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 811-6623
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Nuveen California Select Tax-Free Income Portfolio
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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)
Kevin J. McCarthy
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: March 31
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Date of reporting period: March 31, 2008
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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 policymaking 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.
ANNUAL REPORT
March 31, 2008
Nuveen Investments
MUNICIPAL CLOSED-END FUNDS
Photo of: Small child
NUVEEN SELECT
TAX-FREE
INCOME PORTFOLIO
NXP
NUVEEN SELECT
TAX-FREE INCOME
PORTFOLIO 2
NXQ
NUVEEN SELECT
TAX-FREE INCOME
PORTFOLIO 3
NXR
NUVEEN CALIFORNIA
SELECT TAX-FREE
INCOME PORTFOLIO
NXC
NUVEEN NEW YORK
SELECT TAX-FREE
INCOME PORTFOLIO
NXN
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
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Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Once again, I am pleased to report that over the twelve-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 and Share Price
Information, and the Performance Overview sections of this report.
With the recent volatility in the stock market, many have begun to wonder which
way the market is headed, and whether they need to adjust their holdings of
investments. No one knows what the future will bring, which is why we think a
well-balanced portfolio that is structured and carefully monitored with the help
of an investment professional is an important component in achieving your
long-term financial goals. A well-diversified portfolio may actually help to
reduce your overall investment risk, and we believe that investments like your
Nuveen Investments Fund can be important building blocks in a portfolio crafted
to perform well through a variety of market conditions.
We also are pleased to be able to offer you a choice concerning how you receive
your shareholder reports and other Fund information. As an alternative to mailed
copies, you can sign up to receive future Fund reports and other Fund
information by e-mail and the internet. The inside front cover of this report
contains information on how you can sign up.
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. 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.
Sincerely,
/s/ Timothy R. Schwertfeger
TIMOTHY R. SCHWERTFEGER
CHAIRMAN OF THE BOARD
May 15, 2008
Portfolio Managers' COMMENTS
Nuveen Investments Municipal Closed-End Funds
NXP, NXQ, NXR, NXC, NXN
Portfolio managers Tom Spalding, Scott Romans, and Cathryn Steeves examine
economic and municipal market conditions at the national and state levels, key
investment strategies, and the annual performance of the Nuveen Select
Portfolios. With 33 years of investment experience, Tom has managed the three
national Portfolios since 1999. Scott, who joined Nuveen in 2000, has managed
NXC since 2003, while Cathryn, who has been with Nuveen since 1996, assumed
portfolio management responsibility for NXN in 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED MARCH 31, 2008?
During this reporting period, developments in the financial sector, especially
in the credit markets, led to increased volatility, tightening liquidity and a
flight to quality. These trends began to take shape during the summer of 2007.
The changes became particularly evident in August 2007, when market concerns
about defaults on sub- prime mortgages resulted in a liquidity crisis across all
fixed income asset classes. In September 2007, the Federal Reserve (Fed)
responded to credit market volatility by launching a series of interest rate
cuts that lowered the Fed Funds rate by 300 basis points--from 5.25% to
2.25%--in seven months, including reductions of 125 basis points in January 2008
alone. (On April 30, 2008, following the close of this reporting period, the Fed
reduced this target rate by another 25 basis points, to 2.00%.)
The Fed's actions also were a response to increased signs of weakness in the
U.S. economy, as evidenced by the slowing growth of the U.S. gross domestic
product (GDP), a closely watched measure of economic growth. While the GDP
expanded at 3.8% in the second quarter and 4.9% in the third quarter of 2007,
this measure dropped sharply to 0.6% in the fourth quarter (all GDP numbers
annualized). In the first quarter of 2008, GDP growth remained at an annual rate
of 0.6%, restrained by a 27% decline in residential investment and the weakest
consumer spending since 2001. Driven largely by increased energy, agricultural,
and commodities prices, the Consumer Price Index (CPI) registered a 4.0%
year-over-year gain as of March 2008, while the increase in this inflation gauge
for the first three months of 2008 was an annualized 3.1%. The core CPI (which
excludes food and energy prices) rose 2.4% between April 2007 and March 2008,
remaining above the Fed's unofficial target of 2.0% or lower. In the labor
markets, January 2008 marked the first decline in new jobs created since 2003,
breaking the longest string of employment growth (52 months) in U.S. history.
The national unemployment rate for March 2008 was 5.1%, up from 4.4% in March
2007.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio managers as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
In the municipal bond market, factors related to the sub-prime mortgage crisis
had an indirect, but important, influence on performance. General concerns about
the credit markets as well as more specific concerns about municipal bond
insurers with exposure to sub-prime mortgages caused some investors to curtail
purchases. Because some investors were avoiding exposure to such insurers, hedge
funds and other non-traditional buyers of municipal bonds were forced to sell
holdings of long-maturity bonds into a market already experiencing lack of
liquidity. Combined with the Fed rate cuts, this selling produced a sharp
steepening of the municipal yield curve, as longer-term interest rates rose and
short-term interest rates declined. Between April 1, 2007, and March 31, 2008,
the yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of
longer-term municipal market rates, rose 76 basis points to 5.24%, its highest
level since July 2006. By comparison, the yield on the benchmark 10-year U.S.
Treasury note dropped more than 120 basis points to end the reporting period at
3.43%. In this environment, bonds with shorter maturities generally outperformed
longer maturity bonds and higher quality bonds tended to outperform lower
quality credits.
Over the twelve months ended March 2008, municipal bond issuance nationwide
totaled $451.1 billion, an increase of 2% from the previous twelve months.
During the first three months of 2008, municipal issuance was off sharply from
the record pace seen in 2007, as $80.3 billion in new securities came to market,
down 25% from the same period in 2007. In the first quarter of 2008, insured
bonds comprised 27% of new supply, compared with 51% during the first quarter of
2007. Despite disruptions in the markets, new municipal issuance continued to be
met with good demand by institutional and retail buyers as well as
non-traditional buyers returning to the market at the end of this period.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA AND NEW YORK DURING THIS
PERIOD?
California's economy continued to be relatively diverse, with international
trade, technology, tourism, finance, and defense serving as key drivers. Given
strong global demand for technology products, the long-term economic outlook for
the state remained positive. However, California was among the states hardest
hit by the sub-prime mortgage crisis, and the resultant weakness in housing and
financial services impacted consumer spending and retail sales, slowing the
state's economy significantly. As of March 2008, California's unemployment rate
was 6.2%, up from 5.0% in March 2007, the highest level since July 2004. The
state's budget continued to be structurally unbalanced, and the economic
slowdown, housing market declines, deterioration in household wealth, and the
associated impact on tax revenues aggravated this situation. A recent shortfall
in the fiscal 2008 budget was addressed through further cuts and the issuance of
the final $3.2 billion of economic recovery bonds. As of March 2008, Moody's,
Standard & Poor's (S&P), and Fitch maintained their ratings on California's
general obligation (GO) debt at A1, A+, and A+, respectively. Both Moody's and
S&P maintained stable outlooks for the state.
5
For the twelve months ended March 31, 2008, municipal issuance in California
totaled $71.1 billion, a increase of 13% from the previous twelve months. During
the first three months of 2008, supply of new issuance in the state was down 39%
from January-March 2007 levels, to $12.8 billion. California continued to rank
as the largest state issuer in the nation for both time periods.
In New York, the economy continued to be led by financial services, education
and health, professional and business services, retail trade and government.
Although the heavy concentration of financial jobs in the state has declined
since the early 1990s, New York's economy remained highly dependent on the
financial services sector. Fallout from the sub-prime mortgage crisis led to
layoffs in financial services and a slower hiring outlook for the financial
industry in New York City, while the upstate area continued to experience losses
in the manufacturing sector. In March 2008, unemployment in New York was 4.8%,
up from 4.4% in March 2007. New York's state budget remained extremely sensitive
to fluctuations in the financial services industry, with most of the state's
general fund receipts generated by personal income taxes, which continued to be
heavily dependent on high-income Wall Street employment and capital gains. As of
March 2008, New York State general obligation bonds were rated Aa3 by Moody's,
AA by S&P, and AA- by Fitch. Both Moody's and S&P maintained stable outlooks for
the state.
For the twelve months ended March 31, 2008, municipal issuance in New York
totaled $38 billion, an increase of 8% from the previous twelve months. The
first three months of 2008 saw a larger increase in state supply, with $9.6
billion in new issuance, up 28% from the first quarter of 2007. This relatively
robust issuance was easily absorbed by healthy retail demand. For both periods,
New York ranked third in the nation, following California and Texas, in terms of
municipal issuance.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THIS
REPORTING PERIOD?
During this period, the municipal market was characterized by volatility, lack
of liquidity and a steepening yield curve. As the market moved from rally to
slump and back again, we sought to capitalize on this environment by tailoring
our investment strategies appropriately. Overall, the Portfolios were well
structured going into this period relative to their benchmarks and strategic
guidelines. This enabled us to focus on finding opportunities rather than on
restructuring. When interest rates were low, we
6
continued to invest conservatively by purchasing defensive, high credit quality
bonds that we believed would hold their value well when interest rates
eventually rose. When disruptions in the financial markets triggered a backup in
interest rates and the market discounted lower-quality and higher-yielding
bonds, we took a more opportunistic approach to investing. This often meant
selling the Portfolios' higher-rated defensive positions at attractive prices
and buying lower-rated bonds at attractive levels relative to their credit
quality or taking positions in higher-yielding bonds to capture the yield
advantage of the increase in rates.
In NXC and NXN, we took advantage of health care opportunities to add uninsured,
lower-rated credits when the market discounted lower-quality and higher-yielding
bonds. This marked the first time in a while that we found bonds of this type at
attractive levels relative to their credit quality. California, in particular,
saw a great deal of this type of issuance due to seismic retrofit requirements
for hospitals and other medical facilities. In NXN, we also purchased a small
position in auction rate bonds at attractive yields. Auction rate bonds are
short-term securities whose interest payments are adjusted periodically through
an auction process, which typically also serves as a means for buying and
selling.
In addition to selling higher-rated defensive positions when yields rose, we
selectively sold holdings with shorter durations(1) at attractive prices. In NXC
and NXN, we took advantage of strong bids to sell some sub-5% coupon bonds that
were attractive to the retail market. We also found some opportunities,
particularly in the national Portfolios, to sell holdings that were purchased
when yields were lower and replace them with similar, newer credits that yielded
comparatively more. This process enabled us to maintain the Portfolios' current
portfolio characteristics while strengthening their future income streams.
We also continued to emphasize a disciplined approach to duration management. As
part of our duration strategies, we used inverse floating rate securities,(2) a
type of derivative financial instrument, in all the Portfolios. Inverse floaters
typically provide the dual benefit of bringing the Portfolios' durations closer
to our strategic target and enhancing their income-generation capabilities. NXN
also used forward interest rate swaps, another type of derivative financial
instrument. The goal of this strategy was to help us manage the net asset value
(NAV) volatility of this Portfolio without having a negative impact on NXN's
income stream or common share dividends over the short term.
(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
(2) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Portfolios invested during the reporting period,
are further defined within the Notes to Financial Statements and Glossary
of Terms Used in This Report sections of this shareholder report.
7
HOW DID THE PORTFOLIOS PERFORM?
Individual results for the Nuveen Select Portfolios, as well as relevant index
and peer group information, are presented in the accompanying table.
Total Returns on Common Share Net Asset Value*
For periods ended 3/31/08
National Portfolios 1-Year 5-Year 10-Year
NXP 1.83% 4.42% 4.76%
NXQ -0.24% 4.10% 4.42%
NXR 1.42% 4.42% 4.60%
Lehman Brothers
Municipal Bond Index(3) 1.90% 3.92% 4.99%
Lipper General and
Insured Unleveraged
Municipal Debt Funds
Average(4) -1.34% 4.35% 4.45%
California Portfolio
NXC 0.05% 4.19% 4.45%
Lehman Brothers
CA Tax-Exempt
Bond Index(3) 0.93% 4.05% 4.99%
Lipper CA
Municipal Debt Funds
Average(4) -3.95% 4.67% 4.96%
New York Portfolio
NXN 0.94% 3.86% 4.37%
Lehman Brothers
NY Tax-Exempt
Bond Index(3) 2.55% 3.94% 5.03%
Lipper NY
Municipal Debt Funds
Average(4) -3.44% 4.60% 4.91%
For the twelve months ended March 31, 2008, the total returns on NAV for NXP,
NXQ and NXR trailed the return on the Lehman Brothers Municipal Bond Index, to
varying degrees, and NXC and NXN lagged the returns on the Lehman Brothers
Tax-Exempt Bond Indexes for California and New York, respectively. At the same
time, all five of these Portfolios outperformed the average returns for their
respective Lipper peer groups.
*Annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Portfolio in this report.
(3) The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index containing a broad range of investment-grade municipal
bonds. The Lehman Brothers Tax-Exempt Bond Indexes for California and New
York are also unleveraged and unmanaged and comprise a broad range of
municipal bonds issued in California and New York, respectively. Results
for the Lehman indexes do not reflect any expenses.
(4) Each of the Lipper Municipal Debt Funds Averages shown are calculated using
the returns of all closed-end funds in their respective categories for each
period as follows: Lipper General and Insured Unleveraged Municipal Debt
Funds Average, 1 year, 8 funds; 5 years, 7 funds; and 10 years, 7 funds;
Lipper California Municipal Debt Funds Average, 1 year, 24 funds; 5 years,
24 funds; and 10 years, 12 funds; and Lipper New York Municipal Debt Funds
Average, 1 year, 17 funds; 5 years, 16 funds; and 10 years, 6 funds.
Portfolio and Lipper returns assume reinvestment of dividends.
8
Key factors that influenced the Portfolios' returns included duration and yield
curve positioning, credit exposure and sector allocations, use of derivatives
and holdings of bonds backed by certain municipal bond insurers.
Bonds in the Lehman Brothers Municipal Bond Index with maturities of eight years
or less, especially those maturing in two to six years, benefited the most from
changes in the interest rate environment. As a result, these shorter maturity
bonds generally outperformed credits with longer maturities. Bonds having the
longest maturities (22 years and longer) posted the worst returns. While the
Portfolios generally were underexposed to the outperforming shorter end of the
yield curve, they also were relatively underweighted in poorly performing
longer-maturity bonds. Among the national Portfolios, NXP had the shortest
duration, while NXC's duration was the longest.
As mentioned earlier, NXN used forward interest rate swaps to synthetically
extend its duration and move the Portfolio closer to our strategic duration
target. Despite the fact that longer duration instruments generally performed
poorly, the use of forward interest rate swaps had a positive impact on NXN's
return performance. This was due to the fact that the interest rate swaps
provided exposure to taxable markets during a period when, in contrast to
historical trends, the Treasury market and the municipal market moved in the
opposite directions. As municipal market performance lagged the significant
gains made by Treasuries, the interest rate swaps performed very well. However,
the inverse floaters used by all the Funds had a negative impact on performance.
This resulted from the fact that the inverse floaters effectively increased the
Portfolios' exposure to longer maturity bonds during a period when shorter
maturities were in favor in the market. At the same time, the inverse floaters
also benefited the Portfolios by helping to support their income streams.
Overall, bonds with higher credit quality outperformed lower quality credits and
the performances of these Portfolios generally benefited from their substantial
holdings of bonds rated AAA. The underperformance of the lower quality sector
was largely the result of risk-averse investors' flight to quality as
disruptions in the financial and housing markets deepened. As of March 31, 2008,
the national Portfolios' holdings of bonds rated BBB or lower and non-rated
bonds ranged from 7% to 13% of their portfolios, which was slightly higher than
the weighting of these bonds in the Lehman Brothers Municipal Bond Index. The
Portfolios' relatively small proportion of sub-investment grade and non-rated
bonds helped to limit the negative impact of these holdings. NXC and NXP held
13% of their portfolios in lower-rated credit quality sectors, while NXN's
allocation to these bonds was 7%.
In general, bonds that carried any credit risk, regardless of sector, tended to
perform poorly. Revenue bonds as a whole, and especially the industrial
development and health care sectors that had ranked among the top performers in
the Lehman Brothers Municipal Bond Index over the past few years, underperformed
the general municipal market. In addition, the housing sector also performed
poorly. NXQ's performance was also impacted by a negative credit event involving
its holdings of Ambac-insured bonds issued for the Las Vegas monorail project.
The four-year-old
9
project, which has been struggling to build ridership and turn a profit, was
penalized by the market for dipping into its debt service reserve fund to cover
scheduled bond principal and interest payments.
Sectors of the market that generally contributed positively to the Portfolios'
performances included water and sewer, special tax, resource recovery, and
electric utilities. Pre-refunded bonds(5) performed exceptionally well, due
primarily to their shorter effective maturities and higher credit quality. Among
these Portfolios, NXP had the heaviest weighting of pre-refunded bonds, while
NXN was underweighted in this segment of the market.
Another factor that had a modest impact on the performance of these Portfolios
was their exposure to bonds insured by certain municipal insurers. These
insurers include XL Capital Assurance (XLCA), Financial Guaranty Insurance
Company (FGIC), ACA Financial Guaranty Corporation (ACA) and Ambac Assurance
Corporation.
As concern increased about the balance sheets of municipal bond insurers, prices
on bonds insured by these companies declined, detracting from the Portfolios'
performance. On the whole, the holdings of these Portfolios continued to be well
diversified not only between insured and uninsured bonds, but also within the
insured bond category.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
The portfolios of investments reflect the ratings on certain bonds insured by
AMBAC, FGIC, MBIA and XLCA as of March 31, 2008. During March 2008, at least one
rating agency reduced the rating for AMBAC-insured bonds to AA and at least one
rating agency further reduced the ratings for FGIC-insured and XLCA-insured
bonds. Subsequent to March 31, 2008, at least one rating agency reduced the
rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating
agencies have placed each of these insurers on "negative credit watch", which
may presage one or more rating reductions for such insurer or insurers in the
future. If one or more insurers' ratings are reduced by these rating agencies,
it would likely reduce the effective rating of many of the bonds insured by that
insurer or insurers. It is important to note that municipal bonds historically
have had a very low rate of default.
(5) Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
10
Dividend and Share Price
INFORMATION
Effective March 2008, the dividends of NXQ and NXC were increased, while the
dividends of NXP, NXR, and NXN remained stable throughout the twelve-month
reporting period ended March 31, 2008.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Portfolios received capital gains distributions at the end of
December 2007 as follows:
Long-Term Capital Gains
(per share)
NXC $0.0107
NXN $0.0121
All of these Portfolios seek to pay stable dividends at rates that reflect each
Portfolio's past results and projected future performance. During certain
periods, each Portfolio may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Portfolio during
the period. If a Portfolio has cumulatively earned more than it has paid in
dividends, it holds the excess in reserve as undistributed net investment income
(UNII) as part of the Portfolio's NAV. Conversely, if a Portfolio has
cumulatively paid dividends in excess of its earnings, the excess constitutes
negative UNII that is likewise reflected in the Portfolio's NAV. Each Portfolio
will, over time, pay all of its net investment income as dividends to
shareholders. As of March 31, 2008, NXP, NXQ, and NXC had positive UNII balances
for both tax purposes and financial statement purposes, while NXR and NXN had
positive UNII balances for tax purposes and negative UNII balances for financial
statement purposes.
As of March 31, 2008, the share prices of the Select Portfolios were trading at
discounts to their NAVs as shown in the accompanying chart:
3/31/08 12-Month Average
Premium/Discount Discount
NXP -0.42% -2.27%
NXQ -1.01% -5.11%
NXR -1.65% -5.55%
NXC -0.07% -2.94%
NXN 0.00% -4.55%
11
NXP
Performance
OVERVIEW
Nuveen Select Tax-Free Income Portfolio
as of March 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 59%
AA 13%
A 15%
BBB 12%
BB or Lower 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share
Apr 0.057
May 0.057
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.057
Oct 0.057
Nov 0.057
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.057
Line Chart:
Share Price Performance -- Weekly Closing Price
4/01/07 14.85
14.82
14.76
14.74
14.76
14.74
14.73
14.74
14.6
14.47
14.15
13.83
13.91
14.1
14.01
13.82
13.61
13.93
13.95
13.92
14.04
14
14.11
14.46
14.31
14.04
13.98
14.07
14.25
13.99
13.84
13.9
13.86
13.63
13.57
13.9
14.21
14.15
13.7
14.07
14.39
14.55
14.19
14.332
14.68
14.604
14.2
14.498
13.75
14.32
13.95
14.1
14.2
3/31/08 14.24
FUND SNAPSHOT
------------------------------------
Share Price 14.24
------------------------------------
Net Asset Value 14.30
------------------------------------
Premium/(Discount) to NAV -0.42%
------------------------------------
Market Yield 4.80%
------------------------------------
Taxable-Equivalent Yield(2) 6.67%
------------------------------------
Net Assets ($000) $234,494
------------------------------------
Average Effective
Maturity on Securities (Years) 11.52
------------------------------------
Modified Duration 5.26
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 0.61% 1.83%
------------------------------------
5-Year 5.53% 4.42%
------------------------------------
10-Year 4.74% 4.76%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 14.4%
------------------------------------
Colorado 11.7%
------------------------------------
Texas 9.4%
------------------------------------
Indiana 9.1%
------------------------------------
Washington 8.1%
------------------------------------
South Carolina 8.0%
------------------------------------
Nevada 6.2%
------------------------------------
California 4.9%
------------------------------------
Florida 4.6%
------------------------------------
New Jersey 3.1%
------------------------------------
New Mexico 2.1%
------------------------------------
Oklahoma 2.1%
------------------------------------
Alaska 2.0%
------------------------------------
Other 14.3%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 31.8%
------------------------------------
Health Care 17.6%
------------------------------------
Transportation 12.1%
------------------------------------
Tax Obligation/Limited 9.9%
------------------------------------
Tax Obligation/General 8.6%
------------------------------------
Utilities 8.6%
------------------------------------
Other 11.4%
------------------------------------
(1) The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31, 2008. As
explained earlier in the Portfolio Managers' Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least
one rating agency reduced the rating for MBIA-insured bonds to AA. As of
March 31, 2008, one or more rating agencies have placed each of these
insurers on "negative credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely
reduce the effective rating of many of the bonds insured by that insurer or
insurers, and thereby reduce the percentage of the ratings shown in the
foregoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. When comparing
this Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
12
NXQ
Performance
OVERVIEW
Nuveen Select Tax-Free Income Portfolio 2
as of March 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 57%
AA 19%
A 14%
BBB 9%
BB or Lower 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share
Apr 0.053
May 0.053
Jun 0.053
Jul 0.053
Aug 0.053
Sep 0.053
Oct 0.053
Nov 0.053
Dec 0.053
Jan 0.053
Feb 0.053
Mar 0.0555
Line Chart:
Price Performance -- Weekly Closing Price
4/01/07 14.12
14.16
14.03
14.03
14.27
14.18
14.08
14.1099
14.01
14.09
13.93
13.66
13.64
13.64
13.78
13.6601
13.63
13.41
13.57
13.308
13.34
13.55
13.54
13.85
13.62
13.41
13.59
13.4501
13.46
13.35
13.25
13.4
12.99
12.9699
12.96
13.4
13.14
12.98
12.87
13.27
13.39
13.75
13.3
13.7399
13.86
13.7
13.58
13.7
13.19
13.72
13.7
13.75
13.72
3/31/08 13.79
FUND SNAPSHOT
------------------------------------
Share Price 13.79
------------------------------------
Net Asset Value 13.93
------------------------------------
Premium/(Discount) to NAV -1.01%
------------------------------------
Market Yield 4.83%
------------------------------------
Taxable-Equivalent Yield(2) 6.71%
------------------------------------
Net Assets ($000) $245,244
------------------------------------
Average Effective
Maturity on Securities (Years) 15.10
------------------------------------
Modified Duration 7.23
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/21/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.69% -0.24%
------------------------------------
5-Year 5.68% 4.10%
------------------------------------
10-Year 4.69% 4.42%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 13.4%
------------------------------------
Texas 11.9%
------------------------------------
Colorado 9.9%
------------------------------------
California 6.7%
------------------------------------
Nevada 6.4%
------------------------------------
South Carolina 4.9%
------------------------------------
New York 4.7%
------------------------------------
Indiana 3.5%
------------------------------------
Massachusetts 3.3%
------------------------------------
New Mexico 2.9%
------------------------------------
Washington 2.9%
------------------------------------
Pennsylvania 2.8%
------------------------------------
Iowa 2.8%
------------------------------------
Rhode Island 2.3%
------------------------------------
Florida 2.3%
------------------------------------
Michigan 2.3%
------------------------------------
Louisiana 2.2%
------------------------------------
Other 14.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 23.8%
------------------------------------
Health Care 18.6%
------------------------------------
Transportation 14.9%
------------------------------------
Tax Obligation/Limited 10.5%
------------------------------------
Utilities 8.5%
------------------------------------
Tax Obligation/General 5.2%
------------------------------------
Consumer Staples 4.9%
------------------------------------
Other 13.6%
------------------------------------
(1) The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31, 2008. As
explained earlier in the Portfolio Managers' Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least
one rating agency reduced the rating for MBIA-insured bonds to AA. As of
March 31, 2008, one or more rating agencies have placed each of these
insurers on "negative credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely
reduce the effective rating of many of the bonds insured by that insurer or
insurers, and thereby reduce the percentage of the ratings shown in the
foregoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. When comparing
this Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
13
NXR
Performance
OVERVIEW
Nuveen Select Tax-Free Income Portfolio 3
as of March 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 53%
AA 25%
A 14%
BBB 7%
BB or Lower 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share
Apr 0.0535
May 0.0535
Jun 0.0535
Jul 0.0535
Aug 0.0535
Sep 0.0535
Oct 0.0535
Nov 0.0535
Dec 0.0535
Jan 0.0535
Feb 0.0535
Mar 0.0535
Line Chart:
Share Price Performance -- Weekly Closing Price
4/01/07 13.95
14.06
13.98
13.84
13.88
13.96
13.87
13.85
13.85
13.89
13.53
13.33
13.33
13.4
13.63
13.34
13.25
13.31
13.3
13.17
13.07
13.15
13.35
13.56
13.46
13.33
13.31
13.44
13.2799
13.14
12.69
12.96
12.92
12.82
12.78
12.99
13.06
12.92
12.92
13.15
13.3
13.66
13.25
13.56
13.71
13.78
13.56
13.716
13.43
13.77
13.6
13.59
13.57
3/31/08 13.75
FUND SNAPSHOT
------------------------------------
Share Price 13.75
------------------------------------
Net Asset Value 13.98
------------------------------------
Premium/(Discount) to NAV -1.65%
------------------------------------
Market Yield 4.67%
------------------------------------
Taxable-Equivalent Yield(2) 6.49%
------------------------------------
Net Assets ($000) $181,288
------------------------------------
Average Effective
Maturity on Securities (Years) 13.24
------------------------------------
Modified Duration 6.43
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/24/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.91% 1.42%
------------------------------------
5-Year 6.31% 4.42%
------------------------------------
10-Year 4.77% 4.60%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 18.4%
------------------------------------
Texas 10.3%
------------------------------------
California 7.4%
------------------------------------
Colorado 6.7%
------------------------------------
Indiana 6.4%
------------------------------------
Iowa 5.8%
------------------------------------
Florida 5.6%
------------------------------------
South Carolina 4.9%
------------------------------------
Nevada 4.5%
------------------------------------
North Carolina 4.3%
------------------------------------
New York 3.7%
------------------------------------
Michigan 3.4%
------------------------------------
New Mexico 2.7%
------------------------------------
Pennsylvania 2.5%
------------------------------------
Other 13.4%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 24.5%
------------------------------------
Health Care 19.0%
------------------------------------
Utilities 17.5%
------------------------------------
Tax Obligation/Limited 11.6%
------------------------------------
Transportation 8.4%
------------------------------------
Tax Obligation/General 5.4%
------------------------------------
Education and Civic
Organizations 5.0%
------------------------------------
Other 8.6%
------------------------------------
(1) The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31, 2008. As
explained earlier in the Portfolio Managers' Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least
one rating agency reduced the rating for MBIA-insured bonds to AA. As of
March 31, 2008, one or more rating agencies have placed each of these
insurers on "negative credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely
reduce the effective rating of many of the bonds insured by that insurer or
insurers, and thereby reduce the percentage of the ratings shown in the
foregoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. When comparing
this Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
14
NXC
Performance
OVERVIEW
Nuveen California
Select Tax-Free
Income Portfolio
as of March 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 62%
AA 7%
A 18%
BBB 11%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share(3)
Apr 0.053
May 0.053
Jun 0.053
Jul 0.053
Aug 0.053
Sep 0.053
Oct 0.053
Nov 0.053
Dec 0.053
Jan 0.053
Feb 0.053
Mar 0.0555
Line Chart:
Share Price Performance -- Weekly Closing Price
4/01/07 14.28
14.44
14.3199
14.16
14.45
14.65
14.5
14.77
14.2
14.19
14.25
14.2501
13.99
14.23
13.96
13.97
13.69
13.74
14
13.81
13.45
13.95
13.85
14.29
14.03
13.96
13.91
13.8
13.94
13.8
13.8701
14.45
14
13.73
13.62
13.89
14.04
14.15
13.44
13.39
14
14.16
13.9801
14.09
14.22
14.18
13.95
13.84
13.96
13.85
13.86
13.96
14.1
3/31/08 14.0776
FUND SNAPSHOT
------------------------------------
Share Price 14.08
------------------------------------
Net Asset Value 14.09
------------------------------------
Premium/(Discount) to NAV -0.07%
------------------------------------
Market Yield 4.73%
------------------------------------
Taxable-Equivalent Yield(2) 7.24%
------------------------------------
Net Assets ($000) $88,224
------------------------------------
Average Effective
Maturity on Securities (Years) 14.87
------------------------------------
Modified Duration 7.38
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 3.68% 0.05%
------------------------------------
5-Year 5.88% 4.19%
------------------------------------
10-Year 4.56% 4.45%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 21.9%
------------------------------------
Tax Obligation/Limited 19.1%
------------------------------------
U.S. Guaranteed 14.8%
------------------------------------
Health Care 13.4%
------------------------------------
Education and Civic
Organizations 10.4%
------------------------------------
Transportation 5.3%
------------------------------------
Consumer Staples 4.7%
------------------------------------
Other 10.4%
------------------------------------
(1) The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31, 2008. As
explained earlier in the Portfolio Managers' Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least
one rating agency reduced the rating for MBIA-insured bonds to AA. As of
March 31, 2008, one or more rating agencies have placed each of these
insurers on "negative credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely
reduce the effective rating of many of the bonds insured by that insurer or
insurers, and thereby reduce the percentage of the ratings shown in the
foregoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0107 per share.
15
NXN
Performance
OVERVIEW
Nuveen New York
Select Tax-Free
Income Portfolio
as of March 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 62%
AA 22%
A 9%
BBB 5%
BB or Lower 1%
N/R 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share (3)
Apr 0.051
May 0.051
Jun 0.051
Jul 0.051
Aug 0.051
Sep 0.051
Oct 0.051
Nov 0.051
Dec 0.051
Jan 0.051
Feb 0.051
Mar 0.051
Line Chart:
Share Price Performance -- Weekly Closing Price
4/01/07 14.2
14.11
14.07
13.77
13.96
13.8
14
13.97
14
13.92
13.9
13.22
13.37
13.34
13.45
13.3
13.33
13.36
13.3
13.22
13.05
13.47
13.46
13.42
13.38
13.23
13.2
13.1
13.3
13.09
13.15
13.15
13
12.88
12.88
13.2
13.11
12.97
12.8
12.97
13.4
13.64
13.64
13.67
13.88
13.655
13.37
13.63
13.4
13.78
13.27
13.56
13.7
3/31/08 13.79
FUND SNAPSHOT
------------------------------------
Share Price 13.79
------------------------------------
Net Asset Value 13.79
------------------------------------
Premium/(Discount) to NAV 0.00%
------------------------------------
Market Yield 4.44%
------------------------------------
Taxable-Equivalent Yield(2) 6.62%
------------------------------------
Net Assets ($000) $53,908
------------------------------------
Average Effective
Maturity on Securities (Years) 16.25
------------------------------------
Modified Duration 6.17
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.06% 0.94%
------------------------------------
5-Year 5.47% 3.86%
------------------------------------
10-Year 4.55% 4.37%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 17.0%
------------------------------------
Health Care 13.7%
------------------------------------
Water and Sewer 12.1%
------------------------------------
Long-Term Care 11.8%
------------------------------------
Education and Civic
Organizations 11.5%
------------------------------------
Tax Obligation/General 8.3%
------------------------------------
Housing/Single Family 8.1%
------------------------------------
U.S. Guaranteed 6.2%
------------------------------------
Other 11.3%
------------------------------------
(1) The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31, 2008. As
explained earlier in the Portfolio Managers' Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least
one rating agency reduced the rating for MBIA-insured bonds to AA. As of
March 31, 2008, one or more rating agencies have placed each of these
insurers on "negative credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely
reduce the effective rating of many of the bonds insured by that insurer or
insurers, and thereby reduce the percentage of the ratings shown in the
foregoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0121 per share.
16
NXP
NXQ
NXR
Shareholder MEETING REPORT
The special meeting of shareholders was held in the offices of Nuveen
Investments on October 12, 2007; the meetings for California Select Tax-Free
(NXC) and New York Select Tax-Free (NXN) were subsequently adjourned to October
22, 2007; New York Select Tax-Free (NXN) was also adjourned to November 8, 2007
and November 12, 2007.
SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3
(NXP) (NXQ) (NXR)
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
For 8,276,032 8,827,134 6,562,608
Against 271,723 657,289 288,356
Abstain 341,888 391,327 175,193
Broker Non-Votes 2,618,234 3,043,850 2,381,128
------------------------------------------------------------------------------------------------------------------------------------
Total 11,507,877 12,919,600 9,407,285
====================================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 11,175,774 12,242,590 9,175,084
Against 84,746 373,053 131,336
Abstain 248,357 303,957 100,865
------------------------------------------------------------------------------------------------------------------------------------
Total 11,508,877 12,919,600 9,407,285
====================================================================================================================================
17
NXC
NXN
Shareholder MEETING REPORT (continued)
CALIFORNIA NEW YORK
SELECT SELECT
TAX-FREE TAX-FREE
(NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
For 3,180,711 1,960,633
Against 101,660 156,631
Abstain 146,703 81,318
Broker Non-Votes 1,280,121 847,875
------------------------------------------------------------------------------------------------------------------------------------
Total 4,709,195 3,046,457
====================================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 4,591,209 2,961,633
Against 18,164 35,372
Abstain 99,822 49,452
------------------------------------------------------------------------------------------------------------------------------------
Total 4,709,195 3,046,457
====================================================================================================================================
18
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Select Tax-Free Income Portfolio,
Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income
Portfolio 3, Nuveen California Select Tax-Free Income Portfolio, and Nuveen New
York Select Tax-Free Income Portfolio, as of March 31, 2008, and the related
statements of operations for the year then ended, the statements of changes in
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. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits 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 and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2008, by correspondence with the custodian and
brokers, or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio
2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen California Select Tax-Free
Income Portfolio, and Nuveen New York Select Tax-Free Income Portfolio at March
31, 2008, the results of their operations for the year then ended, changes in
their net assets for each of the two years in the period then ended, and their
financial highlights for each of the five years in the period then ended in
conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
May 20, 2008
19
NXP
Nuveen Select Tax-Free Income Portfolio
Portfolio of INVESTMENTS
March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.3%
ALASKA - 2.0%
$ 2,475 Alaska Municipal Bond Bank Authority, General Obligation Bonds, 12/13 at 100.00 AAA $ 2,768,164
Series 2003E, 5.250%, 12/01/23 (Pre-refunded 12/01/13) -
MBIA Insured
2,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 1,950,200
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
4,975 Total Alaska 4,718,364
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.3%
5,915 Arkansas Development Finance Authority, Tobacco Settlement No Opt. Call AAA 645,504
Revenue Bonds, Arkansas Cancer Research Center Project,
Series 2006, 0.000%, 7/01/46 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.8%
2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,616,560
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 - AMBAC Insured
3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 Aa3 3,701,058
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,480,060
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
1,130 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AA 1,131,752
Waterworks Revenue Refunding Bonds, Series 2001A,
5.125%, 7/01/41 - FGIC Insured
365 Los Angeles, California, Parking System Revenue Bonds, 5/09 at 101.00 AAA 366,482
Series 1999A, 5.250%, 5/01/29 - AMBAC Insured
750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 648,030
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
1,150 Woodside Elementary School District, San Mateo County, No Opt. Call AAA 324,783
California, General Obligation Bonds, Series 2007,
0.000%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,720 Total California 11,268,725
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 11.5%
1,700 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (4) 1,797,223
Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
690 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 756,702
Health Initiatives, Series 2002A, 5.500%, 3/01/22
(Pre-refunded 3/01/12)
390 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 Baa3 406,887
Small Water Resources Revenue Bonds, Series 2000A,
5.800%, 11/01/20 - FGIC Insured
9,535 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 10,667,948
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 5,128,350
Refunding Bonds, Series 2001A, 5.625%, 11/15/17 -
FGIC Insured (Alternative Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 A3 (4) 3,269,100
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/23 (Pre-refunded 12/01/13) - XLCA Insured
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,472,950
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) -
MBIA Insured
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 3,160 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA $ 3,454,891
Revenue Bonds, Senior Series 2001A, 5.500%, 6/15/20
(Pre-refunded 6/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,475 Total Colorado 26,954,051
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.5%
1,000 District of Columbia, Hospital Revenue Refunding Bonds, 5/08 at 101.00 AAA 1,011,810
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured (ETM)
60 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA 60,998
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
205 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 Aaa 218,091
America, Series 1999, 5.625%, 10/01/29 (Pre-refunded
10/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,265 Total District of Columbia 1,290,899
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.5%
10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 10,584,699
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.6%
1,330 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,358,701
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.2%
1,965 Board of Trustees of Southern Illinois University, Housing and No Opt. Call AAA 1,095,350
Auxiliary Facilities System Revenue Bonds, Series 1999A,
0.000%, 4/01/20 - MBIA Insured
Chicago Heights, Illinois, General Obligation Corporate Purpose
Bonds, Series 1993:
3,820 5.650%, 12/01/15 - FGIC Insured 12/08 at 100.00 Baa3 3,895,330
2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 Baa3 2,651,454
195 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 207,735
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 - FSA Insured
805 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 899,121
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured
1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101.00 N/R 972,360
Midwestern University, Series 1998B, 5.500%, 5/15/18 -
ACA Insured
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Aaa 675,516
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
(Pre-refunded 5/01/12)
4,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ (4) 4,532,040
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
(Pre-refunded 8/15/14)
705 Illinois Finance Authority, Revenue Bonds, University of Chicago, 7/17 at 100.00 Aa1 619,187
Series 2007, Trust 73TP, 10.203%, 7/01/46 (IF)
1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,368,484
Memorial Hospital, Series 2001,5.600%, 10/01/16
2,700 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 2,852,199
Hospital, Series 2002A, 6.000%, 7/01/17
2,275 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,435,342
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
60 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call Baa3 (4) 60,346
Evangelical Hospitals Corporation, Series 1992B,
6.500%, 4/15/09 (ETM)
3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A1 2,075,563
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/17 - FGIC Insured
810 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, No Opt. Call AAA 241,226
McCormick Place Expansion Project, Series 2002A,
0.000%, 6/15/30 - MBIA Insured
21
NXP
Nuveen Select Tax-Free Income Portfolio (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA $ 5,154,300
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AA+ 1,313,741
5.250%, 12/01/34 - FGIC Insured
Yorkville, Illinois, General Obligation Debt Certificates, Series 2003:
1,000 5.000%, 12/15/19 (Pre-refunded 12/15/11) - RAAI Insured 12/11 at 100.00 AA (4) 1,083,300
1,000 5.000%, 12/15/20 (Pre-refunded 12/15/11) - RAAI Insured 12/11 at 100.00 AA (4) 1,083,300
------------------------------------------------------------------------------------------------------------------------------------
34,280 Total Illinois 33,215,894
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.9%
5,000 Duneland School Building Corporation, Indiana, First Mortgage 2/09 at 101.00 AAA 5,090,650
Refunding Bonds, Series 1999, 5.125%, 2/01/18 - MBIA Insured
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 A (4) 1,105,650
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) -
FGIC Insured
2,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,295,760
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
1,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB- 865,650
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
9,855 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 10,739,781
Waterworks Project, Series 2002A, 5.125%, 7/01/21
(Pre-refunded 7/01/12) - MBIA Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 771,675
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,605 Total Indiana 20,869,166
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
1,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 850,800
Revenue Bonds, Series 2005C, 5.375%, 6/01/38
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5%
500 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial 7/16 at 100.00 A3 450,460
Hospital, Series 2006, 4.875%, 7/01/36
750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas 6/14 at 100.00 AAA 754,253
and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,250 Total Kansas 1,204,713
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5%
1,100 Jefferson County, Kentucky, Health System Revenue Bonds, 10/08 at 101.00 AAA 1,117,919
Alliant Health System Inc., Series 1998, 5.125%, 10/01/18 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.4%
1,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 931,970
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.8%
20 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 21,960
Revenue Bonds, Partners HealthCare System Inc., Series 2001C,
6.000%, 7/01/17
480 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA (4) 534,538
Revenue Bonds, Partners HealthCare System Inc., Series 2001C,
6.000%, 7/01/17 (Pre-refunded 7/01/11)
1,055 Massachusetts Turnpike Authority, Metropolitan Highway 7/08 at 101.00 AAA 1,040,663
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
410 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 404,264
System Revenue Bonds, Subordinate Series 1999A,
5.000%, 1/01/39 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,965 Total Massachusetts 2,001,425
------------------------------------------------------------------------------------------------------------------------------------
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
$ 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- $ 939,550
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA 2,915,805
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
3,900 Total Michigan 3,855,355
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.1%
255 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 257,739
Revenue Bonds, Series 1995A, 5.200%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
3,600 Calhoun County, Mississippi, Solid Waste Disposal Revenue 4/08 at 102.00 BBB 3,679,920
Bonds, Weyerhauser Company Project, Series 1992,
6.875%, 4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.6%
5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 1,472,350
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.1%
2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 2,542,500
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
2,360 0.000%, 1/01/21 - AMBAC Insured No Opt. Call AAA 1,006,705
3,500 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,396,500
6,025 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 4,916,159
1,515 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 A3 1,536,983
Series 2002, 5.500%, 6/01/21 - FGIC Insured
2,555 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 A3 (4) 2,812,595
Series 2002, 5.500%, 6/01/21 (Pre-refunded 6/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,455 Total Nevada 14,211,442
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2%
400 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 409,256
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.0%
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 2,252,275
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
1,580 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,717,018
1,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,123,640
2,500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 2,003,350
Settlement Asset-Backed Bonds, Series 2007-1A,
5.000%, 6/01/41
------------------------------------------------------------------------------------------------------------------------------------
7,580 Total New Jersey 7,096,283
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.1%
1,000 New Mexico Mortgage Finance Authority, Multifamily Housing 9/17 at 100.00 AAA 912,850
Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42
(Alternative Minimum Tax)
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,959,880
Revenue Bonds, Series 2004, 4.625%, 7/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total New Mexico 4,872,730
------------------------------------------------------------------------------------------------------------------------------------
23
NXP
Nuveen Select Tax-Free Income Portfolio (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.3%
$ 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA $ 1,015,670
Mortgage Revenue Bonds, Kaleida Health, Series 2004,
5.050%, 2/15/25
1,215 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 1,269,092
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17
385 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 (4) 422,603
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17 (Pre-refunded 7/01/10)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 1998A:
145 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 147,268
305 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 309,770
------------------------------------------------------------------------------------------------------------------------------------
3,050 Total New York 3,164,403
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4%
500 Appalachian State University, North Carolina, Utilities System 5/08 at 102.00 AAA 511,960
Revenue Refunding Bonds, Series 1998, 5.000%, 5/15/24
(Pre-refunded 5/15/08) - MBIA Insured
2,195 North Carolina Eastern Municipal Power Agency, Power System 5/08 at 100.00 Baa1 2,194,802
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/21
500 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aa3 517,405
Revenue Bonds, Series 2001A, 5.250%, 11/01/17 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,195 Total North Carolina 3,224,167
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.1%
300 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 326,346
Series 2001, 5.500%, 12/01/17 (Pre-refunded 12/01/10) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.1%
1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB 883,100
Revenue Bonds, Series 2005, 5.375%, 9/01/36
4,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA- 3,978,120
St. John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Oklahoma 4,861,220
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.8%
500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 498,335
Bonds, Widener University, Series 2003, 5.250%, 7/15/24
700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 717,990
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
520 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AAA 563,727
5.000%, 9/15/20 (Pre-refunded 9/15/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,720 Total Pennsylvania 1,780,052
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.9%
1,000 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 1,010,570
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/20
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 11,412,998
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded 12/01/12)
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A+ (4) 1,721,235
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13)
520 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- (4) 580,819
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
1,980 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 1,992,256
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 1,720 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB $ 1,726,072
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
16,720 Total South Carolina 18,443,950
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.2%
5,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 A- 5,037,600
Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
1,000 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 1,081,740
Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) -
AMBAC Insured
6,150 Dallas Independent School District, Dallas County, Texas, General 2/12 at 100.00 AAA 6,430,809
Obligation Refunding Bonds, Series 2002, 5.250%, 2/15/20
360 Dallas-Fort Worth International Airport Public Facility Corporation, 1/09 at 100.00 AAA 365,296
Texas, Airport Hotel Revenue Bonds, Series 2001,
5.500%, 1/15/20 - FSA Insured
2,300 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 2,260,118
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - MBIA Insured
3,470 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 61.17 AAA 504,122
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/38 -
MBIA Insured
45 Irving Independent School District, Dallas County, Texas, General 2/12 at 100.00 AAA 43,919
Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31
3,455 Irving Independent School District, Dallas County, Texas, General 2/12 at 100.00 AAA 3,725,388
Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31
(Pre-refunded 2/15/12)
465 San Antonio, Texas, Water System Revenue Refunding Bonds, 5/12 at 100.00 AAA 521,377
Series 1992, 6.000%, 5/15/16 (Pre-refunded 5/15/12) -
MBIA Insured
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,652,403
Program, Series 2003A, 5.125%, 8/01/42
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,995 Total Texas 21,622,772
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3%
775 Utah State Building Ownership Authority, Lease Revenue Bonds, 11/11 at 100.00 AA+ 806,612
State Facilities Master Lease Program, Series 2001B,
5.250%, 5/15/24
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.9%
250 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 270,343
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.500%, 7/01/17 - MBIA Insured
4,750 Snohomish County Public Utility District 1, Washington, No Opt. Call AAA 5,128,528
Generation System Revenue Bonds, Series 1989,
6.750%, 1/01/12 (ETM)
9,750 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 10,086,277
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
2,345 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,381,629
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
2,115 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AAA 728,998
Bonds, Series 2003F, 0.000%, 12/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,210 Total Washington 18,595,775
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.5%
1,075 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 1,133,115
Bonds, Series 1992, 6.500%, 5/15/10 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
25
NXP
Nuveen Select Tax-Free Income Portfolio (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
$ 215 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB $ 215,800
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 1,001,310
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.500%, 8/15/17
2,500 Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 11/13 at 100.00 AA- 2,525,350
5.000%, 11/01/26
------------------------------------------------------------------------------------------------------------------------------------
3,715 Total Wisconsin 3,742,460
------------------------------------------------------------------------------------------------------------------------------------
$ 246,825 Total Municipal Bonds (cost $223,402,676) 230,568,777
=============-----------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.0%
AIRLINES - 0.0%
789 UAL Corporation, (5) $ 16,987
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $0) 16,987
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $223,402,676) - 98.3% 230,585,764
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,907,830
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 234,493,594
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets.
(2) 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.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31,
2008. During March 2008, at least one rating agency reduced
the rating for AMBAC-insured bonds to AA and at least one
rating agency further reduced the ratings for FGIC-insured
and XLCA-insured bonds. Subsequent to March 31, 2008, at
least one rating agency reduced the rating for MBIA-insured
bonds to AA. As of March 31, 2008, one or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced by these rating
agencies, it would likely reduce the effective rating of
many of the bonds insured by that insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) On December 9, 2002, UAL Corporation ("UAL"), the holding
company of United Air Lines, Inc. ("United") filed for
federal bankruptcy protection. The Adviser determined that
it was likely that United would not remain current on their
interest payment obligations with respect to the bonds
previously held and thus the Fund had stopped accruing
interest on its UAL bonds. On February 1, 2006, UAL emerged
from federal bankruptcy with the acceptance of its
reorganization plan by the bankruptcy court. Under the
settlement agreement established to meet UAL's unsecured
bond obligations, the bondholders, including the Fund,
received three distributions of UAL common stock over the
subsequent months, and the bankruptcy court dismissed all
unsecured claims of bondholders, including those of the
Fund. On May 5, 2006, the Fund liquidated such UAL common
stock holdings. On September 29, 2006 and May 30, 2007, the
Fund received additional distributions of 1,901 and 617
shares, respectively, of UAL common stock as a result of its
earlier ownership of the UAL bonds. The Fund liquidated the
1,901 shares of such UAL common stock holdings on November
15, 2006. The Fund received an additional distribution of
172 UAL common stock shares on November 14, 2007. The
remaining 789 shares of UAL common stock were still held by
the Fund at March 31, 2008.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
26
NXQ
Nuveen Select Tax-Free Income Portfolio 2
Portfolio of INVESTMENTS
March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.5%
ARIZONA - 0.7%
$ 2,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- $ 1,709,520
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.7%
1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA 1,034,840
and Construction Bonds, Series 2002A, 5.000%, 10/01/19 -
FSA Insured
1,205 Sebastian County Health Facilities Board, Arkansas, Hospital 11/11 at 101.00 Baa3 1,176,381
Revenue Improvement Bonds, Sparks Regional Medical Center,
Series 2001A, 5.250%, 11/01/21
2,000 University of Arkansas, Fayetteville, Various Facilities Revenue 12/12 at 100.00 Aa3 1,960,960
Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,205 Total Arkansas 4,172,181
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.6%
1,000 Alameda Corridor Transportation Authority, California, Subordinate 10/17 at 100.00 AAA 808,280
Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 -
AMBAC Insured
3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 Aa3 3,701,058
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
500 California State Public Works Board, Lease Revenue Refunding 12/08 at 101.00 A 508,595
Bonds, Community Colleges Projects, Series 1998A,
5.250%, 12/01/16
2,000 California State Public Works Board, Lease Revenue Refunding No Opt. Call Aa2 2,184,780
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/14
60 California, General Obligation Bonds, Series 1997, 10/08 at 100.00 AAA 60,630
5.000%, 10/01/18 - AMBAC Insured
2,500 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A+ 2,476,325
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 809,190
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.125%, 6/01/47
3,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,712,064
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
1,195 Palmdale Elementary School District, Los Angeles County, No Opt. Call AAA 396,501
California, General Obligation Bonds, Series 2003,
0.000%, 8/01/28 - FSA Insured
1,750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,512,070
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
16,530 Total California 16,169,493
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.8%
1,700 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 1,797,223
Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
1,300 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 1,425,671
Health Initiatives, Series 2002A, 5.500%, 3/01/22
(Pre-refunded 3/01/12)
2,825 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 3,160,667
Bonds, Series 1991D, 7.750%, 11/15/13
(Alternative Minimum Tax)
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 5,128,350
Refunding Bonds, Series 2001A, 5.625%, 11/15/17 -
FGIC Insured (Alternative Minimum Tax)
27
NXQ
Nuveen Select Tax-Free Income Portfolio 2 (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,555 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ $ 1,624,742
Refunding Bonds, Series 2001, 5.500%, 11/15/16 -
FGIC Insured
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 A3 (4) 3,269,100
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/23 (Pre-refunded 12/01/13) - XLCA Insured
2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 A- 1,759,600
Revenue Bonds, Convention Center Hotel, Series 2006,
4.750%, 12/01/35 - XLCA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 2000B:
5,100 0.000%, 9/01/24 - MBIA Insured No Opt. Call AAA 2,010,930
4,000 0.000%, 9/01/33 - MBIA Insured No Opt. Call AAA 879,320
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,472,950
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) -
MBIA Insured
250 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 271,435
Bonds, Senior Series 2001A, 5.250%, 6/15/41
(Pre-refunded 6/15/11) - FSA Insured
1,100 University of Colorado Hospital Authority, Revenue Bonds, 11/11 at 100.00 Baa1 (4) 1,205,952
Series 2001A, 5.600%, 11/15/31 (Pre-refunded 11/15/11)
------------------------------------------------------------------------------------------------------------------------------------
32,830 Total Colorado 24,005,940
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
500 District of Columbia, Hospital Revenue Refunding Bonds, 5/08 at 101.00 AAA 505,905
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured (ETM)
500 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 512,160
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21 (Pre-refunded 10/01/08) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,000 Total District of Columbia 1,018,065
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.3%
1,000 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 933,070
Hospital Revenue Bonds, Tampa General Hospital, Series 2006,
5.250%, 10/01/41
1,500 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding 10/12 at 100.00 A+ 1,528,710
and Improvement Bonds, Series 2002, 5.000%, 10/01/21 -
FGIC Insured
2,500 JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 4/15 at 100.00 AAA 2,475,525
5.000%, 10/01/41 - FSA Insured
625 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 A3 625,538
Revenue Refunding Bonds, Series 2001, 5.125%, 7/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,625 Total Florida 5,562,843
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5%
1,100 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,123,738
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.2%
630 Chicago Metropolitan Housing Development Corporation, 7/08 at 100.00 AA 631,084
Illinois, FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17
590 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 589,121
5.000%, 1/01/33 - AMBAC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 1,592,023
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
250 Illinois Development Finance Authority, Economic Development 8/08 at 100.00 Baa2 (4) 252,803
Revenue Bonds, Latin School of Chicago, Series 1998,
5.200%, 8/01/11 (Pre-refunded 8/01/08)
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Aaa 675,516
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
(Pre-refunded 5/01/12)
705 Illinois Finance Authority, Revenue Bonds, University of Chicago, 7/17 at 100.00 Aa1 619,187
Series 2007, Trust 73TP, 10.203%, 7/01/46 (IF)
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA $ 2,009,676
Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured
2,255 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 2,363,714
Hospital, Series 2002A, 6.250%, 7/01/22
1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa2 (4) 1,164,404
University Health System, Series 2001A, 6.125%, 7/01/31
(Pre-refunded 7/01/11)
1,000 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 A+ 910,300
Series 2005E, 4.750%, 7/01/30 - FGIC Insured
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,853,443
5.000%, 6/15/22
45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/08 at 100.00 A1 45,071
Bonds, McCormick Place Expansion Project, Series 1992A,
6.500%, 6/15/22
7,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 7,216,019
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA 4,979,163
Source Bonds, Tax Increment, Series 2002A, 5.000%, 6/01/22 -
RAAI Insured
Sauk Village, Illinois, General Obligation Alternate Revenue
Source Bonds, Tax Increment, Series 2002B:
1,060 0.000%, 12/01/17 - RAAI Insured No Opt. Call AA 646,006
1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 647,620
1,100 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AA+ 1,111,627
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA (4) 1,083,300
Series 2003, 5.000%, 12/15/21 (Pre-refunded 12/15/11) -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
33,020 Total Illinois 32,390,077
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.4%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 A (4) 1,105,650
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) -
FGIC Insured
1,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB- 865,650
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
935 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 950,512
Revenue Bonds, Series 2002C-2, 5.250%, 7/01/23
(Alternative Minimum Tax)
4,380 Indiana Municipal Power Agency, Power Supply System 1/12 at 100.00 AAA 4,469,396
Revenue Bonds, Series 2002A, 5.125%, 1/01/21 -
AMBAC Insured
355 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 8/08 at 101.00 AAA 328,258
Memorial Health System, Series 1998A, 4.625%, 8/15/28 -
MBIA Insured
750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 771,675
Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,420 Total Indiana 8,491,141
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.7%
1,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 850,800
Revenue Bonds, Series 2005C, 5.375%, 6/01/38
1,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 901,280
Revenue Bonds, Series 2005B, 5.600%, 6/01/34
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
1,000 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 1,068,230
3,500 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,826,025
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Iowa 6,646,335
------------------------------------------------------------------------------------------------------------------------------------
29
NXQ
Nuveen Select Tax-Free Income Portfolio 2 (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7%
$ 795 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence 7/16 at 100.00 A3 $ 716,231
Memorial Hospital, Series 2006, 4.875%, 7/01/36
1,000 Salina, Kansas, Hospital Revenue Bonds, Salina Regional 4/13 at 100.00 A1 896,070
Medical Center, Series 2006, 4.500%, 10/01/26
------------------------------------------------------------------------------------------------------------------------------------
1,795 Total Kansas 1,612,301
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
2,125 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 2,157,598
Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 -
MBIA Insured
3,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 3,250,590
University, Series 2002A, 5.125%, 7/01/27
(Pre-refunded 7/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,125 Total Louisiana 5,408,188
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.2%
3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,080,160
Revenue Bonds, Berkshire Health System, Series 2001E,
6.250%, 10/01/31
2,565 Massachusetts Turnpike Authority, Metropolitan Highway 7/08 at 101.00 AAA 2,530,142
System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 -
MBIA Insured
1,270 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 1,381,201
Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured (ETM)
820 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 885,936
Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,655 Total Massachusetts 7,877,439
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.3%
545 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 A- 559,443
5.250%, 4/01/19 - XLCA Insured
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA 2,915,805
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
2,000 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA- (4) 2,065,720
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18 (Pre-refunded 5/01/09)
------------------------------------------------------------------------------------------------------------------------------------
5,445 Total Michigan 5,540,968
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.5%
1,500 Minnesota Housing Finance Agency, Residential Housing 7/16 at 100.00 AA+ 1,311,990
Finance Bonds, Series 2007-I, 4.850%, 7/01/38
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.3%
1,500 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AA+ (4) 1,622,385
Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19
(Pre-refunded 6/01/11) - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
4,595 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,833,405
13,250 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 10,811,466
1,100 Nevada, General Obligation Refunding Bonds, Municipal Bond 5/08 at 100.00 AAA 1,104,411
Bank Projects 65 and R-6, Series 1998, 5.000%, 5/15/22
(Pre-refunded 5/15/08) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,445 Total Nevada 15,371,667
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.8%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba2 2,252,275
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
$ 1,000 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA $ 1,123,040
1,010 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,167,540
------------------------------------------------------------------------------------------------------------------------------------
4,510 Total New Jersey 4,542,855
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.9%
1,000 New Mexico Mortgage Finance Authority, Multifamily Housing 9/17 at 100.00 AAA 912,850
Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42
(Alternative Minimum Tax)
University of New Mexico, FHA-Insured Mortgage Hospital
Revenue Bonds, Series 2004:
555 4.625%, 1/01/25 - FSA Insured 7/14 at 100.00 AAA 549,539
660 4.625%, 7/01/25 - FSA Insured 7/14 at 100.00 AAA 653,380
2,000 4.750%, 7/01/27 - FSA Insured 7/14 at 100.00 AAA 1,982,420
3,000 4.750%, 1/01/28 - FSA Insured 7/14 at 100.00 AAA 2,958,180
------------------------------------------------------------------------------------------------------------------------------------
7,215 Total New Mexico 7,056,369
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.6%
2,045 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 2,136,043
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17
655 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 (4) 718,974
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17 (Pre-refunded 7/01/10)
2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,004,380
Water and Sewerage System Revenue Bonds,
Fiscal Series 2005B, 5.000%, 6/15/36 - FSA Insured (UB)
1,700 New York Dormitory Authority, FHA Insured Mortgage Hospital 8/16 at 100.00 AAA 1,547,646
Revenue Bonds, Kaleida Health, Series 2006,
4.700%, 2/15/35 (UB)
3,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 3,128,790
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
1,680 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 1,770,149
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
11,080 Total New York 11,305,982
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6%
1,155 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA- 1,115,303
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
345 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 Aa3 (4) 369,136
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31 (Pre-refunded 1/15/11)
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total North Carolina 1,484,439
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.8%
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
55 5.125%, 6/01/24 6/17 at 100.00 BBB 51,463
530 5.875%, 6/01/30 6/17 at 100.00 BBB 493,674
525 5.750%, 6/01/34 6/17 at 100.00 BBB 468,500
1,180 5.875%, 6/01/47 6/17 at 100.00 BBB 1,044,253
------------------------------------------------------------------------------------------------------------------------------------
2,290 Total Ohio 2,057,890
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5%
1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB 883,100
Revenue Bonds, Series 2005, 5.375%, 9/01/36
3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/17 at 100.00 AA- 2,814,150
Saint John Health System, Series 2007, 5.000%, 2/15/42
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Oklahoma 3,697,250
------------------------------------------------------------------------------------------------------------------------------------
31
NXQ
Nuveen Select Tax-Free Income Portfolio 2 (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.7%
$ 1,020 Carlisle Area School District, Cumberland County, Pennsylvania, 9/09 at 100.00 A1 (4) $ 1,064,707
General Obligation Bonds, Series 2004A, 5.000%, 9/01/20
(Pre-refunded 9/01/09) - FGIC Insured
Dauphin County General Authority, Pennsylvania, Health System
Revenue Bonds, Pinnacle Health System Project, Series 1999:
455 5.125%, 8/15/17 (Pre-refunded 2/15/09) - MBIA Insured 2/09 at 101.00 AAA 472,868
545 5.125%, 8/15/17 (Pre-refunded 2/15/09) - MBIA Insured 2/09 at 101.00 AAA 566,402
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 A+ 1,025,770
Airport Revenue Bonds, Philadelphia Airport System Project,
Series 2001A, 5.500%, 7/01/17 - FGIC Insured
(Alternative Minimum Tax)
3,250 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,560,765
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,270 Total Pennsylvania 6,690,512
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.3%
3,000 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA 3,087,870
Revenue Bonds, Series 2003, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.3%
5,835 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,611,985
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.9%
700 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 707,399
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/20
620 Florence, South Carolina, Water and Sewerage Revenue Bonds, 3/10 at 101.00 AAA 648,067
Series 2000, 5.750%, 3/01/20 - AMBAC Insured
4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 4,565,200
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded 12/01/12)
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A+ (4) 2,868,725
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13)
2,435 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 2,517,352
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/21 - MBIA Insured
170 Piedmont Municipal Power Agency, South Carolina, Electric 1/10 at 100.00 AAA 162,785
Revenue Refunding Bonds, Series 1998A, 4.750%, 1/01/25 -
MBIA Insured
475 The College of Charleston, Charleston South Carolina, Academic 4/14 at 100.00 A2 458,299
and Administrative Revenue Bonds, Series 2004B,
5.125%, 4/01/30 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,900 Total South Carolina 11,927,827
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4%
1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 961,190
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 11.7%
4,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 4,030,080
Texas, Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
1,500 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 A3 1,359,195
Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
1,000 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 1,081,740
Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) -
AMBAC Insured
2,500 Harris County Health Facilities Development Corporation, Texas, No Opt. Call AAA 2,752,650
Hospital Revenue Bonds, Texas Children's Hospital, Series 1995,
5.500%, 10/01/16 - MBIA Insured (ETM)
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,000 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA $ 2,947,980
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - MBIA Insured
6,610 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 AAA 777,006
Revenue Bonds, Series 2001H, 0.000%, 11/15/41 -
MBIA Insured
2,000 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/12 at 100.00 AAA 2,063,840
Series 2002A, 5.625%, 7/01/20 - FSA Insured (Alternative
Minimum Tax)
3,125 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 3,369,563
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/32 (Pre-refunded 2/15/12)
1,400 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 1,248,618
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005, 5.375%, 8/15/35
220 Killeen Independent School District, Bell County, Texas, General 5/08 at 100.00 AAA 220,414
Obligation Bonds, Series 1998, 5.000%, 2/15/14
90 Lewisville Independent School District, Denton County, Texas, 8/11 at 100.00 AAA 91,336
General Obligation Bonds, Series 2004, 5.000%, 8/15/23
910 Lewisville Independent School District, Denton County, Texas, 8/11 at 100.00 AAA 979,597
General Obligation Bonds, Series 2004, 5.000%, 8/15/23
(Pre-refunded 8/15/11)
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 4,949,405
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
1,000 San Antonio, Texas, Water System Revenue Bonds, Series 2005, 5/15 at 100.00 AAA 952,980
4.750%, 5/15/37 - MBIA Insured
500 Texas Water Development Board, Senior Lien State Revolving 7/10 at 100.00 AAA 529,800
Fund Revenue Bonds, Series 2000A, 5.625%, 7/15/13
1,560 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,472,999
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
34,165 Total Texas 28,827,203
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6%
1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,479,930
Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.2%
2,895 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA 2,933,214
Series 1999C, 5.800%, 8/15/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3%
510 Metropolitan District of Columbia Airports Authority, Virginia, 10/08 at 101.00 AAA 466,584
Airport System Revenue Bonds, Series 1998B,
5.000%, 10/01/28 - MBIA Insured (Alternative Minimum Tax)
250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 5/08 at 100.00 AAA 250,623
5.750%, 11/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
760 Total Virginia 717,207
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.8%
6,715 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 6,946,599
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
33
NXQ
Nuveen Select Tax-Free Income Portfolio 2 (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
$ 1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- $ 987,500
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.500%, 8/15/18
2,790 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 2,859,526
Home Ownership Revenue Bonds, Series 2002G,
4.850%, 9/01/17
------------------------------------------------------------------------------------------------------------------------------------
3,790 Total Wisconsin 3,847,026
------------------------------------------------------------------------------------------------------------------------------------
$ 260,555 Total Municipal Bonds (cost $240,924,193) 241,587,234
=============-----------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.0%
AIRLINES - 0.0%
757 UAL Corporation, (5) $ 16,298
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $0) 16,298
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $240,924,193) - 98.5% 241,603,532
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.0)% (2,470,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 6,110,743
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 245,244,275
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets.
(2) 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.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31,
2008. During March 2008, at least one rating agency reduced
the rating for AMBAC-insured bonds to AA and at least one
rating agency further reduced the ratings for FGIC-insured
and XLCA-insured bonds. Subsequent to March 31, 2008, at
least one rating agency reduced the rating for MBIA-insured
bonds to AA. As of March 31, 2008, one or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced by these rating
agencies, it would likely reduce the effective rating of
many of the bonds insured by that insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) On December 9, 2002, UAL Corporation ("UAL"), the holding
company of United Air Lines, Inc. ("United") filed for
federal bankruptcy protection. The Adviser determined that
it was likely that United would not remain current on their
interest payment obligations with respect to the bonds
previously held and thus the Fund had stopped accruing
interest on its UAL bonds. On February 1, 2006, UAL emerged
from federal bankruptcy with the acceptance of its
reorganization plan by the bankruptcy court. Under the
settlement agreement established to meet UAL's unsecured
bond obligations, the bondholders, including the Fund,
received three distributions of UAL common stock over the
subsequent months, and the bankruptcy court dismissed all
unsecured claims of bondholders, including those of the
Fund. On May 5, 2006, the Fund liquidated such UAL common
stock holdings. On September 29, 2006 and May 30, 2007, the
Fund received additional distributions of 1,825 and 592
shares, respectively, of UAL common stock as a result of its
earlier ownership of the UAL bonds. The Fund liquidated
1,825 shares of such UAL common stock holdings on November
15, 2006. The Fund received an additional distribution of
165 UAL common stock shares on November 14, 2007. The
remaining 757 shares of UAL common stock were still held by
the Fund at March 31, 2008.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
34
NXR
Nuveen Select Tax-Free Income Portfolio 3
Portfolio of INVESTMENTS
March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 99.1%
ALABAMA - 0.3%
$ 500 Marshall County Healthcare Authority, Alabama, Revenue Bonds, 1/12 at 101.00 A- $ 524,540
Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.3%
2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,235,973
General Obligation Bonds, Series 2002, 5.375%, 7/01/21 -
FSA Insured
1,000 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 697,780
Settlement Asset-Backed Bonds, Los Angeles County
Securitization Corporation, Series 2006A, 0.000%, 6/01/36
(Mandatory put 6/01/23)
3,350 California Department of Water Resources, Power Supply 5/12 at 101.00 Aa3 3,728,885
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
2,595 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 2,406,240
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
445 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 396,535
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 4.500%, 6/01/27
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,480,060
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
250 Santa Ana Unified School District, Orange County, California, 8/10 at 101.00 A+ 258,295
General Obligation Bonds, Series 2000, 5.700%, 8/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,745 Total California 13,203,768
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.7%
1,540 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 A- 1,459,304
Bonds, Series 2006, 5.250%, 10/01/40 - XLCA Insured
400 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 397,080
Participation, Series 2004, 5.000%, 6/15/34 - MBIA Insured
2,265 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 2,394,535
Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM)
1,735 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (4) 1,902,722
Health Initiatives, Series 2002A, 5.500%, 3/01/22
(Pre-refunded 3/01/12)
2,395 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 2,679,574
Bonds, Series 1991D, 7.750%, 11/15/13
(Alternative Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 A3 (4) 3,269,100
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/24 (Pre-refunded 12/01/13) - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,335 Total Colorado 12,102,315
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250 Connecticut Health and Educational Facilities Authority, 7/08 at 100.00 AAA 251,248
Revenue Bonds, Bridgeport Hospital Issue, Series 1992A,
6.625%, 7/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.1%
15 District of Columbia, General Obligation Bonds, Series 1993E, 5/08 at 100.00 AAA 15,043
6.000%, 6/01/13 - MBIA Insured (ETM)
35
NXR
Nuveen Select Tax-Free Income Portfolio 3 (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA (continued)
$ 235 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA $ 254,244
Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
250 Total District of Columbia 269,287
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.6%
1,000 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 933,070
Hospital Revenue Bonds, Tampa General Hospital, Series 2006,
5.250%, 10/01/41
5,020 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 5,183,250
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/18
4,000 JEA, Florida, Subordinate Lien Electric System Revenue Bonds, 5/08 at 100.00 Aa3 3,981,200
Series 2002D, 4.625%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
10,020 Total Florida 10,097,520
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.3%
545 Atlanta, Georgia, Airport Facilities Revenue Bonds, Series 1990, No Opt. Call AAA 504,523
0.000%, 1/01/10 - MBIA 0.000%, 1/01/10 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.2%
125 Chicago Metropolitan Housing Development Corporation, Illinois, 7/08 at 100.00 AA 129,506
FHA-Insured Section 8 Assisted Housing Development Revenue
Refunding Bonds, Series 1992, 6.850%, 7/01/22
1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 AAA 2,127,999
Midwestern University, Series 2001B, 5.750%, 5/15/16
(Pre-refunded 5/15/11)
705 Illinois Finance Authority, Revenue Bonds, University of Chicago, 7/17 at 100.00 Aa1 619,187
Series 2007, Trust 73TP, 10.203%, 7/01/46 (IF)
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,009,676
Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured
4,450 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 4,680,332
University of Chicago Project, Series 1985A, 5.500%, 8/01/20
1,500 Illinois Health Facilities Authority, Revenue Bonds, Evangelical No Opt. Call Baa3 (4) 1,745,730
Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 (ETM)
2,225 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,381,818
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
2,500 Illinois Housing Development Authority, Homeowner Mortgage 2/16 at 100.00 AA 2,348,500
Revenue Bonds, Series 2006C2, 5.050%, 8/01/27
(Alternative Minimum Tax)
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,853,444
5.000%, 6/15/22
2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 5.600%, 6/15/17 6/08 at 100.50 AAA 2,025,060
1,000 Kankakee & Will Counties Community Unit School District 5, No Opt. Call AAA 458,990
Illinois, General Obligation Bonds, Series 2006,
0.000%, 5/01/23 - FSA Insured
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,185,157
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AA+ 1,313,741
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA (4) 1,083,300
Series 2003, 5.000%, 12/15/22 (Pre-refunded 12/15/11) -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
32,620 Total Illinois 32,962,440
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.4%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 A (4) 1,105,650
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) -
FGIC Insured
3,500 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 BBB+ 3,233,125
Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,869,700
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 2,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA $ 2,189,500
Waterworks Project, Series 2002A, 5.250%, 7/01/33
(Pre-refunded 7/01/12) - MBIA Insured
2,295 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AAA 2,166,710
Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,295 Total Indiana 11,564,685
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 5.7%
2,745 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BBB- 2,502,342
Care Initiatives Project, Series 2006A, 5.000%, 7/01/20
750 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 675,960
Revenue Bonds, Series 2005B, 5.600%, 6/01/34
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
3,850 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,112,686
2,850 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,115,478
------------------------------------------------------------------------------------------------------------------------------------
10,195 Total Iowa 10,406,466
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.1%
Lawrence, Kansas, Hospital Revenue Bonds, Lawrence
Memorial Hospital, Series 2006:
1,425 5.125%, 7/01/26 7/16 at 100.00 A3 1,411,562
700 4.875%, 7/01/36 7/16 at 100.00 A3 630,644
------------------------------------------------------------------------------------------------------------------------------------
2,125 Total Kansas 2,042,206
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.7%
125 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 129,783
Revenue Bonds, Series 1999B, 6.000%, 7/01/19 -
MBIA Insured
1,075 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 1,142,220
Revenue Bonds, Series 1999B, 6.000%, 7/01/19
(Pre-refunded 7/01/09) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,200 Total Maine 1,272,003
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.8%
1,000 Massachusetts Development Finance Agency, Resource 12/08 at 102.00 BBB 986,200
Recovery Revenue Bonds, Ogden Haverhill Associates,
Series 1998B, 5.200%, 12/01/13 (Alternative Minimum Tax)
15 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 16,470
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17
485 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA (4) 540,106
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17 (Pre-refunded 7/01/11)
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Massachusetts 1,542,776
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.4%
1,500 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 A2 1,375,125
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA 2,915,805
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
235 Michigan State Hospital Finance Authority, Revenue Refunding 8/08 at 100.00 BB- 235,092
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
1,600 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA- (4) 1,652,576
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18 (Pre-refunded 5/01/09)
------------------------------------------------------------------------------------------------------------------------------------
6,235 Total Michigan 6,178,598
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
725 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 714,596
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
37
NXR
Nuveen Select Tax-Free Income Portfolio 3 (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9%
$ 3,500 Nebraska Public Power District, General Revenue Bonds, 1/13 at 100.00 AAA $ 3,470,285
Series 2002B, 5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.5%
4,095 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 3,341,356
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
1,680 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 A3 1,700,412
Series 2002, 5.500%, 6/01/22 - FGIC Insured
2,830 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 A3 (4) 3,115,321
Series 2002, 5.500%, 6/01/22 (Pre-refunded 6/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,605 Total Nevada 8,157,089
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
500 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 511,570
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.5%
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
1,000 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,179,770
1,355 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,566,353
------------------------------------------------------------------------------------------------------------------------------------
2,355 Total New Jersey 2,746,123
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.7%
1,000 New Mexico Mortgage Finance Authority, Multifamily Housing 9/17 at 100.00 AAA 912,850
Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42
(Alternative Minimum Tax)
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,960,640
Revenue Bonds, Series 2004, 4.625%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total New Mexico 4,873,490
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.7%
1,180 Dormitory Authority of the State of New York, Second General No Opt. Call A1 1,248,629
Resolution Consolidated Revenue Bonds, City University
System, Series 1990C, 7.500%, 7/01/10
2,335 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,548,045
Revenue Bonds, Series 2001A, 5.375%, 9/01/21
(Pre-refunded 9/01/11)
35 New York City, New York, General Obligation Bonds, 5/08 at 100.00 AA 35,101
Series 1991B, 7.000%, 2/01/18
1,000 New York Dormitory Authority, New York, FHA Insured Mortgage 8/16 at 100.00 AAA 910,380
Hospital Revenue Bonds, Kaleida Health, Series 2006,
4.700%, 2/15/35 (UB)
1,850 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 1,913,159
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
6,400 Total New York 6,655,314
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.3%
5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,237,850
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured
2,345 Piedmont Triad Airport Authority, North Carolina, Airport Revenue 7/11 at 101.00 AAA 2,510,299
Bonds, Series 2001A, 5.250%, 7/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,345 Total North Carolina 7,748,149
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6%
3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA- 2,983,590
St. John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5%
$ 2,435 Dauphin County Industrial Development Authority, Pennsylvania, No Opt. Call A- $ 2,927,552
Water Development Revenue Refunding Bonds, Dauphin
Consolidated Water Supply Company, Series 1992B,
6.700%, 6/01/17
500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 498,335
Bonds, Widener University, Series 2003, 5.250%, 7/15/24
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 A+ 1,025,770
Airport Revenue Bonds, Philadelphia Airport System Project,
Series 2001A, 5.500%, 7/01/17 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,935 Total Pennsylvania 4,451,657
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.9%
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A+ (4) 1,721,235
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13)
1,500 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 1,561,140
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 8/15/20 - MBIA Insured
520 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- (4) 580,819
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
(Pre-refunded 11/15/12)
1,980 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 1,992,256
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002B, 5.625%, 11/15/30
3,010 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 3,008,044
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
8,510 Total South Carolina 8,863,494
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.1%
1,010 South Dakota Health and Educational Facilities Authority, 7/12 at 101.00 AAA 1,015,282
Revenue Bonds, Avera Health, Series 2002, 5.125%, 7/01/27 -
AMBAC Insured
1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 961,190
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
2,010 Total South Dakota 1,976,472
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
2,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Ba2 2,055,700
Board, Tennessee, Hospital Revenue Bonds, Baptist Health
System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.2%
1,500 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 A3 1,359,195
Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,456,650
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
4,005 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 61.17 AAA 581,846
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/38 -
MBIA Insured
3,000 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/12 at 100.00 AAA 3,186,720
Series 2002B, 5.500%, 7/01/18 - FSA Insured
3,125 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 3,369,563
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/32 (Pre-refunded 2/15/12)
400 Killeen Independent School District, Bell County, Texas, 5/08 at 100.00 AAA 400,752
General Obligation Bonds, Series 1998, 5.000%, 2/15/14
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 4,949,405
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,652,403
Program, Series 2003A, 5.125%, 8/01/42
(Alternative Minimum Tax)
500 Victoria, Texas, General Obligation Bonds, Series 2001, 8/11 at 100.00 AA- 506,620
5.000%, 8/15/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
21,530 Total Texas 18,463,154
------------------------------------------------------------------------------------------------------------------------------------
39
NXR
Nuveen Select Tax-Free Income Portfolio 3 (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 0.3%
$ 510 Port of Seattle, Washington, Revenue Bonds, Series 2001A, 10/11 at 100.00 Aa2 $ 503,819
5.000%, 4/01/31 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4%
2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,525,350
Series 2003-3, 5.000%, 11/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 179,240 Total Municipal Bonds (cost $176,488,763) 179,622,227
=============-----------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.0%
AIRLINES - 0.0%
220 UAL Corporation, (5) $ 4,737
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $0) 4,737
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $176,488,763) - 99.1% 179,626,964
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (0.4)% (665,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 2,325,656
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 181,287,620
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets.
(2) 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.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31,
2008. During March 2008, at least one rating agency reduced
the rating for AMBAC-insured bonds to AA and at least one
rating agency further reduced the ratings for FGIC-insured
and XLCA-insured bonds. Subsequent to March 31, 2008, at
least one rating agency reduced the rating for MBIA-insured
bonds to AA. As of March 31, 2008, one or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced by these rating
agencies, it would likely reduce the effective rating of
many of the bonds insured by that insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) On December 9, 2002, UAL Corporation ("UAL"), the holding
company of United Air Lines, Inc. ("United") filed for
federal bankruptcy protection. The Adviser determined that
it was likely that United would not remain current on their
interest payment obligations with respect to the bonds
previously held and thus the Fund had stopped accruing
interest on its UAL bonds. On February 1, 2006, UAL emerged
from federal bankruptcy with the acceptance of its
reorganization plan by the bankruptcy court. Under the
settlement agreement established to meet UAL's unsecured
bond obligations, the bondholders, including the Fund,
received three distributions of UAL common stock over the
subsequent months, and the bankruptcy court dismissed all
unsecured claims of bondholders, including those of the
Fund. On May 5, 2006, the Fund liquidated such UAL common
stock holdings. On September 29, 2006 and May 30, 2007, the
Fund received additional distributions of 532 and 172
shares, respectively, of UAL common stock as a result of its
earlier ownership of the UAL bonds. The Fund liquidated 532
shares of such UAL common stock holdings on November 15,
2006. The Fund received an additional distribution of 48
shares on November 14, 2007. The remaining 220 shares of UAL
common stock were still held by the Fund at March 31, 2008.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
40
NXC
Nuveen California Select Tax-Free Income Portfolio
Portfolio of INVESTMENTS
March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.8%
$ 220 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 202,332
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
1,505 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB 1,465,223
Settlement Asset-Backed Revenue Bonds, Fresno County
Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23
4,045 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 2,549,119
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
5,770 Total Consumer Staples 4,216,674
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.5%
1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,017,990
Stanford University, Series 1999P, 5.000%, 12/01/23
45 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 42,621
University of Redlands, Series 2005A, 5.000%, 10/01/35
1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,025,100
University of San Diego, Series 2002A, 5.500%, 10/01/32
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
35 5.000%, 11/01/21 11/15 at 100.00 A2 35,510
45 5.000%, 11/01/25 11/15 at 100.00 A2 44,634
3,000 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 3,112,320
Revenue Bonds, J. David Gladstone Institutes, Series 2001,
5.500%, 10/01/19
2,000 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 2,048,500
University of California, UCLA Replacement Hospital Project,
Series 2002A, 5.000%, 10/01/22 - FSA Insured
1,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 1,002,780
Refunding Bonds, Long Beach Aquarium of the South Pacific,
Series 2001, 5.250%, 11/01/30 - AMBAC Insured
1,000 University of California, General Revenue Bonds, Series 2006J, 5/15 at 101.00 AAA 916,440
4.500%, 5/15/35 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,125 Total Education and Civic Organizations 9,245,895
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.5%
445 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 417,900
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
110 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 101,999
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
2,550 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 2,463,274
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
2,000 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 2,014,040
Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
1,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 1,595,505
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
41
NXC
Nuveen California Select Tax-Free Income Portfolio (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,500 California Statewide Community Development Authority, 11/09 at 102.00 A+ $ 1,501,620
Insured Mortgage Hospital Revenue Bonds, Mission
Community Hospital, Series 2001, 5.375%, 11/01/26
1,515 California Statewide Community Development Authority, 3/16 at 100.00 A+ 1,394,906
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
545 California Statewide Community Development Authority, 8/16 at 100.00 A+ 532,421
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
1,880 California Statewide Community Development Authority, 6/08 at 100.50 AAA 1,902,767
Revenue Bonds, Los Angeles Orthopaedic Hospital Foundation,
Series 2000, 5.500%, 6/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,045 Total Health Care 11,924,432
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.8%
750 California Statewide Community Development Authority, 8/12 at 100.00 N/R 701,558
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.1%
135 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 140,315
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.8%
1,250 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 1,186,713
Disposal Revenue Bonds, Republic Services Inc., Series 2002C,
5.250%, 6/01/23 (Mandatory put 12/01/17)
(Alternative Minimum Tax)
500 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 438,030
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,750 Total Industrials 1,624,743
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.8%
1,500 ABAG Finance Authority for Non-Profit Corporations, California, 11/12 at 100.00 A+ 1,510,305
Insured Senior Living Revenue Bonds, Odd Fellows Home of
California, Series 2003A, 5.200%, 11/15/22
1,000 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 937,670
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Long-Term Care 2,447,975
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.1%
500 California, General Obligation Bonds, Series 2003, 11/13 at 100.00 AA 523,920
5.250%, 11/01/19 - RAAI Insured
California, General Obligation Bonds, Series 2004:
750 5.000%, 2/01/23 2/14 at 100.00 A+ 757,883
800 5.125%, 4/01/25 4/14 at 100.00 A+ 807,608
1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 Aa3 1,022,220
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
Golden West Schools Financing Authority, California,
General Obligation Revenue Refunding Bonds, School District
Program, Series 1999A:
4,650 0.000%, 8/01/16 - MBIA Insured No Opt. Call AAA 3,225,984
1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 1,171,940
2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,554,081
2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,476,529
Mountain View-Los Altos Union High School District, Santa Clara
County, California, General Obligation Capital Appreciation
Bonds, Series 1995C:
1,015 0.000%, 5/01/17 - MBIA Insured No Opt. Call AAA 671,940
1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 672,073
100 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 100,971
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,220 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aaa $ 3,262,729
California, General Obligation Bonds, Series 2005,
5.000%, 7/01/27 - MBIA Insured
1,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 1,655,550
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,617,454
General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,650 Total Tax Obligation/General 19,520,882
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.3%
1,000 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 1,004,920
Allocation Bonds, Bell Project Area, Series 2003,
5.625%, 10/01/33 - RAAI Insured
3,500 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 4,088,875
Department of Corrections, Calipatria State Prison,
Series 1991A, 6.500%, 9/01/17 - MBIA Insured
1,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 1,049,420
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/23
660 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA+ 714,338
Series 2004A, 5.000%, 7/01/15
120 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A3 119,862
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
360 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AAA 347,443
Redevelopment Project Area Tax Allocation Bonds, Series 2006,
5.000%, 9/01/38 - AMBAC Insured
1,000 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 994,410
Revenue Bonds, North Fontana Redevelopment Project,
Series 2005A, 5.000%, 10/01/32 - AMBAC Insured
1,050 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 843,927
Enhanced Asset Backed Settlement Revenue Bonds,
Series 2005A, Residual Series 1500, 9.910%, 6/01/45 -
AMBAC Insured (IF)
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
60 5.000%, 9/01/26 9/16 at 100.00 N/R 54,200
135 5.125%, 9/01/36 9/16 at 100.00 N/R 119,727
215 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 209,814
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,300 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,248,195
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
105 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 101,796
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
130 Roseville, California, Certificates of Participation, 8/13 at 100.00 AAA 130,837
Public Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
605 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 652,027
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
3,000 San Mateo County Transit District, California, Sales Tax Revenue 6/15 at 100.00 AAA 3,124,410
Bonds, Series 2005A, 5.000%, 6/01/21 - MBIA Insured
225 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AAA 220,201
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,005,270
of Participation, Series 2002, 5.000%, 4/01/25 - MBIA Insured
1,000 Travis Unified School District, Solano County, California, 9/16 at 100.00 A3 985,760
Certificates of Participation, Series 2006, 5.000%, 9/01/26 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,465 Total Tax Obligation/Limited 17,015,432
------------------------------------------------------------------------------------------------------------------------------------
43
NXC
Nuveen California Select Tax-Free Income Portfolio (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.3%
$ 1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- $ 966,966
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
3,500 Los Angeles Harbors Department, California, Revenue Refunding 8/11 at 100.00 AAA 3,736,110
Bonds, Series 2001B, 5.500%, 8/01/17 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,650 Total Transportation 4,703,076
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.9% (4)
400 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA (4) 435,712
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26 (Pre-refunded 8/01/12)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
1,750 5.750%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 1,964,340
2,000 5.125%, 5/01/19 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,197,020
2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 (4) 2,831,894
University of the Pacific, Series 2002, 5.250%, 11/01/21
(Pre-refunded 11/01/11)
800 California, General Obligation Bonds, Series 2004, 2/14 at 100.00 AAA 889,056
5.125%, 2/01/27 (Pre-refunded 2/01/14)
1,400 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,541,652
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33 (Pre-refunded 6/01/13)
2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA 2,189,420
General Obligation Bonds, Series 2002A, 5.000%, 8/01/22
(Pre-refunded 8/01/12) - MBIA Insured
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 A+ (4) 1,104,580
5.250%, 11/01/20 (Pre-refunded 11/01/12) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,950 Total U.S. Guaranteed 13,153,674
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.4%
645 Long Beach Bond Finance Authority, California, Natural No Opt. Call A1 580,848
Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 206,266
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
215 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 A- 211,109
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
1,010 Turlock Irrigation District, California, Revenue Refunding No Opt. Call Aaa 1,080,235
Bonds, Series 1992A, 6.250%, 1/01/12 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,070 Total Utilities 2,078,458
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.5%
150 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 148,218
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
250 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 250,150
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 825 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB $ 829,480
Revenue Certificates of Participation, Solar Photovoltaic Project,
Series 2003, 5.375%, 4/01/24
1,000 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 963,590
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
2,225 Total Water and Sewer 2,191,438
------------------------------------------------------------------------------------------------------------------------------------
$ 93,085 Total Investments (cost $87,914,933) - 100.8% 88,964,552
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.9)% (1,700,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 959,387
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 88,223,939
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets.
(2) 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.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31,
2008. During March 2008, at least one rating agency reduced
the rating for AMBAC-insured bonds to AA and at least one
rating agency further reduced the ratings for FGIC-insured
and XLCA-insured bonds. Subsequent to March 31, 2008, at
least one rating agency reduced the rating for MBIA-insured
bonds to AA. As of March 31, 2008, one or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced by these rating
agencies, it would likely reduce the effective rating of
many of the bonds insured by that insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
45
NXN
Nuveen New York Select Tax-Free Income Portfolio
Portfolio of INVESTMENTS
March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.2%
$ 100 New York City Industrial Development Agency, New York, 9/15 at 100.00 Baa3 $ 85,305
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7%
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
460 4.750%, 6/01/22 6/16 at 100.00 BBB 432,796
540 5.000%, 6/01/26 6/16 at 100.00 BBB 501,336
------------------------------------------------------------------------------------------------------------------------------------
1,000 Total Consumer Staples 934,132
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.6%
100 Albany Industrial Development Agency, New York, Revenue Bonds, 7/17 at 100.00 BBB 89,205
Albany Law School, Series 2007A, 5.000%, 7/01/31
50 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R 40,405
Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/37
1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,733,337
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 -
AMBAC Insured
30 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 28,022
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
430 Dormitory Authority of the State of New York, General Revenue 7/17 at 100.00 AA 398,541
Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/41 -
RAAI Insured
785 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 A- 792,112
Bonds, Iona College, Series 2002, 5.000%, 7/01/22 -
XLCA Insured
50 Dormitory Authority of the State of New York, Lease Revenue 7/15 at 100.00 AAA 50,329
Bonds, State University Dormitory Facilities, Series 2004A,
5.000%, 7/01/29 - MBIA Insured
315 Dormitory Authority of the State of New York, Second General No Opt. Call A1 332,618
Resolution Consolidated Revenue Bonds, City University
System, Series 1990C, 7.500%, 7/01/10 - FGIC Insured
430 Dutchess County Industrial Development Agency, New York, 8/17 at 100.00 A3 382,111
Civic Facility Revenue Bonds, Bard College Project,
Series 2007-A2, 4.500%, 8/01/36
100 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 97,563
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
650 New York City Industrial Development Agency, New York, 4/08 at 100.00 AAA 527,326
Civic Facility Revenue Bonds, Horace Mann School,
Series 2002, 4.644%, 7/01/41 - MBIA Insured (4)
100 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 94,532
Civic Facility Revenue Bonds, St. Francis College,
Series 2004, 5.000%, 10/01/34
500 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 507,105
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
430 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 402,897
PILOT Revenue Bonds, Queens Baseball Stadium Project,
Series 2006, 4.750%, 1/01/42 - AMBAC Insured
590 New York City Industrial Development Authority, New York, 9/16 at 100.00 A3 524,894
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
4.500%, 3/01/39 - FGIC Insured
200 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 198,204
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 65 Seneca County Industrial Development Authority, New York, 10/17 at 100.00 BBB $ 60,744
Revenue Bonds, New York Chiropractic College, Series 2007,
5.000%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
6,525 Total Education and Civic Organizations 6,259,945
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.9%
435 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 456,606
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.9%
450 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A3 445,892
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Lenox Hill Hospital Obligated Group, Series 2001:
110 5.375%, 7/01/20 7/11 at 101.00 Ba2 107,389
100 5.500%, 7/01/30 7/11 at 101.00 Ba2 93,393
950 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 944,329
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35
670 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 687,199
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - MBIA Insured
405 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 444,982
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
1,680 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,794,660
Winthrop South Nassau University Health System Obligated
Group, Series 2001A, 5.250%, 7/01/17 - AMBAC Insured
1,195 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,276,559
Winthrop South Nassau University Health System Obligated
Group, Series 2001B, 5.250%, 7/01/17 - AMBAC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 486,260
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
Madison County Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Oneida Health System, Series 2007A:
100 5.250%, 2/01/27 No Opt. Call BBB- 92,233
90 5.500%, 2/01/32 No Opt. Call BBB- 82,831
750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 779,310
Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 -
AMBAC Insured
250 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 242,905
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
------------------------------------------------------------------------------------------------------------------------------------
7,250 Total Health Care 7,477,942
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.1%
1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA 1,040,670
FHA-Insured Mortgage Revenue Bonds, Sunset Woods
Apartments II Project, Series 2002, 5.350%, 2/01/20
250 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 250,763
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
160 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 146,662
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
275 New York State Housing Finance Agency, Affordable Housing 11/17 at 100.00 Aa2 254,554
Revenue, Series 2007A, 5.250%, 11/01/38
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,685 Total Housing/Multifamily 1,692,649
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.2%
2,000 New York State Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,011,340
Revenue Bonds, Series 101, 5.000%, 10/01/18
(Alternative Minimum Tax)
47
NXN
Nuveen New York Select Tax-Free Income Portfolio (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 2,500 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa $ 2,402,649
Thirty-First Series A, 5.300%, 10/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,500 Total Housing/Single Family 4,413,989
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 12.0%
1,980 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 1,976,931
Nursing Home Mortgage Revenue Bonds, Norwegian
Christian Home and Health Center, Series 2001,
5.200%, 8/01/36 - MBIA Insured
100 Dormitory Authority of the State of New York, Non-State 11/16 at 100.00 Aa3 100,203
Supported Debt, Ozanam Hall of Queens Nursing Home
Revenue Bonds, Series 2006, 5.000%, 11/01/31
50 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 N/R 39,597
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured
2,000 East Rochester Housing Authority, New York, FHA-Insured 8/12 at 101.00 AAA 2,085,579
Mortgage Revenue Refunding Bonds, Jewish Home of
Rochester, Series 2002, 4.625%, 2/15/17
1,000 East Rochester Housing Authority, New York, Revenue Bonds, 12/12 at 103.00 AAA 1,037,370
GNMA/FHA-Secured Revenue Bonds, St. Mary's Residence
Project, Series 2002A, 5.375%, 12/20/22
980 New York City Industrial Development Agency, New York, 11/12 at 101.00 AA+ 935,390
GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor
House Inc., Series 2002A, 4.950%, 11/20/32
25 Suffolk County Industrial Development Agency, New York, 7/16 at 100.00 N/R 23,880
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008-B1, 5.500%, 7/01/18
275 Yonkers Industrial Development Agency, New York, Civic Facilities 7/16 at 101.00 N/R 262,675
Revenue Bonds, Special Needs Facilities Pooled Program Bonds,
Series 2008-C1, 5.500%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
6,410 Total Long-Term Care 6,461,625
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2%
90 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB 81,536
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.4%
Clarkstown, Rickland County, New York, Various Purposes
Serial Bonds, Series 1992:
505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 539,800
525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 572,712
525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 585,412
15 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 13,561
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
300 New York City, New York, General Obligation Bonds, 8/14 at 100.00 Aaa 326,613
Fiscal Series 2004C, 5.250%, 8/15/16
200 New York City, New York, General Obligation Bonds, 3/15 at 100.00 AA 210,862
Fiscal Series 2005J, 5.000%, 3/01/19 - FGIC Insured
1,000 New York City, New York, General Obligation Bonds, 6/16 at 100.00 AA 1,010,620
Fiscal Series 2006J-1, 5.000%, 6/01/25
1,260 New York City, New York, General Obligation Bonds, 12/17 at 100.00 AA 1,287,380
Series D, 5.125%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
4,330 Total Tax Obligation/General 4,546,960
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.2%
600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 613,158
Series 2003A, 5.000%, 11/01/23
500 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 536,270
School Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
500 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 530,720
Service Contract Refunding Bonds, Series 2002A,
5.500%, 1/01/20 - MBIA Insured
95 Nassau County Interim Finance Authority, New York, 5/08 at 100.00 AAA 95,101
Sales Tax Secured Revenue Bonds, Series 2001A-2,
5.125%, 11/15/21 - AMBAC Insured
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
$ 250 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA $ 255,445
200 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 203,566
1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,234,482
600 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 603,348
Building Aid Revenue Bonds, Fiscal Series 2007S-2,
5.000%, 1/15/28 - FGIC Insured
670 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 687,085
Future Tax Secured Bonds, Fiscal Series 2003E,
5.000%, 2/01/23
550 New York City Transitional Finance Authority, New York, 11/17 at 100.00 AAA 560,890
Future Tax Secured Bonds, Fiscal Series 2007C-1,
5.000%, 11/01/27
775 New York State Environmental Facilities Corporation, 12/17 at 100.00 AAA 795,336
State Personal Income Tax Revenue Bonds, Series 2008A,
5.000%, 12/15/26 (UB)
250 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 260,605
Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/21 -
MBIA Insured
570 New York State Thruway Authority, Highway and Bridge No Opt. Call AAA 639,745
Trust Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured (UB)
425 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 432,722
Fund Bonds, Series 2007, 5.000%, 4/01/27
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
1,000 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 1,029,060
250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 256,225
500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 517,755
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
30 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 31,610
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
8,990 Total Tax Obligation/Limited 9,283,123
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.0%
180 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 183,168
Series 2001A, 5.625%, 7/15/25
500 Metropolitan Transportation Authority, New York, Transportation No Opt. Call A 535,875
Revenue Bonds, Series 2003A, 5.000%, 11/15/15 - FGIC Insured
100 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 100,657
Series 2005G, 5.000%, 1/01/30 - FSA Insured
105 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AA- 105,223
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/31 - XLCA Insured
160 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 165,274
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
10.129%, 8/15/32 - FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
1,045 Total Transportation 1,090,197
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 6.3% (5)
220 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 N/R (5) 243,168
Series 2001A, 5.625%, 7/15/25 (Pre-refunded 7/15/11)
1,165 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,363,108
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16 (ETM)
250 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 Aaa 278,355
North Shore Long Island Jewish Group, Series 2003,
5.375%, 5/01/23 (Pre-refunded 5/01/13)
415 Suffolk County Water Authority, New York, Water Revenue No Opt. Call AAA 450,068
Bonds, Series 1986V, 6.750%, 6/01/12 (ETM)
1,005 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,079,792
Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12)
------------------------------------------------------------------------------------------------------------------------------------
3,055 Total U.S. Guaranteed 3,414,491
------------------------------------------------------------------------------------------------------------------------------------
49
NXN
Nuveen New York Select Tax-Free Income Portfolio (continued)
Portfolio of INVESTMENTS March 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.4%
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
$ 570 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 A- $ 578,362
430 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A- 432,262
500 New York State Energy Research and Development Authority, 3/11 at 100.00 AAA 503,840
Pollution Control Revenue Bonds, New York State Electric and
Gas Corporation, Series 2005A, 4.100%, 3/15/15 -
MBIA Insured
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa2 247,325
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Mandatory put 11/15/12)
(Alternative Minimum Tax)
60 Westchester County Industrial Development Agency, 7/08 at 100.00 BBB 60,245
Westchester County, New York, Resource Recovery
Revenue Bonds, RESCO Company, Series 1996,
5.500%, 7/01/09 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,810 Total Utilities 1,822,034
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.3%
2,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 2,509,647
Water and Sewerage System Revenue Bonds,
Fiscal Series 2001C, 5.125%, 6/15/33
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, New York
City Municipal Water Finance Authority Loan, Series 2002B:
2,000 5.250%, 6/15/19 6/12 at 100.00 AAA 2,109,639
2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,020,999
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Water and Sewer 6,640,285
------------------------------------------------------------------------------------------------------------------------------------
$ 53,725 Total Investments (cost $54,323,046) - 101.4% 54,660,819
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.9)% (1,017,500)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.5% 264,917
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 53,908,236
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets.
(2) 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.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of March 31,
2008. During March 2008, at least one rating agency reduced
the rating for AMBAC-insured bonds to AA and at least one
rating agency further reduced the ratings for FGIC-insured
and XLCA-insured bonds. Subsequent to March 31, 2008, at
least one rating agency reduced the rating for MBIA-insured
bonds to AA. As of March 31, 2008, one or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced by these rating
agencies, it would likely reduce the effective rating of
many of the bonds insured by that insurer or insurers.
(4) Investment valued at fair value using methods determined in
good faith by, or at the discretion of, the Board of
Trustees.
(5) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
50
Statement of
ASSETS & LIABILITIES
March 31, 2008
SELECT SELECT SELECT CALIFORNIA NEW YORK
TAX-FREE TAX-FREE 2 TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value
(cost $223,402,676, $240,924,193,
$176,488,763, $87,914,933 and
$54,323,046, respectively) $230,585,764 $241,603,532 $179,626,964 $88,964,552 $54,660,819
Cash 336,654 -- 300,763 110,436 --
Receivables:
Interest 3,686,466 3,751,241 2,745,668 1,195,494 789,933
Investments sold 825,000 3,761,000 -- -- --
Other assets 69,488 73,298 54,904 30,837 21,867
------------------------------------------------------------------------------------------------------------------------------------
Total assets 235,503,372 249,189,071 182,728,299 90,301,319 55,472,619
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 397,011 -- -- 316,625
Floating rate obligations -- 2,470,000 665,000 1,700,000 1,017,500
Accrued expenses:
Management fees 45,828 58,179 43,347 21,386 13,097
Other 127,872 132,989 94,115 44,894 34,188
Common share dividends payable 836,078 886,617 638,217 311,100 182,973
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,009,778 3,944,796 1,440,679 2,077,380 1,564,383
------------------------------------------------------------------------------------------------------------------------------------
Net assets $234,493,594 $245,244,275 $181,287,620 $88,223,939 $53,908,236
====================================================================================================================================
Shares outstanding 16,394,661 17,607,068 12,964,124 6,259,969 3,909,050
====================================================================================================================================
Net asset value per share outstanding $ 14.30 $ 13.93 $ 13.98 $ 14.09 $ 13.79
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 163,947 $ 176,071 $ 129,641 $ 62,600 $ 39,091
Paid-in surplus 227,877,262 245,689,700 178,371,732 87,162,597 53,633,470
Undistributed (Over-distribution of)
net investment income 614,501 364,500 (269,392) 34,049 (61,907)
Accumulated net realized gain (loss)
from investments (1,345,204) (1,665,335) (82,562) (84,926) (40,191)
Net unrealized appreciation (depreciation)
of investments 7,183,088 679,339 3,138,201 1,049,619 337,773
------------------------------------------------------------------------------------------------------------------------------------
Net assets $234,493,594 $245,244,275 $181,287,620 $88,223,939 53,908,236
====================================================================================================================================
Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
51
Statement of
OPERATIONS
Year Ended March 31, 2008
SELECT SELECT SELECT CALIFORNIA NEW YORK
TAX-FREE TAX-FREE 2 TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $12,238,893 $ 12,584,653 $ 8,979,020 $ 4,491,835 $ 2,651,121
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 543,406 701,477 516,876 257,061 156,567
Shareholders' servicing agent fees and expenses 27,630 25,618 21,124 7,506 6,080
Interest expense on floating rate obligations -- 99,652 23,485 55,185 16,365
Custodian's fees and expenses 60,326 55,312 39,582 24,476 29,435
Trustees' fees and expenses 5,300 5,767 4,312 2,054 1,312
Professional fees 20,005 21,287 17,511 12,707 10,824
Shareholders' reports - printing and mailing expenses 48,069 48,511 35,566 17,220 13,462
Stock exchange listing fees 9,565 9,551 9,551 9,551 9,551
Investor relations expense 28,792 29,834 21,581 10,117 6,521
Other expenses 8,196 8,916 7,259 5,332 4,559
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 751,289 1,005,925 696,847 401,209 254,676
Custodian fee credit (21,931) (40,202) (23,584) (10,429) (10,175)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 729,358 965,723 673,263 390,780 244,501
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,509,535 11,618,930 8,305,757 4,101,055 2,406,620
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 147,459 (288,340) (48,471) (84,927) (82,020)
Forward swaps -- -- -- -- 41,813
Change in net unrealized appreciation
(depreciation) of investments (7,207,078) (11,881,693) (5,615,646) (3,947,262) (1,858,128)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (7,059,619) (12,170,033) (5,664,117) (4,032,189) (1,898,335)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $ 4,449,916 $ (551,103) $ 2,641,640 $ 68,866 $ 508,285
====================================================================================================================================
See accompanying notes to financial statements.
52
Statement of
CHANGES in NET ASSETS
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR)
------------------------------ ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/08 3/31/07 3/31/08 3/31/07 3/31/08 3/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,509,535 $ 11,474,716 $ 11,618,930 $ 11,534,253 $ 8,305,757 $ 8,287,859
Net realized gain (loss) from:
Investments 147,459 101,116 (288,340) 50,177 (48,471) 406,807
Forward swaps -- -- -- -- -- --
Change in net
unrealized appreciation
(depreciation) of investments (7,207,078) 1,235,561 (11,881,693) 2,445,717 (5,615,646) 1,364,381
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
from operations 4,449,916 12,811,393 (551,103) 14,030,147 2,641,640 10,059,047
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (11,213,242) (11,203,086) (11,242,116) (11,198,098) (8,322,967) (8,322,970)
From accumulated
net realized gains -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
from distributions
to shareholders (11,213,242) (11,203,086) (11,242,116) (11,198,098) (8,322,967) (8,322,970
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued
to shareholders due to
reinvestment of distributions 182,700 60,273 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets from
capital share transactions 182,700 60,273 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets (6,580,626) 1,668,580 (11,793,219) 2,832,049 (5,681,327) 1,736,077
Net assets at the
beginning of year 241,074,220 239,405,640 257,037,494 254,205,445 186,968,947 185,232,870
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $234,493,594 $241,074,220 $245,244,275 $257,037,494 $181,287,620 $186,968,947
====================================================================================================================================
Undistributed
(Over-distribution of) net
investment income at the
end of year $ 614,501 $ 318,396 $ 364,500 $ (7,095) $ (269,392) $ (252,182)
====================================================================================================================================
See accompanying notes to financial statements.
53
Statement of
CHANGES in NET ASSETS (continued)
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN)
-------------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/08 3/31/07 3/31/08 3/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,101,055 $ 4,021,145 $ 2,406,620 $ 2,393,813
Net realized gain (loss) from:
Investments (84,927) 166,092 (82,020) 50,741
Forward swaps -- -- 41,813 --
Change in net unrealized appreciation
(depreciation) of investments (3,947,262) 957,522 (1,858,128) 444,355
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 68,866 5,144,759 508,285 2,888,909
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (3,995,905) (3,979,498) (2,391,875) (2,391,832)
From accumulated net realized gains (66,966) (140,158) (47,290) (142,259)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions
to shareholders (4,062,871) (4,119,656) (2,439,165) (2,534,091)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued
to shareholders due to
reinvestment of distributions 40,911 -- 11,240 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 40,911 -- 11,240 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (3,953,094) 1,025,103 (1,919,640) 354,818
Net assets at the beginning of year 92,177,033 91,151,930 55,827,876 55,473,058
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $88,223,939 $92,177,033 $53,908,236 $55,827,876
------------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net
investment income at the
end of year $ 34,049 $ (70,984) $ (61,907) $ (76,409)
====================================================================================================================================
See accompanying notes to financial statements.
54
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding New York Stock Exchange
symbols are Nuveen Select Tax-Free Income Portfolio (NXP), Nuveen Select
Tax-Free Income Portfolio 2 (NXQ), Nuveen Select Tax-Free Income Portfolio 3
(NXR), Nuveen California Select Tax-Free Income Portfolio (NXC) and Nuveen New
York Select Tax-Free Income Portfolio (NXN) (collectively, the "Funds"). The
Funds are registered under the Investment Company Act of 1940, as amended, as
closed-end, diversified management investment companies.
Each Fund seeks to provide stable dividends consistent with the preservation of
capital, exempt from regular federal and designated state income taxes, where
applicable, by investing primarily in a diversified portfolio of municipal
obligations.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
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 may establish fair value based on yields or
prices of municipal bonds of comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities dealers, evaluations of
anticipated cash flows or collateral and general market conditions. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Trustees. If the pricing service is unable to
supply a price for a municipal bond or forward swap contract, each Fund may use
market quotes provided by major broker/dealers in such investments. If it is
determined that the market price for an investment or derivative instrument is
unavailable or inappropriate, the Board of Trustees of the Funds, or its
designee, may establish fair value in accordance with procedures established in
good faith by the Board of Trustees. 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/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At March 31, 2008, there were
no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Interest income also includes paydown gains and losses, if any. Dividend income,
if any, is recorded on the ex-dividend date.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions 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. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
55
Notes to
FINANCIAL STATEMENTS (continued)
Effective September 30, 2007, the Funds adopted Financial Accounting Standards
Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes"
(FIN 48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax benefit or expense in the
current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the fiscal year ended March 31, 2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are declared and 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 U.S. generally accepted
accounting principles.
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate
56
certificates, as well as any shortfalls in interest cash flows. The inverse
floater held by a Fund gives the Fund the right (a) to cause the holders of the
floating rate certificates to tender their notes at par, and (b) to have the
broker transfer the fixed-rate bond held by the trust to the Fund, thereby
collapsing the trust. An investment in an externally-deposited inverse floater
is identified in the Portfolio of Investments as an "Inverse floating rate
investment". An investment in a self-deposited inverse floater, recourse trust
or credit recovery swap is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards (SFAS) No. 140
"Accounting for Transfers and Servicing of Financial Assets and Extinguishment
of Liabilities". In such instances, a fixed-rate bond deposited into a special
purpose trust is identified in the Portfolio of Investments as an "Underlying
bond of an inverse floating rate trust", with the Fund accounting for the
short-term floating rate certificates issued by the trust as "Floating rate
obligations" on the Statement of Assets and Liabilities. In addition, the Fund
reflects in Investment Income the entire earnings of the underlying bond and
accounts for the related interest paid to the holders of the short-term floating
rate certificates as "Interest expense on floating rate obligations" in the
Statement of Operations.
During the fiscal year ended March 31, 2008, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended March 31, 2008, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT
TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXQ) (NXR) (NXC) (NXN)
-------------------------------------------------------------------------------------------------
Average floating rate obligations $2,859,344 $665,000 $1,584,557 $454,939
Average annual interest rate and fees 3.49% 3.53% 3.48% 3.60%
=================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. New York Select Tax-Free
(NXN) was the only Fund to invest in forward interest rate swap transactions
during the fiscal year ended March 31, 2008.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
57
Notes to
FINANCIAL STATEMENTS (continued)
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. FUND SHARES
Transactions in shares were as follows:
SELECT SELECT SELECT
TAX-FREE (NXP) TAX-FREE 2 (NXQ) TAX-FREE 3 (NXR)
------------------------ ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/08 3/31/07 3/31/08 3/31/07 3/31/08 3/31/07
-----------------------------------------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment
of distributions 12,459 4,106 -- -- -- --
=================================================================================================================
CALIFORNIA SELECT NEW YORK SELECT
TAX-FREE (NXC) TAX-FREE (NXN)
----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/08 3/31/07 3/31/08 3/31/07
-----------------------------------------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment
of distributions 2,899 -- 827 --
=================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended March 31, 2008, were
as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------
Purchases $8,453,938 $17,602,128 $3,901,081 $8,029,347 $11,262,428
Sales and maturities 8,715,879 18,211,690 3,237,355 7,123,991 11,066,360
==================================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
58
At March 31, 2008, the cost of investments was as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------------------
Cost of investments $222,916,515 $238,350,732 $175,764,223 $86,262,056 $53,295,526
======================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at March 31, 2008, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,700,055 $ 7,456,503 $ 6,648,770 $ 3,006,599 $1,183,594
Depreciation (4,030,806) (6,673,272) (3,451,477) (2,004,111) (839,292)
----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 7,669,249 $ 783,231 $ 3,197,293 $ 1,002,488 $ 344,302
======================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at March 31, 2008, the Funds' tax year end, were
as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $1,061,243 $1,211,279 $364,661 $378,533 $130,930
Undistributed net ordinary income** 1,594 1,512 439 -- --
Undistributed net long-term capital gains -- -- -- -- --
======================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on March 3, 2008, paid on April 1, 2008.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' tax years ended March
31, 2008 and March 31, 2007, was designated for purposes of the dividends paid
deduction as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
2008 (NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $11,212,532 $11,198,099 $8,322,967 $3,980,219 $2,392,058
Distributions from net ordinary income** -- -- -- -- --
Distributions from net long-term capital gains**** -- -- -- 66,849 47,064
======================================================================================================================
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
2007 (NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,202,851 $11,198,098 $8,322,970 $3,979,498 $2,391,832
Distributions from net ordinary income** -- -- -- -- --
Distributions from net long-term capital gains -- -- -- 140,158 142,259
======================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
March 31, 2008, as Exempt Interest Dividends.
**** 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
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended March 31, 2008.
59
Notes to
FINANCIAL STATEMENTS (continued)
At March 31, 2008, the Funds' tax year end, the Funds had unused capital loss
carryforwards available for federal income tax purposes to be applied against
future capital gains, if any. If not applied, the carryforwards will expire as
follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
-----------------------------------------------------------------------------------------------------------------
Expiration:
March 31, 2015 $1,345,204 $1,369,835 $18,217 $ -- $ --
March 31, 2016 -- 7,597 54,760 34,855 40,191
-----------------------------------------------------------------------------------------------------------------
Total $1,345,204 $1,377,432 $72,977 $34,855 $40,191
=================================================================================================================
The Funds have elected to defer net realized losses from investments incurred
from November 1, 2007 through March 31, 2008, the Funds' tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year:
SELECT SELECT
TAX-FREE 2 TAX-FREE 3
(NXQ) (NXR)
--------------------------------------------------------------------------------
$262,895 $9,584
================================================================================
5. MANAGEMENT FEES 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:
SELECT TAX-FREE 2 (NXQ)
SELECT TAX-FREE 3 (NXR)
CALIFORNIA SELECT TAX-FREE (NXC)
SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN)
AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE FUND-LEVEL FEE RATE
------------------------------------------------------------------------------------------------------------------
For the first $125 million .0500% .1000%
For the next $125 million .0375 .0875
For the next $250 million .0250 .0750
For the next $500 million .0125 .0625
==================================================================================================================
The annual complex-level fee, 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 tables below. As
of March 31, 2008, the complex-level fee rate was .1870%.
60
Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
Prior to August 20, 2007, the complex-level fee schedule was as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
================================================================================
(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
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Trustees has
adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Trustees of each Fund
considered and approved a new investment management agreement
61
Notes to
FINANCIAL STATEMENTS (continued)
with the Adviser on the same terms as the previous agreements. Each new ongoing
agreement, was approved by the shareholders of each Fund and took effect on
November 13, 2007.
The investors led by Madison Dearborn includes an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation will
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157
In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
standard establishes a single authoritative definition of fair value, sets out a
framework for measuring fair value and requires additional disclosures about
fair value measurements. SFAS No. 157 applies to fair value measurements already
required or permitted by existing standards. SFAS No. 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The changes to current generally
accepted accounting principles from the application of this standard relate to
the definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of March 31, 2008,
management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts; however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements included within the Statement of Operations for the period.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 161
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years beginning
after November 15, 2008, and interim periods within those fiscal years. As of
March 31, 2008, management does not believe the adoption of SFAS No. 161 will
impact the financial statement amounts; however, additional footnote disclosures
may be required about the use of derivative instruments and hedging items.
7. SUBSEQUENT EVENTS
Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on May 1, 2008, to shareholders of record on April 15,
2008, as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
--------------------------------------------------------------------------------
Dividend per share $.0570 $.0555 $.0535 $.0555 $.0510
================================================================================
62
Financial
HIGHLIGHTS
63
Financial
HIGHLIGHTS
Selected data for a share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------- ------------------------------
Net
Beginning Net Realized/ Net
Net Asset Investment Unrealized Investment Capital
Value Income Gain (Loss) Total Income Gains Total
===========================================================================================================
SELECT TAX-FREE (NXP)
-----------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 $14.72 $.70 $(.44) $ .26 $(.68) $ -- $(.68)
2007 14.62 .70 .08 .78 (.68) -- (.68)
2006 14.62 .70 (.02) .68 (.68) -- (.68)
2005 14.85 .70 (.12) .58 (.71) (.10) (.81)
2004 14.82 .73 .15 .88 (.76) (.09) (.85)
SELECT TAX-FREE 2 (NXQ)
-----------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 14.60 .66 (.69) (.03) (.64) -- (.64)
2007 14.44 .66 .14 .80 (.64) -- (.64)
2006 14.38 .66 .06 .72 (.65) (.01) (.66)
2005 14.56 .67 (.13) .54 (.68) (.04) (.72)
2004 14.45 .70 .19 .89 (.72) (.06) (.78)
===========================================================================================================
Total Returns
---------------------
Ending Based on
Net Ending Based on Net
Asset Market Market Asset
Value Value Value* Value*
========================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------
Year Ended 3/31:
2008 $14.30 $14.24 .61% 1.83%
2007 14.72 14.85 9.59 5.48
2006 14.62 14.21 10.41 4.74
2005 14.62 13.50 .17 4.00
2004 14.85 14.30 7.34 6.13
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------
Year Ended 3/31:
2008 13.93 13.79 2.69 (.24)
2007 14.60 14.07 10.21 5.62
2006 14.44 13.37 7.39 5.12
2005 14.38 13.08 .11 3.82
2004 14.56 13.80 8.35 6.31
========================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Before Credit After Credit**
-------------------------------------- --------------------------------------
Ending
Net Expenses Expenses Net Expenses Expenses Net Portfolio
Assets Including Excluding Investment Including Excluding Investment Turnover
(000) Interest(a) Interest(a) Income Interest(a) Interest(a) Income Rate
====================================================================================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 $234,494 .32% .32% 4.83% .31% .31% 4.83% 4%
2007 241,074 .31 .31 4.77 .30 .30 4.78 2
2006 239,406 .32 .32 4.72 .31 .31 4.73 4
2005 239,460 .33 .33 4.76 .32 .32 4.77 11
2004 243,165 .34 .34 4.90 .33 .33 4.91 16
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 245,244 .40 .36 4.58 .38 .34 4.60 7
2007 257,037 .37 .36 4.50 .36 .35 4.51 3
2006 254,205 .36 .36 4.51 .35 .35 4.52 11
2005 253,158 .37 .37 4.68 .36 .36 4.69 13
2004 256,373 .39 .39 4.86 .38 .38 4.86 10
====================================================================================================================================
Floating Rate Obligations
at End of Period
--------------------------
Aggregate
Amount Asset
Outstanding Coverage
(000) Per $1,000
======================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------
Year Ended 3/31:
2008 $ -- $ --
2007 -- --
2006 -- --
2005 -- --
2004 -- --
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------
Year Ended 3/31:
2008 2,470 100,289
2007 1,135 227,465
2006 -- --
2005 -- --
2004 -- --
======================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Net Asset Value is the combination of changes in net asset
value, reinvested dividend income at net asset value and reinvested capital
gains distributions at net asset value, if any. The last dividend declared
in the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset value.
The actual reinvest price for the last dividend declared in the period may
often be based on the Fund's market price (and not its net asset value),
and therefore may be different from the price used in the calculation.
Total returns are not annualized.
** After custodian fee credit, where applicable.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
64-65 spread
Financial
HIGHLIGHTS (continued)
Selected data for a share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------- ------------------------------
Net
Beginning Net Realized/ Net
Net Asset Investment Unrealized Investment Capital
Value Income Gain (Loss) Total Income Gains Total
===========================================================================================================
SELECT TAX-FREE 3 (NXR)
-----------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 $14.42 $.64 $(.44) $.20 $(.64) $ -- $(.64)
2007 14.29 .64 .13 .77 (.64) -- (.64)
2006 14.22 .65 .06 .71 (.64) -- (.64)
2005 14.37 .66 (.11) .55 (.67) (.03) (.70)
2004 14.28 .69 .16 .85 (.69) (.07) (.76)
CALIFORNIA SELECT
TAX-FREE (NXC)
-----------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 14.73 .66 (.65) .01 (.64) (.01) (.65)
2007 14.57 .64 .18 .82 (.64) (.02) (.66)
2006 14.54 .65 .09 .74 (.65) (.06) (.71)
2005 14.68 .66 (.09) .57 (.66) (.05) (.71)
2004 14.54 .68 .19 .87 (.68) (.05) (.73)
===========================================================================================================
Total Returns
---------------------
Ending Based on
Net Ending Based on Net
Asset Market Market Asset
Value Value Value* Value*
========================================================================
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------
Year Ended 3/31:
2008 $13.98 $13.75 2.91% 1.42%
2007 14.42 14.01 9.15 5.51
2006 14.29 13.45 10.12 5.10
2005 14.22 12.82 (.17) 4.01
2004 14.37 13.56 9.96 6.13
CALIFORNIA SELECT
TAX-FREE (NXC)
------------------------------------------------------------------------
Year Ended 3/31:
2008 14.09 14.08 3.68 .05
2007 14.73 14.22 9.89 5.72
2006 14.57 13.56 6.52 5.17
2005 14.54 13.40 .50 3.99
2004 14.68 14.06 9.14 6.16
========================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Before Credit After Credit**
-------------------------------------- --------------------------------------
Ending
Net Expenses Expenses Net Expenses Expenses Net Portfolio
Assets Including Excluding Investment Including Excluding Investment Turnover
(000) Interest(a) Interest(a) Income Interest(a) Interest(a) Income Rate
====================================================================================================================================
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 $181,288 .38% .36% 4.49% .36% .35% 4.50% 2%
2007 186,969 .38 .37 4.43 .36 .35 4.45 9
2006 185,233 .37 .37 4.51 .35 .35 4.52 6
2005 184,379 .38 .38 4.66 .37 .37 4.67 16
2004 186,358 .38 .38 4.84 .38 .38 4.85 6
CALIFORNIA SELECT
TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 88,224 .44 .38 4.52 .43 .37 4.53 8
2007 92,177 .40 .39 4.37 .39 .38 4.38 16
2006 91,152 .38 .38 4.42 .37 .37 4.43 8
2005 90,949 .39 .39 4.55 .39 .39 4.56 13
2004 91,864 .40 .40 4.64 .39 .39 4.65 30
====================================================================================================================================
Floating Rate Obligations
at End of Period
--------------------------
Aggregate
Amount Asset
Outstanding Coverage
(000) Per $1,000
======================================================
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------
Year Ended 3/31:
2008 $665 $273,613
2007 665 282,156
2006 -- --
2005 -- --
2004 -- --
CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------
Year Ended 3/31:
2008 1,700 52,896
2007 758 122,606
2006 -- --
2005 -- --
2004 -- --
======================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Net Asset Value is the combination of changes in net asset
value, reinvested dividend income at net asset value and reinvested capital
gains distributions at net asset value, if any. The last dividend declared
in the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset value.
The actual reinvest price for the last dividend declared in the period may
often be based on the Fund's market price (and not its net asset value),
and therefore may be different from the price used in the calculation.
Total returns are not annualized.
** After custodian fee credit, where applicable.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
66-67 spread
Financial
HIGHLIGHTS (continued)
Selected data for a share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------- ------------------------------
Net
Beginning Net Realized/ Net
Net Asset Investment Unrealized Investment Capital
Value Income Gain (Loss) Total Income Gains Total
===========================================================================================================
NEW YORK SELECT
TAX-FREE (NXN)
-----------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 $14.28 $.62 $(.49) $.13 $(.61) $(.01) $(.62)
2007 14.19 .61 .13 .74 (.61) (.04) (.65)
2006 14.28 .62 (.02) .60 (.62) (.07) (.69)
2005 14.57 .64 (.21) .43 (.66) (.06) (.72)
2004 14.51 .68 .14 .82 (.68) (.08) (.76)
===========================================================================================================
Total Returns
---------------------
Ending Based on
Net Ending Based on Net
Asset Market Market Asset
Value Value Value* Value*
==================================================================
NEW YORK SELECT
TAX-FREE (NXN)
------------------------------------------------------------------
Year Ended 3/31:
2008 $13.79 $13.79 2.06% .94%
2007 14.28 14.15 11.15 5.30
2006 14.19 13.35 2.84 4.19
2005 14.28 13.65 .05 3.10
2004 14.57 14.40 11.81 5.84
==================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Before Credit After Credit**
-------------------------------------- --------------------------------------
Ending
Net Expenses Expenses Net Expenses Expenses Net Portfolio
Assets Including Excluding Investment Including Excluding Investment Turnover
(000) Interest(a) Interest(a) Income Interest(a) Interest(a) Income Rate
============================================================================================================================
NEW YORK SELECT
TAX-FREE (NXN)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2008 $53,908 .46% .43% 4.35% .44% .41% 4.37% 20%
2007 55,828 .46 .42 4.29 .45 .41 4.30 6
2006 55,473 .41 .41 4.28 .40 .40 4.29 13
2005 55,817 .41 .41 4.48 .41 .41 4.48 13
2004 56,958 .43 .43 4.65 .42 .42 4.65 16
============================================================================================================================
Floating Rate Obligations
at End of Period
--------------------------
Aggregate
Amount Asset
Outstanding Coverage
(000) Per $1,000
======================================================
NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------
Year Ended 3/31:
2008 $1,018 $53,981
2007 1,710 33,648
2006 -- --
2005 -- --
2004 -- --
======================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Net Asset Value is the combination of changes in net asset
value, reinvested dividend income at net asset value and reinvested capital
gains distributions at net asset value, if any. The last dividend declared
in the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset value.
The actual reinvest price for the last dividend declared in the period may
often be based on the Fund's market price (and not its net asset value),
and therefore may be different from the price used in the calculation.
Total returns are not annualized.
** After custodian fee credit, where applicable.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
68-69 spread
Board Members & 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
Members of the Funds. The number of board members of the Fund is currently set
at eight. None of the board members 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 board members 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.
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS APPOINTED IN FUND COMPLEX INCLUDING OTHER
AND TERM(2) OVERSEEN BY DIRECTORSHIPS
BOARD MEMBER DURING PAST 5 YEARS
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
[] TIMOTHY R. SCHWERTFEGER(1) Former director (1994-November 12, 2007),
3/28/49 Chairman of 1994 Chairman (1996-June 30, 2007), Non-Executive
333 W. Wacker Drive the Board CLASS I 184 Chairman (July 1, 2007-November 12, 2007)
Chicago, IL 60606 and Board Member and Chief Executive Officer (1996-June 30,
2007) of Nuveen Investments, Inc., Nuveen
Asset Management and certain other
subsidiaries of Nuveen Investments, Inc.;
formerly, Director (1992-2006) of
Institutional Capital Corporation.
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
[] ROBERT P. BREMNER Private Investor and Management Consultant.
8/22/40 Lead 1997
333 W. Wacker Drive Independent CLASS III 184
Chicago, IL 60606 Board member
[] JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 1999 private philanthropic corporation (since
333 W. Wacker Drive Board member CLASS III 184 1996); Director and Vice Chairman, United
Chicago, IL 60606 Fire Group, a publicly held company; Member
of the Board of Regents for the State of
Iowa University System; Director, Gazette
Companies; Life Trustee of Coe College and
Iowa College Foundation; Member of the
Advisory Council of the Department of
Finance in the Tippie College of Business,
University of Iowa; 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 Dean, Tippie College of Business, University
3/6/48 2004 of Iowa (since July 2006); formerly, Dean
333 W. Wacker Drive Board member CLASS II 184 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 (since 2005), Beta Gamma Sigma
International Honor Society; Director, SS&C
Technologies, Inc. (May 2005-October 2005).
70
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS APPOINTED IN FUND COMPLEX INCLUDING OTHER
AND TERM(2) OVERSEEN BY DIRECTORSHIPS
BOARD MEMBER DURING PAST 5 YEARS
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
[] DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 2005 Management Company; Retired (since 2004) as
333 W. Wacker Drive Board member CLASS II 182 Chairman, JPMorgan Fleming Asset Management,
Chicago, IL 60606 President and CEO, Banc One Investment
Advisors Corporation, and President, One
Group Mutual Funds; prior thereto, Executive
Vice President, Banc One Corporation and
Chairman and CEO, Banc One Investment
Management Group; Member, Board of Regents,
Luther College; member of the Wisconsin Bar
Association; member of Board of Directors,
Friends of Boerner Botanical Gardens; member
of Investment Committee, Greater Milwaukee
Foundation.
[] WILLIAM J. SCHNEIDER Chairman, formerly, Senior Partner and Chief
9/24/44 1997 Operating Officer (retired, 2004) of
333 W. Wacker Drive Board member CLASS III 184 Miller-Valentine Partners Ltd., a real
Chicago, IL 60606 estate investment company; Director, Dayton
Development Coalition; formerly, member,
Business Advisory Council, Cleveland Federal
Reserve Bank.
[] JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 1997 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board member CLASS I 184 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
[] CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 2007 (since 2006); Chair New York Racing
333 West Wacker Drive Board member CLASS I 184 Association Oversight Board (since 2005);
Chicago, IL 60606 Commissioner, New York State Commission on
Public Authority Reform (since 2005);
formerly Director, New York State Division
of the Budget (2000-2004), Chair, Public
Authorities Control Board (2000-2004) and
Director, Local Government Assistance
Corporation (2000-2004).
OFFICERS OF THE FUND:
[] GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel,
333 W. Wacker Drive Administrative 1988 184 formerly, Vice President and Assistant
Chicago, IL 60606 Officer General Counsel, of Nuveen Investments, LLC;
Managing Director (since 2002), Associate
General Counsel and Assistant Secretary, of
Nuveen Asset Management; Vice President and
Assistant Secretary of NWQ Investment
Management Company, LLC. (since 2002),
Nuveen Investments Advisers Inc. (since
2002), Symphony Asset Management LLC, and
NWQ Investment Management Company, LLC
(since 2003), Tradewinds Global Investors,
LLC, and Santa Barbara Asset Management, LLC
(since 2006); Nuveen HydePark Group LLC and
Richards & Tierney, Inc. (since 2007);
Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since 2003); Managing
Director (since 2004) and Assistant
Secretary (since 1994) of Nuveen
Investments, Inc.; formerly, Managing
Director (2002-2004), General Counsel
(1998-2004) and Assistant Secretary of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Chartered
Financial Analyst.
[] WILLIAM ADAMS IV Executive Vice President, U.S. Structured
6/9/55 Products of Nuveen Investments, LLC, (since
333 West Wacker Drive Vice President 2007 120 1999), prior thereto, Managing Director of
Chicago, IL 60606 Structured Investments.
71
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
OVERSEEN
BY OFFICER
OFFICERS OF THE FUND:
[] CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004) previously,
1/11/62 Vice President (1993-2004) of Nuveen
333 W. Wacker Drive Vice President 2007 120 Investments, LLC.
Chicago, IL 60606
[] MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.
333 W. Wacker Drive and Assistant 2000 184
Chicago, IL 60606 Secretary
[] PETER H. D'ARRIGO Vice President and Treasurer of Nuveen
11/28/67 Investments, LLC and Nuveen Investments,
333 W. Wacker Drive Vice President 1999 184 Inc.; Vice President and Treasurer of Nuveen
Chicago, IL 60606 Asset Management (since 2002), Nuveen
Investments Advisers Inc. (since 2002); NWQ
Investment Management Company, LLC. (since
2002); Rittenhouse Asset Management, Inc.
(since 2003), Tradewinds NWQ Global
Investors, LLC (since 2006), Santa Barbara
Asset Management, LLC (since 2006) and
Nuveen HydePark Group, LLC and Richards
&Tierney, Inc. (since 2007); Treasurer of
Symphony Asset Management LLC (since 2003);
formerly, Vice President and Treasurer
(1999-2004) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3),
Chartered Financial Analyst.
[] LORNA C. FERGUSON Managing Director (since 2004), formerly,
10/24/45 Vice President of Nuveen Investments, LLC,
333 W. Wacker Drive Vice President 1998 184 Managing Director (2004) formerly, Vice
Chicago, IL 60606 President (1998-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3); Managing Director (since 2005) of
Nuveen Asset Management.
[] STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen
333 W. Wacker Drive and Controller 1998 184 Investments, LLC; formerly, Vice President
Chicago, IL 60606 and Funds Controller (1998-2004) of Nuveen
Investments, Inc.; Certified Public
Accountant.
[] WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant
333 West Wacker Drive Officer and 2003 184 Vice President and Assistant General Counsel
Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Vice
President (since 2006) and Assistant
Secretary (since 2008) of Nuveen Asset
Management.
[] DAVID J. LAMB Vice President (since 2000) of Nuveen
3/22/63 Investments, LLC; Certified Public
333 W. Wacker Drive Vice President 2000 184 Accountant.
Chicago, IL 60606
[] TINA M. LAZAR Vice President of Nuveen Investments, LLC
8/27/61 (since 1999).
333 W. Wacker Drive Vice President 2002 184
Chicago, IL 60606
72
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
OVERSEEN
BY OFFICER
OFFICERS OF THE FUND:
[] LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive and Assistant 1988 184 Investments, LLC; Vice President (since
Chicago, IL 60606 Secretary 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); NWQ
Investment Management Company, LLC (since
2002), Symphony Asset Management LLC (since
2003), Tradewinds Global Investors, LLC,
Santa Barbara Asset Management LLC (since
2006) and of Nuveen HydePark Group, LLC and
Richards &Tierney, Inc. (since 2007);
formerly, Vice President and Assistant
Secretary of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3)
[] KEVIN J. MCCARTHY Managing Director (since 2008), formerly,
3/26/66 Vice President Vice President (2007-2008), Nuveen
333 W. Wacker Drive and Secretary 2007 184 Investments, LLC; Vice President, and
Chicago, IL 60606 Assistant Secretary, Nuveen Asset
Management, Rittenhouse Asset Management,
Inc., Nuveen Investment Advisers Inc.,
Nuveen Investment Institutional Services
Group LLC, NWQ Investment Management
Company, LLC, Tradewinds Global Investors
LLC, NWQHoldings, LLC, Symphony Asset
Management LLC, Santa Barbara Asset
Management LLC, Nuveen HydePark Group, LLC
and Richards &Tierney, Inc. (since 2007);
Managing Director (since 2008), formerly,
Vice President (2007-2008) and Assistant
General Counsel, Nuveen Investments, Inc.
prior thereto, Partner, Bell, Boyd & Lloyd
LLP (1997-2007).
[] JOHN V. MILLER Managing Director (since 2007), formerly,
4/10/67 Vice President (2002-2007) of Nuveen
333 W. Wacker Drive Vice President 2007 184 Investments, LLC; Chartered Financial
Chicago, IL 60606 Analyst.
[] JAMES F. RUANE Vice President, Nuveen Investments since
7/3/62 Vice President 2007; prior thereto, Partner, Deloitte &
333 W. Wacker Drive and Assistant 2007 184 Touche USA LLP (since 2005), formerly,
Chicago, IL 60606 Secretary senior tax manager (since 2002); Certified
Public Accountant.
[] MARK L. WINGET Vice President, Nuveen Investments, LLC
12/21/68 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 184 Secretary, Nuveen Asset Management,
Chicago, IL 60606 Secretary Rittenhouse Asset Management, Inc., Nuveen
Investment Advisers Inc., Nuveen Investment
Institutional Services Group LLC, NWQ
Investment Management Company, LLC,
Tradewinds Global Investors, LLC, NWQ
Holdings, LLC, Symphony Asset Management
LLC, Santa Barbara Asset Management, LLC,
Nuveen HydePark Group, LLC and Richards &
Tierney, Inc. (since 2008); Vice President
and Assistant General Counsel, Nuveen
Investments Inc. (since 2008); prior
thereto, Counsel, Vedder Price P.C.
(1997-2007).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, by reason of being the former Chairman and
Chief Executive Officer of Nuveen Investments, Inc. and having previously
served in various other capacities with Nuveen Investments, Inc. and its
subsidiaries. It is expected that Mr. Schwertfeger will resign from the
Board of Trustees by the end of the second quarter of 2008.
(2) Board Members serve three year terms. The Board of Trustees is divided into
three classes, Class I, Class II, and Class III, with each being elected to
serve until the third succeeding annual shareholders' meeting subsequent to
its election or thereafter in each case when its respective successors are
duly elected or appointed. The first year elected or appointed represents
the year in which the board member was first elected or appointed to any
fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) 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.
73
Reinvest Automatically
EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
74
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
75
NOTES
76
NOTES
77
Glossary of
TERMS USED in this REPORT
[] AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
[] AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period.
It expresses the return that would have been necessary each year to equal
the investment's actual cumulative performance (including change in NAV or
market price and reinvested dividends and capital gains distributions, if
any) over the time period being considered.
[] AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (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 unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
[] DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change.
[] INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
[] MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
[] NET ASSET VALUE (NAV): A Fund's common share NAV per share 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.
[] TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
[] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
78
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2007, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
BOARD OF DIRECTORS
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. No common shares were
repurchased during the period covered by this report. Any future repurchases
will be reported to shareholders in the next annual or semi-annual report.
79
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $153 billion in assets, as of March 31, 2008, 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: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; Symphony,
a leading institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader
in global equities.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/ETF
SHARE PRICES
FUND DETAILS
DAILY FINANCIAL NEWS
INVESTOR EDUCATION
INTERACTIVE PLANNING TOOLS
EAN-B-0308D
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/etf. (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 or Trustees 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 Officer 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.
Nuveen California Select Tax-Free Income Portfolio
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, 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 Fund 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 Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund 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 FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND
-----------------------------------------------------------------------------------------------------------------------------
March 31, 2008 $ 9,948 $ 0 $ 500 $ 0
-----------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------------------------
March 31, 2007 $ 8,778 $ 0 $ 0 $ 0
-----------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------------------------
(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.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young 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 Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
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 Ernst & Young LLP by the Fund, 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 Fund 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 Fund's audit is
completed.
FISCAL YEAR ENDED 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
-------------------------------------------------------------------------------------------------------------
March 31, 2008 $ 0 $ 0 $ 0
-------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-------------------------------------------------------------------------------------------------------------
March 31, 2007 $ 0 $ 0 $ 0
-------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED 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
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
----------------------------------------------------------------------------------------------------------------------------
March 31, 2008 $ 500 $ 0 $ 0 $ 500
March 31, 2007 $ 0 $ 0 $ 0 $ 0
"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 Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) 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.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Jack B. Evans, William J.
Schneider and David J. Kundert.
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.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
Name Fund
Scott R. Romans Nuveen California Select Tax-Free Income Portfolio
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Scott R. Romans Registered Investment Company 28 $5.940 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 3 $.18 million
* Assets are as of March 31, 2008. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of April 30, 2008, the
S&P/Investortools Municipal Bond index was comprised of 51,827 securities with
an aggregate current market value of $1,027 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors lead by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the Registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
NAM has adopted several policies that address potential conflicts of interest,
including best execution and trade allocation policies that are designed to
ensure (1) that portfolio management is seeking the best price for portfolio
securities under the circumstances, (2) fair and equitable allocation of
investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of the March 31, 2008, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
BENEFICIALLY BY NAM'S MUNICIPAL
NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
---------------------------------------------------------------------------------------------------------------------
Scott R. Romans Nuveen California Select Tax-Free Income Portfolio $0 $10,001-$50,000
---------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO:
Scott R. Romans, PhD joined Nuveen Investments in 2000 as a senior analyst in
the education sector. In 2003, he was assigned management responsibility for
several closed- and open-ended municipal bond funds most of which are state
funds covering California and other western states. Currently, he manages
investments for 29 Nuveen-sponsored investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrants 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. Letter or number the
exhibits in the sequence indicated.
(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/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor 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.
(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 registrant 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 California Select Tax-Free Income Portfolio
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: June 6, 2008
-------------------------------------------------------------------
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: June 6, 2008
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: June 6, 2008
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.