------
11,225 Total Utilities 10,257,555
- -----------------------------------------------------------------------------------------------------------------------
Water and Sewer - 10.4%
3,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/11 at 100.00 AAA 3,090,690
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 2,545,350
3,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 3,220,980
5,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 5,174,550
Bonds, Series 2003A, 5.000%, 7/01/25 - MBIA Insured
4,455 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, No Opt. Call AAA 2,416,659
Series 1999A, 0.000%, 7/01/19 - FGIC Insured
1,625 Lansing, Michigan, Sewerage Disposal System Revenue Bonds, 5/14 at 100.00 AAA 1,693,380
Series 2003, 5.000%, 5/01/21 - FGIC Insured
2,075 Michigan Municipal Bond Authority, Clean Water Revolving 10/15 at 100.00 AAA 2,197,861
Fund Revenue Bonds, Series 2005, 5.000%, 10/01/19
4,055 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 4,235,894
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/24
- -----------------------------------------------------------------------------------------------------------------------
25,710 Total Water and Sewer 24,575,364
- -----------------------------------------------------------------------------------------------------------------------
$ 240,530 Total Investments (cost $222,786,955) - 98.9% 234,569,832
- -----------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.1% 2,514,534
--------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 237,084,366
--------------------------------------------------------------------------------------------------------
(1) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(2) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's
or Moody's rating. Ratings below BBB by Standard & Poor's Group
or Baa by Moody's Investor Service, Inc. are considered to be
below investment grade. The ratings shown for inverse floating
rate investments represent those of the underlying bonds and
not the inverse floating rate investments themselves. Inverse
floating rate investments likely present greater credit risk to
the holders of such investments than to those holders of the
underlying bonds.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such investments
are normally considered to be equivalent to AAA rated
securities.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
N/R Not rated.
See accompanying notes to financial statements.
- ----
37
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.8%
$ 3,225 St. Louis Industrial Development Authority, Missouri, No Opt. Call AAA $ 2,168,039
Senior Lien Revenue Bonds, St. Louis Convention Center
Headquarters Hotel, Series 2000A, 0.000%, 7/15/15 - AMBAC
Insured
- ---------------------------------------------------------------------------------------------------------------------
Consumer Staples - 4.5%
3,000 Cape Girardeau County Industrial Development Authority, 5/08 at 101.00 AA- 3,051,660
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- 8,621,073
Revenue Bonds, Procter and Gamble Inc., Series 1999,
5.200%, 3/15/29 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
11,100 Total Consumer Staples 11,672,733
- ---------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 8.3%
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 1,040,150
1,200 5.000%, 11/01/31 11/13 at 100.00 AA 1,234,764
1,500 Curators of the University of Missouri, System Facilities 11/15 at 100.00 AA 1,564,605
Revenue Bonds, Series 2006, 5.000%, 11/01/26
1,000 Kansas City Metropolitan Community Colleges Building 7/11 at 100.00 Aaa 1,071,430
Corporation, Missouri, Leasehold Revenue Bonds, Junior
College District of Metropolitan Kansas City, Series 2001,
5.500%, 7/01/18 - FGIC Insured
1,100 Missouri Health and Educational Facilities Authority, 10/08 at 100.00 N/R 1,106,270
Revenue Bonds, Barstow School, Series 1998, 5.250%,
10/01/23
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 1,021,880
1,750 5.750%, 6/15/17 6/07 at 101.00 Baa2 1,785,700
1,100 Missouri Health and Educational Facilities Authority, 6/10 at 100.00 Baa2 1,168,970
Revenue Bonds, Maryville University of St. Louis, Series
2000, 6.750%, 6/15/30
900 Missouri Health and Educational Facilities Authority, 6/08 at 102.00 A1 941,328
Revenue Bonds, Stephens College, Series 1999, 6.000%,
6/01/24
1,000 Missouri Health and Educational Facilities Authority, No Opt. Call AAA 1,114,250
Revenue Bonds, Washington University, Series 2001A,
5.500%, 6/15/16
1,360 Missouri Health and Educational Facilities Authority, 4/11 at 100.00 Aaa 1,453,078
Revenue Bonds, Webster University, Series 2001, 5.500%,
4/01/18 - MBIA Insured
4,190 Missouri Higher Education Loan Authority, Subordinate Lien 8/06 at 100.00 A2 4,201,858
Student Loan Revenue Bonds, Series 1994F, 6.750%, 2/15/09
(Alternative Minimum Tax)
2,060 Southeast Missouri State University, System Facilities 4/11 at 100.00 Aaa 2,107,318
Revenue Refunding and Improvement Bonds, Series 2001,
5.000%, 4/01/26 - MBIA Insured
St. Louis County Industrial Development Authority,
Missouri, Revenue Bonds, Kiel Center Multipurpose Arena,
Series 1992:
550 7.625%, 12/01/09 (Alternative Minimum Tax) 6/06 at 100.00 N/R 549,511
1,000 7.750%, 12/01/13 (Alternative Minimum Tax) 6/06 at 100.00 N/R 1,008,600
500 7.875%, 12/01/24 (Alternative Minimum Tax) 6/06 at 100.00 N/R 504,300
- ---------------------------------------------------------------------------------------------------------------------
21,210 Total Education and Civic Organizations 21,874,012
- ---------------------------------------------------------------------------------------------------------------------
Health Care - 8.1%
1,250 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 1,279,863
Facilities Revenue Bonds, Freeman Health System, Series
2004, 5.500%, 2/15/29
1,000 Missouri Health and Educational Facilities Authority, 5/13 at 100.00 AA 1,030,930
Revenue Bonds, BJC Health System, Series 2003, 5.125%,
5/15/25
1,000 Missouri Health and Educational Facilities Authority, 5/15 at 100.00 AA 1,034,260
Revenue Bonds, BJC Health System, Series 2005A, 5.000%,
5/15/22
500 Missouri Health and Educational Facilities Authority, 11/06 at 100.00 BBB+ 500,295
Revenue Bonds, Capital Region Medical Center, Series 1998,
5.250%, 11/01/23
- ----
38
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Health Care (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+ $ 1,520,070
1,300 5.250%, 2/15/28 2/08 at 102.00 BBB+ 1,308,801
2,750 Missouri Health and Educational Facilities Authority, 2/14 at 100.00 BBB+ 2,871,275
Revenue Bonds, Lake Regional Health System, Series 2003,
5.700%, 2/15/34
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 1,593,445
4,740 0.000%, 9/01/21 - MBIA Insured No Opt. Call AAA 2,299,469
6,300 0.000%, 9/01/22 - MBIA Insured No Opt. Call AAA 2,910,096
1,000 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AAA 1,041,460
Revenue Bonds, St. Luke's Health System, Series 2001,
5.250%, 12/01/26 - FSA Insured
1,000 New Liberty Hospital District, Missouri, Revenue Bonds, 12/11 at 100.00 AAA 1,026,820
Series 2001, 5.000%, 12/01/21 - AMBAC Insured
2,880 Taney County Industrial Development Authority, Missouri, 5/08 at 101.00 BBB 2,921,126
Hospital Revenue Bonds, Skaggs Community Hospital
Association, Series 1998, 5.400%, 5/15/28
- ---------------------------------------------------------------------------------------------------------------------
27,870 Total Health Care 21,337,910
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 6.7%
1,320 Clay County Industrial Development Authority, Missouri, 7/13 at 105.00 AAA 1,423,211
GNMA Multifamily Housing Revenue Bonds, Oak Creek
Apartments, Series 2002, 6.125%, 7/20/25 (Alternative
Minimum Tax)
Missouri Housing Development Commission, GNMA
Collateralized Multifamily Housing Revenue Bonds, JB Hughes
Apartments I and II, Series 2002G:
258 6.200%, 5/20/19 5/12 at 105.00 Aaa 270,575
975 6.300%, 5/20/37 5/12 at 105.00 Aaa 1,028,966
2,465 Missouri Housing Development Commission, Multifamily 4/08 at 102.00 N/R 2,500,816
Housing Revenue Bonds, Mansion Apartments II, Series 1999,
6.125%, 4/01/22 (Alternative Minimum Tax)
1,805 St. Louis County Industrial Development Authority, 1/09 at 105.00 AAA 1,841,226
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 9,577,549
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 950,752
GNMA Collateralized Revenue Refunding Bonds, River Valley
Apartments, Series 1997A, 5.900%, 2/20/37
- ---------------------------------------------------------------------------------------------------------------------
16,853 Total Housing/Multifamily 17,593,095
- ---------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.9%
Missouri Housing Development Commission, GNMA Single Family
Remarketed Mortgage Revenue Bonds, Homeownership Loan
Program, Series 1995B:
335 6.375%, 9/01/20 (Alternative Minimum Tax) 9/06 at 102.00 AAA 336,869
270 6.450%, 9/01/27 (Alternative Minimum Tax) 9/06 at 102.00 AAA 271,550
145 Missouri Housing Development Commission, GNMA/FNMA Single 1/07 at 102.00 AAA 147,694
Family Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1996D, 6.125%, 3/01/28 (Alternative Minimum Tax)
35 Missouri Housing Development Commission, GNMA/FNMA Single 3/07 at 105.00 AAA 35,289
Family Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1997A-2, 7.300%, 3/01/28 (Alternative Minimum Tax)
130 Missouri Housing Development Commission, Single Family 9/06 at 105.00 AAA 131,019
Mortgage Revenue Bonds, Homeownership Loan Program, Series
1995C, 7.250%, 9/01/26 (Alternative Minimum Tax)
80 Missouri Housing Development Commission, Single Family 9/06 at 105.00 AAA 80,694
Mortgage Revenue Bonds, Homeownership Loan Program, Series
1996B, 7.550%, 9/01/27 (Alternative Minimum Tax)
140 Missouri Housing Development Commission, Single Family 3/08 at 105.00 AAA 144,890
Mortgage Revenue Bonds, Homeownership Loan Program, Series
1998B-2, 6.400%, 3/01/29 (Alternative Minimum Tax)
- ----
39
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 365 Missouri Housing Development Commission, Single Family 9/09 at 100.00 AAA $ 367,048
Mortgage Revenue Bonds, Homeownership Loan Program, Series
2000A-1, 6.300%, 9/01/25 (Alternative Minimum Tax)
255 Missouri Housing Development Commission, Single Family 3/10 at 100.00 AAA 259,506
Mortgage Revenue Bonds, Homeownership Loan Program, Series
2000B-1, 6.200%, 9/01/25 (Alternative Minimum Tax)
2,935 Missouri Housing Development Commission, Single Family 9/14 at 100.00 AAA 3,106,639
Mortgage Revenue Bonds, Homeownership Loan Program, Series
2005A-1, 5.900%, 9/01/35 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
4,690 Total Housing/Single Family 4,881,198
- ---------------------------------------------------------------------------------------------------------------------
Long-Term Care - 7.9%
1,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,031,060
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 3,961,297
Retirement Center Revenue Refunding and Improvement Bonds,
Kingswood Project, Series 1998A, 5.875%, 11/15/29
1,000 Lees Summit Industrial Development Authority, Missouri, 8/06 at 101.00 N/R 1,021,570
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 5,234,000
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 1,575,420
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 1,323,280
Revenue Bonds, Lutheran Home for the Aged, Series 2001A,
5.600%, 11/01/21
3,500 Missouri Health and Educational Facilities Authority, 2/07 at 102.00 N/R 3,593,450
Revenue Bonds, Lutheran Senior Services, Series 1997,
5.875%, 2/01/23
1,200 St. Louis County Industrial Development Authority, 3/10 at 102.00 AAA 1,248,876
Missouri, GNMA Collateralized Healthcare Facilities
Revenue Bonds, Mary, Queen and Mother Association, Series
2001, 5.400%, 9/20/34
1,800 St. Louis County Industrial Development Authority, 9/06 at 102.00 N/R 1,840,032
Missouri, Revenue Refunding Bonds, Friendship Village of
West County, Series 1996A, 6.250%, 9/01/10
- ---------------------------------------------------------------------------------------------------------------------
20,535 Total Long-Term Care 20,828,985
- ---------------------------------------------------------------------------------------------------------------------
Materials - 0.3%
1,000 Sugar Creek, Missouri, Industrial Development Revenue 6/13 at 101.00 BBB 1,033,770
Bonds, Lafarge North America Inc., Series 2003A, 5.650%,
6/01/37 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 16.8%
1,500 Branson Reorganized School District R-4, Taney County, 3/15 at 100.00 AAA 1,563,015
Missouri, General Obligation Bonds, Series 2005, 5.000%,
3/01/25 - FSA Insured
1,465 Camdenton Reorganized School District R3, Camden County, 3/12 at 100.00 AAA 1,562,789
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 1,607,985
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 2,124,520
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+ 568,706
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 1,327,974
General Obligation Bonds, Series 2002B, 5.000%, 3/01/22 -
FSA Insured
1,000 Greene County Reorganized School District R8, Missouri, 3/12 at 100.00 AAA 1,062,260
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 2,592,675
Missouri, General Obligation Bonds, Series 2003, 5.000%,
3/01/21 - FSA Insured
1,450 Jackson County Reorganized School District R-7, Lees 3/14 at 100.00 Aaa 1,512,800
Summit, Missouri, General Obligation Bonds, Series 2004,
5.000%, 3/01/21 - MBIA Insured
- ----
40
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,000 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA $ 1,065,800
General Obligation Refunding and Improvement Bonds, Series
2002, 5.250%, 3/01/18 - FSA Insured
1,000 Jefferson City School District, Missouri, General No Opt. Call Aa2 1,089,180
Obligation Bonds, Series 1991A, 6.700%, 3/01/11
3,000 Kansas City, Missouri, General Obligation Bonds, Series 2/14 at 100.00 AA 3,124,800
2004F, 5.000%, 2/01/24
2,000 Miller County School District R-2, Osage, Missouri, General 3/16 at 100.00 AAA 2,094,980
Obligation Bonds, Series 2006, 5.000%, 3/01/24 (WI/DD,
Settling 6/07/06) - FSA Insured
1,250 Nixa Reorganized School District R 02, General Obligation 3/16 at 100.00 AAA 1,348,325
Bonds, Series 2006, 5.250%, 3/01/24 (WI/DD, Settling
6/02/06) - FSA Insured
4,500 North Kansas City School District 74, Clay County, 3/15 at 100.00 AA+ 4,679,100
Missouri, General Obligation Bonds, Series 2005, 5.000%,
3/01/25
1,000 Pevely, Missouri, General Obligation Bonds, Series 2004, 3/13 at 100.00 AA 1,047,020
5.250%, 3/01/24 - RAAI Insured
2,275 Platte County Reorganized School District R3, Missouri, 3/14 at 100.00 AAA 2,378,103
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+ 798,998
Obligation Bonds, Missouri Direct Deposit Program, Series
2000, 5.700%, 3/01/20
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 3,028,669
3,000 5.000%, 3/01/22 - FGIC Insured 3/13 at 100.00 AAA 3,112,800
1,500 5.000%, 3/01/23 - FGIC Insured 3/13 at 100.00 AAA 1,555,245
1,605 St. Louis Board of Education, Missouri, General Obligation 4/13 at 100.00 AAA 1,672,458
Refunding Bonds, Series 2003A, 5.000%, 4/01/20 - FSA
Insured
1,345 St. Louis County Pattonville School District R3, Missouri, No Opt. Call AAA 1,564,934
General Obligation Bonds, Series 2000, 6.500%, 3/01/14 -
FGIC Insured
1,450 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 1,551,718
General Obligation Bonds, Series 2004, 5.250%, 3/01/20 -
FSA Insured
- ---------------------------------------------------------------------------------------------------------------------
41,785 Total Tax Obligation/General 44,034,854
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 17.9%
725 Brentwood, Missouri, Tax Increment Refunding Bonds, 4/09 at 100.00 AA 726,522
Promenade Project, Series 2002, 4.700%, 4/01/19 - RAAI
Insured
1,290 Cape Girardeau County Building Corporation, Missouri, 3/16 at 100.00 AAA 1,384,015
Leasehold Revenue Bonds, Reorganized School District R-02,
Jackson R-II School District High School Project, Series
2005, 5.250%, 3/01/21 - MBIA Insured
1,875 Christian County Public Building Corporation, Missouri, 6/10 at 100.00 AA 1,965,394
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 1,099,377
Series 2004, 5.000%, 12/01/19 - FGIC Insured
2,770 Fenton, Missouri, Tax Increment Revenue Bonds, Gravois 4/14 at 100.00 N/R 2,771,662
Bluffs Redevelopment Project, Series 2006, 4.500%, 4/01/21
3,000 Harrisonville, Missouri, Lease Participation Certificates, 12/13 at 100.00 AAA 3,107,160
Series 2003, 5.000%, 12/01/22 - XLCA Insured
3,885 Missouri Association of Rural Education, Pulaski County, 3/09 at 100.00 AAA 4,015,458
Certificates of Participation, Waynesville School District
R-6, Series 2004, 5.100%, 3/01/24 - MBIA Insured
2,335 Missouri Development Finance Board, Independence, 3/16 at 100.00 A+ 2,362,320
Infrastructure Facilities Revenue Bonds, Crackerneck Creek
Project, Series 2006C, 5.000%, 3/01/28
4,000 Missouri Development Finance Board, Independence, 4/11 at 100.00 A+ 4,080,520
Infrastructure Facilities Revenue Bonds, Santa Fe
Redevelopment Project, Series 2001, 5.250%, 4/01/23
1,920 Missouri Development Finance Board, Infrastructure 6/15 at 100.00 BBB+ 1,915,622
Facilities Revenue Bonds, Branson Landing Project, Series
2005A, 5.000%, 6/01/35
2,000 Missouri Development Finance Board, Infrastructure 3/10 at 100.00 N/R 2,026,980
Facilities Revenue Bonds, Riverside-Quindaro Bend Levee
District L-385, Series 2001, 5.800%, 3/01/20
- ----
41
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 1,500 Missouri Development Finance Board, Kansas City, 4/10 at 100.00 AAA $ 1,596,450
Infrastructure Facilities Revenue Bonds, Midtown
Redevelopment Project, Series 2000A, 5.750%, 4/01/22 -
MBIA Insured
450 Monarch-Chesterfield Levee District, St. Louis County, 3/10 at 101.00 AAA 483,512
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 1,813,523
2002, 5.250%, 2/01/15 - MBIA Insured
3,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call BBB 3,278,220
Government Facilities Revenue Bonds, Series 1993L, 5.500%,
7/01/21
500 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 BBB+ 529,335
Transportation Authority, Series 1996Y, 5.500%, 7/01/36
1,170 Riverside, Missouri, L-385 Levee Redevelopment Plan Tax 5/15 at 100.00 BBB 1,191,200
Increment Revenue Bonds, Series 2004, 5.250%, 5/01/20
1,945 Springfield Center City Development Corporation, Missouri, 6/12 at 100.00 Aaa 1,994,092
Lease Revenue Bonds, Jordan Valley Park Exposition Center,
Series 2002A, 5.000%, 6/01/27 - AMBAC Insured
2,950 Springfield Public Building Corporation, Missouri, Lease 6/10 at 100.00 AAA 3,187,770
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 2,589,950
Revenue Bonds, Series 2004, 5.000%, 3/01/24 - AMBAC Insured
600 St. Joseph Industrial Development Authority, Missouri, Tax 11/14 at 100.00 N/R 594,384
Increment Bonds, Shoppes at North Village Project, Series
2005A, 5.500%, 11/01/27
1,000 St. Joseph Industrial Development Authority, Missouri, Tax 11/14 at 100.00 N/R 990,640
Increment Bonds, Shoppes at North Village Project, Series
2005B, 5.500%, 11/01/27
1,240 St. Louis Municipal Finance Corporation, Missouri, 2/12 at 100.00 Aaa 1,349,963
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 1,779,820
Missouri, Lease Revenue Refunding Bonds, Series 1997C,
5.300%, 8/15/20 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
45,145 Total Tax Obligation/Limited 46,833,889
- ---------------------------------------------------------------------------------------------------------------------
Transportation - 9.1%
2,000 Kansas City, Missouri, Passenger Facility Charge Revenue 4/11 at 101.00 AAA 2,045,740
Bonds, Kansas City International Airport, Series 2001,
5.000%, 4/01/23 - AMBAC Insured (Alternative Minimum Tax)
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 1,068,610
2,400 7.050%, 9/01/24 9/09 at 102.00 N/R 2,554,848
5,000 St. Louis, Missouri, Airport Revenue Bonds, Airport 7/11 at 100.00 AAA 5,115,700
Development Program, Series 2001A, 5.000%, 7/01/26 - MBIA
Insured
St. Louis, Missouri, Airport Revenue Bonds, Lambert-St.
Louis International Airport, Series 2005:
3,320 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 3,448,816
2,395 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 2,486,106
St. Louis, Missouri, Airport Revenue Refunding Bonds,
Series 2003A:
3,450 5.250%, 7/01/16 - FSA Insured 7/13 at 100.00 AAA 3,670,938
1,000 5.250%, 7/01/18 - FSA Insured 7/13 at 100.00 AAA 1,059,010
2,250 St. Louis, Missouri, Revenue Refunding Bonds, Parking 12/06 at 102.00 AAA 2,312,415
Facility, Series 1996, 5.375%, 12/15/21 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------------
22,815 Total Transportation 23,762,183
- ---------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 6.3% (3)
4,500 Cape Girardeau County, Missouri, Single Family Mortgage No Opt. Call Aaa 3,137,850
Revenue Bonds, Series 1983, 0.000%, 12/01/14 (ETM)
1,025 Excelsior Springs School District, Missouri, Leasehold No Opt. Call AAA 741,424
Revenue Bonds, Series 1994, 0.000%, 3/01/14 - FSA Insured
(ETM)
- ----
42
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (3) (continued)
$ 2,500 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R (3) $ 2,807,100
Revenue Bonds, Gravois Bluffs Redevelopment Project,
Series 2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12)
235 Greene County, Missouri, Single Family Mortgage Revenue No Opt. Call Aaa 153,544
Bonds, Series 1984, 0.000%, 3/01/16 (ETM)
Mehlville School District R-9, St. Louis County, Missouri,
Certificates of Participation, Capital Improvement
Projects, Series 2002:
1,275 5.500%, 9/01/17 (Pre-refunded 9/01/12) - FSA Insured 9/12 at 100.00 AAA 1,391,382
1,000 5.500%, 9/01/18 (Pre-refunded 9/01/12) - FSA Insured 9/12 at 100.00 AAA 1,091,280
1,895 Missouri Health and Educational Facilities Authority, No Opt. Call Aaa 2,236,441
Revenue Bonds, BJC Health System, Series 1994A, 6.750%,
5/15/14 (ETM)
1,000 Missouri Health and Educational Facilities Authority, 1/10 at 100.00 AA (3) 1,069,800
Revenue Bonds, Central Institute for the Deaf, Series
1999, 5.850%, 1/01/22 (Pre-refunded 1/01/10) - RAAI Insured
2,000 Missouri Health and Educational Facilities Authority, 12/10 at 101.00 A (3) 2,215,900
Revenue Bonds, St. Anthony's Medical Center, Series 2000,
6.250%, 12/01/30 (Pre-refunded 12/01/10)
450 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 488,137
General Obligation Bonds, Series 2004, 5.250%, 3/01/20
(Pre-refunded 3/01/14) - FSA Insured
950 Texas County, Missouri, Hospital Revenue Bonds, Texas 6/10 at 100.00 N/R (3) 1,066,974
County Memorial Hospital, Series 2000, 7.250%, 6/15/25
(Pre-refunded 6/15/10)
- ------------------------------------------------------------------------------------------------------------------------------
16,830 Total U.S. Guaranteed 16,399,832
- ------------------------------------------------------------------------------------------------------------------------------
Utilities - 4.9%
2,710 Columbia, Missouri, Water and Electric Revenue Bonds, 10/12 at 100.00 AAA 2,789,051
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 1,225,150
5.000%, 4/01/25 - XLCA Insured
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,045,530
Series 2002II, 5.125%, 7/01/26 - FSA Insured
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 2,201,320
Series 2003NN, 5.250%, 7/01/23 - MBIA Insured
2,000 Sikeston, Missouri, Electric System Revenue Bonds, Series No Opt. Call AAA 2,131,640
1992, 6.200%, 6/01/10 - MBIA Insured
3,030 Sikeston, Missouri, Electric System Revenue Refunding No Opt. Call AAA 3,440,959
Bonds, Series 1996, 6.000%, 6/01/14 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------
11,935 Total Utilities 12,833,650
- ------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 5.4%
1,825 Kansas City, Missouri, Sewerage System Revenue Bonds, 1/12 at 100.00 AA 1,940,012
Series 2002D-1, 5.375%, 1/01/22
3,385 Metropolitan St. Louis Sewerage District, Missouri, Revenue 5/14 at 100.00 AAA 3,541,285
Bonds, Wastewater System, Series 2004A, 5.000%, 5/01/20 -
MBIA Insured
1,600 Missouri Development Finance Board, Independence, 11/14 at 100.00 AAA 1,665,152
Infrastructure Facilities Revenue Bonds, Water System
Improvement Projects, Series 2004, 5.000%, 11/01/24 -
AMBAC Insured
1,635 Missouri Environmental Improvement and Energy Resources 4/09 at 100.00 AA 1,713,398
Authority, Water Facility Revenue Refunding Bonds,
Tri-County Water Authority, Series 1999, 6.000%, 4/01/22 -
RAAI Insured
1,345 Missouri Environmental Improvement and Energy Resources 1/13 at 100.00 Aaa 1,410,730
Authority, Water Pollution Control and Drinking Water
Revenue Bonds, Series 2003B, 5.125%, 1/01/21
1,000 Missouri Environmental Improvement and Energy Resources 7/15 at 100.00 Aaa 1,048,690
Authority, Water Pollution Control and Drinking Water
Revenue Bonds, State Revolving Fund Program, Series 2005A,
5.000%, 7/01/25
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 767,543
1,000 5.250%, 12/01/28 - MBIA Insured 12/11 at 100.00 Aaa 1,051,190
- ----
43
Portfolio of Investments
NUVEEN MISSOURI MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -------------------------------------------------------------------------------------------------------------------------
Water and Sewer (continued)
$ 1,000 West Plains, Missouri, Sewerage System Revenue Bonds, 7/12 at 100.00 AAA $ 1,063,510
Series 2004, 5.125%, 7/01/24 - FSA Insured
- -------------------------------------------------------------------------------------------------------------------------
13,540 Total Water and Sewer 14,201,510
- -------------------------------------------------------------------------------------------------------------------------
$ 258,533 Total Investments (cost $249,957,619) - 98.9% 259,455,660
- -------------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.1% 2,773,686
------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 262,229,346
------------------------------------------------------------------------------------------------------
(1) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(2) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's
or Moody's rating. Ratings below BBB by Standard & Poor's Group
or Baa by Moody's Investor Service, Inc. are considered to be
below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such investments
are normally considered to be equivalent to AAA rated
securities.
(ETM) Escrowed to maturity.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
See accompanying notes to financial statements.
- ----
44
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -----------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.3%
$ 6,740 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 6,863,409
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- -----------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 7.9%
4,090 Cleveland State University, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 4,242,475
Series 2003A, 5.000%, 6/01/23 - FGIC Insured
Ohio Higher Education Facilities Commission, General
Revenue Bonds, Case Western Reserve University, Series
2004A:
2,310 5.000%, 12/01/16 - AMBAC Insured 12/13 at 100.00 AAA 2,425,870
2,825 5.000%, 12/01/17 - AMBAC Insured 12/13 at 100.00 AAA 2,955,600
2,975 5.000%, 12/01/18 - AMBAC Insured 12/13 at 100.00 AAA 3,106,346
1,750 Ohio Higher Education Facilities Commission, General 10/13 at 100.00 AA 1,821,785
Revenue Bonds, Oberlin College, Series 2003, 5.125%,
10/01/24
910 Ohio Higher Education Facilities Commission, Revenue Bonds, No Opt. Call AA- 1,088,879
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- 3,232,020
Case Western Reserve University, Series 2002B, 5.500%,
10/01/22
Ohio Higher Education Facilities Commission, Revenue Bonds,
Wittenberg University, Series 2005:
1,000 5.000%, 12/01/24 12/15 at 100.00 Baa1 1,004,960
1,000 5.000%, 12/01/29 12/15 at 100.00 Baa1 991,260
2,730 Ohio Higher Educational Facilities Commission, Revenue 11/14 at 100.00 AA 2,851,895
Bonds, Denison University, Series 2004, 5.000%, 11/01/20
1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,069,160
Bonds, University of Dayton, Series 2000, 5.500%, 12/01/30
- AMBAC Insured
Ohio Higher Educational Facilities Commission, Revenue
Bonds, University of Dayton, Series 2004:
1,315 5.000%, 12/01/25 - AMBAC Insured 12/14 at 100.00 AAA 1,362,432
1,060 5.000%, 12/01/27 - AMBAC Insured 12/14 at 100.00 AAA 1,095,203
1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,212,204
Bonds, University of Findlay, Series 1996, 6.125%, 9/01/16
Ohio Higher Educational Facilities Commission, Revenue
Bonds, Wittenberg University, Series 2001:
1,200 5.500%, 12/01/21 12/11 at 100.00 Baa1 1,251,720
2,000 5.000%, 12/01/26 12/11 at 100.00 Baa1 2,019,720
Ohio University at Athens, Subordinate Lien General
Receipts Bonds, Series 2004:
1,855 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 AAA 1,935,099
1,900 5.000%, 12/01/23 - MBIA Insured 6/14 at 100.00 AAA 1,978,128
2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA 2,115,460
Series 2001A, 5.250%, 6/01/24 - FGIC Insured
1,675 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,745,032
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 1,374,953
1,005 5.000%, 6/01/26 - AMBAC Insured 6/14 at 100.00 AAA 1,040,155
1,025 University of Cincinnati, Ohio, General Receipts Bonds, 12/14 at 100.00 AAA 1,070,069
Series 2004E, 5.000%, 6/01/21 - AMBAC Insured
- -----------------------------------------------------------------------------------------------------------------------
41,150 Total Education and Civic Organizations 42,990,425
- -----------------------------------------------------------------------------------------------------------------------
Health Care - 10.4%
7,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 7,078,750
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 1,121,988
Ohio, Hospital Revenue Bonds, Children's Hospital Medical
Center, Series 2003, 5.250%, 11/15/25 - FSA Insured
1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/07 at 102.00 AAA 1,031,180
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 4,835,512
Clinic Health System, Series 2003A, 6.000%, 1/01/32
- ----
45
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$ 2,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A $ 2,618,775
Firelands Regional Medical Center, Series 2002A, 5.625%,
8/15/32
130 Franklin County, Ohio, Hospital Revenue Bonds, Holy Cross 6/06 at 102.00 AA- 132,770
Health System Corporation, Series 1996, 5.800%, 6/01/16
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 1,598,972
5,275 5.875%, 11/01/25 11/06 at 101.00 Aa2 5,354,125
2,000 Miami County, Ohio, Hospital Facilities Revenue Refunding 11/06 at 102.00 BBB+ 2,042,620
and Improvement Bonds, Upper Valley Medical Center, Series
1996A, 6.250%, 5/15/16
4,205 Miami County, Ohio, Hospital Facilities Revenue Refunding 11/06 at 102.00 BBB+ 4,295,071
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 4,208,960
Refunding Bonds, Southwest General Hospital, Series 1995,
5.625%, 8/15/15 - FSA Insured
7,000 Montgomery County, Ohio, Hospital Facilities Revenue No Opt. Call AAA 8,304,240
Refunding and Improvement Bonds, Kettering Medical Center,
Series 1996, 6.250%, 4/01/20 - MBIA Insured
7,390 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA 7,753,958
Initiatives, Series 2001, 5.375%, 9/01/21
2,520 Montgomery County, Ohio, Revenue Bonds, Catholic Health No Opt. Call AA 2,561,555
Initiatives, Series 2004A, 5.000%, 5/01/32
2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,152,640
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 1,241,256
Union Hospital Project, Series 2001, 5.250%, 10/01/31 -
RAAI Insured
- ---------------------------------------------------------------------------------------------------------------------
53,260 Total Health Care 56,332,372
- ---------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.5%
1,075 Clark County, Ohio, Multifamily Housing Revenue Bonds, 11/08 at 103.00 N/R 963,383
Church of God Retirement Home, Series 1998, 6.250%,
11/01/30 (Alternative Minimum Tax)
3,045 Franklin County, Ohio, GNMA Collateralized Multifamily 9/11 at 102.00 Aaa 3,144,267
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 2,884,747
Revenue Bonds, Alpine Village Project, Series 1999,
6.375%, 2/20/41
6,315 Ohio Capital Corporation for Housing, FHA - Insured Section 2/09 at 102.00 Aa2 6,613,826
8 Assisted Mortgage Loan Revenue Refunding Bonds, Series
1999G, 5.950%, 2/01/23
- ---------------------------------------------------------------------------------------------------------------------
13,140 Total Housing/Multifamily 13,606,223
- ---------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.9%
4,060 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 4,114,769
Securities Program Residential Mortgage Remarketed Revenue
Bonds, Series 1997A-1, 6.150%, 3/01/29 (Alternative
Minimum Tax)
1,955 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,002,194
Securities Program Residential Mortgage Revenue Bonds,
Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
2,005 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,053,341
Securities Program Residential Mortgage Revenue Bonds,
Series 1997C, 5.750%, 9/01/28 (Alternative Minimum Tax)
1,530 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 1,558,427
Securities Program Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 - FSA Insured (Alternative
Minimum Tax)
445 Ohio Housing Finance Agency, GNMA Mortgage-Backed 7/09 at 100.00 Aaa 446,918
Securities Program Residential Mortgage Revenue Bonds,
Series 1999C, 5.750%, 9/01/30 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
9,995 Total Housing/Single Family 10,175,649
- ---------------------------------------------------------------------------------------------------------------------
Industrials - 2.1%
410 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 412,940
Revenue Bonds, Bond Fund Program - Columbia National Group
Project, Series 2005D, 5.000%, 5/15/20 (Alternative
Minimum Tax)
- ----
46
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Industrials (continued)
$ 2,200 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/08 at 102.00 N/R $ 2,218,634
Revenue Bonds, Jergens Inc., Series 1998A, 5.375%, 5/15/18
(Alternative Minimum Tax)
6,300 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 AAA 6,571,152
Emery Air Freight Corporation and Emery Worldwide Airlines
Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18
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- 513,835
675 5.450%, 6/01/22 (Alternative Minimum Tax) 6/12 at 102.00 AA- 705,598
1,020 Ohio, Economic Development Revenue Bonds, Enterprise Bond No Opt. Call AA- 1,061,749
Fund Loan Pool, Series 2002-7, 5.850%, 12/01/22
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
11,105 Total Industrials 11,483,908
- ---------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.6%
445 Franklin County, Ohio, FHA - Insured Hospital Revenue 8/06 at 100.00 N/R 445,850
Refunding Mortgage Loan Bonds, Worthington Christian
Village Nursing Home, Series 1992, 7.000%, 8/01/16
3,120 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 11/06 at 101.00 Aa2 3,187,205
Heinzerling Foundation, Series 1995, 6.200%, 11/01/20
2,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/12 at 100.00 AA 2,056,160
Presbyterian Retirement Services, Series 2002A, 5.125%,
7/01/22 - RAAI Insured
1,250 Hamilton County, Ohio, Healthcare Facilities Revenue Bonds, 10/08 at 101.00 BBB 1,247,350
Twin Towers, Series 1998A, 5.125%, 10/01/23
1,515 Napoleon, Ohio, FHA-Insured Healthcare Facilities Mortgage 9/06 at 100.00 Aa2 1,525,484
Revenue Refunding Bonds, Lutheran Orphans and Old Folks
Home Society, Series 1994, 6.875%, 8/01/23
- ---------------------------------------------------------------------------------------------------------------------
8,330 Total Long-Term Care 8,462,049
- ---------------------------------------------------------------------------------------------------------------------
Materials - 0.5%
1,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue 3/14 at 101.00 A+ 994,360
Bonds, Cargill Inc., Series 2004A, 4.800%, 3/01/22
2,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue No Opt. Call A+ 2,005,840
Bonds, Cargill Inc., Series 2004B, 4.500%, 12/01/15
- ---------------------------------------------------------------------------------------------------------------------
3,000 Total Materials 3,000,200
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 24.2%
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 7,091,640
9,500 5.250%, 12/01/21 - MBIA Insured 6/06 at 102.00 AAA 9,686,484
600 Anthony Wayne Local School District, Lucas, Wood and Fulton No Opt. Call AAA 438,756
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 749,154
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 2,862,675
General Obligation Bonds, Series 1995A, 6.850%, 12/01/15 -
MBIA Insured
1,000 Butler County, Hamilton, Ohio, Limited Tax General 11/11 at 101.00 Aaa 1,075,470
Obligation Bonds, One Renaissance Center Acquisition,
Series 2001, 5.375%, 11/01/17 - AMBAC Insured
Canal Winchester Local School District, Franklin and
Fairfield Counties, Ohio, General Obligation Bonds, Series
2005B:
3,420 5.000%, 12/01/26 - MBIA Insured 6/15 at 100.00 Aaa 3,562,101
3,590 5.000%, 12/01/27 - MBIA Insured 6/15 at 100.00 Aaa 3,731,087
2,515 Canton City School District, Stark County, Ohio, General 6/15 at 100.00 AAA 2,651,967
Obligation Bonds, Series 2005, 5.000%, 12/01/19 - MBIA
Insured
2,295 Central Ohio Solid Waste Authority, General Obligation 6/14 at 100.00 AAA 2,424,736
Bonds, Series 2004A, 5.000%, 12/01/15 - AMBAC Insured
- ----
47
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Chesapeake-Union Exempt Village School District, Ohio,
General Obligation Bonds, Series 1986:
$ 125 8.500%, 12/01/06 No Opt. Call N/R $ 127,861
125 8.500%, 12/01/07 No Opt. Call N/R 133,145
125 8.500%, 12/01/08 No Opt. Call N/R 138,063
130 8.500%, 12/01/09 No Opt. Call N/R 148,498
2,620 Cleveland Municipal School District, Cuyahoga County, Ohio, 6/14 at 100.00 AAA 2,733,132
General Obligation Bonds, Series 2004, 5.000%, 12/01/20 -
FSA Insured
500 Columbus, Franklin County, Ohio, General Obligation Bonds, No Opt. Call AAA 524,240
Series 1985, 9.375%, 4/15/07
2,675 Cuyahoga County, Ohio, General Obligation Bonds, Series 12/14 at 100.00 AA+ 2,794,546
2004, 5.000%, 12/01/22
1,345 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call Aa1 1,515,331
Bonds, Series 1993, 5.650%, 5/15/18
1,000 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,063,740
Various Purpose Refunding Bonds, Series 1993B, 5.250%,
10/01/13
Cuyahoga Falls, Ohio, General Obligation Bonds, Series 2004:
1,245 5.000%, 12/01/18 - MBIA Insured 6/14 at 100.00 Aaa 1,309,927
1,440 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 Aaa 1,504,152
1,170 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,262,477
5.250%, 12/01/15 - AMBAC 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 838,970
1,000 0.000%, 12/01/11 - FGIC Insured No Opt. Call AAA 804,260
1,000 Fairview Park, Ohio, General Obligation Bonds, Series 2005, 12/15 at 100.00 Aaa 1,045,780
5.000%, 12/01/25 - MBIA Insured
1,005 Findlay, Ohio, General Obligation Bonds, Series 2004, 7/14 at 100.00 AAA 1,086,315
5.250%, 7/01/15 - MBIA Insured
4,040 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 4,261,554
Refunding Bonds, Series 1993, 5.375%, 12/01/20
1,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 1,076,730
Ohio, General Obligation School Improvement Bonds, Series
2001, 5.500%, 12/15/18 - MBIA Insured
420 Geauga County, Ohio, Limited Tax General Obligation, Sewer 6/06 at 102.00 Aa2 429,437
District Improvement Bonds, Bainbridge Water Project,
Series 1995, 6.850%, 12/01/10
3,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa2 3,205,230
Obligation Bonds, Series 2001, 5.500%, 12/01/28
3,810 Greater Cleveland Regional Transit Authority, Ohio, General 12/14 at 100.00 Aaa 4,027,970
Obligation Bonds, Series 2004, 5.000%, 12/01/17 - MBIA
Insured
1,270 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,318,197
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 1,467,634
Obligation Library Improvement Bonds, Series 2004, 5.000%,
12/01/20 - FGIC Insured
1,070 Kettering, Ohio, Limited Tax General Obligation Bonds, 6/06 at 100.00 Aa3 1,072,536
Series 1991, 6.650%, 12/01/12
Kings Local School District, Warren County, Ohio, General
Obligation School Improvement Bonds, Series 2005:
1,000 5.000%, 12/01/22 - MBIA Insured 6/15 at 100.00 AAA 1,046,840
1,480 5.000%, 12/01/24 - MBIA Insured 6/15 at 100.00 AAA 1,545,964
555 Lake County, Ohio, Limited Tax Sewer District Improvement No Opt. Call Aa2 620,390
Bonds, Series 2000, 5.600%, 12/01/20
155 Logan County, Ohio, General Obligation Bonds, Series 1986, No Opt. Call A+ 158,134
7.750%, 12/01/06
255 Lucas County, Ohio, General Obligation Bonds, Various 12/12 at 100.00 A1 258,440
Improvements, Series 1992, 6.650%, 12/01/12
2,855 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 2,987,957
General Obligation Bonds, Series 2006, 5.000%, 12/01/24 -
FSA Insured
1,265 Monroe Local School District, Butler County, Ohio, General No Opt. Call Aaa 1,464,959
Obligation Bonds, Series 2002, 5.750%, 12/01/20 - AMBAC
Insured
Oak Hills Local School District, Hamilton County, Ohio,
General Obligation Bonds, Series 2005:
3,740 5.000%, 12/01/23 - FSA Insured 12/15 at 100.00 AAA 3,908,263
1,000 5.000%, 12/01/25 - FSA Insured 12/15 at 100.00 AAA 1,042,630
- ----
48
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ $ 1,037,770
Bonds, Series 2001B, 5.000%, 9/15/21
1,000 Ohio, Full Faith and Credit General Obligation No Opt. Call AA+ 1,086,910
Infrastructure Improvement Bonds, Series 1994,
6.000%, 8/01/10
730 Ohio, General Obligation Bonds, Common Schools, Series 3/14 at 100.00 AA+ 761,755
2004B, 5.000%, 3/15/21
6,055 Ohio, General Obligation Bonds, Infrastructure 2/13 at 100.00 AA+ 6,282,063
Improvements, Series 2003F, 5.000%, 2/01/22
1,845 Ohio, General Obligation Bonds, Series 2005A, 5.000%, 3/15 at 100.00 AA+ 1,962,028
9/01/16
8,140 Ohio, General Obligation Higher Education Capital 2/11 at 100.00 AA+ 8,469,914
Facilities Bonds, Series 2001A, 5.000%, 2/01/20
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 428,288
3,055 5.250%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 3,271,050
2,210 Olentangy Local School District, Delaware and Franklin 12/09 at 101.00 AA 2,251,415
Counties, Ohio, Various Purpose Bonds, Series 1999,
5.000%, 12/01/27
1,495 Otsego Local School District, Wood, Henry and Lucas 12/14 at 100.00 Aaa 1,621,716
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 3,455,987
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 3,711,855
General Obligation Bonds, Series 2001, 5.200%, 12/01/23 -
FGIC Insured
1,500 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 1,557,345
5.000%, 12/01/21 - FGIC Insured
30 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 30,910
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 1,264,976
General Obligation Bonds, Series 2003, 5.250%, 12/01/24 -
MBIA Insured
2,315 Summit County, Ohio, General Obligation Bonds, Series No Opt. Call AAA 2,625,534
2002R, 5.500%, 12/01/21 (DD, Settling 6/01/06) - FGIC
Insured
3,755 Toledo City School District, Lucas County, Ohio, General 12/13 at 100.00 Aaa 3,902,459
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 1,575,960
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 1,461,478
1,515 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 Aaa 1,616,641
2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,044,780
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------
124,850 Total Tax Obligation/General 131,618,206
- ------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 12.3%
5,690 Akron, Ohio, Income Tax Revenue Bonds, Community Learning 12/13 at 100.00 AAA 5,852,962
Centers, Series 2004A, 5.000%, 12/01/33 - FGIC Insured
6,300 Cleveland, Ohio, Certificates of Participation, Cleveland 11/07 at 102.00 AAA 6,520,626
Stadium Project, Series 1997, 5.250%, 11/15/27 - AMBAC
Insured
1,850 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/14 at 100.00 AA 1,911,790
Revenue Bonds, R.I.T.A. Project, Series 2004, 5.000%,
11/15/19 - RAAI Insured
1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,425,457
Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured
5,615 Franklin County, Ohio, Excise Tax and Lease Revenue 12/15 at 100.00 AAA 5,858,803
Anticipation Bonds, Convention Facilities Authority,
Series 2005, 5.000%, 12/01/25 - AMBAC Insured
1,210 Groveport, Ohio, Special Obligation Income Tax Receipts 12/12 at 100.00 Aaa 1,256,960
Bonds, Series 2002, 5.000%, 12/01/22 - MBIA Insured
- ----
49
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
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 $ 2,394,576
1,000 5.000%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 1,039,750
2,535 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 2,632,319
3,300 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series No Opt. Call Aaa 1,115,268
2000B, 0.000%, 12/01/28 - AMBAC Insured
1,485 New Albany Community Authority, Ohio, Community Facilities 4/12 at 100.00 AAA 1,604,839
Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/16 -
AMBAC Insured
785 Ohio Department of Transportation, Certificates of 10/06 at 100.00 AAA 786,751
Participation, Panhandle Rail Line, Series 1992A,
6.500%, 4/15/12 - FSA Insured
1,050 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,089,480
Administrative Building Fund Projects, Series 2002A,
5.000%, 4/01/22 - FSA Insured
1,900 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 1,977,634
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
3,135 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 3,274,758
Adult Correctional Building Fund Project, Series 2005A,
5.000%, 4/01/23 - FSA Insured
2,000 Ohio State Building Authority, State Facilities Bonds, No Opt. Call AAA 2,108,120
Worker's Compensation Facilities Project, Series 2003A,
5.000%, 4/01/11 - FGIC Insured
1,490 Ohio, State Appropriation Lease Bonds, Mental Health 6/13 at 100.00 AA 1,578,238
Capital Facilities, Series 2003B-II, 5.000%, 6/01/16
1,000 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,061,190
Capital Facilities, Series 2004A-II, 5.000%, 12/01/15
1,000 Ohio, State Appropriation Lease Bonds, Parks and Recreation 2/15 at 100.00 AAA 1,071,430
Capital Facilities, Series 2005A-II, 5.250%, 2/01/19 - FSA
Insured
6,550 Puerto Rico Public Buildings Authority, Guaranteed Revenue No Opt. Call AAA 8,164,444
Bonds, Reset Option Long Trust Certificates II-R56, Series
1993L, 7.278%, 7/01/21 (IF)
11,700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 13,987,115
Transportation Authority, Reset Option Long Certificates
II-R-66, Series 1996Y, 7.278%, 7/01/36 - MBIA Insured (IF)
- -------------------------------------------------------------------------------------------------------------------------
63,275 Total Tax Obligation/Limited 66,712,510
- -------------------------------------------------------------------------------------------------------------------------
Transportation - 3.0%
1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 1,019,550
International Airport, Series 2003C, 5.250%, 12/01/27 -
RAAI Insured (Alternative Minimum Tax)
7,500 Ohio Turnpike Commission, Revenue Bonds, ROL II-R75, No Opt. Call Aaa 9,046,575
7.258%, 2/15/15 (IF)
5,000 Ohio Turnpike Commission, Revenue Refunding Bonds, ROL No Opt. Call AA- 6,415,700
Series II-R51, Series 1998A, 7.258%, 2/15/24 (IF)
- -------------------------------------------------------------------------------------------------------------------------
13,500 Total Transportation 16,481,825
- -------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 20.6% (3)
585 Athens, Ohio, Sanitary Sewer System Mortgage Revenue Bonds, 12/09 at 100.00 N/R (3) 637,679
Series 1989, 7.300%, 12/01/14 (Pre-refunded 12/01/09)
Cincinnati City School District, Hamilton County, Ohio,
General Obligation Bonds, Series 2001:
2,000 5.375%, 12/01/15 (Pre-refunded 12/01/11) - MBIA Insured 12/11 at 100.00 AAA 2,157,900
6,745 5.375%, 12/01/16 (Pre-refunded 12/01/11) - MBIA Insured 12/11 at 100.00 AAA 7,277,518
1,255 5.375%, 12/01/17 (Pre-refunded 12/01/11) - MBIA Insured 12/11 at 100.00 AAA 1,354,082
7,045 Columbus, Ohio, General Obligation Bonds, Series 2000, 11/10 at 101.00 Aaa 7,543,504
5.250%, 11/15/17 (Pre-refunded 11/15/10)
11,900 Cuyahoga County, Ohio, Hospital Revenue and Improvement 2/09 at 101.00 A- (3) 12,737,045
Bonds, MetroHealth System, Series 1999, 6.125%, 2/15/24
(Pre-refunded 2/15/09)
5,830 Cuyahoga County, Ohio, Limited Tax General Obligation 12/10 at 100.00 AA+ (3) 6,315,756
Capital Improvement Bonds, Series 2000, 5.750%, 12/01/16
(Pre-refunded 12/01/10)
1,000 Evergreen Local School District, Ohio, Unlimited Tax 12/09 at 101.00 Aaa 1,071,960
General Obligation School Improvement Bonds, Series 1999,
5.625%, 12/01/24 (Pre-refunded 12/01/09) - FGIC Insured
- ----
50
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (3) (continued)
Franklin County, Ohio, Hospital Revenue Bonds, Holy Cross
Health System Corporation, Series 1996:
$ 835 5.800%, 6/01/16 (Pre-refunded 6/01/06) 6/06 at 102.00 AA- (3) $ 851,700
2,000 5.875%, 6/01/21 (Pre-refunded 6/01/06) 6/06 at 102.00 AA- (3) 1,936,459
1,600 Greene County, Ohio, Water System Revenue Bonds, Series 12/07 at 102.00 AAA 1,688,288
1996, 6.125%, 12/01/21 (Pre-refunded 12/01/07) - FGIC
Insured
1,200 Heath City School District, Licking County, Ohio, Unlimited 12/10 at 100.00 Aaa 1,287,660
Tax General Obligation School Improvement Bonds, Series
2000A, 5.500%, 12/01/27 (Pre-refunded 12/01/10) - FGIC
Insured
1,000 Huron County, Ohio, Limited Tax General Obligation 12/07 at 102.00 AAA 1,051,290
Correctional Facility Bonds, Series 1996, 5.850%, 12/01/16
(Pre-refunded 12/01/07) - MBIA Insured
3,385 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 3,595,107
Unlimited Tax General Obligation School Improvement and
Refunding Bonds, Series 2001, 5.125%, 12/01/26
(Pre-refunded 6/01/11) - FGIC Insured
1,070 Lorain, Ohio, Hospital Revenue Refunding Bonds, Lakeland 11/06 at 100.00 A1 (3) 1,101,586
Community Hospital Inc., Series 1992, 6.500%, 11/15/12
(ETM)
1,750 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,839,163
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 (Pre-refunded 12/01/09) -
FGIC Insured
2,000 Montgomery County, Ohio, Health System Revenue Bonds, 1/08 at 102.00 Baa2 (3) 2,093,440
Franciscan Medical Center - Dayton Campus, Series 1997,
5.500%, 7/01/18 (Pre-refunded 1/01/08)
9,500 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (3) 10,577,964
Kettering Medical Center, Series 1999, 6.750%, 4/01/22
(Pre-refunded 4/01/10)
5,610 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA (3) 5,982,616
Initiatives, Series 2001, 5.375%, 9/01/21 (ETM)
North Royalton City School District, Ohio, School
Improvement Bonds, Series 1994:
2,200 6.000%, 12/01/14 (Pre-refunded 12/01/09) - MBIA Insured 12/09 at 102.00 AAA 2,403,764
2,400 6.100%, 12/01/19 (Pre-refunded 12/01/09) - MBIA Insured 12/09 at 102.00 AAA 2,630,112
5,000 Ohio Higher Educational Facilities Commission, Revenue 5/07 at 102.00 AAA 5,180,850
Bonds, Xavier University, Series 1997, 5.375%, 5/15/22
(Pre-refunded 5/15/07) - MBIA Insured
Ohio Housing Finance Agency, Single Family Mortgage Revenue
Bonds, Series 1985B:
6,460 0.000%, 1/15/15 (Pre-refunded 1/15/11) - FGIC Insured 1/11 at 67.04 AAA 3,612,884
5,700 0.000%, 1/15/15 (Pre-refunded 7/15/11) - FGIC Insured 7/11 at 70.48 AAA 3,285,822
4,260 Ohio Water Development Authority, Community Assistance 12/07 at 102.00 AAA 4,449,442
Bonds, Series 1997, 5.375%, 12/01/24 (Pre-refunded
12/01/07) - AMBAC Insured
5,065 Ohio Water Development Authority, Loan Revenue Bonds, Pure No Opt. Call AAA 5,641,346
Water Development, Series 1990I, 6.000%, 12/01/16 - AMBAC
Insured (ETM)
2,000 Ohio Water Development Authority, Revenue Bonds, Fresh 6/08 at 101.00 AAA 2,075,200
Water Development, Series 1998, 5.125%, 12/01/23
(Pre-refunded 6/01/08) - FSA Insured
1,825 Olentangy Local School District, Delaware and Franklin 12/09 at 101.00 AA (3) 1,919,188
Counties, Ohio, Various Purpose Bonds, Series 1999,
5.000%, 12/01/27 (Pre-refunded 12/01/09)
1,250 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- (3) 1,307,838
Hospital Revenue Refunding and Improvement Bonds, Series
1998, 5.350%, 11/01/18 (Pre-refunded 11/01/08)
500 Pickerington Local School District, Fairfield County, Ohio, No Opt. Call AAA 403,870
General Obligation Bonds, Series 1993, 0.000%, 12/01/11 -
AMBAC Insured (ETM)
Tipp City Exempted Village School District, Ohio, General
Obligation Bonds, Series 2001:
1,380 5.000%, 12/01/24 (Pre-refunded 6/01/11) - FGIC Insured 6/11 at 100.00 Aaa 1,457,860
910 5.000%, 12/01/24 (Pre-refunded 6/01/11) - FGIC Insured 6/11 at 100.00 Aaa 961,342
University of Cincinnati, Ohio, General Receipts Bonds,
Series 2001A:
1,500 5.750%, 6/01/18 (Pre-refunded 6/01/11) - FGIC Insured 6/11 at 101.00 AAA 1,647,930
1,520 5.750%, 6/01/19 (Pre-refunded 6/01/11) - FGIC Insured 6/11 at 101.00 AAA 1,669,902
1,910 Vandalia, Ohio, General Obligation Bonds, Series 1996, 12/06 at 101.00 Aa3 (3) 1,951,313
5.850%, 12/01/21 (Pre-refunded 12/01/06)
- -------------------------------------------------------------------------------------------------------------------------
110,190 Total U.S. Guaranteed 111,699,380
- -------------------------------------------------------------------------------------------------------------------------
- ----
51
Portfolio of Investments
NUVEEN OHIO MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- ---------------------------------------------------------------------------------------------------------------------
Utilities - 6.5%
$ 1,535 Cleveland Public Power System, Ohio, First Mortgage No Opt. Call AAA $ 1,125,554
Improvement Revenue 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 2,559,625
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 606,635
Series 2001, 5.500%, 12/01/17 - AMBAC Insured
5,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG 4/07 at 102.00 AAA 5,158,400
Funding Limited Partnership Project, Series 1997, 5.625%,
1/01/23 - AMBAC Insured (Alternative Minimum Tax)
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 1,039,780
5,450 5.000%, 2/15/21 - AMBAC Insured 2/14 at 100.00 AAA 5,659,607
1,465 5.000%, 2/15/22 - AMBAC Insured 2/14 at 100.00 AAA 1,519,395
3,295 5.000%, 2/15/23 - AMBAC Insured 2/14 at 100.00 AAA 3,415,169
8,250 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 8,317,485
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- 935,312
Refunding Bonds, Series 1989O, 0.000%, 7/01/17
4,460 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 4,868,625
Environmental Control Facilities Financing Authority,
Co-Generation Facility Revenue Bonds, Series 2000A,
6.625%, 6/01/26 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
35,065 Total Utilities 35,205,587
- ---------------------------------------------------------------------------------------------------------------------
Water and Sewer - 4.9%
1,730 Butler County, Ohio, Sewerage System Revenue Bonds, Series No Opt. Call Aaa 1,856,861
2005, 5.000%, 12/01/23 - FSA Insured
Cincinnati, Ohio, Water System Revenue Bonds, ROLS
RR-II-R212:
1,300 7.536%, 12/01/11 (IF) 6/11 at 100.00 AAA 1,518,205
1,640 7.539%, 12/01/12 (IF) 6/11 at 100.00 AAA 1,895,118
550 7.554%, 12/01/13 (IF) 6/11 at 100.00 AAA 634,942
2,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ 2,065,560
5.000%, 12/01/23
10,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 11,226,099
Refunding and Improvement Bonds, Series 1993G, 5.500%,
1/01/21 - MBIA Insured
1,155 Hebron, Ohio, Mortgage Revenue Bonds, Waterworks System 6/14 at 100.00 N/R 1,188,449
Improvements, Series 2004, 5.875%, 12/01/25
1,260 Lancaster, Ohio, Wastewater System Improvement Revenue 12/14 at 100.00 AAA 1,309,959
Bonds, Series 2004, 5.000%, 12/01/25 - AMBAC Insured
1,255 Ohio Water Development Authority, Revenue Bonds, Fresh 6/14 at 100.00 AAA 1,353,304
Water Development, Series 2004, 5.250%, 12/01/15
3,500 Ohio Water Development Authority, Water Pollution Control 6/15 at 100.00 AAA 3,663,940
Loan Fund Revenue Bonds, Water Quality Project, Series
2005B, 5.000%, 6/01/25
- ---------------------------------------------------------------------------------------------------------------------
24,390 Total Water and Sewer 26,712,437
- ---------------------------------------------------------------------------------------------------------------------
$ 517,990 Total Investments (cost $516,142,776) - 99.7% 541,344,180
- ---------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 0.3% 1,815,469
-------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 543,159,649
-------------------------------------------------------------------------------------------------------
(1) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(2) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's
or Moody's rating. Ratings below BBB by Standard & Poor's Group
or Baa by Moody's Investor Service, Inc. are considered to be
below investment grade. The ratings shown for inverse floating
rate investments represent those of the underlying bonds and
not the inverse floating rate investments themselves. Inverse
floating rate investments likely present greater credit risk to
the holders of such investments than to those holders of the
underlying bonds.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such investments
are normally considered to be equivalent to AAA rated
securities.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
N/R Not rated.
DD Portion purchased on a delayed delivery basis.
See accompanying notes to financial statements.
- ----
52
Portfolio of Investments
NUVEEN WISCONSIN MUNICIPAL BOND FUND
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -----------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 4.0%
$ 475 Ashland Housing Authority, Wisconsin, Student Housing 4/08 at 100.00 Aaa $ 480,273
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- 511,355
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- 374,303
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 204,006
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, University of the Sacred
Heart, Series 2001, 5.250%, 9/01/21
250 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 256,480
Environmental Control Facilities Financing Authority,
Higher Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.500%, 12/01/31
- -----------------------------------------------------------------------------------------------------------------------
1,795 Total Education and Civic Organizations 1,826,417
- -----------------------------------------------------------------------------------------------------------------------
Health Care - 2.1%
430 Puerto Rico Industrial, Tourist, Educational, Medical and 8/06 at 100.50 AAA 434,967
Environmental Control Facilities Financing Authority,
FHA-Insured Mortgage Hospital Revenue Bonds, Doctor Pila
Hospital, Series 1995A, 5.875%, 8/01/12
500 Puerto Rico Industrial, Tourist, Educational, Medical and 7/06 at 101.00 AAA 500,590
Environmental Control Facilities Financing Authority,
Hospital Revenue Bonds, Auxilio Mutuo Hospital, Series
1995A, 6.250%, 7/01/24 - MBIA Insured
- -----------------------------------------------------------------------------------------------------------------------
930 Total Health Care 935,557
- -----------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 9.7%
675 Kenosha Housing Authority, Wisconsin, GNMA Collateralized 5/08 at 102.00 N/R 698,308
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 583,150
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 1,011,640
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 205,862
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 11/06 at 102.00 AAA 503,645
Revenue Refunding Bonds, Lake Shore Apartments, Series
1998A, 5.100%, 11/20/26
300 Walworth County Housing Authority, Wisconsin, FHA-Insured 9/06 at 101.00 N/R 303,063
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 356,727
750 6.000%, 12/01/31 (Alternative Minimum Tax) 12/06 at 102.00 AAA 764,340
- -----------------------------------------------------------------------------------------------------------------------
4,345 Total Housing/Multifamily 4,426,735
- -----------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 2.7%
190 Puerto Rico Housing Bank and Finance Agency, Affordable 10/06 at 101.00 AAA 193,192
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, GNMA 9/06 at 101.00 AAA 50,343
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Refunding Bonds, Series 1995A, 6.450%, 3/01/16
(Alternative Minimum Tax)
1,000 Wisconsin Housing and Economic Development Authority, Home 5/15 at 100.00 AA 994,250
Ownership Revenue Bonds, Series 2005E, 4.900%, 11/01/35
- -----------------------------------------------------------------------------------------------------------------------
1,240 Total Housing/Single Family 1,237,785
- -----------------------------------------------------------------------------------------------------------------------
- ----
53
Portfolio of Investments
NUVEEN WISCONSIN MUNICIPAL BOND FUND (continued)
May 31, 2006
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 0.5%
$ 250 Guam, General Obligation Bonds, Series 1993A, 5.400%, 11/06 at 100.00 B $ 250,148
11/15/18
- --------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 68.1%
1,500 Ashwaubenon Community Development Authority, Wisconsin, 6/12 at 100.00 Aa2 1,556,595
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 1,008,400
Lease Revenue Bonds, Series 1999B, 5.100%, 2/01/18
2,000 Glendale Community Development Authority, Wisconsin, 10/14 at 100.00 A3 2,058,920
Community Development Lease Revenue Bonds, Bayshore Public
Parking Project, Series 2004A, 5.000%, 10/01/24
100 Glendale Community Development Authority, Wisconsin, 10/11 at 100.00 A3 102,580
Community Development Lease Revenue Refunding Bonds, Tax
Increment District 6, Series 2001, 5.000%, 10/01/19
350 Green Bay Brown County Professional Football Stadium 2/11 at 100.00 AAA 364,186
District, Wisconsin, Sales Tax Revenue Bonds, Lambeau
Field Renovation Project, Series 2001A, 5.000%, 2/01/19 -
AMBAC Insured
500 Jackson Community Development Authority, Wisconsin, Revenue 12/09 at 100.00 N/R 503,710
Refunding Bonds, Series 1999, 5.100%, 12/01/17
960 Madison Community Development Authority, Wisconsin, Lease 3/12 at 100.00 Aa2 947,741
Revenue Refunding Bonds, Monona Terrace, Series 2002,
4.375%, 3/01/20
2,000 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/12 at 100.00 AAA 2,048,000
Bonds, Neighborhood Public Schools Initiative, Series
2002A, 4.875%, 8/01/21 - AMBAC Insured
Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue
Bonds, Public Schools, Series 2003A:
2,500 5.125%, 8/01/21 - AMBAC Insured 8/13 at 100.00 AAA 2,606,625
1,500 5.125%, 8/01/22 - AMBAC Insured 8/13 at 100.00 AAA 1,563,045
Milwaukee Redevelopment Authority, Wisconsin, Revenue
Bonds, Summerfest Project, Series 2001:
400 4.850%, 8/01/17 8/11 at 100.00 A 409,440
1,000 4.950%, 8/01/20 8/11 at 100.00 A 1,023,670
1,500 Neenah Community Development Authority, Wisconsin, Lease 12/14 at 100.00 A1 1,551,960
Revenue Bonds, Series 2004A, 5.000%, 12/01/26
1,000 Onalaska Community Development Authority, Wisconsin, 10/13 at 100.00 A3 1,029,760
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 950,241
400 5.500%, 12/15/19 - MBIA Insured No Opt. Call AAA 448,212
2,195 5.500%, 12/15/20 - MBIA Insured No Opt. Call AAA 2,471,175
500 5.500%, 12/15/26 - MBIA Insured No Opt. Call AAA 568,370
375 Sturgeon Bay Waterfront Redevelopment Authority, Wisconsin, 10/08 at 100.00 N/R 382,470
Lease Revenue Bonds, Series 1998A, 5.200%, 10/01/21
1,305 Sun Prairie Community Development Authority, Wisconsin, 8/16 at 100.00 A2 1,236,644
Lease Revenue Bonds, Tax Increment District 8, Series
2006, 4.250%, 8/01/25
600 Virgin Islands Public Finance Authority, Senior Lien 10/08 at 101.00 BBB 620,766
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 514,345
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 1,061,930
Revenue Bonds, Series 2004A, 5.250%, 10/01/21
1,000 Weston Community Development Authority, Wisconsin, Lease 10/15 at 100.00 N/R 1,035,770
Revenue Bonds, Series 2005A, 5.000%, 10/01/21
Wisconsin Center District, Junior Dedicated Tax Revenue
Refunding Bonds, Series 1999:
3,400 5.250%, 12/15/23 - FSA Insured No Opt. Call AAA 3,733,944
500 5.250%, 12/15/27 - FSA Insured No Opt. Call AAA 545,480
2,000 Wisconsin Center District, Senior Dedicated Tax Revenue No Opt. Call AAA 667,280
Refunding Bonds, Series 2003A, 0.000%, 12/15/28 - FSA
Insured
- --------------------------------------------------------------------------------------------------------------------
30,935 Total Tax Obligation/Limited 31,011,259
- --------------------------------------------------------------------------------------------------------------------
- ----
54
Principal Optional Call
Amount (000) Description Provisions (1) Ratings (2) Value
- -----------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 11.9% (3)
Ashwaubenon Community Development Authority, Wisconsin,
Lease Revenue Bonds, Arena Project, Series 1999A:
$ 2,000 5.700%, 6/01/24 (Pre-refunded 6/01/09) 6/09 at 100.00 Aa2 (3) $ 2,114,060
700 5.800%, 6/01/29 (Pre-refunded 6/01/09) 6/09 at 100.00 Aa2 (3) 741,846
Green Bay Redevelopment Authority, Wisconsin, Lease Revenue
Bonds, Convention Center Project, Series 1999A:
1,300 5.250%, 6/01/24 (Pre-refunded 6/01/09) 6/09 at 100.00 Aa2 (3) 1,357,655
1,150 5.100%, 6/01/29 (Pre-refunded 6/01/09) 6/09 at 100.00 Aa2 (3) 1,196,150
- -----------------------------------------------------------------------------------------------------------------------
5,150 Total U.S. Guaranteed 5,409,711
- -----------------------------------------------------------------------------------------------------------------------
$ 44,645 Total Investments (cost $44,146,157) - 99.0% 45,097,612
- -----------------------------------------------------------------------------------------------------------------------
- ------------
Other Assets Less Liabilities - 1.0% 445,481
---------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 45,543,093
---------------------------------------------------------------------------------------------------------
(1) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(2) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard & Poor's
or Moody's rating. Ratings below BBB by Standard & Poor's Group
or Baa by Moody's Investor Service, Inc. are considered to be
below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such investments
are normally considered to be equivalent to AAA rated
securities.
N/R Not rated.
See accompanying notes to financial statements.
- ----
55
Statement of Assets and Liabilities
May 31, 2006
Kansas Kentucky Michigan Missouri
- ------------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $126,003,114, $445,443,297, $222,786,955,
$249,957,619, $516,142,776 and $44,146,157, respectively) $130,548,615 $461,734,853 $234,569,832 $259,455,660
Cash -- -- 1,236,807 3,571,412
Receivables:
Interest 1,611,450 5,848,764 2,315,939 3,682,658
Investments sold 375,000 7,271,633 25,000 5,080
Shares sold 257,450 179,098 146,026 115,897
Other assets 255 38,974 22,552 8,215
- ------------------------------------------------------------------------------------------------------------------------------
Total assets 132,792,770 475,073,322 238,316,156 266,838,922
- ------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 310,959 2,065,590 -- --
Payables:
Investments purchased -- 5,274,250 -- 3,429,276
Shares redeemed 121,824 291,377 191,651 62,637
Accrued expenses:
Management fees 60,220 208,078 106,981 117,873
12b-1 distribution and service fees 37,467 112,239 58,548 59,612
Other 33,390 126,658 75,901 63,407
Dividends payable 425,393 1,600,650 798,709 876,771
- ------------------------------------------------------------------------------------------------------------------------------
Total liabilities 989,253 9,678,842 1,231,790 4,609,576
- ------------------------------------------------------------------------------------------------------------------------------
Net assets $131,803,517 $465,394,480 $237,084,366 $262,229,346
- ------------------------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $100,127,626 $398,635,970 $170,278,105 $231,377,917
Shares outstanding 9,646,684 36,365,713 14,869,988 21,068,990
Net asset value per share $ 10.38 $ 10.96 $ 11.45 $ 10.98
Offering price per share (net asset value per share plus
maximum sales charge of 4.20% of offering price) $ 10.84 $ 11.44 $ 11.95 $ 11.46
- ------------------------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 7,379,454 $ 18,388,059 $ 6,794,169 $ 8,570,026
Shares outstanding 716,796 1,676,688 591,914 779,778
Net asset value and offering price per share $ 10.30 $ 10.97 $ 11.48 $ 10.99
- ------------------------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 22,735,976 $ 45,918,962 $ 38,141,323 $ 21,386,627
Shares outstanding 2,189,501 4,190,622 3,333,640 1,949,027
Net asset value and offering price per share $ 10.38 $ 10.96 $ 11.44 $ 10.97
- ------------------------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $ 1,560,461 $ 2,451,489 $ 21,870,769 $ 894,776
Shares outstanding 149,701 223,776 1,909,795 81,402
Net asset value and offering price per share $ 10.42 $ 10.96 $ 11.45 $ 10.99
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- ------------------------------------------------------------------------------------------------------------------------------
Capital paid-in $128,863,621 $449,214,290 $225,199,180 $253,176,236
Undistributed (Over-distribution of) net investment income (63,056) (423,041) (148,705) (281,047)
Accumulated net realized gain (loss) from investments (1,542,549) 311,675 251,014 (163,884)
Net unrealized appreciation (depreciation) of investments 4,545,501 16,291,556 11,782,877 9,498,041
- ------------------------------------------------------------------------------------------------------------------------------
Net assets $131,803,517 $465,394,480 $237,084,366 $262,229,346
- ------------------------------------------------------------------------------------------------------------------------------
Ohio Wisconsin
- ------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $126,003,114, $445,443,297, $222,786,955,
$249,957,619, $516,142,776 and $44,146,157, respectively) $541,344,180 $45,097,612
Cash -- --
Receivables:
Interest 9,789,287 769,926
Investments sold -- --
Shares sold 665,088 92,097
Other assets 48,789 91
- ------------------------------------------------------------------------------------------------
Total assets 551,847,344 45,959,726
- ------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 4,325,066 187,680
Payables:
Investments purchased 1,121,460 --
Shares redeemed 842,730 37,258
Accrued expenses:
Management fees 242,178 20,851
12b-1 distribution and service fees 106,065 12,364
Other 152,727 17,503
Dividends payable 1,897,469 140,977
- ------------------------------------------------------------------------------------------------
Total liabilities 8,687,695 416,633
- ------------------------------------------------------------------------------------------------
Net assets $543,159,649 $45,543,093
- ------------------------------------------------------------------------------------------------
Class A Shares
Net assets $348,197,609 $36,624,187
Shares outstanding 30,900,407 3,589,355
Net asset value per share $ 11.27 $ 10.20
Offering price per share (net asset value per share plus
maximum sales charge of 4.20% of offering price) $ 11.76 $ 10.65
- ------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 20,503,859 $ 3,294,662
Shares outstanding 1,822,245 322,240
Net asset value and offering price per share $ 11.25 $ 10.22
- ------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 46,325,114 $ 5,421,784
Shares outstanding 4,121,022 530,247
Net asset value and offering price per share $ 11.24 $ 10.23
- ------------------------------------------------------------------------------------------------
Class R Shares
Net assets $128,133,067 $ 202,460
Shares outstanding 11,385,496 19,756
Net asset value and offering price per share $ 11.25 $ 10.25
- ------------------------------------------------------------------------------------------------
Net Assets Consist of:
- ------------------------------------------------------------------------------------------------
Capital paid-in $518,322,748 $44,546,123
Undistributed (Over-distribution of) net investment income (364,503) (54,145)
Accumulated net realized gain (loss) from investments -- 99,660
Net unrealized appreciation (depreciation) of investments 25,201,404 951,455
- ------------------------------------------------------------------------------------------------
Net assets $543,159,649 $45,543,093
- ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
56
Statement of Operations
Year Ended May 31, 2006
Kansas Kentucky Michigan Missouri
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Investment Income $ 6,482,553 $ 23,712,667 $12,401,150 $13,301,870
- -------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 716,438 2,530,995 1,317,589 1,399,445
12b-1 service fees - Class A 198,914 827,885 355,877 464,234
12b-1 distribution and service fees - Class B 84,313 191,250 75,198 84,699
12b-1 distribution and service fees - Class C 172,867 350,625 286,916 157,872
Shareholders' servicing agent fees and expenses 73,156 226,997 139,895 110,508
Custodian's fees and expenses 49,495 136,128 99,870 76,838
Trustees' fees and expenses 2,712 9,563 5,320 5,175
Professional fees 12,796 28,367 18,377 18,298
Shareholders' reports - printing and mailing expenses 16,110 49,338 33,433 26,168
Federal and state registration fees 1,708 6,292 5,347 11,240
Other expenses 5,586 16,680 9,812 9,375
- -------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,334,095 4,374,120 2,347,634 2,363,852
Custodian fee credit (21,881) (45,801) (13,164) (24,354)
- -------------------------------------------------------------------------------------------------------------------------
Net expenses 1,312,214 4,328,319 2,334,470 2,339,498
- -------------------------------------------------------------------------------------------------------------------------
Net investment income 5,170,339 19,384,348 10,066,680 10,962,372
- -------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from investments 565,839 1,179,410 749,408 711,275
Net change in unrealized appreciation (depreciation) of investments (4,237,094) (14,470,749) (7,471,815) (6,843,445)
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (3,671,255) (13,291,339) (6,722,407) (6,132,170)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 1,499,084 $ 6,093,009 $ 3,344,273 $ 4,830,202
- -------------------------------------------------------------------------------------------------------------------------
Ohio Wisconsin
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
Investment Income $ 28,114,703 $ 2,182,054
- ----------------------------------------------------------------------------------------------
Expenses
Management fees 2,910,612 247,287
12b-1 service fees - Class A 707,743 72,864
12b-1 distribution and service fees - Class B 220,284 38,157
12b-1 distribution and service fees - Class C 349,589 39,265
Shareholders' servicing agent fees and expenses 320,635 27,910
Custodian's fees and expenses 173,847 29,327
Trustees' fees and expenses 11,908 1,146
Professional fees 29,862 9,582
Shareholders' reports - printing and mailing expenses 65,554 6,493
Federal and state registration fees 4,653 4,404
Other expenses 18,806 2,819
- ----------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 4,813,493 479,254
Custodian fee credit (25,071) (14,746)
- ----------------------------------------------------------------------------------------------
Net expenses 4,788,422 464,508
- ----------------------------------------------------------------------------------------------
Net investment income 23,326,281 1,717,546
- ----------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from investments 1,693,541 182,407
Net change in unrealized appreciation (depreciation) of investments (18,259,991) (1,464,151)
- ----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (16,566,450) (1,281,744)
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 6,759,831 $ 435,802
- ----------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
57
Statement of Changes in Net Assets
Kansas Kentucky
-------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/06 5/31/05 5/31/06 5/31/05
- ------------------------------------------------------------------------------------------------
Operations
Net investment income $ 5,170,339 $ 5,208,147 $ 19,384,348 $ 20,807,607
Net realized gain (loss) from
investments 565,839 648,814 1,179,410 2,819,853
Net change in unrealized appreciation
(depreciation) of investments (4,237,094) 5,016,120 (14,470,749) 15,787,210
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 1,499,084 10,873,081 6,093,009 39,414,670
- ------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (3,919,501) (3,962,833) (17,003,173) (18,216,210)
Class B (286,327) (381,736) (673,805) (756,793)
Class C (789,253) (820,547) (1,642,318) (1,711,635)
Class R (65,950) (53,886) (82,507) (65,978)
From accumulated net realized gains:
Class A -- -- (1,336,665) (215,689)
Class B -- -- (66,345) (10,824)
Class C -- -- (152,711) (23,312)
Class R -- -- (5,573) (808)
- ------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (5,061,031) (5,219,002) (20,963,097) (21,001,249)
- ------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 16,867,724 13,008,347 30,296,652 36,364,254
Proceeds from shares issued to
shareholders due to
reinvestment of distributions 2,656,786 2,503,435 11,376,696 10,446,197
- ------------------------------------------------------------------------------------------------
19,524,510 15,511,782 41,673,348 46,810,451
Cost of shares redeemed (16,334,930) (16,594,442) (57,471,401) (46,733,307)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions 3,189,580 (1,082,660) (15,798,053) 77,144
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (372,367) 4,571,419 (30,668,141) 18,490,565
Net assets at the beginning of year 132,175,884 127,604,465 496,062,621 477,572,056
- ------------------------------------------------------------------------------------------------
Net assets at the end of year $131,803,517 $132,175,884 $465,394,480 $496,062,621
- ------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the end of
year $ (63,056) $ (172,364) $ (423,041) $ (392,659)
- ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
58
Michigan Missouri
-------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/06 5/31/05 5/31/06 5/31/05
- -----------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 10,066,680 $ 10,697,233 $ 10,962,372 $ 11,163,637
Net realized gain (loss) from investments 749,408 2,844,854 711,275 305,056
Net change in unrealized appreciation (depreciation) of investments (7,471,815) 6,924,697 (6,843,445) 10,714,383
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 3,344,273 20,466,784 4,830,202 22,183,076
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (7,320,042) (7,893,894) (9,981,289) (10,019,105)
Class B (263,443) (340,481) (316,032) (333,110)
Class C (1,354,965) (1,429,875) (791,878) (770,457)
Class R (989,172) (1,081,592) (34,312) (22,605)
From accumulated net realized gains:
Class A (2,004,133) (79,663) -- --
Class B (88,400) (4,292) -- --
Class C (429,404) (16,800) -- --
Class R (257,250) (10,474) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (12,706,809) (10,857,071) (11,123,511) (11,145,277)
- -----------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 22,722,819 18,075,991 20,137,812 18,867,537
Proceeds from shares issued to shareholders due
to reinvestment of distributions 5,933,758 4,094,961 5,640,469 5,028,242
- -----------------------------------------------------------------------------------------------------------------------------
28,656,577 22,170,952 25,778,281 23,895,779
Cost of shares redeemed (34,510,153) (30,077,327) (19,139,089) (26,422,230)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions (5,853,576) (7,906,375) 6,639,192 (2,526,451)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (15,216,112) 1,703,338 345,883 8,511,348
Net assets at the beginning of year 252,300,478 250,597,140 261,883,463 253,372,115
- -----------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $237,084,366 $252,300,478 $262,229,346 $261,883,463
- -----------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the end
of year $ (148,705) $ (282,649) $ (281,047) $ (117,110)
- -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
59
Statement of Changes in Net Assets (continued)
Ohio Wisconsin
-------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/06 5/31/05 5/31/06 5/31/05
- -----------------------------------------------------------------------------------------------
Operations
Net investment income $ 23,326,281 $ 24,817,122 $ 1,717,546 $ 1,822,436
Net realized gain (loss) from
investments 1,693,541 2,017,144 182,407 618,419
Net change in unrealized appreciation
(depreciation) of investments (18,259,991) 21,508,002 (1,464,151) 1,176,131
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 6,759,831 48,342,268 435,802 3,616,986
- -----------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (14,991,868) (15,605,959) (1,430,462) (1,501,243)
Class B (813,840) (967,497) (127,010) (155,227)
Class C (1,732,197) (1,757,417) (177,587) (159,807)
Class R (5,981,726) (6,476,706) (5,938) (4,591)
From accumulated net realized gains:
Class A (1,305,148) -- (165,451) --
Class B (86,687) -- (17,703) --
Class C (173,547) -- (23,830) --
Class R (499,004) -- (679) --
- -----------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (25,584,017) (24,807,579) (1,948,660) (1,820,868)
- -----------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 47,994,143 35,431,676 5,714,314 5,456,300
Proceeds from shares issued to
shareholders due to reinvestment of
distributions 13,656,754 12,146,363 1,112,560 983,002
- -----------------------------------------------------------------------------------------------
61,650,897 47,578,039 6,826,874 6,439,302
Cost of shares redeemed (68,625,336) (60,281,341) (5,555,171) (10,861,710)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions (6,974,439) (12,703,302) 1,271,703 (4,422,408)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (25,798,625) 10,831,387 (241,155) (2,626,290)
Net assets at the beginning of year 568,958,274 558,126,887 45,784,248 48,410,538
- -----------------------------------------------------------------------------------------------
Net assets at the end of year $543,159,649 $568,958,274 $45,543,093 $ 45,784,248
- -----------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the end
of year $ (364,503) $ (130,879) $ (54,145) $ (25,375)
- -----------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
60
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.
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 market
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 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 investments are valued at
amortized cost, which approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At May 31, 2006,
Kentucky, Missouri and Ohio had outstanding when-issued/delayed delivery
purchase commitments of $5,274,250, $3,429,276, and $1,121,460, 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, 2006, have been designated Exempt Interest Dividends. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
- ----
61
Notes to Financial Statements (continued)
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 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 are authorized to 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, 2006, 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, 2006.
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.
- ----
62
2. Fund Shares
Transactions in Fund shares were as follows:
Kansas
--------------------------------------------------
Year Ended Year Ended
5/31/06 5/31/05
------------------------ ------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------
Shares sold:
Class A 1,181,502 $ 12,433,126 860,345 $ 9,059,917
Class A - automatic conversion of
Class B shares 48,920 514,062 16,697 175,515
Class B 20,421 213,332 50,553 525,883
Class C 329,605 3,466,758 286,374 3,012,008
Class R 22,682 240,446 22,111 235,024
Shares issued to shareholders due to
reinvestment of distributions:
Class A 197,498 2,078,016 178,604 1,868,759
Class B 13,499 140,930 16,620 172,552
Class C 40,915 430,702 43,366 453,981
Class R 675 7,138 775 8,143
- --------------------------------------------------------------------------------------------
1,855,717 19,524,510 1,475,445 15,511,782
- --------------------------------------------------------------------------------------------
Shares redeemed:
Class A (961,370) (10,104,393) (872,910) (9,130,553)
Class B (216,150) (2,247,153) (189,055) (1,973,960)
Class B - automatic conversion to
Class A shares (49,310) (514,062) (16,834) (175,515)
Class C (321,430) (3,374,998) (506,754) (5,261,246)
Class R (8,989) (94,324) (5,092) (53,168)
- --------------------------------------------------------------------------------------------
(1,557,249) (16,334,930) (1,590,645) (16,594,442)
- --------------------------------------------------------------------------------------------
Net increase (decrease) 298,468 $ 3,189,580 (115,200) $ (1,082,660)
- --------------------------------------------------------------------------------------------
Kentucky
--------------------------------------------------
Year Ended Year Ended
5/31/06 5/31/05
------------------------ ------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------
Shares sold:
Class A 1,949,136 $ 21,701,035 2,723,044 $ 30,401,710
Class A - automatic conversion of
Class B shares 74,419 826,602 8,847 98,597
Class B 70,072 781,861 124,020 1,384,507
Class C 543,764 6,065,560 376,990 4,202,352
Class R 82,935 921,594 24,848 277,088
Shares issued to shareholders due to
reinvestment of distributions:
Class A 888,908 9,884,979 816,581 9,066,627
Class B 38,296 426,211 38,395 426,521
Class C 89,951 999,155 81,054 898,778
Class R 5,977 66,351 4,891 54,271
- --------------------------------------------------------------------------------------------
3,743,458 41,673,348 4,198,670 46,810,451
- --------------------------------------------------------------------------------------------
Shares redeemed:
Class A (4,335,775) (48,115,573) (3,450,812) (38,405,653)
Class B (233,656) (2,591,416) (195,043) (2,166,368)
Class B - automatic conversion to
Class A shares (74,401) (826,602) (8,845) (98,597)
Class C (530,467) (5,881,313) (538,433) (5,973,276)
Class R (5,159) (56,497) (7,976) (89,413)
- --------------------------------------------------------------------------------------------
(5,179,458) (57,471,401) (4,201,109) (46,733,307)
- --------------------------------------------------------------------------------------------
Net increase (decrease) (1,436,000) $(15,798,053) (2,439) $ 77,144
- --------------------------------------------------------------------------------------------
- ----
63
Notes to Financial Statements (continued)
Michigan
--------------------------------------------------
Year Ended Year Ended
5/31/06 5/31/05
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
Shares sold:
Class A 1,474,374 $ 17,101,996 1,128,179 $ 13,206,864
Class A - automatic conversion of Class B shares 29,741 346,845 7,126 84,229
Class B 37,311 436,297 50,547 593,221
Class C 388,724 4,527,149 329,227 3,867,933
Class R 26,644 310,532 27,710 323,744
Shares issued to shareholders due to reinvestment
of distributions:
Class A 361,150 4,200,876 234,783 2,744,586
Class B 13,339 155,475 10,815 126,702
Class C 59,845 695,093 42,194 492,748
Class R 75,831 882,314 62,508 730,925
- -------------------------------------------------------------------------------------------------------
2,466,959 28,656,577 1,893,089 22,170,952
- -------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (2,241,711) (25,920,683) (1,847,113) (21,589,536)
Class B (179,101) (2,089,282) (186,090) (2,178,934)
Class B - automatic conversion to Class A shares (29,688) (346,845) (7,114) (84,229)
Class C (346,109) (4,024,783) (368,694) (4,319,715)
Class R (183,313) (2,128,560) (162,717) (1,904,913)
- -------------------------------------------------------------------------------------------------------
(2,979,922) (34,510,153) (2,571,728) (30,077,327)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (512,963) $ (5,853,576) (678,639) $ (7,906,375)
- -------------------------------------------------------------------------------------------------------
Missouri
--------------------------------------------------
Year Ended Year Ended
5/31/06 5/31/05
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
Shares sold:
Class A 1,344,371 $ 14,935,980 1,445,635 $ 15,863,183
Class A - automatic conversion of Class B shares 23,686 262,008 1,348 15,131
Class B 43,459 481,709 55,120 613,519
Class C 342,391 3,801,421 204,601 2,273,655
Class R 59,312 656,694 9,178 102,049
Shares issued to shareholders due to reinvestment
of distributions:
Class A 464,000 5,158,568 416,123 4,592,030
Class B 15,165 168,703 16,069 177,389
Class C 27,905 309,964 23,149 255,193
Class R 290 3,234 328 3,630
- -------------------------------------------------------------------------------------------------------
2,320,579 25,778,281 2,171,551 23,895,779
- -------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (1,405,100) (15,586,486) (1,809,311) (20,035,159)
Class B (72,332) (805,092) (136,397) (1,506,122)
Class B - automatic conversion to Class A shares (23,679) (262,008) (1,347) (15,131)
Class C (196,602) (2,176,423) (438,686) (4,815,752)
Class R (28,007) (309,080) (4,471) (50,066)
- -------------------------------------------------------------------------------------------------------
(1,725,720) (19,139,089) (2,390,212) (26,422,230)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) 594,859 $ 6,639,192 (218,661) $ (2,526,451)
- -------------------------------------------------------------------------------------------------------
- ----
64
Ohio
--------------------------------------------------
Year Ended Year Ended
5/31/06 5/31/05
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
Shares sold:
Class A 3,047,528 $ 34,770,761 2,421,794 $ 27,855,344
Class A - automatic conversion of Class B shares 163,574 1,886,705 21,765 251,838
Class B 71,782 822,412 97,298 1,117,174
Class C 850,872 9,713,989 433,897 4,997,158
Class R 70,146 800,276 106,356 1,210,162
Shares issued to shareholders due to reinvestment
of distributions:
Class A 675,780 7,740,442 574,748 6,582,720
Class B 32,660 373,567 30,755 351,735
Class C 69,084 789,296 59,538 680,583
Class R 415,443 4,753,449 396,161 4,531,325
- -------------------------------------------------------------------------------------------------------
5,396,869 61,650,897 4,142,312 47,578,039
- -------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (3,752,948) (42,829,746) (3,375,812) (38,603,590)
Class B (319,784) (3,634,933) (240,240) (2,754,861)
Class B - automatic conversion to Class A shares (163,830) (1,886,705) (21,798) (251,838)
Class C (736,627) (8,387,848) (553,070) (6,309,352)
Class R (1,042,790) (11,886,104) (1,081,810) (12,361,700)
- -------------------------------------------------------------------------------------------------------
(6,015,979) (68,625,336) (5,272,730) (60,281,341)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (619,110) $ (6,974,439) (1,130,418) $(12,703,302)
- -------------------------------------------------------------------------------------------------------
Wisconsin
-----------------------------------------------
Year Ended Year Ended
5/31/06 5/31/05
--------------------- ------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------
Shares sold:
Class A 320,170 $ 3,324,300 384,826 $ 4,015,568
Class A - automatic conversion of Class B shares 50,073 517,326 2,773 28,862
Class B 16,460 172,128 32,963 337,963
Class C 150,117 1,557,228 102,831 1,073,682
Class R 13,705 143,332 22 225
Shares issued to shareholders due to reinvestment
of distributions:
Class A 85,191 882,924 76,575 795,272
Class B 8,465 87,920 7,840 81,577
Class C 13,056 135,564 9,739 101,361
Class R 592 6,152 461 4,792
- ----------------------------------------------------------------------------------------------------
657,829 6,826,874 618,030 6,439,302
- ----------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (310,972) (3,223,244) (861,604) (8,991,707)
Class B (88,073) (915,337) (51,401) (534,937)
Class B - automatic conversion to Class A shares (49,978) (517,326) (2,767) (28,862)
Class C (86,829) (894,417) (113,481) (1,182,323)
Class R (471) (4,847) (11,929) (123,881)
- ----------------------------------------------------------------------------------------------------
(536,323) (5,555,171) (1,041,182) (10,861,710)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) 121,506 $ 1,271,703 (423,152) $ (4,422,408)
- ----------------------------------------------------------------------------------------------------
- ----
65
Notes to Financial Statements (continued)
3. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments)
during the fiscal year ended May 31, 2006, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ----------------------------------------------------------------------------------
Purchases $27,784,111 $63,030,145 $26,709,298 $35,882,037 $73,939,586 $6,628,643
Sales and
maturities 23,973,768 83,587,413 35,722,147 30,740,950 77,905,122 5,100,164
- ----------------------------------------------------------------------------------
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, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At May 31, 2006, the cost of investments was as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ------------------------------------------------------------------------------------------------
Cost of investments $126,006,163 $445,345,879 $222,855,185 $249,901,297 $515,681,220 $44,141,103
- ------------------------------------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 2006, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- -------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $4,754,245 $17,978,302 $12,547,227 $10,230,709 $27,219,804 $1,152,212
Depreciation (211,793) (1,589,328) (832,580) (676,346) (1,556,844) (195,703)
- -------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investments $4,542,452 $16,388,974 $11,714,647 $ 9,554,363 $25,662,960 $ 956,509
- -------------------------------------------------------------------------------------------------------------------------
The tax components of undistributed net investment income and net realized
gains at May 31, 2006, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ----------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $346,297 $1,047,349 $515,392 $539,405 $1,071,408 $81,780
Undistributed net ordinary income** -- -- -- -- -- --
Undistributed net long-term capital gains -- 344,542 453,850 -- -- 99,658
- ----------------------------------------------------------------------------------------------------
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 9, 2006, paid on June 1, 2006.
** 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 tax years ended May 31, 2006
and May 31, 2005, was designated for purposes of the dividends paid deduction
as follows:
2006 Kansas Kentucky Michigan Missouri Ohio Wisconsin
- ----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $5,050,446 $19,433,344 $9,980,919 $11,166,668 $23,584,206 $1,740,542
Distributions from net ordinary income** -- -- 9,969 -- 40,519 3,699
Distributions from net long-term capital gains*** -- 1,561,294 2,779,778 -- 1,989,352 207,663
- ----------------------------------------------------------------------------------------------------------------------
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 -- -- --
- --------------------------------------------------------------------------------------------------------------------
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended May 31, 2006.
At May 31, 2006, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
Kansas Missouri
------------------------------------
Expiration year:
2010 $ -- $163,884
2011 -- --
2012 1,523,456 --
------------------------------------
$1,523,456 $163,884
------------------------------------
- ----
66
5. Management Fee and Other Transactions with Affiliates
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), 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.
The annual fund-level fee, payable monthly, for each Fund 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
---------------------------------------------------
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 stated in the table below. As
of May 31, 2006, the complex-level fee rate was .1886%.
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.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Trust pays no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Trust from the Adviser or its affiliates. The Board of Trustees has
adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
The Adviser has agreed to waive part of its management fees or reimburse
certain expenses of Ohio in order to limit total expenses (excluding 12b-1
distribution and service fees and extraordinary expenses) from exceeding .75%
of the average daily net assets. The Adviser may also voluntarily reimburse
additional expenses from time to time in any of the Funds. Voluntary
reimbursements may be terminated at any time at the Adviser's discretion.
- ----
67
Notes to Financial Statements (continued)
During the fiscal year ended May 31, 2006, 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) $253,394 $495,453 $157,120 $324,158 $418,428 $111,076
Paid to authorized dealers (unaudited) 222,839 424,386 134,315 279,672 356,920 95,017
- ---------------------------------------------------------------------------------------------
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, 2006, 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) $89,571 $100,502 $55,965 $90,534 $119,404 $20,732
- -------------------------------------------------------------------------------------
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, 2006, the Distributor retained such 12b-1 fees as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
- -------------------------------------------------------------------------------------
12b-1 fees retained (unaudited) $94,575 $196,433 $99,303 $67,052 $219,055 $39,159
- -------------------------------------------------------------------------------------
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, 2006, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
------------------------------------------------------------------------------
CDSC retained (unaudited) $44,168 $54,270 $20,406 $13,432 $34,443 $4,321
------------------------------------------------------------------------------
6. Subsequent Event - Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on July 3, 2006, to shareholders of record on June 9,
2006, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin
----------------------------------------------------------------------
Dividend per share:
Class A $.0345 $.0380 $.0395 $.0375 $.0390 $.0325
Class B .0280 .0310 .0325 .0305 .0320 .0260
Class C .0300 .0325 .0340 .0325 .0340 .0280
Class R .0365 .0395 .0415 .0395 .0410 .0345
----------------------------------------------------------------------
- ----
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)
2006 $10.66 $.42 $(.29) $ .13 $(.41) $-- $(.41) $10.38 1.28% $100,128
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
Class B (2/97)
2006 10.58 .34 (.28) .06 (.34) -- (.34) 10.30 .54 7,379
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
Class C (2/97)
2006 10.67 .37 (.30) .07 (.36) -- (.36) 10.38 .67 22,736
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
Class R (2/97)
2006 10.71 .45 (.30) .15 (.44) -- (.44) 10.42 1.41 1,560
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
- -----------------------------------------------------------------------------------------------------
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)
2006 .86% 4.02% .86% 4.02% .84% 4.03% 18%
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
Class B (2/97)
2006 1.61 3.26 1.61 3.26 1.59 3.28 18
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
Class C (2/97)
2006 1.41 3.47 1.41 3.47 1.39 3.48 18
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
Class R (2/97)
2006 .66 4.22 .66 4.22 .64 4.23 18
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
- ------------------------------------------------------------------------------
(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)
2006 $11.30 $.46 $(.30) $.16 $(.46) $(.04) $(.50) $10.96 1.38% $398,636
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
Class B (2/97)
2006 11.31 .37 (.30) .07 (.37) (.04) (.41) 10.97 .62 18,388
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
Class C (10/93)
2006 11.29 .39 (.29) .10 (.39) (.04) (.43) 10.96 .88 45,919
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
Class R (2/97)
2006 11.29 .48 (.30) .18 (.47) (.04) (.51) 10.96 1.64 2,451
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
- -----------------------------------------------------------------------------------------------------
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)
2006 .82% 4.09% .82% 4.09% .81% 4.10% 13%
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
Class B (2/97)
2006 1.57 3.34 1.57 3.34 1.56 3.35 13
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
Class C (10/93)
2006 1.37 3.54 1.37 3.54 1.36 3.55 13
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
Class R (2/97)
2006 .62 4.29 .62 4.29 .61 4.30 13
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
- ------------------------------------------------------------------------------
(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)
2006 $11.89 $.49 $(.32) $ .17 $(.48) $(.13) $(.61) $11.45 1.48% $170,278
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
Class B (2/97)
2006 11.92 .40 (.32) .08 (.39) (.13) (.52) 11.48 .71 6,794
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
Class C (6/93)
2006 11.88 .42 (.32) .10 (.41) (.13) (.54) 11.44 .91 38,141
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
Class R (2/97)
2006 11.89 .51 (.32) .19 (.50) (.13) (.63) 11.45 1.69 21,871
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
- ------------------------------------------------------------------------------------------------------
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)
2006 .86% 4.16% .86% 4.16% .85% 4.17% 11%
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
Class B (2/97)
2006 1.61 3.41 1.61 3.41 1.60 3.41 11
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
Class C (6/93)
2006 1.41 3.61 1.41 3.61 1.40 3.62 11
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
Class R (2/97)
2006 .66 4.36 .66 4.36 .65 4.36 11
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
- ------------------------------------------------------------------------------
(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)
2006 $11.25 $.47 $(.26) $ .21 $(.48) $-- $(.48) $10.98 1.88% $231,378
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
Class B (2/97)
2006 11.26 .39 (.27) .12 (.39) -- (.39) 10.99 1.12 8,570
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
Class C (2/94)
2006 11.24 .41 (.26) .15 (.42) -- (.42) 10.97 1.34 21,387
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
Class R (2/97)
2006 11.26 .49 (.26) .23 (.50) -- (.50) 10.99 2.10 895
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
- -----------------------------------------------------------------------------------------------------
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)
2006 .83% 4.23% .83% 4.23% .82% 4.24% 12%
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
Class B (2/97)
2006 1.58 3.48 1.58 3.48 1.57 3.49 12
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
Class C (2/94)
2006 1.38 3.68 1.38 3.68 1.37 3.69 12
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
Class R (2/97)
2006 .63 4.44 .63 4.44 .62 4.45 12
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
- ------------------------------------------------------------------------------
(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)
2006 $11.65 $.48 $(.34) $ .14 $(.48) $(.04) $(.52) $11.27 1.30% $348,198
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
Class B (2/97)
2006 11.64 .40 (.35) .05 (.40) (.04) (.44) 11.25 .47 20,504
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
Class C (8/93)
2006 11.63 .42 (.35) .07 (.42) (.04) (.46) 11.24 .68 46,325
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
Class R (2/97)
2006 11.64 .50 (.34) .16 (.51) (.04) (.55) 11.25 1.51 128,133
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
- ------------------------------------------------------------------------------------------------------
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)
2006 .83% 4.21% .83% 4.21% .83% 4.21% 13%
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
Class B (2/97)
2006 1.58 3.45 1.58 3.45 1.58 3.46 13
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
Class C (8/93)
2006 1.38 3.66 1.38 3.66 1.38 3.66 13
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
Class R (2/97)
2006 .63 4.41 .63 4.41 .63 4.41 13
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
- ------------------------------------------------------------------------------
(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)
2006 $10.54 $.40 $(.28) $ .12 $(.41) $(.05) $(.46) $10.20 1.11% $36,624
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
Class B (2/97)
2006 10.57 .32 (.29) .03 (.33) (.05) (.38) 10.22 .26 3,295
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
Class C (2/97)
2006 10.57 .35 (.29) .06 (.35) (.05) (.40) 10.23 .49 5,422
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
Class R (2/97)
2006 10.59 .42 (.28) .14 (.43) (.05) (.48) 10.25 1.34 202
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
- -----------------------------------------------------------------------------------------------------
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)
2006 .92% 3.84% .92% 3.84% .89% 3.88% 11%
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
Class B (2/97)
2006 1.67 3.09 1.67 3.09 1.64 3.12 11
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
Class C (2/97)
2006 1.47 3.29 1.47 3.29 1.44 3.33 11
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
Class R (2/97)
2006 .72 4.04 .72 4.04 .68 4.07 11
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
- ------------------------------------------------------------------------------
(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, 2006, 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 five 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 (United States). Those standards 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, 2006 by correspondence with the custodian and brokers,
provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
July 20, 2006
- ----
75
Annual Investment Management Agreement Approval Process
The Board of Trustees is responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the
advisory arrangements. At a meeting held on May 23-25, 2006 (the "May
Meeting"), the Board of Trustees of the Funds, including the independent
Trustees, unanimously approved the continuance of the Investment Management
Agreement between each Fund and NAM (the "Fund Adviser").
The Approval Process
During the course of the year, the Board received a wide variety of materials
relating the services provided by the Fund Adviser and the performance of the
Fund. To assist the Board in its evaluation of the advisory contract with the
Fund Adviser at the May Meeting, the independent Trustees received extensive
materials in advance of their meeting which outlined, among other things:
.. the nature, extent and quality of services provided by the Fund Adviser;
.. the organization and business operations of the Fund Adviser, including the
responsibilities of various departments and key personnel;
.. the Fund's past performance, the Fund's performance compared to funds of
similar investment objectives compiled by an independent third party and to
customized benchmarks;
.. the profitability of the Fund Adviser and certain industry profitability
analyses for unaffiliated advisers;
.. the expenses of the Fund Adviser in providing the various services;
.. the advisory fees (gross and net management fees) and total expense ratios of
the Fund, including comparisons of such fees and expenses with those of
comparable, unaffiliated funds based on information and data provided by
Lipper (the "Peer Universe") as well as compared to a subset of funds within
the Peer Universe (the "Peer Group") to the respective Fund (as applicable);
.. the advisory fees the Fund Adviser assesses to other types of investment
products or clients;
.. the soft dollar practices of the Fund Adviser, if any;
.. from independent legal counsel, a legal memorandum describing, among other
things, the duties of the Trustees under the Investment Company Act of 1940
(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 May Meeting, the Fund 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 contract with the Fund 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 Fund Adviser; (b) the investment performance of the Fund and
the Fund Adviser; (c) the costs of the services to be provided and profits to
be realized by the Fund 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 reviewing the Fund Adviser, the Trustees considered the nature, extent and
quality of the Fund Adviser's services. The Trustees reviewed materials
outlining, among other things, the Fund Adviser's organization and business;
the types of services that the Fund Adviser or its affiliates provide and are
expected to provide to the Funds; the performance record of the applicable Fund
(as described in further detail below) and any initiatives and enhancements
Nuveen has taken for its municipal fund product line. In connection with their
continued service as Trustees, the Trustees also have a good understanding of
each Fund Adviser's organization, operations and personnel. In this regard, the
Trustees are familiar with and have evaluated the professional experience,
qualifications and credentials of the Fund Adviser's personnel. The Trustees
further reviewed materials describing, among other things, the teams and
personnel involved in the investment, research, risk-management and operational
processes involved in managing municipal funds and their respective functions.
Given the Trustees' experience with the Funds and Fund Adviser, the Trustees
recognized the demonstrated history of care and depth of experience of the
respective personnel in managing these Funds. In this regard, the Trustees
considered the continued quality of the Fund Adviser's investment process in
making portfolio management decisions as well as additional refinements and
improvements adopted to the portfolio management processes. With respect to the
services provided to municipal funds, including the Funds, the Trustees noted
that the Fund Adviser continues to make refinements to its portfolio management
process including, among other things, the increased use of derivatives to
enhance management of risk, additional analytical software for research staff
and improved municipal pricing processes.
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76
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. The Fund
Adviser provides the Funds 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 connection with the review of the Investment Management
Agreement, the Trustees considered the extent and quality of these other
services which include, among other things, providing: product management
(e.g., product positioning, performance benchmarking, risk management); fund
administration (e.g., daily net asset value pricing and reconciliation, tax
reporting, fulfilling regulatory filing requirements); oversight of third party
service providers; administration of board relations (e.g., organizing board
meetings and preparing related materials); compliance (e.g., monitoring
compliance with investment policies and guidelines and regulatory
requirements); and legal support (e.g., helping prepare and file registration
statements, amendments thereto, proxy statements and responding to regulatory
requests and/or inquiries). As the Funds operate in a highly regulated industry
and given the importance of compliance, the Trustees considered, in particular,
the additions of experienced personnel to the compliance teams and the
enhancements to technology and related systems to support the compliance
activities for the Funds (including a new reporting system for quarterly
portfolio holdings).
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 Agreement were of a high level and were
satisfactory.
B. The Investment Performance of the Fund and Fund Advisers
The Board considered the investment performance for each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"Performance Peer Group") and portfolio level performance against customized
benchmarks, as described below. In evaluating the performance information, in
certain instances, the Trustees noted that the closest Performance Peer Group
for a Fund still may not adequately reflect such Fund's investment objectives,
strategies and portfolio duration, thereby limiting the usefulness of the
comparisons of such Fund's performance with that of the Performance Peer Group
(such as the Performance Peer Group of the Nuveen National Intermediate
Duration Fund). With respect to state specific municipal funds, the Trustees
recognized that certain state municipal funds do not have a corresponding state
specific Performance Peer Group in which case their performance is measured
against a more general municipal category for various states. The two open-end
Nuveen state municipal funds that utilize the more general category are the
Nuveen New Mexico Municipal Bond Fund and the Nuveen Wisconsin Municipal Bond
Fund.
In reviewing performance, the Trustees reviewed performance information
including, among other things, total return information compared with the
Fund's Performance Peer Group for the one-, three- and five-year periods (as
applicable) ending December 31, 2005. The Trustees also reviewed the Fund's
portfolio level performance (which does not reflect fund level fees and
expenses) compared to customized portfolio-level benchmarks for the one- and
three-year periods ending December 31, 2005 (as applicable). This analysis is
designed to assess the efficacy of investment decisions against appropriate
measures of risk and total return, within specific market segments. This
information supplements the Fund performance information provided to the Board
at each of their quarterly meetings. Based on their review, the Trustees
determined that the respective 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 of a Fund, the Board reviewed,
among other things, the Fund's advisory fees (net and gross management fees)
and total expense ratios (before and after expense reimbursements and/or
waivers) in absolute terms as well as comparisons to the gross management fees
(before waivers), net management fees (after waivers) and total expense ratios
(before and after waivers) of comparable funds in the Peer Universe and the
Peer Group. The Trustees reviewed data regarding the construction of Peer
Groups as well as the methods of measurement for the fee and expense analysis
and the performance analysis. In certain cases, due to the small number of
peers in the Peer Universe, the Peer Universe and Peer Group may be the same.
Further, the Trustees recognized that in certain cases the closest Peer
Universe and/or Peer Group did not adequately reflect the Fund's investment
objectives and strategies limiting the usefulness of comparisons. In reviewing
comparisons, the Trustees also considered the size of the Peer Universe and/or
Peer Group, the composition of the Peer Group (including differences in the
use of leverage and insurance) as well as differing levels of fee waivers
and/or expense reimbursements. In this regard, the Trustees considered the
fund-level and complex-wide breakpoint schedules (described in further detail
below) and any fee waivers and reimbursements provided by Nuveen (applicable,
in particular, for certain funds launched since 1999). Based on their review
of the fee and expense information provided, the Trustees determined that each
Fund's net total expense ratio was within an acceptable range compared to
peers.
2. Comparisons with the Fees of Other Clients
The Trustees further reviewed data comparing the advisory fees of the Fund
Adviser with fees the Fund Adviser charges to other clients, including
municipal managed accounts. In general, the fees charged for separate accounts
are somewhat lower than the fees assessed to the Funds. The Trustees
recognized that the differences in fees are attributable to a variety of
factors, including the differences in services provided, product distribution,
portfolio investment policies, investor profiles, account sizes and regulatory
requirements. The Trustees noted, in particular, that the range of services
provided to the Funds is more extensive than that provided to managed separate
accounts. As described in further detail above, such additional services
include, but are not
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77
Annual Investment Management Agreement Approval Process (continued)
limited to, providing: product management, fund administration, oversight of
third party service providers, administration of board relations, and legal
support. Funds further operate in a highly regulated industry requiring
extensive compliance functions compared to the other investment products. In
addition to the costs of the additional services, administrative costs may
also be greater for the Funds as the average account size for separate
accounts are notably larger than the retail accounts of the Funds. Given the
differences in the product structures, particularly the extensive services
provided to the Funds, the Trustees believe such facts justify the different
levels of fees.
3. Profitability of Fund Advisers
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees
reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profit margins of various
unaffiliated management firms with similar amounts of assets under management
prepared by Nuveen. The Trustees further reviewed the 2005 Annual Report for
Nuveen Investments. In considering profitability, the Trustees recognized the
inherent limitations in determining profitability as well as the difficulties
in comparing the profitability of other unaffiliated advisers. Profitability
may be affected by numerous factors, including the methodology for allocating
expenses, the advisor's business mix, the types of funds managed, the
adviser's capital structure and cost of capital. Further, individual fund or
product line profitability of other sponsors is generally not publicly
available. Accordingly, the profitability information that is publicly
available from various investment advisory or management firms may not be
representative of the industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees
reviewed Nuveen's methodology and assumptions for allocating expenses across
product lines to determine profitability. In this regard, the methods of
allocation used appeared reasonable. The Trustees also, to the extent
available, compared Nuveen's profitability margins (including pre- and
post-marketing profit margins) with the profitability of various unaffiliated
management firms. The Trustees noted that Nuveen's profitability is enhanced
due to its efficient internal business model. The Trustees also recognized
that while a number of factors affect profitability, Nuveen's profitability
may change as fee waivers and/or expense reimbursement commitments of Nuveen
to various funds in the Nuveen complex expire. To keep apprised of
profitability and developments that may affect profitability, the Trustees
have requested profitability analysis be provided periodically during the
year. Based on their review, the Trustees were satisfied that the respective
Fund 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 a Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund 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
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Trustees have reviewed and considered the breakpoints in the advisory fee
schedules that reduce advisory fees as the applicable Fund's assets grow. In
addition to advisory fee breakpoints as assets in a respective Fund rise, after
lengthy discussions with management, the Board also approved a complex-wide fee
arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. 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 noted
that 2005 was the first full year to reflect the fee reductions from the
complex-wide fee arrangement. 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 Fund Adviser or its affiliates may receive as a result of its
relationship with each Fund, including any sales charges and distribution fees
received and retained by the Fund's principal underwriter, Nuveen Investments,
Inc., an affiliate of the Fund Adviser as well as any benefits derived from
soft dollar arrangements. The Trustees recognized that an affiliate of the Fund
Adviser provides distribution and shareholder services to the Funds and their
shareholders for which it may be compensated pursuant to a 12b-1 plan. The
Trustees therefore considered the 12b-1 fees retained by Nuveen during the last
calendar year.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. The Trustees noted that
the Fund 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; however, the Fund Adviser may from time to
time receive and have access to research generally provided to institutional
clients.
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78
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 Fund Adviser's fees are reasonable in light of
the services provided to each Fund, and that the renewal of the Investment
Management Agreements should be approved.
- ----
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 or visit the Funds' website at www.nuveen.com.
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 (since 1996) and Director of Nuveen 166
3/28/49 Board and Investments, Inc., Nuveen Investments, LLC,
333 W. Wacker Drive Trustee Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(4); Director
(since 1996) of Institutional Capital
Corporation; Chairman and Director (since
1997) of Nuveen Asset Management; Chairman
and Director of Rittenhouse Asset
Management, Inc. (since 1999); Chairman of
Nuveen Investments Advisers Inc. (since
2002).
Trustees who are not interested persons of the Funds:
- ---------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Lead 1997 Private Investor and Management Consultant. 166
8/22/40 Independent
333 W. Wacker Drive Trustee
Chicago, IL 60606
- ---------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Trustee 1993 Retired (since 1989) as Senior Vice 166
7/29/34 President of The Northern Trust Company;
333 W. Wacker Drive Director (since 2002) Community Advisory
Chicago, IL 60606 Board for Highland Park and Highwood, United
Way of the North Shore.
- ---------------------------------------------------------------------------------------------------------------------
Jack B. Evans Trustee 1999 President, The Hall-Perrine Foundation, a 166
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 and 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, Tippie College of Business, University 166
3/6/48 of Iowa (since June 2006); formerly, Dean
333 W. Wacker Drive and Distinguished Professor of Finance,
Chicago, IL 60606 School of Business at the University of
Connecticut (2003-2006); previously, Senior
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 (since 2004) of Xerox Corporation;
Director, SS&C Technologies, Inc. (May
2005-October 2005).
- ---------------------------------------------------------------------------------------------------------------------
David J. Kundert Trustee 2005 Retired (since 2004) as Chairman, JPMorgan 164
10/28/42 Fleming Asset Management, President and CEO,
333 W. Wacker Drive Banc One Investment Advisors Corporation,
Chicago, IL 60606 and 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; member of the
Wisconsin Bar Association; member of Board
of Directors, Friends of Boerner Botanical
Gardens.
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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 of Miller-Valentine Partners Ltd., 166
9/24/44 a real estate investment company; formerly,
333 W. Wacker Drive Senior Partner and Chief Operating Officer
Chicago, IL 60606 (retired 2004) of Miller-Valentine Group;
formerly, Vice President, Miller-Valentine
Realty; Board Member, Chair of the Finance
Committee and member of the Audit Committee
of Premier Health Partners, the
not-for-profit company of Miami Valley
Hospital; Vice President, Dayton
Philharmonic Orchestra Association; Board
Member, Regional Leaders Forum, which
promotes cooperation on economic development
issues; Director, Dayton Development
Coalition; formerly, Member, Community
Advisory Board, National City Bank, Dayton,
Ohio and Business Advisory Council,
Cleveland Federal Reserve Bank.
- -------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Trustee 1997 Executive Director, Gaylord and Dorothy 166
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 166
1/22/50 Finance, Northwestern University (since
333 W. Wacker Drive 1997); Director (since 2003), Chicago Board
Chicago, IL 60606 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, a pure
captive 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 166
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 (2002-2004), General
Counsel (1998-2004) and Assistant Secretary,
formerly, Vice President of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(4); Managing Director (since 2002) and
Assistant Secretary and Associate General
Counsel, formerly, Vice President (since
1997), 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. and Symphony Asset Management LLC
(since 2003); Chartered Financial Analyst.
- -------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly 166
9/22/63 Vice President (since 2002); formerly,
333 W. Wacker Drive Assistant Vice President (since 2000) of
Chicago, IL 60606 Nuveen Investments, LLC; Chartered Financial
Analyst.
- -------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 166
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 Principal Occupation(s) Fund Complex
Birthdate Held with Elected or Including other Directorships Overseen by
and Address the Funds Appointed (3) During Past 5 Years Trustee
- --------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen 166
11/28/67 and Treasurer Investments, LLC and of Nuveen Investments,
333 W. Wacker Drive Inc. (since 1999); Vice President and
Chicago, IL 60606 Treasurer of Nuveen Asset Management (since
2002) and of Nuveen Investments Advisers
Inc. (since 2002); Assistant Treasurer of
NWQ Investment Management Company, LLC.
(since 2002); Vice President and Treasurer
of Nuveen Rittenhouse Asset Management, Inc.
and Symphony Asset Management LLC (since
2003); formerly, Vice President and
Treasurer (1999-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(4); Chartered Financial Analyst.
- --------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment 166
8/24/61 Operations, Nuveen Investments, LLC (since
333 W. Wacker Drive 2005); formerly, Director, Business Manager,
Chicago, IL 60606 Deutsche Asset Management (2003-2004),
Director, Business Development and
Transformation, Deutsche Trust Bank Japan
(2002-2003); previously, Senior Vice
President, Head of Investment Operations and
Systems, Scudder Investments Japan,
(2000-2002), Senior Vice President, Head of
Plan Administration and Participant
Services, Scudder Investments (1995-2002).
- --------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant 166
9/24/64 and Secretary Secretary and Assistant General Counsel
333 W. Wacker Drive (since 1998) formerly, Assistant Vice
Chicago, IL 60606 President (since 1998) of Nuveen
Investments, LLC; Vice President (2002-2004)
and Assistant Secretary (1998-2004)
formerly, Assistant Vice President of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.(4); Vice President and
Assistant Secretary (since 2005) of Nuveen
Asset Management.
- --------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, 166
10/24/45 Vice President of Nuveen Investments, LLC,
333 W. Wacker Drive Managing Director (2004) formerly, Vice
Chicago, IL 60606 President (1998-2004) 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), formerly, 166
3/2/64 Vice President of Nuveen Investments;
333 W. Wacker Drive Managing Director (1997-2004) of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional
Advisory Corp.(4); Managing Director (since
2001) of Nuveen Asset Management ; Vice
President (since 2002) of Nuveen Investments
Advisers Inc.; Chartered Financial Analyst.
- --------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 166
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 166
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
(1994-2004), The Northern Trust Company.
- --------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 166
3/22/63 Investments, LLC; Certified Public
333 W. Wacker Drive Accountant.
Chicago, IL 60606
- --------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC 166
8/27/61 (since 1999).
333 W. Wacker Drive
Chicago, IL 60606
- ----
83
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 (3) During Past 5 Years Trustee
- ------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and 166
7/27/51 and Assistant Assistant General Counsel of Nuveen
333 W. Wacker Drive Secretary Investments, LLC; formerly, Vice President
Chicago, IL 60606 and Assistant Secretary of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(4); Vice President (since 2005) and
Assistant Secretary of Nuveen Investments,
Inc.; Vice President (since 2005) and
Assistant Secretary (since 1997) of Nuveen
Asset Management; Vice President (since
2000), Assistant Secretary and Assistant
General Counsel (since 1998) of Rittenhouse
Asset Management, Inc.; Vice President and
Assistant Secretary of Nuveen Investments
Advisers Inc. (since 2002); Assistant
Secretary of NWQ Investment Management
Company, LLC (since 2002) and Symphony Asset
Management LLC (since 2003).
(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 Company
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.
================================================================================
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, 2006, 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
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. Over this time,
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 can be integral parts of 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 $145 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 six distinct brands: NWQ, specializing in value-style equities;
Nuveen, managing fixed-income investments; Santa Barbara, committed to
growth equities; Tradewinds NWQ, specializing in global value equities;
Rittenhouse, focused on "blue-chip" growth equities; and Symphony, with
expertise in alternative investments as well as equity and income
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-MS6-0506D
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. 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, 2006 to Funds/1/ Billed to Funds/2/ Billed to Funds/3/ Billed to Funds/4/
- -------------------------------- ----------------- ------------------ ------------------ ------------------
Name of Series
Kansas Municipal Bond Fund 9,450 0 1,566 0
Kentucky Municipal Bond Fund 17,007 0 2,079 0
Michigan Municipal Bond Fund 11,888 0 1,745 0
Missouri Municipal Bond Fund 12,281 0 1,757 0
Ohio Municipal Bond Fund 18,770 0 2,189 0
Wisconsin Bond Fund 7,515 0 1,448 0
----------------- ------------------ --------------- ------------------
Total $ 76,911 $ 0 $ 10,784 $ 0
/1/ "Audit Fees" are the aggregate fees billed for professional services for the
audit of the Fund's annual financial statements and services provided in
connection with statutory and regulatory filings or engagements.
/2/ "Audit Related Fees" are the aggregate fees billed for assurance and related
services reasonably related to the performance of the audit or review of
financial statements and are not reported under "Audit Fees".
/3/ "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
/4/ "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
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 Bond Fund 0 0 0 0
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance, and tax planning.
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
May 31, 2005 to Funds/1/ Billed to Funds/2/ Billed to Funds/3/ Billed to Funds/4/
- -------------------------------- ----------------- ------------------ ------------------ ------------------
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 Bond Fund 6,803 0 320 0
----------------- ------------------ ------------------ ------------------
Total $ 74,720 $ 0 $ 12,016 $ 0
/1/ "Audit Fees" are the aggregate fees billed for professional services for the
audit of the Fund's annual financial statements and services provided in
connection with statutory and regulatory filings or engagements.
/2/ "Audit Related Fees" are the aggregate fees billed for assurance and related
services reasonably related to the performance of the audit or review of
financial statements and are not reported under "Audit Fees".
/3/ "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
/4/ "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
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 Bond Fund 0 0 0 0
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, 2006 Service Providers Service Providers/1/ Service Providers
- -------------------------------- ------------------------------ ---------------------------- --------------------------
Nuveen Municipal State Trust IV $ 0 $ 15,000 $ 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%
/1/ The amounts reported for the Trust under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation for the
Fund's tax return, the cost of which is borne by the Adviser. In the aggregate,
for all Nuveen funds for which PriceWaterHouse Coopers serves as independent
registered public accounting firm, these fees amounted to $130,000 in 2006.
The above "Tax Fees" are fees billed to the Adviser for Nuveen Open-End and
Closed-End Funds tax return preparation. The amount reported for the Trust under
the column heading "Tax Fees Billed to Adviser and Affiliated Fund Service
Providers" represents the aggregate amount billed to the Adviser exclusively for
the preparation of each Fund's (within the Trust) tax return, the cost of which
is borne by the Adviser. In aggregate, for all Nuveen funds which
PriceWaterHouse Coopers serves as the independent registered public accounting
firm these fees amounted to $130,000 in 2006.
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/1/ Service Providers
- -------------------------------- ------------------------------ ---------------------------- --------------------------
Nuveen Municipal State Trust IV $ 0 $ 13,500 $ 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%
/1/ The amounts reported for the Trust under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation for the
Fund's tax return, the cost of which is borne by the Adviser. In the aggregate,
for all Nuveen funds for which PriceWaterHouse Coopers serves as independent
registered public accounting firm, these fees amounted to $49,500 in 2006.
The above "Tax Fees" are fees billed to the Adviser for Nuveen Open-End and
Closed-End Funds tax return preparation. The amount reported for the Trust under
the column heading "Tax Fees Billed to Adviser and Affiliated Fund Service
Providers" represents the aggregate amount billed to the Adviser exclusively for
the preparation of each Fund's (within the Trust) tax return, the cost of which
is borne by the Adviser. In aggregate, for all Nuveen funds which
PriceWaterHouse Coopers serves as the independent registered public accounting
firm these fees amounted to $49,500 in 2006.
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.
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, 2006 Billed to Trust reporting of the Trust) engagements) Total
- -------------------------------- -------------------- ------------------------ ----------------------- -----------
Name of Series
Kansas Municipal Bond Fund 1,566 15,000 0 16,566
Kentucky Municipal Bond Fund 2,079 15,000 0 17,079
Michigan Municipal Bond Fund 1,745 15,000 0 16,745
Missouri Municipal Bond Fund 1,757 15,000 0 16,757
Ohio Municipal Bond Fund 2,189 15,000 0 17,189
Wisconsin Bond Fund 1,448 15,000 0 16,448
-------------------- ------------------------ ----------------------- -----------
Total $ 10,784
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the 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, 2005 Billed to Trust reporting of the Trust)/1/ engagements) Total
- -------------------------------- -------------------- --------------------------- ------------------------ ---------
Name of Series
Kansas Municipal Bond Fund 905 13,500 0 14,405
Kentucky Municipal Bond Fund 3,347 13,500 0 16,847
Michigan Municipal Bond Fund 1,758 13,500 0 15,258
Missouri Municipal Bond Fund 1,796 13,500 0 15,296
Ohio Municipal Bond Fund 3,890 13,500 0 17,390
Wisconsin Bond Fund 320 13,500 0 13,820
-------------------- --------------------------- ------------------------ ---------
Total $ 12,016
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
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, 2006
----------------------------------------------------------------
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, 2006
----------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
-------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date August 8, 2006
----------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.