N-CSRS 1 dncsrs.txt NUVEEN MULTISTATE TRUST IV UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-07751 Nuveen Multistate Trust IV -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 -------------- Date of fiscal year end: May 31 ------ Date of reporting period: November 30, 2004 ----------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507. ITEM 1. REPORTS TO STOCKHOLDERS. -------------------------------------------------------------------------------- Nuveen Investments Municipal Bond Funds -------------------------------------------------------------------------------- Semiannual Report dated November 30, 2004 ----------------------------------- Dependable, tax-free income because it's not what you earn, it's what you keep.(R) [PHOTO] Nuveen Kansas Municipal Bond Fund Nuveen Kentucky Municipal Bond Fund Nuveen Michigan Municipal Bond Fund Nuveen Missouri Municipal Bond Fund Nuveen Ohio Municipal Bond Fund Nuveen Wisconsin Municipal Bond Fund [LOGO] Nuveen Investments [PHOTO] NOW YOU CAN RECEIVE YOUR NUVEEN INVESTMENTS FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN INVESTMENTS FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if your wish. [LOGO] IT'S FAST, EASY & FREE: www.investordelivery.com if you get your Nuveen Investments Fund dividends and statements from your financial advisor or brokerage account. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) OR www.nuveen.com/accountaccess if you get your Nuveen Investments Fund dividends and statements directly from Nuveen Investments. [LOGO] ------------------------------ Must be preceded by or accompanied by a prospectus. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE [PHOTO] Timothy R. Schwertfeger Dear Shareholder, Once again, I am pleased to report that over the most recent reporting period your Fund continued to provide you with attractive tax-free monthly income. For more specific information about the performance of your Fund, please see the Portfolio Managers' Comments and Fund Spotlight sections of this report. With long-term interest rates still relatively low, many have begun to wonder whether interest rates will rise, and whether that possibility should cause them to adjust their holdings of fixed-income investments. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that municipal bond investments like your Nuveen Investments Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. I'd also like to direct your attention to the inside front cover of this report, which explains the quick and easy process to begin receiving Fund reports like this via e-mail and the internet. Thousands of Nuveen Investments Fund shareholders already have signed-up, and they are getting their Fund information faster and helping to lower Fund expenses. I urge you to consider joining them. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 14, 2005 "No one knows what the future will bring, which is why we think a well-balanced portfolio . . . is an important component in achieving your long-term financial goals." Semiannual Report Page 1 Portfolio Managers' Comments Portfolio managers Scott Romans, Dan Solender, and Cathryn Steeves examine key investment strategies and the performance of the Nuveen Kansas, Kentucky, Michigan, Missouri, Ohio, and Wisconsin Municipal Bond Funds. Scott, who has 4 years of investment experience, began managing the Kansas, Missouri, and Wisconsin Funds in 2003. Dan, with 17 years of investment experience, began managing the Michigan Fund in 2003. Cathryn has 8 years of investment experience and assumed primary management responsibility for the Kentucky and Ohio Funds in August of 2004. Effective January 1, 2005, Cathryn Steeves took over portfolio manager duties for the Nuveen Michigan Municipal Bond Fund. The Fund will continue to utilize a team approach. This does not change the Fund's investment objectives, policies or day-to-day portfolio management practices. -------------------------------------------------------------------------------- How did the Funds perform during the six months ended November 30, 2004? The table on page 3 provides total return performance information for the six Funds discussed in this report for the six-month, one-year, five-year and ten-year periods ended November 30, 2004. Each Fund's total return performance is compared with the national Lehman Brothers Municipal Bond Index, as well as with its Lipper peer fund category average. The reasons for each Fund's variance from the national Lehman Brothers Index and corresponding Lipper category are discussed later in the report. Although we believe that comparing the performance of a state Fund with that of a national municipal index may offer some insights into how the Fund performed relative to the general municipal market, we also think that closely comparing the results of state Funds with a national average is difficult since most of the national index's results come from out-of-state bonds. Each Fund seeks to pay dividends at a rate that reflects the past and projected performance of the Fund. To permit a Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If the Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund's net asset value. Conversely, if the Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund's net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders. As of November 30, 2004, the Nuveen Kansas, Kentucky, Michigan, Missouri, Ohio and Wisconsin Municipal Bond Funds had negative UNII for financial statement purposes and positive UNII balances for tax purposes. What strategies were used to manage the Funds during the six months ended November 30, 2004? How did these strategies influence performance throughout the period? All six Funds outperformed their Lipper peer group averages. Compared to the national Lehman Brothers Municipal Bond Index, the Funds' results varied from strong outperformance to modest underperformance. To varying degrees, each portfolio benefited from being overweighted in lower-investment-grade securities, especially BBB-rated and, to a lesser extent, nonrated bonds. Such holdings enjoyed strong performance during the period as a growing economy and strong investor demand led to declining credit spreads. Our overall management approach was consistent across the six Funds, although our ability to implement our strategy varied by state, depending on the availability of suitable municipal securities. We sold longer bonds from the portfolio, especially bonds with lower coupons. Such bonds are ================================================================================ The views expressed reflect those of the portfolio managers and are subject to change at any time, based on market and other conditions. Semiannual Report Page 2 Class A Shares-- Total Returns as of 11/30/04 --------------------------------------------------------------------------------
Average Annual Cumulative --------------------- 6-Month 1-Year 5-Year 10-Year - --------------------- Nuveen Kansas Municipal Bond Fund A Shares at NAV 4.58% 4.40% 6.30% 6.56% A Shares at Offer 0.16% -0.01% 5.38% 6.11% Lipper Kansas Municipal Debt Funds Category Average/1/ 2.64% 2.38% 5.24% 5.53% Lehman Brothers Municipal Bond Index/2/ 4.30% 4.07% 6.78% 7.16% ---------------------------------------------------------- Nuveen Kentucky Municipal Bond Fund A Shares at NAV 4.15% 4.16% 6.23% 6.51% A Shares at Offer -0.25% -0.21% 5.32% 6.06% Lipper Kentucky Municipal Debt Funds Category Average/1/ 3.75% 3.48% 5.33% 6.14% Lehman Brothers Municipal Bond Index/2/ 4.30% 4.07% 6.78% 7.16% ---------------------------------------------------------- Nuveen Michigan Municipal Bond Fund A Shares at NAV 4.29% 4.43% 6.43% 6.45% A Shares at Offer -0.07% 0.03% 5.51% 5.99% Lipper Michigan Municipal Debt Funds Category Average/1/ 3.50% 2.77% 5.78% 6.35% Lehman Brothers Municipal Bond Index/2/ 4.30% 4.07% 6.78% 7.16% ----------------------------------------------------------
Average Annual Cumulative --------------------- 6-Month 1-Year 5-Year 10-Year - --------------------- Nuveen Missouri Municipal Bond Fund A Shares at NAV 4.38% 4.07% 6.18% 6.43% A Shares at Offer 0.02% -0.27% 5.27% 5.97% Lipper Missouri Municipal Debt Funds Category Average/1/ 3.65% 2.94% 5.90% 6.33% Lehman Brothers Municipal Bond Index/2/ 4.30% 4.07% 6.78% 7.16% ------------------------------------------------------------ Nuveen Ohio Municipal Bond Fund A Shares at NAV 4.75% 4.06% 6.12% 6.14% A Shares at Offer 0.35% -0.27% 5.20% 5.68% Lipper Ohio Municipal Debt Funds Category Average/1/ 3.82% 3.04% 5.70% 6.17% Lehman Brothers Municipal Bond Index/2/ 4.30% 4.07% 6.78% 7.16% ------------------------------------------------------------ Nuveen Wisconsin Municipal Bond Fund A Shares at NAV 4.02% 3.64% 6.52% 6.35% A Shares at Offer -0.39% -0.75% 5.61% 5.90% Lipper Other States Municipal Debt Funds Category Average/1/ 3.22% 2.69% 5.55% 5.92% Lehman Brothers Municipal Bond Index/2/ 4.30% 4.07% 6.78% 7.16% ------------------------------------------------------------
Returns quoted represent past performance, which is no guarantee of future results. Returns at NAV would be lower if the sales charge were included. Returns less than one year are cumulative. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Class A shares have a 4.2% maximum sales charge. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance, visit www.nuveen.com or call (800) 257-8787. -------------------------------------------------------------------------------- relatively sensitive to changes in interest rates. Although these investments generally performed well in response to falling rates during the period, we redeployed investments to maturities that we believe offer better risk-return characteristics. For example, we preferred long-intermediate-term premium bonds, which, depending on availability and the characteristics of each portfolio, meant buying securities with maturities of anywhere from 10 to 23 years. The long-intermediate part of the yield curve (the yield curve is a graphical representation of bond yields of different maturities) represented the maturity range that we believed offered our shareholders the most favorable balance of performance potential and investment risk. We also took advantage of the continued strong performance of lower-rated credits. As these bonds -------------------------------------------------------------------------------- 1For each Fund, the Lipper category average shown represents the average annualized total return for all reporting funds for the periods ended November 30, 2004. The Lipper categories contained 11, 11, 10 and 6 funds in the Lipper Kansas Municipal Debt Funds Category, 17, 17, 16 and 7 funds in the Lipper Kentucky Municipal Debt Funds Category, 37, 37, 35 and 24 funds in the Lipper Michigan Municipal Debt Funds Category, 21, 21, 20 and 14 funds in the Lipper Missouri Municipal Debt Funds Category, 43, 42, 37 and 27 funds in the Lipper Ohio Municipal Debt Funds Category and 63, 63, 52 and 29 funds in the Lipper Wisconsin Municipal Debt Funds Category for the respective six-month, one-, five- and ten-year periods ended November 30, 2004. The returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in a Lipper Category. 2The Lehman Brothers Municipal Bond Index is an unmanaged index composed of a broad range of investment-grade municipal bonds and does not reflect any initial or ongoing expenses. An index is not available for direct investment. Semiannual Report Page 3 have outperformed, and credit spreads (the difference in market yield between highly-rated bonds and lower-rated bonds) are relatively tight by historical measures, we believed that market conditions provided us with an opportune time to lock in gains on lower-rated bonds while reducing the Funds' risk. Accordingly, we sold some of the most concentrated positions in lower-grade credits within the portfolios at favorable prices. Because of their higher income streams, we did continue to emphasize a diversified exposure of lower-rated bonds. The Nuveen Kansas Municipal Bond Fund enjoyed strong relative total return at NAV performance. The portfolio's somewhat long duration helped results during the period. The Fund also benefited from the strong performance of lower-rated credits. Heavy demand for these types of bonds not only contributed to returns but also provided us with opportunities to sell bonds in whose long-term credit prospects we no longer had sufficient confidence. For example, among the Fund's strongest-performing bonds during the past six months were issued or backed by American Airlines. We had serious questions about the airline sector's financial health, particularly its over-reliance on debt, and the likelihood of future market volatility. Despite these factors, the bonds performed quite well during the period. We saw this strength as a window of opportunity to liquidate most of our position, help reduce the Fund's credit risk, and reinvest the proceeds in areas of the market that we believed offered better future appreciation potential. (After the period ended, the remainder of the Fund's stake in the American Airlines bonds was sold.) Market conditions also factored into our decision to sell some of the Fund's healthcare revenue bonds issued for Citizens Medical Center in Colby, Kansas, reducing risk, increasing diversification, and capturing better value potential elsewhere in the market. The Nuveen Kentucky Municipal Bond Fund benefited from its relatively long duration, which helped total return performance as interest rates remained low during the past six months. The portfolio also was overweighted in BBB-rated bonds, which benefited from high investor demand. For example, the Fund saw strong performance from its holdings in Bon Secours Health System revenue bonds, maturing in 2030 and offering a coupon of 5.625 percent. Tobacco bonds, which benefited from strong demand, also added to results. So did the portfolio's zero-coupon and inverse-floating-rate bonds, which were greatly helped by the favorable interest-rate environment. On the negative side, the Fund was hurt by its holdings in short-term, high-income bonds that were held during the reporting period. Although owning these securities for as long as possible added to the Fund's income stream, they also detracted from performance as interest rates on the short end of the yield curve rose and corresponding prices dropped. In the Kentucky Fund, we followed the same broad strategies as in the other portfolios, including selling some of our longest bonds and replacing them with intermediate bonds that we believed offered our shareholders better value potential. We also bought some premium planned amortization class (PAC) housing bonds that we expect to perform well in a rising rate environment. A PAC bond is a type of mortgage security that repays its obligations at a fast rate. Accordingly, these securities have very short durations, and our decision to add them was part of our strategy to reduce the Fund's interest-rate risk. In the Nuveen Michigan Municipal Bond Fund, we looked to invest in premium-coupon defensive bond structures when we could identify suitable opportunities. Often, this meant investing in the intermediate range of the yield curve, where we believed the best values could be found. We also reduced the Fund's exposure to very short and very long bonds. Although long bonds outperformed during the past six months as interest rates remained low, we continued to anticipate better future performance from intermediate bonds if interest rates rise. The Nuveen Michigan Municipal Bond Fund owned a number of bonds with near-term call dates as well as pre-refunded securities; both contributed to the portfolio's relatively short duration. Semiannual Report Page 4 Although these bonds were hurt by rising short-term rates, we continued to hold them as long as possible because of the high income they generated. The Fund benefited from its exposure to lower-rated bonds, particularly in the strong-performing healthcare sector. For example, the Fund's longtime holdings in Detroit Medical Center rebounded significantly during the period. As with the other portfolios, we looked for opportunities to reduce our exposure to lower-rated credit positions that have experienced strong recent performance. The Nuveen Missouri Municipal Bond Fund performed well as a result of positive security selection and its weighting in lower-rated securities. The portfolio's holdings in long-term care bonds, which significantly outperformed the general market, also helped performance, as did being under-represented in industrial development revenue bonds, a sector we were cautious about and that lagged the market during the period. Particularly strong performers during the past six months were Texas County Memorial Hospital revenue bonds. These bonds, which offer coupon income of 7.25 percent, were advance refunded during the period, resulting in a nearly 25 percent total return during the reporting period for the securities. The Fund also benefited from holdings in American Airlines bonds, which we described in our comments about the Kansas Fund. During the period we sold most of the portfolio's position because of our questions about airline industry credit. (After the period ended, the remainder of the Fund's stake in the American Airlines bonds was sold.) As part of our overall management strategy, consistent with that pursued in the other Funds, we were fairly active in buying and selling new bonds during the period. A notable example was our decision to add to our position in Freeman Health System bonds. These bonds, providing coupon income of 5.50 percent and maturing in 2029, met our goal of trying to add exposure to the uninsured healthcare sector. We believed the securities were reasonably priced relative to their risk. We also purchased continuing care retirement community (CCRC) bonds for the Lutheran Senior Services Heisinger facility. Nuveen has a dedicated research analyst devoted to the CCRC sector, providing us with added confidence in the credit quality of these non-rated bonds. The Nuveen Ohio Municipal Bond Fund enjoyed strong total returns during the past six months, outpacing both its Lipper peer group average and the national Lehman Brothers Municipal Bond Index. The Fund was helped by its weighting in BBB-rated bonds, especially in the hospital sector, which enjoyed generally strong performance during the past six months. Positions in certain industrial development credits also helped performance, as did our holdings in tobacco bonds because of the relative scarcity of high yield municipal paper and strong demand. Investors perceived a declining litigation risk for tobacco companies, whose revenues secure the bonds' income stream. By contrast, the Fund's overweighting in bonds on the short end of the yield curve detracted from performance; these securities were hurt as short-term rates rose in line with the Fed's rate hikes. We continued to hold onto these bonds as long as possible for the high income stream they provided. As with the other Funds, we continued to favor high-grade premium-coupon long-intermediate bonds. For example, we purchased additional credits issued by Olentangy Local School District. The bonds mature in 2022 and provide coupons of 5.25 percent. We also continued to take advantage of market conditions and the strong demand for lower-rated securities to scale back concentrated positions. By selling some of our holdings, we were able to add to the portfolio's diversification and reinvest proceeds in securities we believed offered better future value. In the Nuveen Wisconsin Municipal Bond Fund, we continually looked for opportunities to implement our desired management strategy, although finding these opportunities can be challenging in a relatively small state with modest fully-tax-exempt municipal issuance. However, during the past six months we were more able than usual to identify suitable in-state bonds. Semiannual Report Page 5 Accordingly, we sold some of the portfolio's territorial bond holdings and invested in tax-exempt Wisconsin issues. Among the territorial bonds sold were the American Airlines bonds described in the Kansas and Missouri Funds. The sale of most of our holdings in this issue allowed us to lock in gains as well as reinvest the proceeds in Wisconsin paper. (After the period ended, the remainder of the Fund's stake in the American Airlines bonds was sold.) Wisconsin bonds added during the period included a tax-increment finance bond for Weston, Wisconsin. Although the bond was non-rated, the village has a credit rating of A2, and the bonds offered an attractive level of income, in our opinion. We also sold some of the Fund's pre-refunded Glendale, Wisconsin, bonds with call dates of 2008, buying longer non-rated Glendale bonds in their place. This transaction allowed us to maintain our exposure to the credit and provide the Fund with upside potential if the bonds get pre-refunded. The Wisconsin Fund benefited from its holdings in lower-rated bonds, which rose as investor demand soared for higher-yielding, higher-risk securities. By contrast, a large exposure to pre-refunded bonds was a detractor from performance, as their short durations hurt performance as short-term interest rates rose. A large exposure to multifamily housing bonds also detracted from results; investors worried about these securities' prepayment risks. Semiannual Report Page 6 Fund Spotlight as of 11/30/04 Nuveen Kansas Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------- NAV $10.44 $10.36 $10.45 $10.49 -------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0375 $0.0310 $0.0330 $0.0395 -------------------------------------------------------------- Inception Date 1/09/92 2/19/97 2/11/97 2/25/97 --------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Classes B and C) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return.
Average Annual Total Returns as of 11/30/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.40% -0.01% ------------------------------------------- 5-Year 6.30% 5.38% ------------------------------------------- 10-Year 6.56% 6.11% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 3.55% -0.44% ------------------------------------------- 5-Year 5.52% 5.36% ------------------------------------------- 10-Year 5.92% 5.92% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 3.76% ------------------------------------------- 5-Year 5.73% ------------------------------------------- 10-Year 6.06% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 4.62% ------------------------------------------- 5-Year 6.51% ------------------------------------------- 10-Year 6.79% ------------------------------------------- Tax-Free Yields A Shares NAV Offer ------------------------------------------- Dividend Yield/2/ 4.31% 4.13% ------------------------------------------- SEC 30-Day Yield/3/ 3.67% 3.52% ------------------------------------------- Taxable-Equivalent Yield/4/ 5.44% 5.21% ------------------------------------------- B Shares NAV ------------------------------------------- Dividend Yield/2/ 3.59% ------------------------------------------- SEC 30-Day Yield/3/ 2.92% ------------------------------------------- Taxable-Equivalent Yield/4/ 4.33% ------------------------------------------- C Shares NAV ------------------------------------------- Dividend Yield/2/ 3.79% ------------------------------------------- SEC 30-Day Yield/3/ 3.12% ------------------------------------------- Taxable-Equivalent Yield/4/ 4.62% ------------------------------------------- R Shares NAV ------------------------------------------- Dividend Yield/2/ 4.52% ------------------------------------------- SEC 30-Day Yield/3/ 3.87% ------------------------------------------- Taxable-Equivalent Yield/4/ 5.73% -------------------------------------------
Average Annual Total Returns as of 12/31/04 A Shares NAV Offer ------------------------------------------- 1-Year 5.29% 0.87% ------------------------------------------- 5-Year 6.92% 6.01% ------------------------------------------- 10-Year 6.42% 5.97% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 4.55% 0.55% ------------------------------------------- 5-Year 6.12% 5.97% ------------------------------------------- 10-Year 5.78% 5.78% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 4.75% ------------------------------------------- 5-Year 6.35% ------------------------------------------- 10-Year 5.91% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 5.61% ------------------------------------------- 5-Year 7.13% ------------------------------------------- 10-Year 6.65% -------------------------------------------
Portfolio Statistics Net Assets ($000) $127,923 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.63 --------------------------------------------------------- Average Duration 6.35 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid December 1, 2004. This is the latest monthly tax-exempt dividend declared during the period ended November 30, 2004. 2Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because a fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 4The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.5%. Semiannual Report Page 7 Fund Spotlight as of 11/30/04 Nuveen Kansas Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 57.5% AA 19.1% A 11.0% BBB 6.6% NR 5.5% BB or Lower 0.3% 1As a percentage of total holdings as of November 30, 2004. Holdings are subject to change.
Sectors/1/ Tax Obligation/Limited 27.7% ---------------------------- Healthcare 18.2% ---------------------------- Tax Obligation/General 15.5% ---------------------------- U.S. Guaranteed 8.1% ---------------------------- Water and Sewer 7.2% ---------------------------- Housing/Single Family 4.9% ---------------------------- Utilities 4.6% ---------------------------- Other 13.8% ----------------------------
-------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ----------------------------------------------------------------------------------------------------------------- Beginning Account Value (6/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ----------------------------------------------------------------------------------------------------------------- Ending Account Value (11/30/04) $1,045.80 $1,042.30 $1,043.10 $1,047.80 $1,020.66 $1,016.90 $1,017.95 $1,021.66 ----------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 4.51 $ 8.35 $ 7.27 $ 3.49 $ 4.46 $ 8.24 $ 7.18 $ 3.45 -----------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .88%, 1.63%, 1.42% and .68% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Semiannual Report Page 8 Fund Spotlight as of 11/30/04 Nuveen Kentucky Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------- NAV $11.08 $11.09 $11.07 $11.07 -------------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0410 $0.0340 $0.0355 $0.0425 -------------------------------------------------------------------- Latest Capital Gain and Ordinary Income Distribution/2/ $0.0062 $0.0062 $0.0062 $0.0062 -------------------------------------------------------------------- Inception Date 5/04/87 2/05/97 10/04/93 2/07/97 --------------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A and C share returns are actual. Class B and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Class B) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return.
Average Annual Total Returns as of 11/30/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.16% -0.21% ------------------------------------------- 5-Year 6.23% 5.32% ------------------------------------------- 10-Year 6.51% 6.06% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 3.38% -0.59% ------------------------------------------- 5-Year 5.45% 5.29% ------------------------------------------- 10-Year 5.93% 5.93% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 3.60% ------------------------------------------- 5-Year 5.65% ------------------------------------------- 10-Year 5.94% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 4.34% ------------------------------------------- 5-Year 6.43% ------------------------------------------- 10-Year 6.66% ------------------------------------------- Tax-Free Yields A Shares NAV Offer ------------------------------------------- Dividend Yield/3/ 4.44% 4.25% ------------------------------------------- SEC 30-Day Yield/4/ 3.26% 3.12% ------------------------------------------- Taxable-Equivalent Yield/5/ 4.83% 4.62% ------------------------------------------- B Shares NAV ------------------------------------------- Dividend Yield/3/ 3.68% ------------------------------------------- SEC 30-Day Yield/4/ 2.51% ------------------------------------------- Taxable-Equivalent Yield/5/ 3.72% ------------------------------------------- C Shares NAV ------------------------------------------- Dividend Yield/3/ 3.85% ------------------------------------------- SEC 30-Day Yield/4/ 2.71% ------------------------------------------- Taxable-Equivalent Yield/5/ 4.01% ------------------------------------------- R Shares NAV ------------------------------------------- Dividend Yield/3/ 4.61% ------------------------------------------- SEC 30-Day Yield/4/ 3.46% ------------------------------------------- Taxable-Equivalent Yield/5/ 5.13% -------------------------------------------
Average Annual Total Returns as of 12/31/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.68% 0.29% ------------------------------------------- 5-Year 6.73% 5.83% ------------------------------------------- 10-Year 6.35% 5.89% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 3.80% -0.20% ------------------------------------------- 5-Year 5.94% 5.78% ------------------------------------------- 10-Year 5.77% 5.77% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 4.11% ------------------------------------------- 5-Year 6.15% ------------------------------------------- 10-Year 5.78% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 4.86% ------------------------------------------- 5-Year 6.94% ------------------------------------------- 10-Year 6.50% -------------------------------------------
Portfolio Statistics Net Assets ($000) $483,548 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.95 --------------------------------------------------------- Average Duration 5.59 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid December 1, 2004. This is the latest monthly tax-exempt dividend declared during the period ended November 30, 2004. 2Paid December 3, 2004. Capital gains and/or ordinary income are subject to federal taxation. 3Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because a fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 4The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 5The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.5%. Semiannual Report Page 9 Fund Spotlight as of 11/30/04 Nuveen Kentucky Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 63.2% AA 10.8% A 9.6% BBB 13.6% NR 1.6% BB or Lower 1.2% 1As a percentage of total holdings as of November 30, 2004. Holdings are subject to change.
Sectors/1/ Tax Obligation/Limited 33.2% --------------------------------------- Healthcare 11.8% --------------------------------------- U.S. Guaranteed 10.2% --------------------------------------- Water and Sewer 8.5% --------------------------------------- Utilities 7.8% --------------------------------------- Transportation 5.4% --------------------------------------- Education and Civic Organizations 4.8% --------------------------------------- Housing/Single Family 4.1% --------------------------------------- Other 14.2% ---------------------------------------
-------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ----------------------------------------------------------------------------------------------------------------- Beginning Account Value (6/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ----------------------------------------------------------------------------------------------------------------- Ending Account Value (11/30/04) $1,041.50 $1,038.50 $1,038.70 $1,042.40 $1,020.91 $1,017.15 $1,018.15 $1,021.91 ----------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 4.25 $ 8.07 $ 7.05 $ 3.23 $ 4.20 $ 7.99 $ 6.98 $ 3.19 -----------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .83%, 1.58%, 1.38% and .63% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Semiannual Report Page 10 Fund Spotlight as of 11/30/04 Nuveen Michigan Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------- NAV $11.68 $11.70 $11.67 $11.68 -------------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0415 $0.0340 $0.0360 $0.0435 -------------------------------------------------------------------- Latest Capital Gain and Ordinary Income Distribution/2/ $0.0059 $0.0059 $0.0059 $0.0059 -------------------------------------------------------------------- Inception Date 6/27/85 2/03/97 6/22/93 2/03/97 --------------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A and C share returns are actual. Class B and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Class B) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return.
Average Annual Total Returns as of 11/30/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.43% 0.03% ------------------------------------------- 5-Year 6.43% 5.51% ------------------------------------------- 10-Year 6.45% 5.99% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 3.62% -0.33% ------------------------------------------- 5-Year 5.64% 5.47% ------------------------------------------- 10-Year 5.86% 5.86% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 3.93% ------------------------------------------- 5-Year 5.86% ------------------------------------------- 10-Year 5.88% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 4.64% ------------------------------------------- 5-Year 6.65% ------------------------------------------- 10-Year 6.61% ------------------------------------------- Tax-Free Yields A Shares NAV Offer ------------------------------------------- Dividend Yield/3/ 4.26% 4.09% ------------------------------------------- SEC 30-Day Yield/4/ 3.49% 3.34% ------------------------------------------- Taxable-Equivalent Yield/5/ 5.06% 4.84% ------------------------------------------- B Shares NAV ------------------------------------------- Dividend Yield/3/ 3.49% ------------------------------------------- SEC 30-Day Yield/4/ 2.74% ------------------------------------------- Taxable-Equivalent Yield/5/ 3.97% ------------------------------------------- C Shares NAV ------------------------------------------- Dividend Yield/3/ 3.70% ------------------------------------------- SEC 30-Day Yield/4/ 2.94% ------------------------------------------- Taxable-Equivalent Yield/5/ 4.26% ------------------------------------------- R Shares NAV ------------------------------------------- Dividend Yield/3/ 4.47% ------------------------------------------- SEC 30-Day Yield/4/ 3.69% ------------------------------------------- Taxable-Equivalent Yield/5/ 5.35% -------------------------------------------
Average Annual Total Returns as of 12/31/04 A Shares NAV Offer ------------------------------------------- 1-Year 5.54% 1.14% ------------------------------------------- 5-Year 7.01% 6.08% ------------------------------------------- 10-Year 6.35% 5.90% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 4.73% 0.73% ------------------------------------------- 5-Year 6.19% 6.03% ------------------------------------------- 10-Year 5.77% 5.77% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 4.96% ------------------------------------------- 5-Year 6.41% ------------------------------------------- 10-Year 5.77% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 5.76% ------------------------------------------- 5-Year 7.21% ------------------------------------------- 10-Year 6.51% -------------------------------------------
Portfolio Statistics Net Assets ($000) $250,378 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.40 --------------------------------------------------------- Average Duration 5.73 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid December 1, 2004. This is the latest monthly tax-exempt dividend declared during the period ended November 30, 2004. 2Paid December 3, 2004. Capital gains and/or ordinary income are subject to federal taxation. 3Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because a fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 4The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 5The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 31.0%. Semiannual Report Page 11 Fund Spotlight as of 11/30/04 Nuveen Michigan Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 73.1% AA 11.5% A 5.2% BBB 5.3% NR 1.9% BB or Lower 3.0% 1As a percentage of total holdings as of November 30, 2004. Holdings are subject to change.
Sectors/1/ Tax Obligation/General 29.2% ---------------------------- U.S. Guaranteed 19.3% ---------------------------- Tax Obligation/Limited 14.2% ---------------------------- Healthcare 12.1% ---------------------------- Water and Sewer 8.4% ---------------------------- Utilities 4.5% ---------------------------- Other 12.3% ----------------------------
-------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ----------------------------------------------------------------------------------------------------------------- Beginning Account Value (6/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ----------------------------------------------------------------------------------------------------------------- Ending Account Value (11/30/04) $1,042.90 $1,038.90 $1,041.00 $1,044.00 $1,020.76 $1,017.00 $1,018.00 $1,021.76 ----------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 4.40 $ 8.23 $ 7.21 $ 3.38 $ 4.36 $ 8.14 $ 7.13 $ 3.35 -----------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .86%, 1.61%, 1.41% and .66% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Semiannual Report Page 12 Fund Spotlight as of 11/30/04 Nuveen Missouri Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------- NAV $11.01 $11.02 $11.01 $11.03 -------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0400 $0.0330 $0.0350 $0.0420 -------------------------------------------------------------- Inception Date 8/03/87 2/06/97 2/02/94 2/19/97 --------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A and C share returns are actual. Class B and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Class B) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return.
Average Annual Total Returns as of 11/30/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.07% -0.27% ------------------------------------------- 5-Year 6.18% 5.27% ------------------------------------------- 10-Year 6.43% 5.97% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 3.37% -0.62% ------------------------------------------- 5-Year 5.40% 5.23% ------------------------------------------- 10-Year 5.84% 5.84% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 3.60% ------------------------------------------- 5-Year 5.62% ------------------------------------------- 10-Year 5.86% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 4.37% ------------------------------------------- 5-Year 6.40% ------------------------------------------- 10-Year 6.60% ------------------------------------------- Tax-Free Yields A Shares NAV Offer ------------------------------------------- Dividend Yield/2/ 4.36% 4.18% ------------------------------------------- SEC 30-Day Yield/3/ 3.93% 3.76% ------------------------------------------- Taxable-Equivalent Yield/4/ 5.82% 5.57% ------------------------------------------- B Shares NAV ------------------------------------------- Dividend Yield/2/ 3.59% ------------------------------------------- SEC 30-Day Yield/3/ 3.17% ------------------------------------------- Taxable-Equivalent Yield/4/ 4.70% ------------------------------------------- C Shares NAV ------------------------------------------- Dividend Yield/2/ 3.81% ------------------------------------------- SEC 30-Day Yield/3/ 3.37% ------------------------------------------- Taxable-Equivalent Yield/4/ 4.99% ------------------------------------------- R Shares NAV ------------------------------------------- Dividend Yield/2/ 4.57% ------------------------------------------- SEC 30-Day Yield/3/ 4.12% ------------------------------------------- Taxable-Equivalent Yield/4/ 6.10% -------------------------------------------
Average Annual Total Returns as of 12/31/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.92% 0.48% ------------------------------------------- 5-Year 6.68% 5.77% ------------------------------------------- 10-Year 6.33% 5.87% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 4.21% 0.21% ------------------------------------------- 5-Year 5.89% 5.74% ------------------------------------------- 10-Year 5.74% 5.74% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 4.35% ------------------------------------------- 5-Year 6.10% ------------------------------------------- 10-Year 5.75% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 5.13% ------------------------------------------- 5-Year 6.89% ------------------------------------------- 10-Year 6.49% -------------------------------------------
Portfolio Statistics Net Assets ($000) $259,824 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 17.72 --------------------------------------------------------- Average Duration 6.17 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid December 1, 2004. This is the latest monthly tax-exempt dividend declared during the period ended November 30, 2004. 2Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because a fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 4The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.5%. Semiannual Report Page 13 Fund Spotlight as of 11/30/04 Nuveen Missouri Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 58.5% AA 11.8% A 7.6% BBB 5.9% NR 16.0% BB or Lower 0.2% 1As a percentage of total holdings as of November 30, 2004. Holdings are subject to change.
Sectors/1/ Tax Obligation/Limited 18.6% --------------------------------------- Tax Obligation/General 14.3% --------------------------------------- Long-Term Care 10.8% --------------------------------------- Housing/Multifamily 9.7% --------------------------------------- Healthcare 9.2% --------------------------------------- Education and Civic Organizations 8.9% --------------------------------------- Transportation 7.2% --------------------------------------- Water and Sewer 5.8% --------------------------------------- Other 15.5% ---------------------------------------
-------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ----------------------------------------------------------------------------------------------------------------- Beginning Account Value (6/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ----------------------------------------------------------------------------------------------------------------- Ending Account Value (11/30/04) $1,043.80 $1,039.80 $1,042.00 $1,045.90 $1,020.86 $1,017.10 $1,018.10 $1,021.86 ----------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 4.30 $ 8.13 $ 7.12 $ 3.28 $ 4.26 $ 8.04 $ 7.03 $ 3.24 -----------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .84%, 1.59%, 1.39%, and .64% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Semiannual Report Page 14 Fund Spotlight as of 11/30/04 Nuveen Ohio Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------- NAV $11.44 $11.43 $11.42 $11.43 -------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0430 $0.0360 $0.0380 $0.0450 -------------------------------------------------------------- Inception Date 6/27/85 2/03/97 8/03/93 2/03/97 --------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A and C share returns are actual. Class B and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Class B) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return.
Average Annual Total Returns as of 11/30/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.06% -0.27% ------------------------------------------- 5-Year 6.12% 5.20% ------------------------------------------- 10-Year 6.14% 5.68% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 3.30% -0.67% ------------------------------------------- 5-Year 5.33% 5.16% ------------------------------------------- 10-Year 5.54% 5.54% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 3.52% ------------------------------------------- 5-Year 5.54% ------------------------------------------- 10-Year 5.56% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 4.28% ------------------------------------------- 5-Year 6.33% ------------------------------------------- 10-Year 6.30% ------------------------------------------- Tax-Free Yields A Shares NAV Offer ------------------------------------------- Dividend Yield/2/ 4.51% 4.32% ------------------------------------------- SEC 30-Day Yield/3/ 3.54% 3.39% ------------------------------------------- Taxable-Equivalent Yield/4/ 5.28% 5.06% ------------------------------------------- B Shares NAV ------------------------------------------- Dividend Yield/2/ 3.78% ------------------------------------------- SEC 30-Day Yield/3/ 2.78% ------------------------------------------- Taxable-Equivalent Yield/4/ 4.15% ------------------------------------------- C Shares NAV ------------------------------------------- Dividend Yield/2/ 3.99% ------------------------------------------- SEC 30-Day Yield/3/ 2.98% ------------------------------------------- Taxable-Equivalent Yield/4/ 4.45% ------------------------------------------- R Shares NAV ------------------------------------------- Dividend Yield/2/ 4.72% ------------------------------------------- SEC 30-Day Yield/3/ 3.74% ------------------------------------------- Taxable-Equivalent Yield/4/ 5.58% -------------------------------------------
Average Annual Total Returns as of 12/31/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.86% 0.43% ------------------------------------------- 5-Year 6.66% 5.75% ------------------------------------------- 10-Year 6.09% 5.64% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 4.10% 0.10% ------------------------------------------- 5-Year 5.89% 5.73% ------------------------------------------- 10-Year 5.50% 5.50% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 4.32% ------------------------------------------- 5-Year 6.09% ------------------------------------------- 10-Year 5.52% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 5.08% ------------------------------------------- 5-Year 6.88% ------------------------------------------- 10-Year 6.26% -------------------------------------------
Portfolio Statistics Net Assets ($000) $560,127 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.96 --------------------------------------------------------- Average Duration 5.91 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid December 1, 2004. This is the latest monthly tax-exempt dividend declared during the period ended November 30, 2004. 2Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because a fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 4The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 33.0%. Semiannual Report Page 15 Fund Spotlight as of 11/30/04 Nuveen Ohio Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 64.0% AA 19.0% A 5.7% BBB 5.8% NR 2.6% BB or Lower 2.9% 1As a percentage of total holdings as of November 30, 2004. Holdings are subject to change.
Sectors/1/ Tax Obligation/General 28.5% --------------------------------------- Healthcare 16.4% --------------------------------------- Tax Obligation/Limited 9.0% --------------------------------------- U.S. Guaranteed 9.0% --------------------------------------- Education and Civic Organizations 7.8% --------------------------------------- Utilities 7.7% --------------------------------------- Housing/Multifamily 5.4% --------------------------------------- Water and Sewer 5.1% --------------------------------------- Other 11.1% ---------------------------------------
-------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ----------------------------------------------------------------------------------------------------------------- Beginning Account Value (6/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ----------------------------------------------------------------------------------------------------------------- Ending Account Value (11/30/04) $1,047.50 $1,043.70 $1,044.90 $1,048.70 $1,020.86 $1,017.10 $1,018.10 $1,021.86 ----------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 4.31 $ 8.15 $ 7.13 $ 3.29 $ 4.26 $ 8.04 $ 7.03 $ 3.24 -----------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .84%, 1.59%, 1.39%, and .64% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Semiannual Report Page 16 Fund Spotlight as of 11/30/04 Nuveen Wisconsin Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------- NAV $10.36 $10.38 $10.39 $10.41 -------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0345 $0.0280 $0.0300 $0.0365 -------------------------------------------------------------- Inception Date 6/01/94 2/25/97 2/25/97 2/25/97 --------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Classes B and C) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return.
Average Annual Total Returns as of 11/30/04 A Shares NAV Offer ------------------------------------------- 1-Year 3.64% -0.75% ------------------------------------------- 5-Year 6.52% 5.61% ------------------------------------------- 10-Year 6.35% 5.90% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 2.82% -1.16% ------------------------------------------- 5-Year 5.75% 5.59% ------------------------------------------- 10-Year 5.80% 5.80% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 3.09% ------------------------------------------- 5-Year 5.96% ------------------------------------------- 10-Year 5.85% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 3.86% ------------------------------------------- 5-Year 6.76% ------------------------------------------- 10-Year 6.56% ------------------------------------------- Tax-Free Yields A Shares NAV Offer ------------------------------------------- Dividend Yield/2/ 4.00% 3.83% ------------------------------------------- SEC 30-Day Yield/3/ 2.98% 2.85% ------------------------------------------- Taxable-Equivalent Yield/4/ 4.45% 4.25% ------------------------------------------- B Shares NAV ------------------------------------------- Dividend Yield/2/ 3.24% ------------------------------------------- SEC 30-Day Yield/3/ 2.23% ------------------------------------------- Taxable-Equivalent Yield/4/ 3.33% ------------------------------------------- C Shares NAV ------------------------------------------- Dividend Yield/2/ 3.46% ------------------------------------------- SEC 30-Day Yield/3/ 2.43% ------------------------------------------- Taxable-Equivalent Yield/4/ 3.63% ------------------------------------------- R Shares NAV ------------------------------------------- Dividend Yield/2/ 4.21% ------------------------------------------- SEC 30-Day Yield/3/ 3.18% ------------------------------------------- Taxable-Equivalent Yield/4/ 4.75% -------------------------------------------
Average Annual Total Returns as of 12/31/04 A Shares NAV Offer ------------------------------------------- 1-Year 4.42% 0.02% ------------------------------------------- 5-Year 7.08% 6.15% ------------------------------------------- 10-Year 6.27% 5.81% ------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------- 1-Year 3.68% -0.32% ------------------------------------------- 5-Year 6.28% 6.12% ------------------------------------------- 10-Year 5.71% 5.71% ------------------------------------------- C Shares NAV ------------------------------------------- 1-Year 3.87% ------------------------------------------- 5-Year 6.50% ------------------------------------------- 10-Year 5.76% ------------------------------------------- R Shares NAV ------------------------------------------- 1-Year 4.74% ------------------------------------------- 5-Year 7.32% ------------------------------------------- 10-Year 6.48% -------------------------------------------
Portfolio Statistics Net Assets ($000) $46,039 -------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.82 -------------------------------------------------------- Average Duration 5.80 --------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid December 1, 2004. This is the latest monthly tax-exempt dividend declared during the period ended November 30, 2004. 2Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because a fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 4The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 33.0%. Semiannual Report Page 17 Fund Spotlight as of 11/30/04 Nuveen Wisconsin Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 54.2% AA 13.4% A 10.2% BBB 4.9% NR 16.5% BB or Lower 0.8% 1As a percentage of total holdings as of November 30, 2004. Holdings are subject to change.
Sectors/1/ Tax Obligation/Limited 61.1% --------------------------------------- U.S. Guaranteed 14.2% --------------------------------------- Housing/Multifamily 9.8% --------------------------------------- Education and Civic Organizations 5.8% --------------------------------------- Other 9.1% ---------------------------------------
-------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ----------------------------------------------------------------------------------------------------------------- Beginning Account Value (6/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ----------------------------------------------------------------------------------------------------------------- Ending Account Value (11/30/04) $1,040.20 $1,036.50 $1,038.40 $1,042.30 $1,020.51 $1,016.75 $1,017.75 $1,021.56 ----------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 4.65 $ 8.47 $ 7.46 $ 3.58 $ 4.61 $ 8.39 $ 7.38 $ 3.55 -----------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .91%, 1.66%, 1.46% and .70% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Semiannual Report Page 18 Portfolio of Investments (Unaudited) NUVEEN KANSAS MUNICIPAL BOND FUND November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Consumer Discretionary - 0.2% $ 220 Wichita Airport Authority, Kansas, Airport Facilities No Opt. Call AA $ 220,862 Revenue Bonds, Wichita Airport Hotel Associates LP, Series 1992, 7.000%, 3/01/05 - RAAI Insured ---------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 3.1% 1,000 Kansas Development Finance Corporation, Athletic Facility 6/14 at 100.00 A1 1,043,030 Revenue Bonds, University of Kansas Athletic Corporation Project, Series 2004K, 5.000%, 6/01/19 (WI, settling 12/07/04) 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 1,552,500 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 955 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 1,045,629 Series 2001A, 5.500%, 7/01/16 - AMBAC Insured 270 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 295,623 Series 2001B, 5.500%, 7/01/16 - AMBAC Insured ---------------------------------------------------------------------------------------------------------------- Healthcare - 18.1% Coffeyville Public Building Commission, Kansas, Healthcare Facilities Revenue Bonds, Coffeyville Regional Medical Center, Series 2002: 1,005 5.000%, 8/01/18 - AMBAC Insured 8/12 at 100.00 AAA 1,051,160 1,050 5.000%, 8/01/19 - AMBAC Insured 8/12 at 100.00 AAA 1,094,037 1,000 5.000%, 8/01/20 - AMBAC Insured 8/12 at 100.00 AAA 1,038,640 2,000 Colby, Kansas, Health Facilities Revenue Refunding Bonds, 8/08 at 100.00 N/R 1,944,240 Citizens Medical Center Inc., Series 1998, 5.625%, 8/15/16 1,285 Kansas Development Finance Authority, Hospital Revenue 12/12 at 100.00 AA 1,374,449 Bonds, Susan B. Allen Memorial Hospital, Series 2002Q, 5.375%, 12/15/16 - RAAI Insured 4,580 Kansas Development Finance Authority, Health Facilities 6/10 at 101.00 AA 5,155,614 Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2000K, 6.500%, 12/01/16 1,110 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial 7/09 at 100.00 AA 1,184,148 Hospital, Series 1999, 5.750%, 7/01/24 - RAAI Insured Manhattan, Kansas, Hospital Revenue Bonds, Mercy Health Center, Series 2001: 1,025 5.000%, 8/15/14 - FSA Insured 8/11 at 100.00 AAA 1,087,884 1,075 5.000%, 8/15/15 - FSA Insured 8/11 at 100.00 AAA 1,135,050 Newton, Kansas, Hospital Revenue Refunding Bonds, Newton Healthcare Corporation, Series 1998A: 1,000 5.700%, 11/15/18 11/08 at 100.00 BBB- 1,023,790 1,750 5.750%, 11/15/24 11/08 at 100.00 BBB- 1,769,407 100 Puerto Rico Industrial, Tourist, Educational, Medical and 1/05 at 102.00 AAA 103,681 Environmental Control Facilities Financing Authority, Hospital Revenue Bonds, Auxilio Mutuo Hospital, Series 1995A, 6.250%, 7/01/24 - MBIA Insured 4,780 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/09 at 101.00 A+ 5,169,666 Improvement Bonds, Via Christi Health System Inc., Series 1999-XI, 6.250%, 11/15/24 ---------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 4.3% 1,715 Kansas Development Finance Authority, Multifamily Housing 12/10 at 100.00 AAA 1,798,092 Senior Revenue Bonds, Chimney Hills Apartments Project, Series 2000U-1, 5.900%, 12/01/20 (Alternative Minimum Tax) - AMBAC Insured Wichita, Kansas, Multifamily Housing Revenue Refunding Bonds, Shores Apartments, Series 1994XI-A: 1,500 6.700%, 4/01/19 - RAAI Insured 4/09 at 102.00 AA 1,598,160 2,000 6.800%, 4/01/24 - RAAI Insured 4/09 at 102.00 AA 2,111,080 ---------------------------------------------------------------------------------------------------------------- Housing/Single Family - 4.8% 15 Olathe-Labette County, Kansas, GNMA Collateralized Single 2/05 at 105.00 Aaa 15,621 Family Mortgage Revenue Refunding Bonds, Series 1994C-I, 7.800%, 2/01/25 410 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 417,729 Securities Program Single Family Revenue Bonds, Series 1997A-1, 6.950%, 6/01/29 (Alternative Minimum Tax) 1,465 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 6/08 at 105.00 Aaa 1,540,389 Securities Program Single Family Revenue Bonds, Series 1998A-1, 6.500%, 12/01/22 (Alternative Minimum Tax)
---- 19 Portfolio of Investments (Unaudited) NUVEEN KANSAS MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Housing/Single Family (continued) $ 545 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 12/09 at 105.00 Aaa $ 566,217 Securities Program Single Family Revenue Bonds, Series 2000A-2, 7.600%, 12/01/31 (Alternative Minimum Tax) 300 Sedgwick and Shawnee Counties, Kansas, FNMA/GNMA 12/10 at 105.00 Aaa 314,637 Mortgage-Backed Securities Program Single Family Revenue Bonds, Series 2001A, 6.300%, 12/01/32 (Alternative Minimum Tax) 3,135 Sedgwick and Shawnee Counties, Kansas, FNMA/GNMA 12/12 at 105.00 Aaa 3,307,080 Mortgage-Backed Securities Program Single Family Revenue Bonds, Series 2002B-1, 5.950%, 12/01/33 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Industrials - 1.6% 1,000 Wichita Airport Authority, Kansas, Special Facilities 6/12 at 101.00 A- 1,059,280 Revenue Bonds, Cessna Citation Service Center, Series 2002A, 6.250%, 6/15/32 (Alternative Minimum Tax) 1,000 Wichita, Kansas, Industrial Revenue Bonds, NMF America Inc. 8/07 at 101.00 AA- 1,041,650 Series 2000-II, 5.800%, 8/01/15 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Long-Term Care - 0.4% 500 Sedgwick County, Kansas, Healthcare Facilities Revenue 11/09 at 100.00 A 519,075 Bonds, Catholic Care Center Inc., Series 2001, 5.750%, 11/15/23 ---------------------------------------------------------------------------------------------------------------- Materials - 3.8% 1,000 Dodge City, Kansas, Pollution Control Revenue Refunding No Opt. Call A2 1,017,770 Bonds, Excel Corporation/Cargill Inc. Project, Series 1992, 6.625%, 5/01/05 3,700 Ford County, Kansas, Sewage and Solid Waste Disposal 6/08 at 102.00 A+ 3,797,791 Revenue Bonds, Excel Corporation/Cargill Inc. Project, Series 1998, 5.400%, 6/01/28 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 15.3% 2,500 Butler and Sedgwick Counties Unified School District 385, No Opt. Call AAA 2,976,675 Andover, Kansas, General Obligation Refunding and Improvement Bonds, Series 2000, 6.000%, 9/01/16 - FSA Insured 2,615 Butler County Unified School District 394, Kansas, General 9/14 at 100.00 AAA 2,730,766 Obligation Bonds, Series 2004, 5.000%, 9/01/23 - FSA Insured 1,675 Cowley County Unified School District 465, Winfield, 10/13 at 100.00 AAA 1,788,950 Kansas, General Obligation Bonds, Series 2003, 5.250%, 10/01/23 - MBIA Insured 750 Derby, Kansas, General Obligation Bonds, Series 2001A, 12/11 at 100.00 Aaa 805,253 5.250%, 12/01/21 - AMBAC Insured 560 Derby, Kansas, General Obligation Bonds, Series 2002B, 12/10 at 100.00 Aaa 595,610 5.000%, 12/01/18 - FSA Insured 650 Harvey County Unified School District 460, Hesston, Kansas, 9/12 at 100.00 AAA 676,858 General Obligation Bonds, Series 2002, 5.000%, 9/01/22 - FGIC Insured 1,100 Montgomery County Unified School District 445, Coffeyville, 4/12 at 100.00 AAA 1,143,384 Kansas, General Obligation Bonds, Series 2002, 5.000%, 4/01/22 - FGIC Insured 1,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 1,155,640 Refunding Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured 330 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 A- 342,857 Bonds, Series 2001A, 5.375%, 7/01/28 1,070 Scott County Unified School District 466, Kansas, General 9/12 at 100.00 AAA 1,162,202 Obligation Refunding Bonds, Series 2002, 5.250%, 9/01/18 - FGIC Insured 1,250 Sedgwick County Unified School District 259, Wichita, 9/10 at 100.00 AA 1,184,475 Kansas, General Obligation Bonds, Series 2000, 3.500%, 9/01/16 1,795 Wichita, Kansas, General Obligation Bonds, Series 2002, 4/09 at 101.00 AA 1,903,741 5.000%, 4/01/17 3,000 Wyandotte County Unified School District 500, Kansas, 9/12 at 100.00 AAA 3,156,210 General Obligation Bonds, Series 2002, 5.000%, 9/01/20 - FSA Insured ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 27.5% 3,000 Butler County Public Building Commission, Kansas, 10/10 at 100.00 Aaa 3,314,940 Improvement Revenue Bonds, Public Facilities Projects, Series 2000, 5.550%, 10/01/21 - MBIA Insured Kansas Department of Transportation, Highway Revenue Bonds, Series 2004A: 1,000 5.000%, 3/01/20 3/14 at 100.00 AA+ 1,061,140 5,000 5.000%, 3/01/23 3/14 at 100.00 AA+ 5,216,000
---- 20
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 500 Kansas Development Finance Authority, Lease Revenue Bonds, 10/12 at 100.00 AAA $ 522,200 Department of Administration, State Capitol Restoration Parking Facility Project, Series 2002C, 5.000%, 10/01/21 - FSA Insured 1,140 Kansas Development Finance Authority, Lease Revenue Bonds, 4/14 at 100.00 AAA 1,213,165 Department of Administration, State Capitol Restoration Project, Series 2004G-1, 5.125%, 4/01/21 - MBIA Insured 1,000 Kansas Development Finance Authority, Revenue Bonds, State 10/11 at 100.00 AAA 1,066,640 Projects, Series 2001W, 5.000%, 10/01/17 - MBIA Insured 2,085 Kansas Development Finance Authority, Revenue Bonds, State 10/12 at 100.00 AAA 2,265,436 Projects, Series 2002N, 5.250%, 10/01/18 - AMBAC Insured 5,000 Kansas Development Finance Authority, Revenue Bonds, Board 4/13 at 102.00 AAA 5,222,350 of Regents, Scientific Research and Development Facilities Projects, Series 2003C, 5.000%, 10/01/23 - AMBAC Insured 2,355 Kansas Development Finance Authority, Revenue Bonds, State 8/13 at 100.00 AAA 2,523,265 Projects, Series 2003J, 5.250%, 8/01/20 - AMBAC Insured 5,000 Overland Park Development Corporation, Kansas, First Tier 1/11 at 101.00 N/R 5,093,150 Revenue Bonds, Overland Park Convention Center, Series 2001A, 7.375%, 1/01/32 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 3,135 6.000%, 8/01/26 - AGC Insured No Opt. Call AAA 3,735,164 630 5.500%, 8/01/29 2/12 at 100.00 BBB+ 659,163 1,000 Virgin Islands Public Finance Authority, Senior Lien 10/08 at 101.00 BBB 1,021,330 Revenue Refunding Bonds, Matching Fund Loan Notes, Series 1998A, 5.625%, 10/01/25 2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,290,800 Taxes Loan Notes, Series 1999A, 6.375%, 10/01/19 ---------------------------------------------------------------------------------------------------------------- Transportation - 0.3% 600 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 421,098 Bonds, American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 8.1% 12,175 Johnson County, Kansas, Residual Revenue and Refunding No Opt. Call Aaa 9,121,388 Bonds, Series 1992, 0.000%, 5/01/12 1,010 Wichita, Kansas, Revenue Bonds, CSJ Health System of 5/05 at 100.00 A+*** 1,200,638 Wichita, Inc., Series 1985-XXV, 7.200%, 10/01/15 ---------------------------------------------------------------------------------------------------------------- Utilities - 4.6% 1,000 Burlington, Kansas, Environmental Improvement Revenue No Opt. Call A3 1,044,680 Bonds, Kansas City Power and Light Company Project, Series 1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07) 500 Pratt, Kansas, Electric System Revenue Bonds, Series 5/10 at 100.00 AAA 540,710 2001-1, 5.250%, 5/01/18 - AMBAC Insured 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,045,730 Series 2002II, 5.125%, 7/01/26 - FSA Insured Wellington, Kansas, Electric, Water and Sewer Utility System Revenue Bonds, Series 2002: 335 5.250%, 11/01/25 - AMBAC Insured 11/12 at 100.00 AAA 351,911 785 5.250%, 11/01/27 - AMBAC Insured 11/12 at 100.00 AAA 817,727 1,000 Wyandotte County-Kansas City Unified Government, Kansas, 9/14 at 100.00 AAA 1,040,250 Utility System Revenue Bonds, Series 2004B, 5.000%, 9/01/24 - FSA Insured 1,000 Wynadotte County-Kansas City Unified Government, Kansas, 5/11 at 100.00 AAA 1,038,020 Industrial Revenue Bonds, Board of Public Utilities Office Building Complex, Series 2001, 5.000%, 5/01/21 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Water and Sewer - 7.1% 2,000 Augusta, Kansas, Waterworks System Revenue Bonds, Series 10/08 at 101.50 AA 2,236,000 2000A, 6.150%, 10/01/20 - RAAI Insured 1,040 Chisholm Creek Utility Authority, Kansas, Water and 9/12 at 100.00 Aaa 1,102,015 Wastewater Facilities Revenue Bonds, Series 2002, 5.250%, 9/01/22 - MBIA Insured
---- 21 Portfolio of Investments (Unaudited) NUVEEN KANSAS MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Water and Sewer (continued) $ 5,500 Wichita, Kansas, Water and Sewer Utility Revenue Bonds, 10/13 at 100.00 AAA $ 5,753,439 Series 2003, 5.000%, 10/01/22 - FGIC Insured ---------------------------------------------------------------------------------------------------------------- $123,075 Total Long-Term Investments (cost $120,694,639) - 99.2% 126,934,951 ---------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 0.8% 987,951 -------------------------------------------------------------------------------------------------- Net Assets - 100% $127,922,902 --------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (WI)Security purchased on a when-issued basis. See accompanying notes to financial statements. ---- 22 Portfolio of Investments (Unaudited) NUVEEN KENTUCKY MUNICIPAL BOND FUND November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Consumer Staples - 1.0% $ 5,100 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 4,713,012 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ---------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 4.7% 9,295 Columbia, Kentucky, Educational Development Revenue Bonds, 4/11 at 101.00 BBB- 9,736,420 Lindsey Wilson College Project, Series 2001, 6.250%, 4/01/21 5,930 Jefferson County, Kentucky, College Revenue Bonds, 5/09 at 101.00 Baa2 5,869,336 Bellarmine College Project, Series 1999, 5.250%, 5/01/29 1,500 Kentucky Economic Development Finance Authority, College 10/12 at 100.00 AAA 1,513,650 Revenue Refunding and Improvement Bonds, Centre College Project, Series 2002, 5.000%, 4/01/32 - FSA Insured 2,500 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 2,537,125 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/29 3,000 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 3,020,070 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, Series 2001, 5.250%, 9/01/31 ---------------------------------------------------------------------------------------------------------------- Energy - 3.0% 5,000 Ashland, Kentucky, Pollution Control Revenue Refunding 2/05 at 100.00 Baa2 5,144,750 Bonds, Ashland Oil Inc. Project, Series 1992, 6.650%, 8/01/09 9,000 Ashland, Kentucky, Sewerage and Solid Waste Revenue Bonds, 2/05 at 102.00 Baa2 9,281,700 Ashland Inc. Project, Series 1995, 7.125%, 2/01/22 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Healthcare - 11.6% 1,310 Christian County, Kentucky, Hospital Revenue Bonds, Jennie 7/06 at 102.00 A- 1,358,588 Stuart Medical Center, Series 1996A, 6.000%, 7/01/17 3,500 Christian County, Kentucky, Hospital Revenue Refunding 7/06 at 102.00 A- 3,651,725 Bonds, Jennie Stuart Medical Center, Series 1997A, 6.000%, 7/01/13 5,270 Clark County, Kentucky, Hospital Revenue Refunding and 3/07 at 102.00 BBB- 5,469,891 Improvement Bonds, Clark Regional Medical Center Project, Series 1997, 6.200%, 4/01/13 9,500 Kentucky Economic Development Finance Authority, Hospital 2/07 at 102.00 AAA 10,188,940 Revenue Refunding Bonds, Pikeville, United Methodist Hospital of Kentucky Inc. Project, Series 1997, 5.700%, 2/01/28 - CONNIE LEE/ AMBAC Insured Kentucky Economic Development Finance Authority, Hospital System Revenue Refunding and Improvement Bonds, Appalachian Regional Healthcare Inc., Series 1997: 500 5.500%, 10/01/07 No Opt. Call BB- 507,210 500 5.600%, 10/01/08 4/08 at 102.00 BB- 509,045 3,500 5.850%, 10/01/17 4/08 at 102.00 BB- 3,390,205 1,500 5.875%, 10/01/22 4/08 at 102.00 BB- 1,408,170 6,000 Kentucky Economic Development Finance Authority, Revenue 6/08 at 101.00 AA 6,010,020 Refunding and Improvement Bonds, Catholic Health Initiatives, Series 1998A, 5.000%, 12/01/27 Kentucky Economic Development Finance Authority, Revenue Bonds, Catholic Health Initiatives, Series 2001: 1,000 5.250%, 9/01/21 9/11 at 100.00 AA 1,041,710 1,000 5.250%, 9/01/24 9/11 at 100.00 AA 1,032,310 10,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 2,956,620 System Revenue Bonds, Norton Healthcare Inc., Series 2000B, 0.000%, 10/01/28 - MBIA Insured 1,665 McCracken County, Kentucky, Hospital Facilities Revenue 5/05 at 102.00 AAA 1,703,528 Refunding Bonds, Mercy Health System, Series 1994A, 6.300%, 11/01/06 - MBIA Insured 16,500 Russell, Kentucky, Revenue Bonds, Bon Secours Health 11/12 at 100.00 A- 16,935,600 System, Series 2002A, 5.625%, 11/15/30 ---------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 0.6% 3,385 Henderson, Kentucky, Senior Tax-Exempt Residential 5/09 at 102.00 N/R 3,127,605 Facilities Revenue Bonds, Pleasant Pointe Project, Series 1999A, 6.125%, 5/01/29
---- 23 Portfolio of Investments (Unaudited) NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Housing/Single Family - 4.0% $ 2,000 Kentucky Housing Corporation, Housing Revenue Bonds, Series 11/10 at 100.00 AAA $ 2,110,900 2000F, 5.850%, 7/01/20 (Alternative Minimum Tax) 710 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/09 at 101.00 AAA 730,214 1998F, 5.000%, 7/01/18 (Alternative Minimum Tax) 9,480 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 9,634,714 1999A, 5.200%, 1/01/31 2,040 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 2,057,891 1999B, 5.250%, 1/01/28 (Alternative Minimum Tax) 5,000 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/14 at 100.00 AAA 4,993,300 2004F, 3.900%, 7/01/31 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Long-Term Care - 3.6% 4,840 Florence, Kentucky, Housing Facilities Revenue Bonds, 8/09 at 101.00 A 5,103,006 Bluegrass RHF Housing Inc. Project, Series 1999, 6.375%, 8/15/29 - ACA Insured 555 Jefferson County, Kentucky, First Mortgage Revenue Bonds, 5/05 at 102.00 BBB 566,705 First Christian Church Homes of Kentucky Project, Series 1994, 6.000%, 11/15/09 Kentucky Economic Development Finance Authority, Revenue Bonds, Christian Church Homes of Kentucky Inc. Obligated Group, Series 1998: 1,800 5.375%, 11/15/23 5/08 at 102.00 BBB 1,796,976 3,500 5.500%, 11/15/30 5/08 at 102.00 BBB 3,473,610 Kentucky Economic Development Finance Authority, Mortgage Revenue Bonds, South Central Nursing Homes Inc., Series 1997A: 2,000 6.000%, 7/01/27 (Mandatory put 7/01/20) - MBIA Insured 1/08 at 105.00 AAA 2,190,620 3,700 6.000%, 7/01/27 (Mandatory put 1/01/24) - MBIA Insured 1/08 at 105.00 AAA 4,052,647 ---------------------------------------------------------------------------------------------------------------- Materials - 2.7% 2,370 Hancock County, Kentucky, Solid Waste Disposal Revenue 5/06 at 102.00 BBB 2,432,687 Bonds, Willamette Industries Inc. Project, Series 1996, 6.600%, 5/01/26 (Alternative Minimum Tax) 1,000 Jefferson County, Kentucky, Pollution Control Revenue 1/05 at 102.50 AA- 1,028,090 Bonds, E.I. DuPont de Nemours and Company, Series 1982A, 6.300%, 7/01/12 4,240 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 5/06 at 102.00 N/R 4,411,762 Weyerhaeuser Company - TJ International Project, Series 1996, 6.800%, 5/01/26 (Alternative Minimum Tax) 2,000 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 4/07 at 102.00 Baa2 2,090,040 Weyerhaeuser Company - TJ International Project, Series 1997, 6.550%, 4/15/27 (Alternative Minimum Tax) 2,820 Wickliffe, Kentucky, Solid Waste Disposal Facility Revenue 4/06 at 102.00 BBB 2,881,532 Bonds, Westvaco Corporation, Series 1996, 6.375%, 4/01/26 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 3.0% 2,500 Jefferson County, Kentucky, General Obligation Refunding 5/09 at 100.00 AA 2,685,550 Bonds, Series 1999C, 6.150%, 5/15/16 (Alternative Minimum Tax) 1,195 Louisville and Jefferson County Metropolitan Government, 11/14 at 100.00 AAA 1,291,938 Kentucky, General Obligation Bonds, Series 2004A-B, 5.000%, 11/01/16 - AMBAC Insured 1,175 Louisville, Kentucky, General Obligation Bonds, Series 11/11 at 101.00 AA 1,232,845 2001A, 5.000%, 11/01/21 3,000 Louisville, Kentucky, General Obligation Bonds, Series 10/12 at 100.00 AAA 3,108,990 2002A, 5.000%, 10/01/23 - FGIC Insured 4,400 Puerto Rico, Public Improvement Bonds, TICS/TOCS, Series No Opt. Call AAA 6,212,492 2001, 11.925%, 7/01/19 - FSA Insured (IF) ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 32.7% 1,305 Ballard County School District Finance Corporation, 6/14 at 100.00 Aaa 1,376,162 Kentucky, School Building Revenue Bonds, Series 2004, 5.000%, 6/01/21 - AMBAC Insured 1,875 Bell County Public Properties Corporation, Kentucky, First 3/11 at 102.00 AAA 2,091,600 Mortgage Revenue Bonds, Judicial Center Project, Series 2000, 5.850%, 9/01/28 - AMBAC Insured 1,465 Boone County, Kentucky, Public Properties Corporation, 9/12 at 101.00 Aa3 1,546,264 First Mortgage Bonds, AOC Judicial Facility, Series 2001, 5.125%, 9/01/22
---- 24
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) Boone County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004B: $ 1,460 5.000%, 5/01/20 - FSA Insured 5/14 at 100.00 Aaa $ 1,547,133 2,580 5.000%, 5/01/21 - FSA Insured 5/14 at 100.00 Aaa 2,719,604 Bowling Green, Kentucky, General Obligation and Special Revenue Bonds, Series 2002B: 1,785 5.000%, 6/01/23 6/12 at 100.00 Aa2 1,847,618 1,230 5.000%, 6/01/24 6/12 at 100.00 Aa2 1,269,188 1,665 5.000%, 6/01/25 6/12 at 100.00 Aa2 1,702,080 Butler County School District Finance Corporation, Kentucky, Revenue Bonds, School Buildings, Series 2004C: 1,220 5.000%, 6/01/20 6/14 at 100.00 Aa3 1,283,123 1,255 5.000%, 6/01/22 6/14 at 100.00 Aa3 1,307,032 Fayette County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2000: 1,665 5.500%, 6/01/18 6/10 at 101.00 AA- 1,836,112 2,795 5.500%, 6/01/20 6/10 at 101.00 AA- 3,077,854 3,155 Florence Public Properties Corporation, Kentucky, First 6/07 at 102.00 AAA 3,387,429 Mortgage Revenue Bonds, Administrative Office Complex Project, Series 1997, 5.500%, 6/01/27 - MBIA Insured 4,500 Kenton County Public Properties Corporation, Kentucky, 3/09 at 101.00 Aa3 4,520,295 First Mortgage Revenue Bonds, Courthouse Facilities Project, Series 1998A, 5.000%, 3/01/29 Kenton County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004: 2,115 5.000%, 6/01/17 - MBIA Insured 6/14 at 100.00 Aaa 2,271,320 3,510 5.000%, 6/01/18 - MBIA Insured 6/14 at 100.00 Aaa 3,755,138 3,690 5.000%, 6/01/19 - MBIA Insured 6/14 at 100.00 Aaa 3,929,776 Kentucky Area Development Districts Financing Trust, Ewing, Lease Acquisition Program Revenue Bonds, Series 2000C: 750 5.850%, 6/01/20 6/10 at 102.00 AA 813,023 1,000 6.000%, 6/01/30 6/10 at 102.00 AA 1,090,100 2,365 Kentucky Local Correctional Facilities Authority, No Opt. Call AAA 2,637,850 Multi-County Lease Revenue Bonds, Series 2004, 5.250%, 11/01/14 - MBIA Insured Kentucky State Property and Buildings Commission, Revenue Refunding Bonds, Project 79, Series 2003: 5,000 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 5,256,650 6,500 5.000%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 6,794,710 Kentucky State Property and Buildings Commission, Revenue Bonds, Project 81, Series 2003: 1,000 5.000%, 11/01/19 - AMBAC Insured 11/13 at 100.00 AAA 1,061,650 3,740 5.000%, 11/01/21 - AMBAC Insured 11/13 at 100.00 AAA 3,933,545 2,845 5.000%, 11/01/23 - AMBAC Insured 11/13 at 100.00 AAA 2,960,137 4,000 Kentucky Turnpike Authority, Economic Development Road 7/11 at 100.00 AAA 4,271,760 Revenue and Refunding Bonds, Revitalization Project, Series 2001B, 5.150%, 7/01/19 - FSA Insured Letcher County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004: 1,430 5.000%, 6/01/18 - FSA Insured 6/14 at 100.00 Aaa 1,529,871 1,585 5.000%, 6/01/20 - FSA Insured 6/14 at 100.00 Aaa 1,680,322 11,000 Lexington-Fayette Urban County Government, Kentucky, First 7/08 at 102.00 AAA 11,196,130 Mortgage Bonds, Public Facilities Corporation, Series 1998, 5.125%, 10/01/31 - FSA Insured 1,695 Louisville and Jefferson County Visitors and Convention 6/14 at 101.00 AAA 1,857,161 Commission, Kentucky, Dedicated Tax Revenue Bonds, Series 2004A, 5.000%, 12/01/15 - FSA Insured 650 Magoffin County School District Finance Corporation, 6/10 at 101.00 Aa3 725,920 Kentucky, School Building Revenue Bonds, Series 2000, 5.750%, 6/01/20 1,525 McCracken County Public Properties Corporation, Kentucky, 9/06 at 102.00 AAA 1,637,545 Public Project Revenue Bonds, Court Facilities, Series 1995, 5.900%, 9/01/26 - AMBAC Insured
---- 25 Portfolio of Investments (Unaudited) NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 8,000 Mount Sterling, Kentucky, Lease Revenue Bonds, Kentucky 3/05 at 100.00 Aa3 $ 8,038,640 League of Cities Funding Trust, Series 1993A, 6.200%, 3/01/18 5,100 Oldham County School District Finance Corporation, 4/11 at 101.00 Aa3 5,382,948 Kentucky, School Building Revenue Bonds, Series 2001A, 5.125%, 4/01/21 Oldham County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004: 1,230 5.000%, 5/01/18 - MBIA Insured 5/14 at 100.00 Aaa 1,315,239 1,635 5.000%, 5/01/20 - MBIA Insured 5/14 at 100.00 Aaa 1,732,577 1,715 5.000%, 5/01/21 - MBIA Insured 5/14 at 100.00 Aaa 1,807,799 1,360 Owen County School District Finance Corporation, Kentucky, 4/11 at 101.00 Aa3 1,420,697 School Building Revenue Bonds, Series 2001, 5.000%, 4/01/21 Pendleton County, Kentucky, Leasing Trust Revenue Bonds, Kentucky Association of Counties, Series 1993A: 16,460 6.500%, 3/01/19 3/05 at 100.00 A 16,548,061 500 6.400%, 3/01/19 No Opt. Call A 601,990 4,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 4,690,240 Transportation Authority, Reset Option Long Certificates II-R-66, Series 1996Y, 9.266%, 1/01/13 (IF) 6,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 6,933,000 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 2,545 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,923,976 Revenue Bonds, Series 1998A, 5.500%, 7/01/14 - AMBAC Insured 1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 1,019,240 Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured 3,185 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 3,669,725 Government Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 - FSA Insured 2,755 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 3,282,417 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC Insured 1,360 Shelby County School District Finance Corporation, 5/14 at 100.00 Aaa 1,433,590 Kentucky, Revenue Bonds, School Buildings, Series 2004, 5.000%, 5/01/21 - MBIA Insured 2,185 Spencer County School District Finance Corporation, 7/14 at 100.00 Aaa 2,304,913 Kentucky, Revenue Bonds, School Buildings, Series 2004, 5.000%, 7/01/21 - FSA Insured 1,010 Virgin Islands Public Finance Authority, Gross Receipts 10/14 at 100.00 AAA 1,098,496 Taxes Loan Notes, Series 2003, 5.250%, 10/01/21 - FSA Insured 7,000 Warren County Justice Center Expansion Corporation, 9/07 at 102.00 AAA 7,393,050 Kentucky, First Mortgage Revenue Bonds, AOC Judicial Facility, Series 1997A, 5.250%, 9/01/24 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Transportation - 5.4% Guam International Airport Authority, Revenue Bonds, Series 2003C: 5,000 5.250%, 10/01/22 (Alternative Minimum Tax) - MBIA Insured 10/10 at 100.00 AAA 5,317,350 2,195 5.000%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured 10/13 at 100.00 AAA 2,230,120 1,250 Kenton County Airport Board, Kentucky, Airport Revenue 3/06 at 102.00 AAA 1,322,288 Bonds, Cincinnati/Northern Kentucky International Airport, Series 1996B, 5.750%, 3/01/13 - MBIA Insured 5,090 Kenton County Airport Board, Kentucky, Airport Revenue 3/13 at 100.00 AAA 5,167,012 Bonds, Cincinnati/Northern Kentucky International Airport, Series 2003B, 5.000%, 3/01/23 (Alternative Minimum Tax) - MBIA Insured 5,000 Louisville and Jefferson County Regional Airport Authority, 7/05 at 102.00 AAA 5,164,400 Kentucky, Airport System Revenue Bonds, Series 1995A, 5.625%, 7/01/25 (Alternative Minimum Tax) - MBIA Insured 1,000 Louisville and Jefferson County Regional Airport Authority, 7/13 at 100.00 AAA 1,039,520 Kentucky, Airport System Revenue Bonds, Series 2003C, 5.250%, 7/01/22 (Alternative Minimum Tax) - FSA Insured 6,000 Louisville and Jefferson County Regional Airport Authority, 3/09 at 101.00 Baa3 5,635,380 Kentucky, Special Facilities Revenue Bonds, Airis Louisville LLC Project, Series 1999A, 5.500%, 3/01/19 (Alternative Minimum Tax)
---- 26
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 10.1% $ 5,085 Campbellsville, Kentucky, Industrial Building Revenue 3/09 at 102.00 A+*** $ 5,698,404 Bonds, Campbellsville University Project, Series 1999, 5.500%, 3/01/29 (Pre-refunded to 3/01/09) 1,005 Casey County School District Finance Corporation, Kentucky, 3/05 at 102.00 Aa3*** 1,034,567 School Building Revenue Bonds, Series 1995, 5.750%, 3/01/15 (Pre-refunded to 3/01/05) 1,070 Fleming County School District Finance Corporation, 3/05 at 102.00 A+*** 1,101,736 Kentucky, School Building Revenue Bonds, Series 1995, 5.875%, 3/01/15 (Pre-refunded to 3/01/05) 1,260 Floyd County Public Properties Corporation, Kentucky, First 3/06 at 102.00 N/R*** 1,336,432 Mortgage Revenue Bonds, Floyd County Justice Center Project, Series 1995A, 5.550%, 9/01/23 (Pre-refunded to 3/01/06) 3,550 Floyd County Public Properties Corporation, Kentucky, First 3/06 at 102.00 N/R*** 3,793,211 Mortgage Revenue Bonds, Floyd County Justice Center Project, Series 1996B, 6.200%, 9/01/26 (Pre-refunded to 3/01/06) 1,200 Floyd County School District Finance Corporation, Kentucky, 5/05 at 102.00 Aa3*** 1,241,424 School Building Revenue Bonds, Series 1995, 5.500%, 5/01/15 (Pre-refunded to 5/01/05) 2,000 Jefferson County Collegiate Housing Foundation, Kentucky, 9/09 at 102.00 N/R*** 2,381,260 Student Housing Revenue Bonds, University of Louisville Project, Series 1999A, 7.125%, 9/01/29 (Pre-refunded to 9/01/09) Kentucky Infrastructure Authority, Infrastructure Revolving Loan Program Revenue Bonds, Series 1995J: 440 6.300%, 6/01/10 (Pre-refunded to 6/01/05) 6/05 at 102.00 Aa3*** 458,176 360 6.350%, 6/01/11 (Pre-refunded to 6/01/05) 6/05 at 102.00 Aa3*** 374,962 600 6.375%, 6/01/14 (Pre-refunded to 6/01/05) 6/05 at 102.00 Aa3*** 625,014 420 Kentucky Infrastructure Authority, Governmental Agencies 8/05 at 102.00 AA*** 436,069 Program Revenue Bonds, Series 1995G, 6.300%, 8/01/10 (Pre-refunded to 8/01/05) 400 Kentucky State Property and Buildings Commission, Agency 5/10 at 100.00 AAA 452,664 Fund Revenue Bonds, Project No. 66A, Series 2000, 5.750%, 5/01/20 (Pre-refunded to 5/01/10) - MBIA Insured 500 Kentucky State Property and Buildings Commission, Revenue 11/09 at 100.00 AAA 559,310 Bonds, Project No. 64, Series 1999, 5.500%, 5/01/18 (Pre-refunded to 11/01/09) - MBIA Insured Kentucky State Property and Buildings Commission, Revenue Refunding Bonds, Project 72, Series 2001: 4,375 5.375%, 10/01/18 (Pre-refunded to 10/01/11) - MBIA Insured 10/11 at 100.00 AAA 4,924,894 5,860 5.375%, 10/01/19 (Pre-refunded to 10/01/11) - MBIA Insured 10/11 at 100.00 AAA 6,596,543 5,780 Kentucky State Property and Buildings Commission, Revenue 10/13 at 100.00 AAA 6,448,746 Refunding Bonds, Project 79, Series 2003, 5.125%, 10/01/19 (Pre-refunded to 10/01/13) - MBIA Insured 1,365 McCreary County School District Finance Corporation, 8/05 at 102.00 Aa3*** 1,424,296 Kentucky, School Building Revenue Bonds, Second Series 1995, 5.600%, 8/01/16 (Pre-refunded to 8/01/05) 1,310 Puerto Rico, General Obligation and Public Improvement 7/06 at 101.50 A-*** 1,395,111 Bonds, Series 1996, 5.400%, 7/01/25 (Pre-refunded to 7/01/06) 2,000 Puerto Rico, General Obligation and Public Improvement 7/07 at 100.00 A-*** 2,155,860 Refunding Bonds, Series 1997, 5.375%, 7/01/25 (Pre-refunded to 7/01/07) 2,600 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 2,941,588 Bonds, Series 2000, 5.750%, 7/01/26 (Pre-refunded to 7/01/10) - MBIA Insured 245 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 291,528 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC Insured 2,800 Russell, Kentucky, Health System Revenue Bonds, Franciscan 1/10 at 100.00 Baa2*** 3,088,232 Health Partnership Inc. - Our Lady of Bellefonte Hospital, Series 1997, 5.500%, 7/01/15 (Pre-refunded to 1/01/10) ---------------------------------------------------------------------------------------------------------------- Utilities - 7.7% 6,000 Boone County, Kentucky, Collateralized Pollution Control 1/05 at 101.00 AAA 6,151,200 Revenue Refunding Bonds, Cincinnati Gas and Electric Company Project, Series 1994A, 5.500%, 1/01/24 - MBIA Insured 1,750 Jefferson County, Kentucky, Pollution Control Revenue 4/05 at 102.00 A1 1,793,033 Bonds, Louisville Gas and Electric Company, Series 1995A, 5.900%, 4/15/23 Owensboro, Kentucky, Electric Light and Power System Revenue Bonds, Series 1991B: 7,100 0.000%, 1/01/11 - AMBAC Insured No Opt. Call AAA 5,676,663 6,475 0.000%, 1/01/12 - AMBAC Insured No Opt. Call AAA 4,924,626 5,810 0.000%, 1/01/15 - AMBAC Insured No Opt. Call AAA 3,745,707 7,900 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 4,532,546 13,300 0.000%, 1/01/18 - AMBAC Insured No Opt. Call AAA 7,213,787
---- 27 Portfolio of Investments (Unaudited) NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Utilities (continued) $ 3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA $ 3,347,760 Series 2003NN, 5.250%, 7/01/23 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Water and Sewer - 8.4% 1,405 Christian County Water District, Kentucky, Waterworks 10/09 at 101.00 Aaa 1,575,160 Revenue Bonds, Series 1999, 6.000%, 1/01/30 - AMBAC Insured Kentucky Infrastructure Authority, Governmental Agencies Program Revenue Bonds, Series 1995G: 445 6.350%, 8/01/11 8/05 at 102.00 AA 464,963 825 6.375%, 8/01/14 8/05 at 102.00 AA 862,315 1,000 Kentucky Rural Water Finance Corporation, Multimodal Public 2/11 at 102.00 AA- 1,076,710 Projects Revenue Bonds, Flexible Term Program, Series 2001A, 5.375%, 2/01/20 Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997B: 6,000 5.350%, 5/15/22 - MBIA Insured 11/07 at 101.00 AAA 6,445,860 2,500 5.200%, 5/15/25 - MBIA Insured 11/07 at 101.00 AAA 2,570,325 3,200 Louisville and Jefferson County Metropolitan Sewer 5/08 at 101.00 AAA 3,230,336 District, Kentucky, Sewer and Drainage System Revenue Bonds, Series 1998A, 5.000%, 5/15/30 - FGIC Insured 16,000 Louisville and Jefferson County Metropolitan Sewer 11/11 at 101.00 AAA 17,117,276 District, Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A, 5.500%, 5/15/34 - MBIA Insured 6,920 Northern Kentucky Water District, Revenue Refunding Bonds, 2/12 at 100.00 Aaa 7,048,431 Series 2002A, 5.000%, 2/01/27 - FGIC Insured ---------------------------------------------------------------------------------------------------------------- $475,905 Total Long-Term Investments (cost $454,625,761) - 98.5% 476,117,234 ---------------------------------------------------------------------------------------------------------------- ------------ Short-Term Investments - 0.2% 1,000 Puerto Rico Government Development Bank, Adjustable A-1 1,000,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 1.580%, 12/01/15 - MBIA Insured + ---------------------------------------------------------------------------------------------------------------- $ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000 ---------------------------------------------------------------------------------------------------------------- ------------ Total Investments (cost $455,625,761) - 98.7% 477,117,234 --------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 6,431,224 --------------------------------------------------------------------------------------------------- Net Assets - 100% $483,548,458 ---------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. (IF)Inverse floating rate security. See accompanying notes to financial statements. ---- 28 Portfolio of Investments (Unaudited) NUVEEN MICHIGAN MUNICIPAL BOND FUND November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Consumer Discretionary - 0.8% $ 2,000 Michigan Strategic Fund, Multi-Modal Interchangeable Rate 9/05 at 102.00 Baa2 $ 2,085,140 Pollution Control Revenue Refunding Bonds, General Motors Corporation, Series 1995, 6.200%, 9/01/20 ---------------------------------------------------------------------------------------------------------------- Consumer Staples - 0.3% 940 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 868,673 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ---------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 3.8% Michigan Technological University, General Revenue Bonds, Series 2004A: 1,230 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,269,372 1,850 5.000%, 10/01/29 - MBIA Insured 10/13 at 100.00 AAA 1,874,272 6,150 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 6,282,717 Series 1999, 5.125%, 11/15/29 - FGIC Insured ---------------------------------------------------------------------------------------------------------------- Healthcare - 12.1% Flint Hospital Building Authority, Michigan, Revenue Rental Bonds, Hurley Medical Center, Series 1998B: 1,000 5.375%, 7/01/18 7/08 at 101.00 Baa3 963,100 1,000 5.375%, 7/01/28 7/08 at 101.00 Baa3 929,340 3,750 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 3,885,450 Spectrum Health, Series 2001A, 5.500%, 1/15/31 3,530 Lake View Community Hospital Authority, Michigan, Hospital 2/07 at 101.00 N/R 3,592,940 Revenue Refunding Bonds, Series 1997, 6.250%, 2/15/13 3,755 Michigan State Hospital Finance Authority, Revenue 2/05 at 101.00 Ba3 3,613,061 Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 3,000 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 3,229,230 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 550 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call BBB 575,262 Refunding Bonds, Gratiot Community Hospital, Series 1995, 6.100%, 10/01/07 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 10/06 at 102.00 BBB- 1,012,000 Bonds, Michigan Community Hospital, Series 1996, 6.250%, 10/01/27 1,475 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 101.00 BBB 1,458,185 Refunding Bonds, Chelsea Community Hospital, Series 1998, 5.375%, 5/15/19 1,000 Michigan State Hospital Finance Authority, Revenue 3/12 at 101.00 A+ 1,037,300 Refunding Bonds, Crittenton Hospital, Series 2002A, 5.625%, 3/01/27 2,200 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 2,329,096 Bonds, Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 1,600 Pontiac Hospital Finance Authority, Michigan, Hospital 2/05 at 101.00 Ba1 1,375,056 Revenue Refunding Bonds, NOMC Obligated Group, Series 1993, 6.000%, 8/01/23 3,000 Royal Oak Hospital Finance Authority, Michigan, Hospital 1/06 at 102.00 AAA 3,127,620 Revenue Refunding Bonds, William Beaumont Hospital, Series 1996, 5.250%, 1/01/20 - MBIA Insured Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Series 2001M: 1,000 5.250%, 11/15/31 - MBIA Insured 11/11 at 100.00 AAA 1,024,550 2,000 5.250%, 11/15/35 - MBIA Insured 11/11 at 100.00 AAA 2,047,900 ---------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 2.2% 385 Grand Rapids Housing Corporation, Michigan, FHA-Insured 1/05 at 103.00 AAA 399,368 Section 8 Assisted Multifamily Mortgage Loan Revenue Refunding Bonds, Series 1992, 7.375%, 7/15/41 750 Grand Rapids Housing Finance Authority, Michigan, FNMA 3/05 at 100.00 AAA 751,373 Collateralized Multifamily Housing Revenue Refunding Bonds, Series 1990A, 7.625%, 9/01/23 1,190 Michigan Housing Development Authority, GNMA Collateralized 4/05 at 102.00 Aaa 1,219,750 Limited Obligation Multifamily Revenue Refunding Bonds, Parc Point Apartments, Series 1995A, 6.500%, 10/01/15
---- 29 Portfolio of Investments (Unaudited) NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Housing/Multifamily (continued) $ 6,000 Michigan Housing Development Authority, Section 8 Assisted No Opt. Call AA- $ 2,566,740 Mortgage Revenue Bonds, Series 1983I, 0.000%, 4/01/14 620 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 637,534 Revenue Bonds, Series 1995B, 6.150%, 10/01/15 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Housing/Single Family - 0.3% 750 Michigan Housing Development Authority, Single Family 6/12 at 100.00 AAA 766,868 Mortgage Revenue Bonds, Series 2002B, 5.500%, 6/01/30 (Alternative Minimum Tax) - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Long-Term Care - 2.8% 2,500 Kalamazoo Economic Development Corporation, Michigan, 5/07 at 102.00 BB+ 2,430,050 Limited Obligation Revenue and Refunding Bonds, Friendship Village of Kalamazoo, Series 1997A, 6.250%, 5/15/27 Michigan State Hospital Finance Authority, Revenue Bonds, Presbyterian Villages of Michigan Obligated Group, Series 1997: 600 6.375%, 1/01/15 1/07 at 102.00 N/R 599,298 500 6.375%, 1/01/25 1/07 at 102.00 N/R 468,315 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, Porter Hills Presbyterian Village, Series 1998: 140 5.300%, 7/01/18 7/08 at 101.00 BBB+ 142,482 260 5.375%, 7/01/28 7/08 at 101.00 BBB+ 258,955 3,300 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 6/08 at 100.00 BBB- 3,223,638 Clark Retirement Community Inc., Series 1998, 5.250%, 6/01/18 ---------------------------------------------------------------------------------------------------------------- Materials - 0.7% 1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,749,230 Michigan, Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 29.3% 1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA+ 1,106,530 Michigan, General Obligation Bonds, Series 2002-3, 5.500%, 5/01/18 1,175 Birmingham, Michigan, General Obligation Bonds, Series 10/12 at 100.50 AAA 1,233,774 2002, 5.000%, 10/01/21 1,625 Brighton Township Sanitary Sewer Drainage District, 4/09 at 100.00 AAA 1,748,906 Livingston County, Michigan, Limited Tax General Obligation Bonds, Series 2000, 5.250%, 10/01/19 - FSA Insured 1,020 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AA+ 1,084,474 Counties, Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/22 1,195 Carman-Ainsworth Community School District, Genesee County, 5/12 at 100.00 AAA 1,318,324 Michigan, General Obligation Bonds, Series 2002, 5.500%, 5/01/19 - FGIC Insured 1,500 Clarkston Community Schools, Michigan, General Obligation 5/07 at 100.00 AAA 1,575,645 Bonds, School Bond Loan Fund - QSBLF, Series 1997, 5.250%, 5/01/23 - MBIA Insured 1,800 Coopersville Area Public Schools, Ottawa and Muskegon 5/09 at 100.00 AAA 1,815,534 Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 5.000%, 5/01/29 - MBIA Insured 1,000 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 1,070,490 General Obligation Bonds, Series 2002A, 5.375%, 5/01/24 - FGIC Insured Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site Improvement Bonds, Series 2001A: 2,000 5.500%, 5/01/21 - FSA Insured 5/12 at 100.00 AAA 2,196,260 250 5.125%, 5/01/31 - FSA Insured 5/12 at 100.00 AAA 255,013 1,245 Edwardsburg Public School, Cass County, Michigan, General 5/14 at 100.00 AAA 1,291,837 Obligation Bonds, Series 2004, 5.000%, 5/01/24 - FSA Insured Fitzgerald Public School District, Macomb County, Michigan, General Obligation Bonds, Series 2004B: 2,125 5.000%, 5/01/18 - AMBAC Insured 11/14 at 100.00 AAA 2,278,616 1,125 5.000%, 5/01/19 - AMBAC Insured 11/14 at 100.00 AAA 1,200,656 1,000 Frankenmuth School District, Saginaw and Tuscola Counties, 5/10 at 100.00 AAA 1,106,380 Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 2000, 5.625%, 5/01/16 - FGIC Insured
---- 30
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General (continued) $ 2,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AA+ $ 2,032,280 General Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26 5,600 Grand Ledge Public Schools, Eaton, Clinton and Ionia 5/05 at 102.00 AAA 5,770,632 Counties, Michigan, General Obligation Refunding Bonds, Series 1995, 5.375%, 5/01/24 - MBIA Insured 4,350 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA+ 4,427,126 Michigan, General Obligation Refunding Bonds, Series 2001, 5.125%, 5/01/29 1,000 Hastings Area School System, Barry County, Michigan, 5/11 at 100.00 AAA 1,017,810 Unlimited Tax General Obligation Building and Site Bonds, Series 2001, 5.000%, 5/01/26 - MBIA Insured 2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA+ 2,064,560 Obligation Bonds, Series 2003, 5.000%, 5/01/24 1,000 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,047,790 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 2,000 Jonesville Community Schools, Hillsdale and Jackson 5/09 at 100.00 AAA 2,179,300 Counties, Michigan, Unlimited Tax General Obligation Building and Site Bonds, Series 1999, 5.750%, 5/01/29 - FGIC Insured 1,030 Kent County, Michigan, General Obligation Bonds, Series 12/14 at 100.00 AAA 1,085,970 2004A, 5.000%, 12/01/22 1,300 Lansing Community College, Michigan, General Obligation 5/13 at 100.00 AAA 1,370,707 Bonds, Series 2003, 5.000%, 5/01/20 - MBIA Insured 1,000 Livonia Municipal Building Authority, Wayne County, 5/10 at 100.00 AAA 1,012,740 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/27 - FGIC Insured 2,700 Livonia Public Schools, Wayne County, Michigan, Unlimited No Opt. Call AAA 2,441,907 Tax General School Building and Site Bonds, Series 1992-II, 0.000%, 5/01/08 - FGIC Insured 2,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 2,108,220 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured 2,800 Michigan Municipal Bond Authority, Local Government Loan No Opt. Call AAA 2,523,276 Program Revenue Bonds, Pontiac School District, Series 1991C, 0.000%, 6/15/08 - FSA Insured 3,250 Michigan, General Obligation Bonds, Environmental 5/13 at 100.00 AA+ 3,500,543 Protection Program, Series 2003A, 5.250%, 5/01/21 2,000 Muskegon Public Schools, Muskegon County, Michigan, General 5/14 at 100.00 AAA 2,119,360 Obligation Bonds, Series 2004, 5.000%, 5/01/20 - FSA Insured 1,130 Novi, Michigan, General Obligation Bonds, Series 2002, 10/13 at 100.00 AAA 1,244,367 5.250%, 10/01/15 - FSA Insured Okemos Public School District, Ingham County, Michigan, General Obligation Refunding Bonds, Series 1993: 1,000 0.000%, 5/01/17 - MBIA Insured No Opt. Call AAA 567,770 1,020 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 548,984 1,500 Portage Lake Water and Sewerage Authority, Houghton County, 10/05 at 102.00 AAA 1,581,075 Michigan, Limited Tax General Obligation Refunding Bonds, Series 1995, 6.200%, 10/01/20 - AMBAC Insured 3,000 Southgate Community School District, Wayne County, 5/09 at 100.00 AAA 3,049,170 Michigan, General Obligation Bonds, Series 1999, 5.000%, 5/01/25 - FGIC Insured 2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,677,750 General Obligation Bonds, Series 2000, 5.125%, 3/01/17 - AMBAC Insured 1,625 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,744,129 Michigan, General Obligation Bonds, Series 2004, 5.250%, 5/01/22 - MBIA Insured 3,270 West Ottawa Public School District, Ottawa County, No Opt. Call AAA 1,856,608 Michigan, General Obligation Refunding Bonds, Series 1992, 0.000%, 5/01/17 - FGIC Insured 5,175 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 5,805,626 Tax General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 14.2% 1,845 Detroit, Michigan, Building Authority Revenue Bonds, 2/07 at 101.00 A 1,926,162 District Court Madison Center, Series 1996A, 6.150%, 2/01/11
---- 31 Portfolio of Investments (Unaudited) NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 11,000 Detroit-Wayne County Stadium Authority, Michigan, Limited 2/07 at 102.00 AAA $ 11,433,950 Tax General Obligation Building Authority Stadium Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured Grand Rapids Downtown Development Authority, Michigan, Tax Increment Revenue Bonds, Series 1994: 3,985 0.000%, 6/01/17 - MBIA Insured No Opt. Call AAA 2,253,996 3,295 0.000%, 6/01/18 - MBIA Insured No Opt. Call AAA 1,766,647 1,650 6.875%, 6/01/24 - MBIA Insured 12/04 at 102.00 AAA 1,689,435 250 Michigan Municipal Bond Authority, Wayne County, Local 12/04 at 100.00 AAA 250,517 Government Loan Program Revenue Bonds, Series 1991A, 4.750%, 12/01/09 - FGIC Insured Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2001I: 2,720 5.500%, 10/15/19 10/11 at 100.00 AA 3,000,459 5,000 5.000%, 10/15/24 10/11 at 100.00 AA 5,144,700 2,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 2,091,020 Facilities Program, Series 2003II, 5.000%, 10/15/22 - MBIA Insured 1,500 Michigan, Certificates of Participation, Series 2000, 6/10 at 100.00 AAA 1,643,475 5.500%, 6/01/20 - AMBAC Insured 2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,046,280 5.000%, 11/01/25 6,000 Michigan House of Representatives, Certificates of No Opt. Call AAA 2,354,100 Participation, Series 1998, 0.000%, 8/15/23 - AMBAC Insured ---------------------------------------------------------------------------------------------------------------- Transportation - 1.2% 3,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 3,037,200 Metropolitan Airport, Series 1998B, 5.000%, 12/01/28 ---------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 19.3% 210 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 226,798 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 2,520 Detroit, Michigan, Unlimited Tax General Obligation Bonds, 4/10 at 101.00 AAA 2,838,604 Series 1999B, 5.500%, 4/01/18 (Pre-refunded to 4/01/10) - MBIA Insured 2,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,853,025 Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 6,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 8,263,060 Residual Option Long Series II-R-103, 9.734%, 7/01/20 (Pre-refunded to 1/01/10) (IF) 2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,271,240 Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured 1,500 Grand Rapids Township Economic Development Corporation, 7/09 at 101.00 BBB+*** 1,668,390 Michigan, Limited Obligation Revenue Bonds, Porter Hills Obligated Group, Cook Valley Estate Project, Series 1999, 5.450%, 7/01/29 (Pre-refunded to 7/01/09) 1,000 Holt Public Schools, Ingham and Eaton Counties, Michigan, 5/10 at 100.00 AAA 1,119,280 Unlimited Tax General Obligation School Building and Site Bonds, Series 2000A, 5.500%, 5/01/23 (Pre-refunded to 5/01/10) - FGIC Insured 3,000 Lake Orion Community School District, Oakland County, 5/05 at 101.00 AAA 3,092,520 Michigan, School Building and Site Revenue Refunding Bonds, Series 1994, 7.000%, 5/01/15 (Pre-refunded to 5/01/05) - AMBAC Insured 2,000 Livonia Public Schools, Wayne County, Michigan, Unlimited 5/10 at 100.00 AAA 2,275,180 Tax General Obligation School Building and Site Bonds, Series 2000, 5.875%, 5/01/25 (Pre-refunded to 5/01/10) - FGIC Insured 2,000 Macomb Township Building Authority, Macomb County, 4/08 at 101.00 AAA 2,235,920 Michigan, General Obligation Bonds, Series 2000, 6.000%, 4/01/27 (Pre-refunded to 4/01/08) - FGIC Insured 500 Michigan Municipal Bond Authority, Drinking Water Revolving 10/10 at 101.00 AAA 577,130 Fund Revenue Bonds, Series 2000, 5.875%, 10/01/17 (Pre-refunded to 10/01/10) 1,220 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,365,400 Development Inc., Series 2001, 5.375%, 9/01/21 (Pre-refunded to 9/01/11) - MBIA Insured 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 1/05 at 102.00 AA-*** 1,023,510 Refunding Bonds, Otsego Memorial Hospital, Series 1995, 6.125%, 1/01/15 (Pre-refunded to 1/01/05)
---- 32
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** (continued) $ 5,000 Michigan State Hospital Finance Authority, Revenue Bonds, 11/09 at 101.00 AAA $ 5,761,700 Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 3,000 Michigan South Central Power Agency, Power Supply System 12/04 at 102.00 A3*** 3,060,420 Revenue Refunding Bonds, Series 1994, 7.000%, 11/01/11 (Pre-refunded to 12/01/04) 75 Michigan South Central Power Agency, Power Supply System No Opt. Call A3*** 86,027 Revenue Bonds, Series 2000, 6.000%, 5/01/12 2,775 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 3,140,357 Michigan, General Obligation Bonds, Series 2000A, 5.750%, 5/01/20 (Pre-refunded to 5/01/10) - FGIC Insured 1,215 Potterville Public Schools, Easton County, Michigan, 5/09 at 100.00 AAA 1,360,205 Unlimited Tax School Building and Site Bonds, Series 1999, 5.750%, 5/01/20 (Pre-refunded to 5/01/09) - FSA Insured 1,235 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,397,600 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured 1,085 Romulus Tax Increment Finance Authority, Wayne County, 11/06 at 100.00 N/R*** 1,168,220 Michigan, Limited Obligation Development Revenue Bonds, Series 1994, 6.750%, 11/01/19 (Pre-refunded to 11/01/06) 7,000 Vicksburg Community Schools, Kalamazoo and St. Joseph 5/06 at 37.24 AAA 2,520,910 Counties, Michigan, General Obligation Bonds, Series 1991, 0.000%, 5/01/20 (Pre-refunded to 5/01/06) - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Utilities - 4.5% 1,000 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,050,140 Electric Utility System Revenue Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,041,220 Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 925 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 1,027,980 Revenue Bonds, Series 2000, 6.000%, 5/01/12 3,300 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 3,398,307 Pollution Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 (Alternative Minimum Tax) 1,000 Monroe County Economic Development Corporation, Michigan, No Opt. Call AAA 1,295,670 Collateralized Limited Obligation Revenue Refunding Bonds, Detroit Edison Company, Series 1992AA, 6.950%, 9/01/22 - FGIC Insured 1,000 Monroe County, Michigan, Pollution Control Revenue Bonds, No Opt. Call AAA 1,000,120 Detroit Edison Company Project, Series 1994A, 6.350%, 12/01/04 (Alternative Minimum Tax) - AMBAC Insured 4,000 Puerto Rico Electric Power Authority, Power Revenue No Opt. Call AAA 2,367,680 Refunding Bonds, Series 1989O, 0.000%, 7/01/ 17 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Water and Sewer - 8.4% 4,455 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, No Opt. Call AAA 2,246,924 Series 1999A, 0.000%, 7/01/19 - FGIC Insured 3,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/11 at 100.00 AAA 3,054,360 Revenue Bonds, Series 2001A, 5.125%, 7/01/31 - FGIC Insured 3,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 3,192,540 Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 2,500 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 2,517,325 3,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 3,201,690 5,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 5,127,850 Bonds, Series 2003A, 5.000%, 7/01/25 - MBIA Insured
---- 33 Portfolio of Investments (Unaudited) NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value --------------------------------------------------------------------------------------------------------------- $ 1,625 Lansing, Michigan, Sewerage Disposal System Revenue Bonds, 5/14 at 100.00 AAA $ 1,712,924 Series 2003, 5.000%, 5/01/21 - FGIC Insured --------------------------------------------------------------------------------------------------------------- $259,470 Total Long-Term Investments (cost $233,169,902) - 99.9% 250,032,171 --------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 0.1% 345,482 ------------------------------------------------------------------------------------------------- Net Assets - 100% $250,377,653 -------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (IF)Inverse floating rate security. See accompanying notes to financial statements. ---- 34 Portfolio of Investments (Unaudited) NUVEEN MISSOURI MUNICIPAL BOND FUND November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Consumer Discretionary - 0.8% $ 3,225 St. Louis Industrial Development Authority, Missouri, No Opt. Call AAA $ 2,014,980 Senior Lien Revenue Bonds, St. Louis Convention Center Headquarters Hotel, Series 2000A, 0.000%, 7/15/15 - AMBAC Insured ---------------------------------------------------------------------------------------------------------------- Consumer Staples - 4.4% 3,000 Cape Girardeau County Industrial Development Authority, 5/08 at 101.00 AA- 3,043,590 Missouri, Solid Waste Disposal Revenue Bonds, Procter & Gamble Products Company Project, Series 1998, 5.300%, 5/15/28 (Alternative Minimum Tax) 8,100 Missouri Development Finance Board, Solid Waste Disposal No Opt. Call AA- 8,389,575 Revenue Bonds, Procter & Gamble Paper Products Company Project, Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 8.8% Curators of the University of Missouri, System Facilities Revenue Bonds, Series 2003A: 1,000 5.000%, 11/01/21 11/13 at 100.00 AA 1,050,990 1,200 5.000%, 11/01/31 11/13 at 100.00 AA 1,217,640 1,000 Kansas City Metropolitan Community Colleges Building 7/11 at 100.00 Aaa 1,107,400 Corporation, Missouri, Leasehold Revenue Bonds, Junior College District of Metropolitan Kansas City, Series 2001, 5.500%, 7/01/18 - FGIC Insured 1,000 Missouri Higher Education Loan Authority, Subordinate Lien 2/05 at 100.00 A2 1,002,680 Student Loan Revenue Bonds, Series 1992, 6.500%, 2/15/06 (Alternative Minimum Tax) 4,190 Missouri Higher Education Loan Authority, Subordinate Lien 2/05 at 101.00 A2 4,347,335 Student Loan Revenue Bonds, Series 1994F, 6.750%, 2/15/09 (Alternative Minimum Tax) 1,000 Missouri Health and Educational Facilities Authority, No Opt. Call AA+ 1,147,040 Revenue Bonds, Washington University, Series 2001A, 5.500%, 6/15/16 Missouri Health and Educational Facilities Authority, Revenue Bonds, Maryville University of St. Louis, Series 1997: 1,000 5.625%, 6/15/13 6/07 at 101.00 Baa2 1,042,080 1,750 5.750%, 6/15/17 6/07 at 101.00 Baa2 1,814,575 1,100 Missouri Health and Educational Facilities Authority, 10/08 at 100.00 N/R 1,091,475 Revenue Bonds, Barstow School, Series 1998, 5.250%, 10/01/23 1,000 Missouri Health and Educational Facilities Authority, 1/10 at 100.00 AA 1,083,620 Revenue Bonds, Central Institute for the Deaf, Series 1999, 5.850%, 1/01/22 - RAAI Insured 900 Missouri Health and Educational Facilities Authority, 6/08 at 102.00 A1 954,630 Revenue Bonds, Stephens College, Series 1999, 6.000%, 6/01/24 1,100 Missouri Health and Educational Facilities Authority, 6/10 at 100.00 Baa2 1,167,848 Revenue Bonds, Maryville University of St. Louis, Series 2000, 6.750%, 6/15/30 1,360 Missouri Health and Educational Facilities Authority, 4/11 at 100.00 Aaa 1,502,732 Revenue Bonds, Webster University, Series 2001, 5.500%, 4/01/18 - MBIA Insured St. Louis County Industrial Development Authority, Missouri, Revenue Bonds, Kiel Center Multipurpose Arena, Series 1992: 650 7.625%, 12/01/09 (Alternative Minimum Tax) 12/04 at 100.00 N/R 650,969 1,000 7.750%, 12/01/13 (Alternative Minimum Tax) 12/04 at 100.00 N/R 1,021,500 500 7.875%, 12/01/24 (Alternative Minimum Tax) 12/04 at 100.00 N/R 510,750 2,060 Southeast Missouri State University, System Facilities 4/11 at 100.00 Aaa 2,097,348 Revenue Refunding and Improvement Bonds, Series 2001, 5.000%, 4/01/26 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Healthcare - 9.1% 1,250 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 1,263,750 Facilities Revenue Bonds, Freeman Health System, Series 2004, 5.500%, 2/15/29 1,000 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AAA 1,037,960 Revenue Bonds, St. Luke's Health System, Series 2001, 5.250%, 12/01/26 - FSA Insured 1,000 Missouri Health and Educational Facilities Authority, 5/13 at 100.00 AA 1,030,060 Revenue Bonds, BJC Health System, Series 2003, 5.125%, 5/15/25 2,750 Missouri Health and Educational Facilities Authority, 2/14 at 100.00 BBB+ 2,830,493 Revenue Bonds, Lake Regional Health System, Series 2003, 5.700%, 2/15/34
---- 35 Portfolio of Investments (Unaudited) NUVEEN MISSOURI MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Healthcare (continued) Missouri Health and Educational Facilities Authority, Revenue Bonds, Freeman Health System, Series 1998: $ 1,500 5.250%, 2/15/18 2/08 at 102.00 BBB+ $ 1,519,980 1,300 5.250%, 2/15/28 2/08 at 102.00 BBB+ 1,258,231 500 Missouri Health and Educational Facilities Authority, 11/06 at 100.00 BBB+ 499,205 Revenue Bonds, Capital Region Medical Center, Series 1998, 5.250%, 11/01/23 Missouri Health and Educational Facilities Authority, Revenue Bonds, St. Anthony's Medical Center, Series 2000: 1,220 6.250%, 12/01/12 12/10 at 101.00 A 1,378,027 2,000 6.250%, 12/01/30 12/10 at 101.00 A 2,122,320 Missouri Health and Educational Facilities Authority, Revenue Bonds, Lester E. Cox Medical Center, Series 1992H: 2,650 0.000%, 9/01/17 - MBIA Insured No Opt. Call AAA 1,474,540 4,740 0.000%, 9/01/21 - MBIA Insured No Opt. Call AAA 2,106,551 6,300 0.000%, 9/01/22 - MBIA Insured No Opt. Call AAA 2,644,488 1,000 New Liberty Hospital District, Missouri, Revenue Bonds, 12/11 at 100.00 AAA 1,037,350 Series 2001, 5.000%, 12/01/21 - AMBAC Insured 500 North Kansas City, Missouri, Hospital Revenue Bonds, North 11/13 at 100.00 AAA 512,075 Kansas City Hospital and Affiliate, Series 2003A, 5.125%, 11/15/33 - FSA Insured 2,880 Taney County Industrial Development Authority, Missouri, 5/08 at 101.00 BBB 2,807,798 Hospital Revenue Bonds, Skaggs Community Hospital Association, Series 1998, 5.400%, 5/15/28 ---------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 9.6% Clay County Industrial Development Authority, Missouri, GNMA Multifamily Housing Revenue Bonds, Oak Creek Apartments, Series 2002: 1,320 6.125%, 7/20/25 (Alternative Minimum Tax) 7/13 at 105.00 AAA 1,365,606 2,530 6.300%, 1/20/38 (Alternative Minimum Tax) 7/13 at 103.00 AAA 2,555,376 80 Missouri Housing Development Commission, FHA-Insured 1/05 at 100.00 Aaa 80,078 Mortgage Loan Housing Development Refunding Bonds, Series 1992, 6.600%, 7/01/24 885 Missouri Housing Development Commission, Multifamily 12/05 at 103.00 N/R 890,115 Housing Revenue Bonds, Primm Place Apartments, Series 1995A, 6.250%, 12/01/17 (Alternative Minimum Tax) 2,620 Missouri Housing Development Commission, Multifamily 4/08 at 102.00 N/R 2,373,301 Housing Revenue Bonds, Mansion Apartments II, Series 1999, 6.125%, 4/01/22 (Alternative Minimum Tax) Missouri Housing Development Commission, GNMA Collateralized Multifamily Housing Revenue Bonds, JB Hughes Apartments I and II, Series 2002G: 277 6.200%, 5/20/19 5/12 at 105.00 Aaa 290,374 975 6.300%, 5/20/37 5/12 at 105.00 Aaa 999,375 1,805 St. Louis County Industrial Development Authority, 1/09 at 105.00 AAA 1,812,960 Missouri, GNMA Collateralized Subordinate Lien Housing Revenue Refunding Bonds, Southfield and Oak Forest II Apartments, Series 2002A, 5.200%, 1/20/36 2,000 St. Louis County Housing Authority, Missouri, FNMA 3/05 at 102.00 AAA 2,048,480 Multifamily Housing Revenue Refunding Bonds, Kensington Square Apartments, Series 1995, 6.650%, 3/01/20 9,105 St. Louis County Industrial Development Authority, 8/06 at 105.00 AAA 9,619,615 Missouri, GNMA Mortgage-Backed Multifamily Housing Revenue Bonds, Covington Manor Apartments, Series 1996A, 6.875%, 8/20/36 (Alternative Minimum Tax) 1,865 St. Louis Land Clearance Redevelopment Authority, Missouri, 5/05 at 100.00 AAA 1,872,833 FHA-Insured Multifamily Mortgage Revenue Refunding Bonds, St. Louis Place Apartments, Series 1993, 6.250%, 8/01/27 925 Universal City Industrial Development Authority, Missouri, 8/07 at 102.00 Aaa 955,386 GNMA Collateralized Revenue Refunding Bonds, River Valley Apartments, Series 1997A, 5.900%, 2/20/37 ---------------------------------------------------------------------------------------------------------------- Housing/Single Family - 1.4% 290 Missouri Housing Development Commission, GNMA/FNMA Single 1/07 at 102.00 AAA 292,111 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 1996D, 6.125%, 3/01/28 (Alternative Minimum Tax)
---- 36
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Housing/Single Family (continued) $ 120 Missouri Housing Development Commission, GNMA/FNMA Single 3/07 at 105.00 AAA $ 120,174 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 1997A-2, 7.300%, 3/01/28 (Alternative Minimum Tax) 300 Missouri Housing Development Commission GNMA/FNMA, Single 3/06 at 105.00 AAA 300,399 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 1995C, 7.250%, 9/01/26 (Alternative Minimum Tax) Missouri Housing Development Commission, GNMA/FNMA Single Family Remarketed Mortgage Revenue Bonds, Homeownership Loan Program, Series 1995B: 480 6.375%, 9/01/20 (Alternative Minimum Tax) 9/06 at 102.00 AAA 486,955 385 6.450%, 9/01/27 (Alternative Minimum Tax) 9/06 at 102.00 AAA 390,686 285 Missouri Housing Development Commission GNMA/FNMA, Single 9/06 at 105.00 AAA 288,138 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 1996B, 7.550%, 9/01/27 (Alternative Minimum Tax) Missouri Housing Development Commission, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1994A: 45 6.700%, 12/01/07 (Alternative Minimum Tax) 12/04 at 102.00 AAA 45,794 190 7.125%, 12/01/14 (Alternative Minimum Tax) 12/04 at 102.00 AAA 192,603 80 7.200%, 12/01/17 (Alternative Minimum Tax) 12/04 at 102.00 AAA 81,133 215 Missouri Housing Development Commission GNMA/FNMA, Single 3/08 at 105.00 AAA 216,836 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 1998B-2, 6.400%, 3/01/29 (Alternative Minimum Tax) 705 Missouri Housing Development Commission GNMA/FNMA, Single 9/09 at 100.00 AAA 736,640 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 2000A-1, 6.300%, 9/01/25 (Alternative Minimum Tax) 405 Missouri Housing Development Commission GNMA/FNMA, Single 3/10 at 100.00 AAA 424,562 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 2000B-1, 6.200%, 9/01/25 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Long-Term Care - 10.6% 1,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,023,410 Revenue Bonds, Lutheran Senior Services - Heisinger Project, Series 2004, 5.500%, 2/01/35 4,250 Kansas City Industrial Development Authority, Missouri, 11/08 at 102.00 N/R 3,730,098 Retirement Center Revenue Refunding and Improvement Bonds, Kingswood Project, Series 1998A, 5.875%, 11/15/29 1,000 Lees Summit Industrial Development Authority, Missouri, 8/05 at 102.00 N/R 1,035,470 Health Facilities Revenue Bonds, John Knox Village, Series 1995, 6.625%, 8/15/13 5,000 Lees Summit Industrial Development Authority, Missouri, 8/09 at 101.00 N/R 5,319,950 Health Facilities Revenue Bonds, John Knox Village, Series 1999, 6.000%, 8/15/17 1,500 Lees Summit Industrial Development Authority, Missouri, 8/12 at 101.00 N/R 1,568,640 Health Facilities Revenue Bonds, John Knox Village, Series 2002, 5.700%, 8/15/22 1,285 Missouri Development Finance Board, Healthcare Facilities 11/11 at 100.00 A2 1,338,957 Revenue Bonds, Lutheran Home for the Aged, Series 2001A, 5.600%, 11/01/21 3,750 Missouri Health and Educational Facilities Authority, 2/06 at 102.00 N/R 3,869,850 Revenue Bonds, Lutheran Senior Services, Series 1996A, 6.375%, 2/01/27 3,500 Missouri Health and Educational Facilities Authority, 2/07 at 102.00 N/R 3,603,635 Revenue Bonds, Lutheran Senior Services, Series 1997, 5.875%, 2/01/23 St. Louis County Industrial Development Authority, Missouri, Revenue Refunding Bonds, Friendship Village of West County, Series 1996A: 445 5.750%, 9/01/05 No Opt. Call N/R 449,058 1,800 6.250%, 9/01/10 9/06 at 102.00 N/R 1,881,144 2,425 St. Louis County Industrial Development Authority, 8/05 at 104.00 AAA 2,574,768 Missouri, GNMA Collateralized Healthcare Facilities Revenue Bonds, Mother of Perpetual Help Residence Inc., Series 1995, 6.250%, 8/01/28 1,200 St. Louis County Industrial Development Authority, 3/10 at 102.00 AAA 1,243,164 Missouri, GNMA Collateralized Healthcare Facilities Revenue Bonds, Mary, Queen and Mother Association, Series 2001, 5.400%, 9/20/34 ---------------------------------------------------------------------------------------------------------------- Materials - 0.4% 1,000 Sugar Creek, Missouri, Industrial Development Revenue 6/13 at 101.00 BBB 1,005,690 Bonds, Lafarge North America Inc., Series 2003A, 5.650%, 6/01/37 (Alternative Minimum Tax)
---- 37 Portfolio of Investments (Unaudited) NUVEEN MISSOURI MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 14.1% $ 1,465 Camdenton Reorganized School District R3, Camden County, 3/12 at 100.00 AAA $ 1,541,971 Missouri, General Obligation Bonds, Series 2004, 5.250%, 3/01/24 (WI, settling 12/01/04) - FSA Insured 2,000 Cass County Reorganized School District R-II, Raymore and 3/12 at 100.00 AAA 2,137,080 Peculiar, Missouri, General Obligation Bonds, Series 2002, 5.250%, 3/01/20 - FSA Insured 540 Clay County Public School District 53, Liberty, Missouri, 3/12 at 100.00 AA+ 571,417 General Obligation Bonds, Series 2001C, 5.200%, 3/01/21 1,280 Clay County Public School District 53, Liberty, Missouri, 3/12 at 100.00 AAA 1,327,565 General Obligation Bonds, Series 2002B, 5.000%, 3/01/22 - FSA Insured 1,000 Greene County Reorganized School District R8, Missouri, 3/12 at 100.00 AAA 1,068,540 General Obligation Bonds, Series 2002, 5.250%, 3/01/20 - FSA Insured 2,500 Hickman Mills C-1 School District, Jackson County, 3/13 at 100.00 AAA 2,623,000 Missouri, General Obligation Bonds, Series 2003, 5.000%, 3/01/21 - FSA Insured 1,000 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA 1,081,750 General Obligation Refunding and Improvement Bonds, Series 2002, 5.250%, 3/01/18 - FSA Insured 1,450 Jackson County Reorganized School District R-7, Lees 3/14 at 100.00 Aaa 1,529,547 Summit, Missouri, General Obligation Bonds, Series 2004, 5.000%, 3/01/21 - MBIA Insured 1,000 Jefferson City School District, Missouri, General No Opt. Call Aa2 1,159,370 Obligation Bonds, Series 1991A, 6.700%, 3/01/11 3,000 Kansas City, Missouri, General Obligation Bonds, Series 2/14 at 100.00 AA 3,121,800 2004F, 5.000%, 2/01/24 3,000 Missouri, General Obligation Refunding Bonds, Fourth State 10/12 at 100.00 AAA 3,198,690 Building, Series 2002A, 5.000%, 10/01/18 1,000 Pevely, Missouri, General Obligation Bonds, Series 2004, 3/13 at 100.00 AA 1,038,230 5.250%, 3/01/24 - RAAI Insured 2,275 Platte County Reorganized School District R3, Missouri, 3/14 at 100.00 AAA 2,412,319 General Obligation Bonds, Series 2004, 5.000%, 3/01/20 - MBIA Insured 750 Polk County R-1 School District, Bolivar, Missouri, General 3/10 at 100.00 AA+ 827,745 Obligation Bonds, Missouri Direct Deposit Program, Series 2000, 5.700%, 3/01/20 1,345 St. Louis County Pattonville School District R3, Missouri, No Opt. Call AAA 1,630,651 General Obligation Bonds, Series 2000, 6.500%, 3/01/14 - FGIC Insured 1,900 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 2,059,866 General Obligation Bonds, Series 2004, 5.250%, 3/01/20 - FSA Insured 1,605 St. Louis Board of Education, Missouri, General Obligation 4/13 at 100.00 AAA 1,693,853 Refunding Bonds, Series 2003A, 5.000%, 4/01/20 - FSA Insured Springfield School District R12, Missouri, General Obligation Bonds, Series 2003: 2,875 5.125%, 3/01/20 - FGIC Insured 3/13 at 100.00 AAA 3,060,121 3,000 5.000%, 3/01/22 - FGIC Insured 3/13 at 100.00 AAA 3,130,620 1,500 5.000%, 3/01/23 - FGIC Insured 3/13 at 100.00 AAA 1,557,930 ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 18.3% 875 Brentwood, Missouri, Tax Increment Refunding Bonds, 4/09 at 100.00 AA 883,733 Promenade Project, Series 2002, 4.700%, 4/01/19 - RAAI Insured 1,875 Christian County Public Building Corporation, Missouri, 6/10 at 100.00 AA 2,031,675 Leasehold Revenue Bonds, Justice Center Project, Series 2000, 5.450%, 6/01/15 - RAAI Insured 1,035 Dunklin County, Missouri, Certificates of Participation, 12/14 at 100.00 AAA 1,102,492 Series 2004, 5.000%, 12/01/19 (WI, settling 12/01/04) - FGIC Insured 1,025 Excelsior Springs School District, Missouri, Leasehold No Opt. Call AAA 698,507 Revenue Bonds, Series 1994, 0.000%, 3/01/14 - FSA Insured 2,750 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R 2,820,153 Bonds, Gravois Bluffs Project, Series 2002, 6.125%, 10/01/21 3,000 Harrisonville, Missouri, Lease Participation Certificates, 12/13 at 100.00 AAA 3,120,180 Series 2003, 5.000%, 12/01/22 - XLCA Insured 3,490 Howard Bend Levee District, St. Louis County, Missouri, 3/09 at 101.00 N/R 3,666,629 Levee District Improvement Bonds, Series 1999, 5.850%, 3/01/19
---- 38
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 1,200 Kansas City Land Clearance Redevelopment Authority, 12/05 at 102.00 AAA $ 1,264,488 Missouri, Lease Revenue Bonds, Municipal Auditorium and Muehlebach Hotel Redevelopment Projects, Series 1995A, 5.900%, 12/01/18 - FSA Insured Mehlville School District R-9, St. Louis County, Missouri, Certificates of Participation, Capital Improvement Projects, Series 2002: 1,275 5.500%, 9/01/17 - FSA Insured 9/12 at 100.00 AAA 1,411,170 1,000 5.500%, 9/01/18 - FSA Insured 9/12 at 100.00 AAA 1,104,130 3,885 Missouri Association of Rural Education, Pulaski County, 3/09 at 100.00 AAA 4,063,205 Certificates of Participation, Waynesville School District R-6, Series 2004, 5.100%, 3/01/24 - MBIA Insured 1,500 Missouri Development Finance Board, Kansas City, 4/10 at 100.00 AAA 1,662,900 Infrastructure Facilities Revenue Bonds, Midtown Redevelopment Project, Series 2000A, 5.750%, 4/01/22 - MBIA Insured 4,000 Missouri Development Finance Board, Independence, 4/11 at 100.00 A+ 4,102,560 Infrastructure Facilities Revenue Bonds, Santa Fe Redevelopment Project, Series 2001, 5.250%, 4/01/23 2,000 Missouri Development Finance Board, Infrastructure 3/10 at 100.00 N/R 2,041,020 Facilities Revenue Bonds, Riverside-Quindaro Bend Levee District L-385, Series 2001, 5.800%, 3/01/20 450 Monarch-Chesterfield Levee District, St. Louis County, 3/10 at 101.00 AAA 503,186 Missouri, Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19 - MBIA Insured 1,705 O'Fallon, Missouri, Certificates of Participation, Series 2/12 at 100.00 Aaa 1,855,552 2002, 5.250%, 2/01/15 - MBIA Insured 900 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 A 962,640 Transportation Authority, Series 1996Y, 5.500%, 7/01/36 3,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call A- 3,334,800 Government Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 1,240 St. Louis Municipal Finance Corporation, Missouri, 2/12 at 100.00 Aaa 1,399,476 Leasehold Revenue Bonds, Carnahan Courthouse, Series 2002A, 5.750%, 2/15/17 - FGIC Insured 1,750 St. Louis Regional Convention and Sports Complex Authority, 8/07 at 100.00 AAA 1,851,535 Missouri, Lease Revenue Refunding Bonds, Series 1997C, 5.300%, 8/15/20 - AMBAC Insured 2,950 Springfield Public Building Corporation, Missouri, Lease 6/10 at 100.00 AAA 3,347,188 Revenue Bonds, Jordan Valley Park Projects, Series 2000A, 6.125%, 6/01/21 - AMBAC Insured 2,500 Springfield Public Building Corporation, Missouri, Lease 3/14 at 100.00 Aaa 2,596,450 Revenue Bonds, Series 2004, 5.000%, 3/01/24 - AMBAC Insured 1,945 Springfield Center City Development Corporation, Missouri, 6/12 at 100.00 Aaa 1,982,266 Lease Revenue Bonds, Jordan Valley Park Exposition Center, Series 2002A, 5.000%, 6/01/27 - AMBAC Insured ---------------------------------------------------------------------------------------------------------------- Transportation - 7.1% 2,000 Kansas City, Missouri, Passenger Facility Charge Revenue 4/11 at 101.00 AAA 2,030,520 Bonds, Kansas City International Airport, Series 2001, 5.000%, 4/01/23 (Alternative Minimum Tax) - AMBAC Insured 790 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 554,446 Bonds, American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) 5,000 St. Louis, Missouri, Airport Revenue Bonds, Airport 7/11 at 100.00 AAA 5,088,150 Development Program, Series 2001A, 5.000%, 7/01/26 - MBIA Insured St. Louis, Missouri, Airport Revenue Refunding Bonds, Series 2003A: 3,450 5.250%, 7/01/16 - FSA Insured 7/13 at 100.00 AAA 3,756,740 1,000 5.250%, 7/01/18 - FSA Insured 7/13 at 100.00 AAA 1,079,860 St. Louis Land Clearance Redevelopment Authority, Missouri, Revenue Refunding and Improvement Bonds, LCRA Parking Facilities, Series 1999C: 1,000 7.000%, 9/01/19 9/09 at 102.00 N/R 1,077,980 2,400 7.050%, 9/01/24 9/09 at 102.00 N/R 2,570,952 2,250 St. Louis, Missouri, Revenue Refunding Bonds, Parking 12/06 at 102.00 AAA 2,399,085 Facility, Series 1996, 5.375%, 12/15/21 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 3.9% 2,285 Branson Public Building Corporation, Missouri, Leasehold 11/06 at 101.00 N/R*** 2,474,678 Revenue Bonds, City Hall and Fire Station Improvement Projects, Series 1995, 6.250%, 11/01/12 (Pre-refunded to 11/01/06)
---- 39 Portfolio of Investments (Unaudited) NUVEEN MISSOURI MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** (continued) $ 4,500 Cape Girardeau County, Missouri, Single Family Mortgage No Opt. Call Aaa $ 2,928,825 Revenue Bonds, Series 1983, 0.000%, 12/01/14 235 Greene County, Missouri, Single Family Mortgage Revenue No Opt. Call Aaa 141,489 Bonds, Series 1984, 0.000%, 3/01/16 2,395 Missouri Health and Educational Facilities Authority, No Opt. Call Aaa 2,942,281 Revenue Bonds, BJC Health System, Series 1994A, 6.750%, 5/15/14 450 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 518,364 Revenue Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded to 7/01/10) 950 Texas County, Missouri, Hospital Revenue Bonds, Texas 6/10 at 100.00 N/R*** 1,133,778 County Memorial Hospital, Series 2000, 7.250%, 6/15/25 (Pre-refunded to 6/15/10) ---------------------------------------------------------------------------------------------------------------- Utilities - 4.6% 2,710 Columbia, Missouri, Water and Electric Revenue Bonds, 10/12 at 100.00 AAA 2,768,834 Series 2002A, 5.000%, 10/01/26 - AMBAC Insured 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,045,730 Series 2002II, 5.125%, 7/01/26 - FSA Insured 2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 2,231,840 Series 2003NN, 5.250%, 7/01/23 - MBIA Insured 2,000 Sikeston, Missouri, Electric System Revenue Bonds, Series No Opt. Call AAA 2,274,380 1992, 6.200%, 6/01/10 - MBIA Insured 3,030 Sikeston, Missouri, Electric System Revenue Refunding No Opt. Call AAA 3,576,885 Bonds, Series 1996, 6.000%, 6/01/14 - MBIA Insured ---------------------------------------------------------------------------------------------------------------- Water and Sewer - 5.7% 1,825 Kansas City, Missouri, Sewerage System Revenue Bonds, 1/12 at 100.00 AA 1,949,994 Series 2002D-1, 5.375%, 1/01/22 1,785 Kansas City, Missouri, Water Revenue Bonds, Series 2004D, 12/13 at 100.00 AAA 1,890,440 5.000%, 12/01/20 - FSA Insured 3,385 Metropolitan St. Louis Sewerage District, Missouri, Revenue 5/14 at 100.00 AAA 3,592,399 Bonds, Wastewater System, Series 2004A, 5.000%, 5/01/20 - MBIA Insured 1,635 Missouri Environmental Improvement and Energy Resources 4/09 at 100.00 AA 1,778,340 Authority, Water Facility Revenue Refunding Bonds, Tri-County Water Authority, Series 1999, 6.000%, 4/01/22 - RAAI Insured 1,600 Missouri Development Finance Board, Independence, 11/14 at 100.00 AAA 1,662,736 Infrastructure Facilities Revenue Bonds, Water System Improvement Projects, Series 2004, 5.000%, 11/01/24 - AMBAC Insured 435 Missouri Environmental Improvement and Energy Resources 4/05 at 100.00 Aaa 436,766 Authority, Water Pollution Control Revenue Bonds, State Revolving Fund Program - Springfield Project, Series 1990A, 7.000%, 10/01/10 365 Missouri Environmental Improvement and Energy Resources 1/05 at 100.00 Aaa 366,354 Authority, Water Pollution Control Revenue Bonds, State Revolving Fund Program - Multi-Participants, Series 1992A, 6.550%, 7/01/14 250 Missouri Environmental Improvement and Energy Resources 1/05 at 102.00 Aaa 259,263 Authority, Water Pollution Control Revenue Bonds, State Revolving Fund Program - Multi-Participants, Series 1994B, 7.200%, 7/01/16 St. Charles County Public Water Supply District 2, Missouri, Certificates of Participation, Series 2002A: 750 5.000%, 12/01/26 - MBIA Insured 12/11 at 100.00 Aaa 764,865 1,000 5.250%, 12/01/28 - MBIA Insured 12/11 at 100.00 Aaa 1,033,100 1,000 West Plains, Missouri, Sewerage System Revenue Bonds, 7/12 at 100.00 AAA 1,041,375 Series 2004, 5.125%, 7/01/24 - FSA Insured ---------------------------------------------------------------------------------------------------------------- $256,077 Total Long-Term Investments (cost $245,900,896) - 98.8% 256,813,398 ---------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 1.2% 3,010,667 -------------------------------------------------------------------------------------------------- Net Assets - 100% $259,824,065 --------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (WI)Security purchased on a when-issued basis. See accompanying notes to financial statements. ---- 40 Portfolio of Investments (Unaudited) NUVEEN OHIO MUNICIPAL BOND FUND November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Consumer Staples - 1.2% $ 7,065 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 6,528,908 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ---------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 7.7% 4,090 Cleveland State University, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 4,247,629 Series 2003A, 5.000%, 6/01/23 - FGIC Insured 735 Ohio State Education, Student Loan Revenue Bonds, 6/07 at 102.00 AAA 770,530 Supplemental Student Loan Program, Series 1997A-1, 5.850%, 12/01/19 (Alternative Minimum Tax) - AMBAC Insured 1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,213,152 Bonds, University of Findlay, Series 1996, 6.125%, 9/01/16 5,000 Ohio Higher Educational Facilities Commission, Revenue 5/07 at 102.00 AAA 5,369,800 Bonds, Xavier University, Series 1997, 5.375%, 5/15/22 - MBIA Insured 1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,070,370 Bonds, University of Dayton, Series 2000, 5.500%, 12/01/30 - AMBAC Insured Ohio Higher Educational Facilities Commission, Revenue Bonds, Wittenberg University, Series 2001: 1,200 5.500%, 12/01/21 12/11 at 100.00 Baa1 1,267,344 2,000 5.000%, 12/01/26 12/11 at 100.00 Baa1 2,001,760 2,730 Ohio Higher Educational Facilities Commission, Revenue 11/14 at 100.00 AA 2,880,641 Bonds, Denison University, Series 2004, 5.000%, 11/01/20 1,315 Ohio Higher Educational Facilities Commission, Revenue 12/14 at 100.00 AAA 1,357,330 Bonds, University of Dayton, Series 2004, 5.000%, 12/01/25 (WI, settling 12/02/04) - AMBAC Insured 910 Ohio Higher Education Facilities Commission, Revenue Bonds, No Opt. Call AA 1,120,101 Case Western Reserve University Project, Series 1990B, 6.500%, 10/01/20 3,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 AA 3,280,140 Case Western Reserve University Project, Series 2002B, 5.500%, 10/01/22 1,750 Ohio Higher Education Facilities Commission, General 10/13 at 100.00 AA 1,822,310 Revenue Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24 Ohio University at Athens, Subordinate Lien General Receipts Bonds, Series 2004: 1,855 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 AAA 1,957,637 1,900 5.000%, 12/01/23 - MBIA Insured 6/14 at 100.00 AAA 1,982,498 University of Cincinnati, Ohio, General Receipts Bonds, Series 2001A: 1,500 5.750%, 6/01/18 - FGIC Insured 6/11 at 101.00 AAA 1,699,815 1,520 5.750%, 6/01/19 - FGIC Insured 6/11 at 101.00 AAA 1,717,478 2,000 5.250%, 6/01/24 - FGIC Insured 6/11 at 101.00 AAA 2,114,840 4,250 University of Cincinnati, Ohio, General Receipts Bonds, 6/07 at 100.00 AAA 4,489,530 Series 1997, 5.375%, 6/01/20 - MBIA Insured 1,675 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,769,018 Series 2004A, 5.000%, 6/01/21 - AMBAC Insured 1,025 University of Cincinnati, Ohio, General Receipts Bonds, 12/14 at 100.00 AAA 1,084,112 Series 2004E, 5.000%, 6/01/21 (WI, settling 12/01/04) - AMBAC Insured ---------------------------------------------------------------------------------------------------------------- Healthcare - 16.3% 7,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 7,019,600 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/24 1,065 Akron, Bath and Copley Joint Township Hospital District, 11/13 at 100.00 Aaa 1,118,527 Ohio, Hospital Revenue Bonds, Children's Hospital Medical Center, Series 2003, 5.250%, 11/15/25 (DD, settling 12/01/04) - FSA Insured 11,900 Cuyahoga County, Ohio, Hospital Revenue and Improvement 2/09 at 101.00 A- 12,449,185 Bonds, MetroHealth System, Series 1999, 6.125%, 2/15/24 1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/07 at 102.00 AAA 1,078,510 Improvement Bonds, MetroHealth System, Series 1997, 5.625%, 2/15/17 - MBIA Insured 4,400 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa3 4,724,544 Clinic Health System, Series 2003A, 6.000%, 1/01/32
---- 41 Portfolio of Investments (Unaudited) NUVEEN OHIO MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Healthcare (continued) $ 2,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A $ 2,564,450 Firelands Regional Medical Center, Series 2002A, 5.625%, 8/15/32 Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Children's Hospital Project, Series 1996A: 1,575 5.750%, 11/01/15 11/06 at 101.00 Aa2 1,634,488 5,275 5.875%, 11/01/25 11/06 at 101.00 Aa2 5,432,089 Franklin County, Ohio, Hospital Revenue Bonds, Holy Cross Health System Corporation, Series 1996: 965 5.800%, 6/01/16 6/06 at 102.00 AA- 1,016,782 2,000 5.875%, 6/01/21 6/06 at 102.00 AA- 2,112,220 5,690 Lorain County, Ohio, Hospital Facilities Revenue Refunding 11/05 at 102.00 AAA 5,928,183 Bonds, EMH Regional Medical Center, Series 1995, 5.375%, 11/01/21 - AMBAC Insured 2,000 Marion County, Ohio, Hospital Revenue Refunding and 5/06 at 102.00 BBB+ 2,095,320 Improvement Bonds, The Community Hospital, Series 1996, 6.375%, 5/15/11 2,000 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,088,660 and Improvement Bonds, Upper Valley Medical Center, Series 1996A, 6.250%, 5/15/16 4,205 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 4,409,489 and Improvement Bonds, Upper Valley Medical Center, Series 1996C, 6.250%, 5/15/13 4,000 Middleburg Heights, Ohio, Hospital Improvement Revenue 8/08 at 102.00 AAA 4,420,200 Refunding Bonds, Southwest General Hospital, Series 1995, 5.625%, 8/15/15 - FSA Insured Montgomery County, Ohio, Hospital Facilities Revenue Refunding and Improvement Bonds, Kettering Medical Center, Series 1996: 1,500 5.625%, 4/01/16 - MBIA Insured 4/06 at 102.00 AAA 1,588,230 7,000 6.250%, 4/01/20 - MBIA Insured No Opt. Call AAA 8,463,490 9,500 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A3 10,386,730 Kettering Medical Center, Series 1999, 6.750%, 4/01/22 7,390 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA 7,859,708 Initiatives, Series 2001, 6.375%, 9/01/21 1,250 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 1,300,025 Hospital Revenue Refunding and Improvement Bonds, Series 1998, 5.350%, 11/01/18 2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,159,860 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/22 1,200 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 1,222,848 Union Hospital Project, Series 2001, 5.250%, 10/01/31 - RAAI Insured ---------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 5.3% 1,090 Clark County, Ohio, Multifamily Housing Revenue Bonds, 11/08 at 103.00 N/R 882,192 Church of God Retirement Home, Series 1998, 6.250%, 11/01/30 (Alternative Minimum Tax) 16,105 Franklin County, Ohio, GNMA Collateralized Mortgage Revenue 10/07 at 103.00 Aaa 16,298,582 Bonds, Columbus Properties Project, Series 1997, 5.600%, 4/20/39 (Alternative Minimum Tax) 3,045 Franklin County, Ohio, GNMA Collateralized Multifamily 9/11 at 102.00 Aaa 3,130,230 Housing Mortgage Revenue Bonds, Carriage House Apartments Project, Series 2002, 5.400%, 3/20/37 2,705 Henry County, Ohio, GNMA Collateralized Healthcare Facility 8/09 at 102.00 AAA 2,902,330 Revenue Bonds, Alpine Village Project, Series 1999, 6.375%, 2/20/41 6,315 Ohio Capital Corporation for Housing, FHA-Insured Section 8 2/09 at 102.00 Aa2 6,686,701 Assisted Mortgage Loan Revenue Refunding Bonds, Series 1999G, 5.950%, 2/01/23 ---------------------------------------------------------------------------------------------------------------- Housing/Single Family - 3.1% 1,520 Ohio Housing Finance Agency, GNMA Mortgage-Backed 7/09 at 100.00 Aaa 1,546,387 Securities Program Residential Mortgage Revenue Bonds, Series 1999C, 5.750%, 9/01/30 (Alternative Minimum Tax) 2,835 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,908,653 Securities Program Residential Mortgage Revenue Bonds, Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax) 2,920 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,995,862 Securities Program Residential Mortgage Revenue Bonds, Series 1997C, 5.750%, 9/01/28 (Alternative Minimum Tax)
---- 42
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Housing/Single Family (continued) $ 3,400 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA $ 3,512,404 Securities Program Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum Tax) - FSA Insured 6,265 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 6,540,284 Securities Program Residential Mortgage Remarketed Revenue Bonds, Series 1997A-1, 6.150%, 3/01/29 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Industrials - 0.8% 2,400 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/08 at 102.00 N/R 2,428,752 Revenue Bonds, Jergens Inc. Project, Series 1998A, 5.375%, 5/15/18 (Alternative Minimum Tax) Ohio, Economic Development Revenue Bonds, Enterprise Bond Fund Loan Pool, Series 2002-4: 500 5.000%, 6/01/15 (Alternative Minimum Tax) 6/12 at 102.00 AA- 510,045 675 5.450%, 6/01/22 (Alternative Minimum Tax) 6/12 at 102.00 AA- 691,490 1,020 Ohio, Economic Development Revenue Bonds, Enterprise Bond No Opt. Call AA- 1,058,546 Fund Loan Pool, Series 2002-7, 5.850%, 12/01/22 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Long-Term Care - 1.6% 3,120 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 11/05 at 102.00 Aa2 3,235,409 Heinzerling Foundation, Series 1995, 6.200%, 11/01/20 2,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/12 at 100.00 AA 2,051,060 Presbyterian Retirement Services, Series 2002A, 5.125%, 7/01/22 - RAAI Insured 485 Franklin County, Ohio, FHA-Insured Hospital Revenue 2/05 at 100.00 N/R 486,004 Refunding Mortgage Loan Bonds, Worthington Christian Village Nursing Home, Series 1992, 7.000%, 8/01/16 1,250 Hamilton, Ohio, Healthcare Facilities Revenue Bonds, Twin 10/08 at 101.00 BBB 1,195,063 Towers, Series 1998A, 5.125%, 10/01/23 1,680 Napoleon, Ohio, FHA-Insured Healthcare Facilities Mortgage 3/05 at 102.00 Aa2 1,717,128 Revenue Refunding Bonds, Lutheran Orphans and Old Folks Home Society, Series 1994, 6.875%, 8/01/23 ---------------------------------------------------------------------------------------------------------------- Materials - 0.2% 1,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue 3/14 at 101.00 A+ 994,480 Bonds, Cargill Inc., Series 2004A, 4.800%, 3/01/22 ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 28.2% Adams County Valley School District, Adams and Highland Counties, Ohio, Unlimited Tax School Improvement General Obligation Bonds, Series 1995: 6,000 7.000%, 12/01/15 - MBIA Insured No Opt. Call AAA 7,484,940 9,500 5.250%, 12/01/21 - MBIA Insured 12/05 at 102.00 AAA 9,904,700 600 Anthony Wayne Local School District, Lucas, Wood and Fulton No Opt. Call AAA 416,358 Counties, Ohio, School Facilities Construction and Improvement Bonds, Series 1995, 0.000%, 12/01/13 - FGIC Insured 700 Buckeye Local School District, Medina County, Ohio, General 12/10 at 100.00 Aaa 763,217 Obligation Bonds, Series 2000, 5.500%, 12/01/25 - FGIC Insured 2,500 Buckeye Valley Local School District, Ohio, Unlimited Tax No Opt. Call AAA 3,029,200 General Obligation Bonds, Series 1995A, 6.850%, 12/01/15 - MBIA Insured 2,295 Central Ohio Solid Waste Authority, General Obligation 6/14 at 100.00 AAA 2,489,111 Bonds, Series 2004A, 5.000%, 12/01/15 - AMBAC Insured Chesapeake-Union Exempt Village School District, Ohio, General Obligation Bonds, Series 1986: 125 8.500%, 12/01/04 No Opt. Call N/R 125,021 125 8.500%, 12/01/05 No Opt. Call N/R 132,340 125 8.500%, 12/01/06 No Opt. Call N/R 138,545 125 8.500%, 12/01/07 No Opt. Call N/R 144,231 125 8.500%, 12/01/08 No Opt. Call N/R 149,140 130 8.500%, 12/01/09 No Opt. Call N/R 159,493 Cincinnati City School District, Hamilton County, Ohio, General Obligation Bonds, Series 2001: 2,000 5.375%, 12/01/15 - MBIA Insured 12/11 at 100.00 AAA 2,208,900 6,745 5.375%, 12/01/16 - MBIA Insured 12/11 at 100.00 AAA 7,449,515 1,255 5.375%, 12/01/17 - MBIA Insured 12/11 at 100.00 AAA 1,382,019 3,805 Cleveland, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,056,853 5.250%, 12/01/22 - MBIA Insured
---- 43 Portfolio of Investments (Unaudited) NUVEEN OHIO MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General (continued) Columbus, Franklin County, Ohio, General Obligation Bonds, Series 1985: $ 590 9.375%, 4/15/06 No Opt. Call AAA $ 645,897 500 9.375%, 4/15/07 No Opt. Call AAA 579,505 7,045 Columbus, Ohio, General Obligation Bonds, Series 2000, 11/10 at 101.00 AAA 7,714,275 5.250%, 11/15/17 1,000 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,120,270 Various Purpose Refunding Bonds, Series 1993B, 5.250%, 10/01/13 1,345 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,555,183 Bonds, Series 1993, 5.650%, 5/15/18 5,830 Cuyahoga County, Ohio, Limited Tax General Obligation 12/10 at 100.00 AA+ 6,566,562 Capital Improvement Bonds, Series 2000, 5.750%, 12/01/16 2,675 Cuyahoga County, Ohio, General Obligation Bonds, Series 12/14 at 100.00 AA+ 2,818,139 2004, 5.000%, 12/01/22 Cuyahoga Falls, Ohio, General Obligation Bonds, Series 2004: 1,245 5.000%, 12/01/18 - MBIA Insured 6/14 at 100.00 Aaa 1,333,968 1,440 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 Aaa 1,520,827 1,170 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,297,858 5.250%, 12/01/15 - AMBAC Insured 750 Defiance, Ohio, Waterworks System Improvement Bonds, Series 12/04 at 102.00 AAA 767,550 1994, 6.200%, 12/01/20 - MBIA Insured Delaware City School District, Delaware County, Ohio, Unlimited Tax General Obligation School Facilities Construction and Improvement Bonds, Series 1995: 1,000 0.000%, 12/01/10 - FGIC Insured No Opt. Call AAA 811,020 1,000 0.000%, 12/01/11 - FGIC Insured No Opt. Call AAA 770,390 1,000 Evergreen Local School District, Ohio, Unlimited Tax 12/09 at 101.00 Aaa 1,099,500 General Obligation School Improvement Bonds, Series 1999, 5.625%, 12/01/24 - FGIC Insured 1,005 Findlay, Ohio, General Obligation Bonds, Series 2004, 7/14 at 100.00 AAA 1,115,590 5.250%, 7/01/15 - MBIA Insured 4,040 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 4,440,930 Refunding Bonds, Series 1993, 5.375%, 12/01/20 1,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 1,110,080 Ohio, General Obligation School Improvement Bonds, Series 2001, 5.500%, 12/15/18 - MBIA Insured 420 Geauga County, Ohio, Limited Tax General Obligation, Sewer 12/05 at 102.00 Aa2 447,619 District Improvement Bonds, Bainbridge Water Project, Series 1995, 6.850%, 12/01/10 1,000 Grandview Heights City School District, Franklin County, 12/05 at 101.00 AA 1,046,560 Ohio, Unlimited Tax General Obligation School Facilities Construction and Improvement Bonds, Series 1995, 6.100%, 12/01/19 3,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa3 3,194,610 Obligation Bonds, Series 2001, 5.500%, 12/01/28 3,810 Greater Cleveland Regional Transit Authority, Ohio, General 12/14 at 100.00 Aaa 4,106,913 Obligation Bonds, Series 2004, 5.000%, 12/01/17 - MBIA Insured 1,200 Heath City School District, Licking County, Ohio, Unlimited 12/10 at 100.00 Aaa 1,286,220 Tax General Obligation School Improvement Bonds, Series 2000A, 5.500%, 12/01/27 - FGIC Insured 1,000 Huron County, Ohio, Limited Tax General Obligation 12/07 at 102.00 AAA 1,110,110 Correctional Facility Bonds, Series 1996, 5.850%, 12/01/16 - MBIA Insured 1,270 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,321,283 Obligation Bonds, Series 2003, 5.000%, 12/01/23 - MBIA Insured 1,400 Kent City School District, Portage County, Ohio, General 12/14 at 100.00 AAA 1,490,118 Obligation Library Improvement Bonds, Series 2004, 5.000%, 12/01/20 - FGIC Insured 1,070 Kettering, Ohio, Limited Tax General Obligation Bonds, 12/04 at 100.00 Aa3 1,074,034 Series 1991, 6.650%, 12/01/12 1,000 Kettering City School District, Montgomery County, Ohio, 12/05 at 101.00 AAA 1,041,250 General Obligation Bonds, Series 1994, 5.250%, 12/01/22 (Pre-refunded to 12/01/05) - FGIC Insured 555 Lake County, Ohio, Limited Tax Sewer District Improvement No Opt. Call Aa2 630,591 Bonds, Series 2000, 5.600%, 12/01/20 1,440 Lakewood, Ohio, General Obligation Bonds, Series 1995B, 12/05 at 102.00 Aa2 1,516,003 5.750%, 12/01/15 3,385 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 3,487,532 Unlimited Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured
---- 44
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General (continued) Logan County, Ohio, General Obligation Bonds, Series 1986: $ 155 7.750%, 12/01/04 No Opt. Call A+ $ 155,025 155 7.750%, 12/01/05 No Opt. Call A+ 163,514 155 7.750%, 12/01/06 No Opt. Call A+ 171,117 285 Lucas County, Ohio, General Obligation Bonds, Various 12/04 at 100.00 A1 291,082 Improvements, Series 1992, 6.650%, 12/01/12 1,750 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,819,808 Tax General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 - FGIC Insured 1,265 Monroe Local School District, Butler County, Ohio, General No Opt. Call Aaa 1,494,243 Obligation Bonds, Series 2002, 5.750%, 12/01/20 - AMBAC Insured North Royalton City School District, Ohio, School Improvement Bonds, Series 1994: 2,200 6.000%, 12/01/14 - MBIA Insured 12/09 at 102.00 AAA 2,520,342 2,400 6.100%, 12/01/19 - MBIA Insured 12/09 at 102.00 AAA 2,760,960 1,000 Ohio, Full Faith and Credit General Obligation No Opt. Call AA+ 1,146,140 Infrastructure Improvement Bonds, Series 1994, 6.000%, 8/01/10 8,140 Ohio, General Obligation Higher Education Capital 2/11 at 100.00 AA+ 8,546,674 Facilities Bonds, Series 2001A, 5.000%, 2/01/20 730 Ohio, General Obligation Bonds, Common Schools, Series 3/14 at 100.00 AA+ 770,187 2004B, 5.000%, 3/15/21 3,315 Ohio, General Obligation Bonds, Conservation Projects, 3/14 at 100.00 AA+ 3,605,162 Series 2004A, 5.000%, 3/01/15 6,055 Ohio, General Obligation Bonds, Infrastructure 2/13 at 100.00 AA+ 6,320,693 Improvements, Series 2003F, 5.000%, 2/01/22 4,035 Olentangy Local School District, Delaware and Franklin 12/09 at 101.00 AA 4,086,285 Counties, Ohio, Various Purpose Bonds, Series 1999, 5.000%, 12/01/27 Olentangy Local School District, Deleware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A: 400 5.250%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 432,792 3,055 5.250%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 3,288,097 1,495 Otsego Local School District, Wood, Henry and Lucas 12/14 at 100.00 Aaa 1,632,794 Counties, Ohio, General Obligation Bonds, Series 2004, 5.375%, 12/01/22 - FSA Insured 500 Pickerington Local School District, Fairfield County, Ohio, No Opt. Call AAA 383,610 General Obligation Bonds, Series 1993, 0.000%, 12/01/11 - AMBAC Insured 3,315 South Point Local School District, Lawrence County, Ohio, 12/14 at 100.00 AAA 3,454,097 General Obligation Bonds, Series 2004, 5.000%, 12/01/24 - FSA Insured 3,500 Springfield City School District, Clark County, Ohio, 12/11 at 102.00 Aaa 3,722,355 General Obligation Bonds, Series 2001, 5.200%, 12/01/23 - FGIC Insured 30 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 32,613 Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21 1,185 Sugarcreek Local School District, Athens County, Ohio, 12/13 at 100.00 Aaa 1,264,205 General Obligation Bonds, Series 2003, 5.250%, 12/01/24 - MBIA Insured 1,315 Summit County, Ohio, General Obligation Refunding Bonds, No Opt. Call AAA 1,511,711 Series 2002R, 5.500%, 12/01/21 - FGIC Insured 2,290 Tipp City Exempted Village School District, Ohio, School 6/11 at 100.00 Aaa 2,357,189 Facilities Construction and Improvement Bonds, Series 2001, 5.000%, 12/01/24 - FGIC Insured 3,755 Toledo City School District, Lucas County, Ohio, General 12/13 at 100.00 Aaa 3,933,776 Obligation Bonds, Series 2003B, 5.000%, 12/01/22 - FGIC Insured West Chester Township, Butler County, Ohio, General Obligation Bonds, Series 2003: 1,365 5.250%, 12/01/19 - MBIA Insured 12/13 at 100.00 Aaa 1,481,639 1,515 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 Aaa 1,633,821 2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,031,720 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 - MBIA Insured 300 Youngstown, Ohio, Limited Tax General Obligation Bonds, 12/04 at 102.00 AAA 306,999 Series 1994, 6.125%, 12/01/14 - MBIA Insured
---- 45 Portfolio of Investments (Unaudited) NUVEEN OHIO MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 8.6% $ 6,300 Cleveland, Ohio, Certificates of Participation, Cleveland 11/07 at 102.00 AAA $ 6,554,331 Stadium Project, Series 1997, 5.250%, 11/15/27 - AMBAC Insured 1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,417,288 Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured 1,210 Groveport, Ohio, Special Obligation Income Tax Receipts 12/12 at 100.00 Aaa 1,261,425 Bonds, Series 2002, 5.000%, 12/01/22 - MBIA Insured Hamilton County Convention Facilities Authority, Ohio, First Lien Revenue Bonds, Series 2004: 2,300 5.000%, 12/01/20 - FGIC Insured 6/14 at 100.00 AAA 2,436,482 1,000 5.000%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 1,053,740 2,535 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 2,655,108 3,300 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series No Opt. Call Aaa 939,774 2000B, 0.000%, 12/01/28 - AMBAC Insured 1,000 Butler County, Hamilton, Ohio, Limited Tax General 11/11 at 101.00 Aaa 1,089,020 Obligation Bonds, One Renaissance Center Acquisition, Series 2001, 5.375%, 11/01/17 - AMBAC Insured 1,485 New Albany Community Authority, Ohio, Community Facilities 4/12 at 100.00 AAA 1,650,251 Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/16 - AMBAC Insured 1,000 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,082,450 Capital Facilities, Series 2004A-II, 5.000%, 12/01/15 1,490 Ohio, State Appropriation Lease Bonds, Mental Health 6/13 at 100.00 AA 1,597,057 Capital Facilities, Series 2003B-II, 5.000%, 6/01/16 1,050 Ohio Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,090,078 Administrative Building Fund Projects, Series 2002A, 5.000%, 4/01/22 - FSA Insured 2,000 Ohio State Building Authority, State Facilities Bonds, No Opt. Call AAA 2,192,640 Workers Compensation Facilities Project, Series 2003A, 5.000%, 4/01/11 - FGIC Insured 950 Ohio Department of Transportation, Certificates of 4/05 at 100.00 AAA 953,430 Participation, Panhandle Rail Line, Series 1992A, 6.500%, 4/15/12 - FSA Insured 11,700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 13,718,952 Transportation Authority, Reset Option Long Certificates II-R-66, Series 1996Y, 9.266%, 1/01/13 (IF) 6,550 Puerto Rico Public Buildings Authority, Guaranteed Revenue No Opt. Call AAA 8,543,754 Bonds, Reset Option Long Trust Certificates II-R56, Series 1993L, 9.266%, 7/01/18 (IF) ---------------------------------------------------------------------------------------------------------------- Transportation - 4.2% 1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 1,009,430 International Airport, Series 2003C, 5.250%, 12/01/27 (Alternative Minimum Tax) - RAAI Insured 6,300 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 BB+ 6,455,925 Emery Air Freight Corporation and Emery Worldwide Airlines Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18 5,000 Ohio Turnpike Commission, Revenue Refunding Bonds, ROL No Opt. Call AA- 6,310,900 Series II-R51, Series 1998A, 9.236%, 2/15/24 (IF) 7,500 Ohio Turnpike Commission, Revenue Bonds, ROL II-R75, No Opt. Call Aaa 9,551,625 9.236%, 2/15/12 (IF) ---------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 9.0% 730 Athens, Ohio, Sanitary Sewer System Mortgage Revenue Bonds, 12/09 at 100.00 N/R*** 838,923 Series 1989, 7.300%, 12/01/14 (Pre-refunded to 12/01/09) 1,000 Aurora City School District, Ohio, Unlimited Tax General 12/05 at 102.00 AAA 1,056,470 Obligation School Improvement Bonds, Series 1995, 5.800%, 12/01/16 (Pre-refunded to 12/01/05) - FGIC Insured 3,000 Butler County, Ohio, Sewer System Revenue Bonds, Series 12/06 at 101.00 AAA 3,205,080 1996, 5.250%, 12/01/21 (Pre-refunded to 12/01/06) - AMBAC Insured Cuyahoga County, Ohio, Hospital Revenue Bonds, Cleveland Clinic Foundation - Meridia Health System, Series 1995: 250 6.250%, 8/15/14 (Pre-refunded to 8/15/05) 8/05 at 102.00 AAA 262,323 5,500 6.250%, 8/15/24 (Pre-refunded to 8/15/05) 8/05 at 102.00 AAA 5,771,095
---- 46
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- U.S. Guaranteed*** (continued) $ 1,600 Greene County, Ohio, Water System Revenue Bonds, Series 12/07 at 102.00 AAA $ 1,802,720 1996, 6.125%, 12/01/21 (Pre-refunded to 12/01/07) - FGIC Insured 1,190 Lorain, Ohio, Hospital Revenue Refunding Bonds, Lakeland 5/05 at 100.00 A1*** 1,239,159 Community Hospital Inc., Series 1992, 6.500%, 11/15/12 11,000 Montgomery County, Ohio, Health System Revenue Bonds, 1/08 at 102.00 Baa2*** 12,131,790 Franciscan Medical Center - Dayton Campus, Series 1997, 5.500%, 7/01/18 (Pre-refunded to 1/01/08) 5,610 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA*** 6,158,321 Initiatives, Series 2001, 5.375%, 9/01/21 (Pre-refunded to 9/01/11) Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 1985B: 5,700 0.000%, 1/15/15 (Pre-refunded to 7/15/11) - FGIC Insured 7/11 at 70.48 AAA 3,117,330 6,460 0.000%, 1/15/15 (Pre-refunded to 1/15/11) - FGIC Insured 1/11 at 67.04 AAA 3,433,684 750 Ohio, Full Faith and Credit General Obligation 8/05 at 102.00 AA+*** 785,558 Infrastructure Improvement Bonds, Series 1995, 6.200%, 8/01/13 (Pre-refunded to 8/01/05) 5,065 Ohio Water Development Authority, Pure Water Loan Revenue No Opt. Call AAA 5,848,758 Bonds, Series 1990I, 6.000%, 12/01/16 - AMBAC Insured 2,340 Stow, Ohio, General Obligation Construction Bonds, Safety 12/05 at 102.00 Aa3*** 2,481,874 Center, Series 1995, 6.200%, 12/01/20 (Pre-refunded to 12/01/05) 1,910 Vandalia, Ohio, General Obligation Bonds, Series 1996, 12/06 at 101.00 Aa3*** 2,062,724 5.850%, 12/01/21 (Pre-refunded to 12/01/06) ---------------------------------------------------------------------------------------------------------------- Utilities - 7.6% 1,535 Cleveland Public Power System, Ohio, First Mortgage Revenue No Opt. Call AAA 1,067,101 Bonds, Series 1994A, 0.000%, 11/15/13 - MBIA Insured 2,500 Cleveland Public Power System, Ohio, First Mortgage Revenue 11/06 at 102.00 AAA 2,565,500 Refunding Bonds, Series 1996, Subseries 1, 5.000%, 11/15/24 - MBIA Insured 565 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 626,568 Series 2001, 5.500%, 12/01/17 - AMBAC Insured Ohio Municipal Electric Generation Agency, Beneficial Interest Certificates, Joint Venture 5, Belleville Hydroelectric Project, American Municipal Power Ohio Inc., Series 2004: 1,000 5.000%, 2/15/20 - AMBAC Insured 2/14 at 100.00 AAA 1,055,430 3,775 5.000%, 2/15/21 - AMBAC Insured 2/14 at 100.00 AAA 3,963,675 1,465 5.000%, 2/15/22 (DD, settling 12/01/04) - AMBAC Insured 2/14 at 100.00 AAA 1,529,182 3,295 5.000%, 2/15/23 - AMBAC Insured 2/14 at 100.00 AAA 3,421,660 8,250 Ohio Air Quality Development Authority, Revenue Refunding 9/05 at 102.00 Ba1 8,334,233 Bonds, Dayton Power and Light Company Project, Series 1995, 6.100%, 9/01/30 5,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG 4/07 at 102.00 AAA 5,314,900 Funding Limited Partnership Project, Series 1997, 5.625%, 1/01/23 (Alternative Minimum Tax) - AMBAC Insured 500 Ohio Water Development Authority, Collateralized Water 2/05 at 100.00 BBB- 511,675 Revenue Refunding Bonds, Dayton Power and Light Company, Series 1992A, 6.400%, 8/15/27 8,550 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 8,468,604 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 1,545 Puerto Rico Electric Power Authority, Power Revenue No Opt. Call A- 911,148 Refunding Bonds, Series 1989O, 0.000%, 7/01/17 4,460 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 4,813,232 Environmental Control Facilities Financing Authority, Co-Generation Facility Revenue Bonds, Series 2000A, 6.625%, 6/01/26 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Water and Sewer - 5.0% 2,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ 2,063,220 5.000%, 12/01/23 Cincinnati, Ohio, Water System Revenue Bonds, ROLS RR-II-R212: 1,300 11.386%, 12/01/11 (IF) 6/11 at 100.00 AAA 1,673,932 1,640 11.393%, 12/01/12 (IF) 6/11 at 100.00 AAA 2,060,545 550 11.431%, 12/01/13 (IF) 6/11 at 100.00 AAA 689,557
---- 47 Portfolio of Investments (Unaudited) NUVEEN OHIO MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Water and Sewer (continued) $ 10,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA $ 11,363,900 Refunding and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - MBIA Insured 1,160 Hebron, Ohio, Mortgage Revenue Bonds, Waterworks System 6/14 at 100.00 N/R 1,168,480 Improvements, Series 2004, 5.875%, 12/01/25 4,260 Ohio Water Development Authority, Community Assistance 12/07 at 102.00 AAA 4,563,823 Bonds, Series 1997, 5.375%, 12/01/24 - AMBAC Insured 2,000 Ohio Water Development Authority, Revenue Bonds, Fresh 6/08 at 101.00 AAA 2,102,200 Water Development, Series 1998, 5.125%, 12/01/23 - AMBAC Insured 1,255 Ohio Water Development Authority, Revenue Bonds, Fresh 6/14 at 100.00 AAA 1,391,092 Water Development, Series 2004, 5.250%, 12/01/15 620 Toledo, Ohio, Sewerage System Mortgage Revenue Bonds, 11/06 at 100.00 AAA 634,365 Series 1994, 6.350%, 11/15/17 - AMBAC Insured 390 Toledo, Ohio, Water System Mortgage Revenue Bonds, Series 11/06 at 100.00 AAA 399,182 1994, 6.450%, 11/15/24 - AMBAC Insured ---------------------------------------------------------------------------------------------------------------- $525,235 Total Long-Term Investments (cost $518,533,057) - 98.8% 553,414,976 ---------------------------------------------------------------------------------------------------------------- ------------ Short-Term Investments - 0.4% 2,000 Cleveland, Ohio, Income Tax Revenue Bonds, Variable Rate A-1 2,000,000 Demand Obligations, Series 1994, 1.600%, 5/15/24 - AMBAC Insured + ---------------------------------------------------------------------------------------------------------------- $ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000 ---------------------------------------------------------------------------------------------------------------- ------------ Total Investments (cost $520,533,057) - 99.2% 555,414,976 -------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.8% 4,711,668 -------------------------------------------------------------------------------------------------- Net Assets - 100% $560,126,644 --------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (DD)Security purchased on a delayed delivery basis. (WI)Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. (IF)Inverse floating rate security. See accompanying notes to financial statements. ---- 48 Portfolio of Investments (Unaudited) NUVEEN WISCONSIN MUNICIPAL BOND FUND November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value --------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 5.7% $ 475 Ashland Housing Authority, Wisconsin, Student Housing 4/08 at 100.00 Aaa $ 481,840 Revenue Bonds, Northland College Project, Series 1998, 5.100%, 4/01/18 500 Madison Community Development Authority, Wisconsin, Revenue 11/06 at 102.00 AA- 525,215 Bonds, Fluno Center Project, Series 1998A, 5.000%, 11/01/20 370 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 375,495 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/29 200 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 205,704 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, Series 2001, 5.250%, 9/01/21 1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 1,030,770 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.500%, 12/01/31 --------------------------------------------------------------------------------------------------------------- Healthcare - 2.1% 500 Puerto Rico Industrial, Tourist, Educational, Medical and 1/05 at 102.00 AAA 518,405 Environmental Control Facilities Financing Authority, Hospital Revenue Bonds, Auxilio Mutuo Hospital, Series 1995A, 6.250%, 7/01/24 - MBIA Insured 450 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101.50 AAA 467,213 Environmental Control Facilities Financing Authority, FHA-Insured Mortgage Hospital Revenue Bonds, Doctor Pila Hospital, Series 1995A, 5.875%, 8/01/12 --------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 9.6% 675 Kenosha Housing Authority, Wisconsin, GNMA Collateralized 5/08 at 102.00 N/R 700,623 Multifamily Housing Revenue Bonds, Villa Ciera Inc. Project, Series 2000A, 5.900%, 11/20/30 570 Lake Delton Community Development Agency, Wisconsin, GNMA 1/12 at 102.00 N/R 579,673 Collateralized Multifamily Housing Revenue Bonds, Woodland Park Project, Series 2001, 5.300%, 2/20/31 (Alternative Minimum Tax) 1,000 Madison Community Development Authority, Wisconsin, GNMA 9/06 at 102.00 AAA 1,011,010 Multifamily Housing Revenue Refunding Bonds, Greentree Glen Apartments, Series 1999A, 5.500%, 9/20/29 (Alternative Minimum Tax) 200 Milwaukee Redevelopment Authority, Wisconsin, FHA-Insured 8/07 at 102.00 N/R 208,178 Multifamily Housing Revenue Bonds, City Hall Square Apartments, Series 1993, 6.000%, 8/01/22 (Alternative Minimum Tax) 500 Sheboygan Housing Authority, Wisconsin, GNMA Multifamily 5/06 at 102.00 AAA 504,290 Revenue Refunding Bonds, Lake Shore Apartments, Series 1998A, 5.100%, 11/20/26 300 Walworth County Housing Authority, Wisconsin, FHA-Insured 9/05 at 102.00 N/R 306,708 Housing Revenue Bonds, Kiwanis Heritage Inc. Senior Apartments, Series 1997, 5.550%, 9/01/22 Waukesha Housing Authority, Wisconsin, GNMA Collateralized Mortgage Loan Multifamily Housing Revenue Refunding Bonds, Westgrove Woods Project, Series 1996A: 350 5.800%, 12/01/18 (Alternative Minimum Tax) 12/06 at 102.00 AAA 361,722 750 6.000%, 12/01/31 (Alternative Minimum Tax) 12/06 at 102.00 AAA 765,330 --------------------------------------------------------------------------------------------------------------- Housing/Single Family - 0.6% 190 Puerto Rico Housing Bank and Finance Agency, Affordable 4/05 at 102.00 AAA 194,908 Housing Mortgage Subsidy Program Single Family Mortgage Revenue Bonds, Series 1995I, 6.250%, 4/01/29 (Alternative Minimum Tax) 90 Virgin Islands Housing Finance Corporation, Single Family 3/05 at 102.00 AAA 92,029 Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed Securities Program, Series 1995A, 6.450%, 3/01/16 (Alternative Minimum Tax) --------------------------------------------------------------------------------------------------------------- Long-Term Care - 2.4% 1,120 Waukesha County Housing Authority, Wisconsin, Housing 12/04 at 101.00 N/R 1,121,299 Revenue Bonds, Arboretum Project, Series 1998, 5.250%, 12/01/21 (Alternative Minimum Tax) (Mandatory put 12/01/12) --------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 3.5% 250 Guam, General Obligation Bonds, Series 1993A, 5.400%, 5/05 at 101.00 B 247,868 11/15/18 1,200 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 1,378,692 Refunding Bonds, Series 2001A, 5.500%, 7/01/14 - FSA Insured
---- 49 Portfolio of Investments (Unaudited) NUVEEN WISCONSIN MUNICIPAL BOND FUND (continued) November 30, 2004
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value --------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 60.3% $ 1,500 Ashwaubenon Community Development Authority, Wisconsin, 6/12 at 100.00 Aa2 $ 1,543,500 Lease Revenue Refunding Bonds, Arena Project, Series 2002, 5.150%, 6/01/29 1,500 Cudahy Community Development Authority, Wisconsin, 6/06 at 100.00 N/R 1,577,295 Redevelopment Lease Revenue Bonds, Series 1995, 6.000%, 6/01/11 1,000 De Forest Redevelopment Authority, Wisconsin, Redevelopment 2/08 at 100.00 N/R 1,018,160 Lease Revenue Bonds, Series 1999B, 5.100%, 2/01/18 100 Glendale Community Development Authority, Wisconsin, 10/11 at 100.00 A3 105,374 Community Development Lease Revenue Refunding Bonds, Tax Increment District 6, Series 2001, 5.000%, 10/01/19 2,000 Glendale Community Development Authority, Wisconsin, 10/14 at 100.00 A3 2,063,400 Community Development Lease Revenue Bonds, Bayshore Public Parking Project, Series 2004A, 5.000%, 10/01/24 (WI, settling 12/15/04) 350 Green Bay Brown County Professional Football Stadium 2/11 at 100.00 AAA 368,186 District, Wisconsin, Sales Tax Revenue Bonds, Lambeau Field Renovation Project, Series 2001A, 5.000%, 2/01/19 - AMBAC Insured Green Bay Redevelopment Authority, Wisconsin, Lease Revenue Bonds, Convention Center Project, Series 1999A: 1,300 5.250%, 6/01/24 6/09 at 100.00 Aa2 1,372,930 1,650 5.100%, 6/01/29 6/09 at 100.00 Aa2 1,694,336 500 Jackson Community Development Authority, Wisconsin, Revenue 12/09 at 100.00 N/R 505,250 Refunding Bonds, Series 1999, 5.100%, 12/01/17 960 Madison Community Development Authority, Wisconsin, Lease 3/12 at 100.00 Aa2 952,560 Revenue Refunding Bonds, Monona Terrace, Series 2002, 4.375%, 3/01/20 Milwaukee Redevelopment Authority, Wisconsin, Revenue Bonds, Summerfest Project, Series 2001: 400 4.850%, 8/01/17 8/11 at 100.00 A 413,928 1,000 4.950%, 8/01/20 8/11 at 100.00 A 1,034,180 2,000 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/12 at 100.00 AAA 2,056,560 Bonds, Neighborhood Public Schools Initiative, Series 2002A, 4.875%, 8/01/21 - AMBAC Insured 2,500 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/13 at 100.00 AAA 2,637,975 Bonds, Public Schools, Series 2003A, 5.125%, 8/01/21 - AMBAC Insured 1,000 Onalaska Community Development Authority, Wisconsin, 10/13 at 100.00 A3 1,005,290 Community Development Lease Revenue Bonds, Series 2003, 4.875%, 10/01/27 Southeast Wisconsin Professional Baseball Park District, Sales Tax Revenue Refunding Bonds, Series 1998A: 850 5.500%, 12/15/18 - MBIA Insured No Opt. Call AAA 973,616 400 5.500%, 12/15/19 - MBIA Insured No Opt. Call AAA 457,784 2,195 5.500%, 12/15/20 - MBIA Insured No Opt. Call AAA 2,518,631 500 5.500%, 12/15/26 - MBIA Insured No Opt. Call AAA 562,285 375 Sturgeon Bay Waterfront Redevelopment Authority, Wisconsin, 10/08 at 100.00 N/R 383,906 Lease Revenue Bonds, Series 1998A, 5.200%, 10/01/21 600 Virgin Islands Public Finance Authority, Senior Lien 10/08 at 101.00 BBB 612,798 Revenue Refunding Bonds, Matching Fund Loan Notes, Series 1998A, 5.625%, 10/01/25 500 Wauwatosa Redevelopment Authority, Milwaukee County, 12/07 at 100.00 AAA 543,550 Wisconsin, Lease Revenue Bonds, Series 1997, 5.650%, 12/01/16 - MBIA Insured 1,000 Weston Community Development Authority, Wisconsin, Lease 10/14 at 100.00 N/R 1,075,900 Revenue Bonds, Series 2004A, 5.250%, 10/01/21 Wisconsin Center District, Junior Dedicated Tax Revenue Refunding Bonds, Series 1999: 1,000 5.250%, 12/15/23 - FSA Insured No Opt. Call AAA 1,106,760 500 5.250%, 12/15/27 - FSA Insured No Opt. Call AAA 540,280 2,000 Wisconsin Center District, Senior Dedicated Tax Revenue No Opt. Call AAA 564,680 Refunding Bonds, Series 2003A, 0.000%, 12/15/28 - FSA Insured --------------------------------------------------------------------------------------------------------------- Transportation - 0.3% 180 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 126,329 Bonds, American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax)
---- 50
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value --------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 14.0% Ashwaubenon Community Development Authority, Wisconsin, Lease Revenue Bonds, Arena Project, Series 1999A: $ 2,000 5.700%, 6/01/24 (Pre-refunded to 6/01/09) 6/09 at 100.00 Aa2*** $ 2,238,560 700 5.800%, 6/01/29 (Pre-refunded to 6/01/09) 6/09 at 100.00 Aa2*** 786,373 1,000 Glendale Community Development Authority, Wisconsin, 9/08 at 100.00 N/R*** 1,097,390 Community Development Lease Revenue Bonds, Series 1998A, 5.400%, 9/01/18 (Pre-refunded to 9/01/08) 300 Madison Community Development Authority, Wisconsin, Lease 3/05 at 100.00 Aa2*** 303,120 Revenue Bonds, Monona Terrace Community and Convention Center, Series 1995, 6.100%, 3/01/10 (Pre-refunded to 3/01/05) 250 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 278,008 Obligation Bonds, Series 2000A, 5.375%, 10/01/16 600 Southeast Wisconsin Professional Baseball Park District, 3/07 at 101.00 AAA 651,996 Sales Tax Revenue Bonds, Series 1996, 5.800%, 12/15/26 (Pre-refunded to 3/13/07) - MBIA Insured 1,000 Wisconsin Center District, Junior Dedicated Tax Revenue 12/06 at 101.00 AAA 1,078,366 Bonds, Series 1996B, 5.700%, 12/15/20 (Pre-refunded to 12/15/06) --------------------------------------------------------------------------------------------------------------- $44,400 Total Long-Term Investments (cost $43,601,427) - 98.5% 45,326,228 --------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 1.5% 712,916 ------------------------------------------------------------------------------------------------- Net Assets - 100% $46,039,144 -------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (WI)Security purchased on a when-issued basis. See accompanying notes to financial statements. ---- 51 Statement of Assets and Liabilities (Unaudited) November 30, 2004
Kansas Kentucky Michigan Missouri Ohio Wisconsin ----------------------------------------------------------------------------------------------------------------- Assets Investments, at market value (cost $120,694,639, $455,625,761, $233,169,902, $245,900,896, $520,533,057 and $43,601,427, respectively) $126,934,951 $477,117,234 $250,032,171 $256,813,398 $555,414,976 $45,326,228 Cash -- -- -- -- -- 467,338 Receivables: Interest 1,788,157 6,229,363 2,633,182 3,797,132 9,922,804 838,940 Investments sold 850,000 3,972,900 2,220,836 4,531,743 14,073,705 1,700,920 Shares sold 57,400 299,017 400,494 14,009 540,060 17,505 Other assets 250 29,137 17,205 4,034 36,985 84 ----------------------------------------------------------------------------------------------------------------- Total assets 129,630,758 487,647,651 255,303,888 265,160,316 579,988,530 48,351,015 ----------------------------------------------------------------------------------------------------------------- Liabilities Cash overdraft 52,332 265,305 2,178,180 1,277,879 5,180,773 -- Payables: Investments purchased 1,049,260 1,292,436 -- 2,654,929 11,590,264 2,078,360 Shares redeemed 31,612 313,756 1,605,921 227,116 440,489 36,122 Accrued expenses: Management fees 57,519 211,031 111,771 115,249 243,277 20,611 12b-1 distribution and service fees 38,009 113,138 61,002 57,865 106,459 12,614 Other 33,466 148,391 92,238 71,919 204,466 16,545 Dividends payable 445,658 1,755,136 877,123 931,294 2,096,158 147,619 ----------------------------------------------------------------------------------------------------------------- Total liabilities 1,707,856 4,099,193 4,926,235 5,336,251 19,861,886 2,311,871 ----------------------------------------------------------------------------------------------------------------- Net assets $127,922,902 $483,548,458 $250,377,653 $259,824,065 $560,126,644 $46,039,144 ----------------------------------------------------------------------------------------------------------------- Class A Shares Net assets $ 93,524,389 $416,227,922 $179,045,379 $230,189,905 $350,940,503 $36,502,767 Shares outstanding 8,957,808 37,557,848 15,333,496 20,901,135 30,668,145 3,522,513 Net asset value per share $ 10.44 $ 11.08 $ 11.68 $ 11.01 $ 11.44 $ 10.36 Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering price) $ 10.90 $ 11.57 $ 12.19 $ 11.49 $ 11.94 $ 10.81 ----------------------------------------------------------------------------------------------------------------- Class B Shares Net assets $ 11,073,690 $ 20,881,770 $ 9,734,667 $ 9,047,915 $ 26,210,410 $ 4,792,099 Shares outstanding 1,068,816 1,883,540 832,043 821,030 2,293,834 461,527 Net asset value and offering price per share $ 10.36 $ 11.09 $ 11.70 $ 11.02 $ 11.43 $ 10.38 ----------------------------------------------------------------------------------------------------------------- Class C Shares Net assets $ 22,130,905 $ 44,884,385 $ 37,906,296 $ 20,080,791 $ 44,735,558 $ 4,591,034 Shares outstanding 2,117,711 4,054,137 3,249,401 1,824,394 3,917,485 441,957 Net asset value and offering price per share $ 10.45 $ 11.07 $ 11.67 $ 11.01 $ 11.42 $ 10.39 ----------------------------------------------------------------------------------------------------------------- Class R Shares Net assets $ 1,193,918 $ 1,554,381 $ 23,691,311 $ 505,454 $138,240,173 $ 153,244 Shares outstanding 113,843 140,420 2,028,516 45,841 12,093,715 14,727 Net asset value and offering price per share $ 10.49 $ 11.07 $ 11.68 $ 11.03 $ 11.43 $ 10.41 ----------------------------------------------------------------------------------------------------------------- Net Assets Consist of: ----------------------------------------------------------------------------------------------------------------- Capital paid-in $124,118,115 $462,151,560 $233,699,833 $249,968,493 $526,769,915 $44,331,545 Undistributed (Over-distribution of) net investment income (174,653) (477,867) (247,215) (100,550) (58,262) (13,572) Accumulated net realized gain (loss) from investments (2,260,872) 383,292 62,766 (956,380) (1,466,928) (3,630) Net unrealized appreciation of investments 6,240,312 21,491,473 16,862,269 10,912,502 34,881,919 1,724,801 ----------------------------------------------------------------------------------------------------------------- Net assets $127,922,902 $483,548,458 $250,377,653 $259,824,065 $560,126,644 $46,039,144 -----------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 52 Statement of Operations (Unaudited) Six Months Ended November 30, 2004
Kansas Kentucky Michigan Missouri Ohio Wisconsin ---------------------------------------------------------------------------------------------------------- Investment Income $3,306,108 $12,755,395 $ 6,670,048 $ 6,821,597 $15,115,998 $1,203,479 ---------------------------------------------------------------------------------------------------------- Expenses Management fees 348,819 1,283,291 683,288 702,496 1,483,216 132,263 12b-1 service fees - Class A 93,209 416,022 181,953 230,244 350,807 38,854 12b-1 distribution and service fees - Class B 52,659 99,956 46,594 44,970 125,117 22,855 12b-1 distribution and service fees - Class C 83,782 169,586 141,128 76,770 166,938 17,361 Shareholders' servicing agent fees and expenses 38,895 122,975 76,580 62,353 173,645 13,837 Custodian's fees and expenses 23,787 61,560 35,104 43,360 73,528 14,144 Trustees' fees and expenses 1,966 7,492 3,953 3,176 7,596 739 Professional fees 7,177 13,943 8,834 8,630 14,601 3,973 Shareholders' reports - printing and mailing expenses 6,982 27,088 18,322 13,505 39,141 2,832 Federal and state registration fees 4,462 5,331 6,668 6,017 4,693 4,061 Other expenses 2,479 8,898 5,736 4,719 10,269 955 ---------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 664,217 2,216,142 1,208,160 1,196,240 2,449,551 251,874 Custodian fee credit (2,870) (11,261) (4,415) (11,475) (9,547) (1,866) ---------------------------------------------------------------------------------------------------------- Net expenses 661,347 2,204,881 1,203,745 1,184,765 2,440,004 250,008 ---------------------------------------------------------------------------------------------------------- Net investment income 2,644,761 10,550,514 5,466,303 5,636,832 12,675,994 953,471 ---------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain from Investments Net realized gain from investments 500,491 2,350,498 552,821 227,247 324,025 500,564 Net change in unrealized appreciation (depreciation) of investments 2,473,838 6,516,380 4,532,274 5,285,398 12,928,524 485,321 ---------------------------------------------------------------------------------------------------------- Net gain from investments 2,974,329 8,866,878 5,085,095 5,512,645 13,252,549 985,885 ---------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $5,619,090 $19,417,392 $10,551,398 $11,149,477 $25,928,543 $1,939,356 ----------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 53 Statement of Changes in Net Assets (Unaudited)
Kansas Kentucky ------------------------------ ------------------------------ Six Months Ended Year Ended Six Months Ended Year Ended 11/30/04 5/31/04 11/30/04 5/31/04 -------------------------------------------------------------------------------------------------------- Operations Net investment income $ 2,644,761 $ 5,778,679 $ 10,550,514 $ 22,222,767 Net realized gain (loss) from investments 500,491 (1,665,829) 2,350,498 (1,975,667) Net change in unrealized appreciation (depreciation) of investments 2,473,838 (5,728,328) 6,516,380 (16,569,142) -------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 5,619,090 (1,615,478) 19,417,392 3,677,958 -------------------------------------------------------------------------------------------------------- Distributions to Shareholders From net investment income: Class A (2,011,728) (4,349,593) (9,340,165) (19,890,380) Class B (198,858) (440,052) (392,964) (841,490) Class C (424,098) (1,002,336) (892,147) (2,003,684) Class R (27,382) (54,894) (32,073) (58,747) From accumulated net realized gains from investment transactions: Class A -- -- -- (1,451,394) Class B -- -- -- (73,792) Class C -- -- -- (163,017) Class R -- -- -- (4,045) -------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (2,662,066) (5,846,875) (10,657,349) (24,486,549) -------------------------------------------------------------------------------------------------------- Fund Share Transactions Proceeds from sale of shares 4,610,546 14,588,942 14,358,510 41,174,702 Proceeds from shares issued to shareholders due to reinvestment of distributions 1,247,601 2,860,449 5,191,005 12,028,415 -------------------------------------------------------------------------------------------------------- 5,858,147 17,449,391 19,549,515 53,203,117 Cost of shares redeemed (8,496,734) (24,476,334) (22,333,156) (54,176,868) -------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions (2,638,587) (7,026,943) (2,783,641) (973,751) -------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 318,437 (14,489,296) 5,976,402 (21,782,342) Net assets at the beginning of period 127,604,465 142,093,761 477,572,056 499,354,398 -------------------------------------------------------------------------------------------------------- Net assets at the end of period $127,922,902 $127,604,465 $483,548,458 $477,572,056 -------------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of period $ (174,653) $ (157,348) $ (477,867) $ (371,032) --------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 54
Michigan ------------------------------ Six Months Ended Year Ended 11/30/04 5/31/04 ------------------------------------------------------------------------------------------------------ Operations Net investment income $ 5,466,303 $ 12,067,974 Net realized gain (loss) from investments 552,821 (381,658) Net change in unrealized appreciation (depreciation) of investments 4,532,274 (12,892,193) ------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 10,551,398 (1,205,877) ------------------------------------------------------------------------------------------------------ Distributions to Shareholders From net investment income: Class A (4,043,063) (8,999,938) Class B (179,254) (426,071) Class C (729,064) (1,693,924) Class R (555,394) (1,182,789) From accumulated net realized gains from investment transactions: Class A -- (2,004,173) Class B -- (114,034) Class C -- (422,817) Class R -- (251,531) ------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (5,506,775) (15,095,277) ------------------------------------------------------------------------------------------------------ Fund Share Transactions Proceeds from sale of shares 9,134,960 19,888,293 Proceeds from shares issued to shareholders due to reinvestment of distributions 2,078,328 5,922,909 ------------------------------------------------------------------------------------------------------ 11,213,288 25,811,202 Cost of shares redeemed (16,477,398) (43,387,219) ------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from Fund share transactions (5,264,110) (17,576,017) ------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets (219,487) (33,877,171) Net assets at the beginning of period 250,597,140 284,474,311 ------------------------------------------------------------------------------------------------------ Net assets at the end of period $250,377,653 $250,597,140 ------------------------------------------------------------------------------------------------------ Undistributed (Over-distribution of) net investment income at the end of period $ (247,215) $ (206,743) ------------------------------------------------------------------------------------------------------
Missouri ------------------------------ Six Months Ended Year Ended 11/30/04 5/31/04 ----------------------------------------------------------------------------------------------------- Operations Net investment income $ 5,636,832 $ 11,707,553 Net realized gain (loss) from investments 227,247 443,606 Net change in unrealized appreciation (depreciation) of investments 5,285,398 (12,919,701) ----------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 11,149,477 (768,542) ----------------------------------------------------------------------------------------------------- Distributions to Shareholders From net investment income: Class A (5,028,258) (10,177,283) Class B (170,719) (410,400) Class C (392,131) (888,249) Class R (11,420) (23,566) From accumulated net realized gains from investment transactions: Class A -- -- Class B -- -- Class C -- -- Class R -- -- ----------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (5,602,528) (11,499,498) ----------------------------------------------------------------------------------------------------- Fund Share Transactions Proceeds from sale of shares 10,920,292 24,186,720 Proceeds from shares issued to shareholders due to reinvestment of distributions 2,461,580 5,132,188 ----------------------------------------------------------------------------------------------------- 13,381,872 29,318,908 Cost of shares redeemed (12,476,871) (33,456,713) ----------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions 905,001 (4,137,805) ----------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 6,451,950 (16,405,845) Net assets at the beginning of period 253,372,115 269,777,960 ----------------------------------------------------------------------------------------------------- Net assets at the end of period $259,824,065 $253,372,115 ----------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of period $ (100,550) $ (134,854) -----------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 55 Statement of Changes in Net Assets (Unaudited) (continued)
Ohio Wisconsin ------------------------------ ------------------------------ Six Months Ended Year Ended Six Months Ended Year Ended 11/30/04 5/31/04 11/30/04 5/31/04 -------------------------------------------------------------------------------------------------------- Operations Net investment income $ 12,675,994 $ 27,168,316 $ 953,471 $ 1,992,279 Net realized gain (loss) from investments 324,025 1,763,995 500,564 389,437 Net change in unrealized appreciation (depreciation) of investments 12,928,524 (33,135,955) 485,321 (2,742,604) -------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 25,928,543 (4,203,644) 1,939,356 (360,888) -------------------------------------------------------------------------------------------------------- Distributions to Shareholders From net investment income: Class A (7,923,390) (17,203,763) (782,989) (1,678,781) Class B (498,563) (1,085,124) (79,050) (174,560) Class C (891,199) (1,982,379) (80,128) (173,583) Class R (3,321,333) (7,215,607) (3,304) (7,838) From accumulated net realized gains from investment transactions: Class A -- -- -- -- Class B -- -- -- -- Class C -- -- -- -- Class R -- -- -- -- -------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (12,634,485) (27,486,873) (945,471) (2,034,762) -------------------------------------------------------------------------------------------------------- Fund Share Transactions Proceeds from sale of shares 16,622,523 37,222,137 2,579,165 6,672,641 Proceeds from shares issued to shareholders due to reinvestment of distributions 6,145,351 13,107,814 528,918 1,197,776 -------------------------------------------------------------------------------------------------------- 22,767,874 50,329,951 3,108,083 7,870,417 Cost of shares redeemed (34,062,175) (79,991,538) (6,473,362) (10,096,228) -------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions (11,294,301) (29,661,587) (3,365,279) (2,225,811) -------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 1,999,757 (61,352,104) (2,371,394) (4,621,461) Net assets at the beginning of period 558,126,887 619,478,991 48,410,538 53,031,999 -------------------------------------------------------------------------------------------------------- Net assets at the end of period $560,126,644 $558,126,887 $46,039,144 $ 48,410,538 -------------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of period $ (58,262) $ (99,771) $ (13,572) $ (21,572) --------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 56 ++Notes to Financial Statements (Unaudited) 1. General Information and Significant Accounting Policies The Nuveen Multistate Trust IV (the "Trust") is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust comprises the Nuveen Kansas Municipal Bond Fund ("Kansas"), Nuveen Kentucky Municipal Bond Fund ("Kentucky"), Nuveen Michigan Municipal Bond Fund ("Michigan"), Nuveen Missouri Municipal Bond Fund ("Missouri"), Nuveen Ohio Municipal Bond Fund ("Ohio") and Nuveen Wisconsin Municipal Bond Fund ("Wisconsin") (collectively, the "Funds"). The Trust was organized as a Massachusetts business trust on July 1, 1996. The Funds were each organized as a series of predecessor trusts or corporations prior to that date. The Funds seek to provide high tax-free income and preservation of capital through investments in diversified portfolios of quality municipal bonds. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Trustees. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. Any securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At November 30, 2004, Kansas, Missouri, Ohio, and Wisconsin had outstanding when-issued or delayed delivery purchase commitments of $1,049,260, $2,654,929, $5,131,637 and $2,078,360. There were no such outstanding purchase commitments in Kentucky or Michigan. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend. Generally, payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. Flexible Sales Charge Program Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a sales charge and incur a .20% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge ("CDSC") if redeemed within 18 months of purchase. Class B Shares are sold without a sales charge but incur a .75% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. An investor purchasing Class B Shares agrees to pay a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares convert to Class A Shares eight years after purchase. Class C Shares are sold without a sales charge but incur a .55% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. An investor purchasing Class C Shares agrees to pay a CDSC of 1% if Class C Shares are redeemed within one year of purchase. Class R Shares are not subject to any sales charge or 12b-1 distribution or service fees. Class R Shares are available only under limited circumstances. ---- 57 Notes to Financial Statements (Unaudited) (continued) Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics including inverse floating rate securities. During the six months ended November 30, 2004, Kentucky, Michigan and Ohio invested in inverse floating rate securities for the purpose of enhancing portfolio yield. Inverse floating rate securities are identified in the Portfolio of Investments and are marked to market daily. The interest rate of an inverse floating rate security has an inverse relationship to the interest rate of a short-term floating rate security. Consequently, as the interest rate of the floating rate security rises, the interest rate on the inverse floating rate security declines. Conversely, as the interest rate of the floating rate security declines, the interest rate on the inverse floating rate security rises. The price of an inverse floating rate security will be more volatile than that of an otherwise comparable fixed rate security since the interest rate is dependent on an underlying fixed coupon rate or the general level of long-term interest rates as well as the short-term interest paid on the floating rate security, and because the inverse floating rate security typically bears the risk of loss of a greater face value of an underlying bond. Kansas, Missouri and Wisconsin did not invest in any such securities during the six months ended November 30, 2004. Expense Allocation Expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution and service fees, are recorded to the specific class. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Trust's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. ---- 58 2. Fund Shares Transactions in Fund shares were as follows:
Kansas -------------------------------------------------- Six Months Ended Year Ended 11/30/04 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount -------------------------------------------------------------------------------------------- Shares sold: Class A 295,783 $3,087,035 793,968 $ 8,303,025 Class B 31,775 329,313 59,064 615,299 Class C 113,939 1,188,598 526,585 5,524,723 Class R 530 5,600 13,736 145,895 Shares issued to shareholders due to reinvestment of distributions: Class A 88,920 922,710 200,112 2,092,048 Class B 8,401 86,532 19,035 197,536 Class C 22,560 234,341 53,905 564,187 Class R 385 4,018 636 6,678 -------------------------------------------------------------------------------------------- 562,293 5,858,147 1,667,041 17,449,391 -------------------------------------------------------------------------------------------- Shares redeemed: Class A (424,293) (4,391,833) (1,557,318) (16,264,216) Class B (58,412) (604,200) (188,261) (1,938,824) Class C (336,213) (3,452,601) (586,380) (6,086,120) Class R (4,611) (48,100) (17,937) (187,174) -------------------------------------------------------------------------------------------- (823,529) (8,496,734) (2,349,896) (24,476,334) -------------------------------------------------------------------------------------------- Net increase (decrease) (261,236) $(2,638,587) (682,855) $ (7,026,943) -------------------------------------------------------------------------------------------- Kentucky -------------------------------------------------- Six Months Ended Year Ended 11/30/04 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount -------------------------------------------------------------------------------------------- Shares sold: Class A 1,079,644 $ 11,990,016 2,858,255 $ 31,892,416 Class B 46,103 511,880 249,021 2,763,418 Class C 147,614 1,635,134 572,512 6,394,052 Class R 19,845 221,480 11,133 124,816 Shares issued to shareholders due to reinvestment of distributions: Class A 406,649 4,488,578 932,474 10,375,268 Class B 19,542 215,845 45,210 503,135 Class C 41,818 461,052 98,888 1,099,196 Class R 2,315 25,530 4,573 50,816 -------------------------------------------------------------------------------------------- 1,763,530 19,549,515 4,772,066 53,203,117 -------------------------------------------------------------------------------------------- Shares redeemed: Class A (1,619,810) (17,890,598) (3,709,929) (41,162,021) Class B (99,955) (1,102,732) (244,740) (2,709,713) Class C (303,058) (3,339,826) (930,718) (10,295,377) Class R -- -- (899) (9,757) -------------------------------------------------------------------------------------------- (2,022,823) (22,333,156) (4,886,286) (54,176,868) -------------------------------------------------------------------------------------------- Net increase (decrease) (259,293) $ (2,783,641) (114,220) $ (973,751) --------------------------------------------------------------------------------------------
---- 59 Notes to Financial Statements (Unaudited) (continued)
Michigan -------------------------------------------------- Six Months Ended Year Ended 11/30/04 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount ----------------------------------------------------------------------------------------------------- Shares sold: Class A 604,108 $ 7,028,551 1,173,770 $ 13,773,949 Class B 23,443 273,117 103,810 1,221,861 Class C 146,893 1,715,539 344,503 4,053,427 Class R 10,194 117,753 71,099 839,056 Shares issued to shareholders due to reinvestment of distributions: Class A 119,531 1,388,693 341,045 4,005,239 Class B 5,539 64,511 17,765 208,791 Class C 21,496 249,537 60,648 711,144 Class R 32,310 375,587 84,936 997,735 ----------------------------------------------------------------------------------------------------- 963,514 11,213,288 2,197,576 25,811,202 ----------------------------------------------------------------------------------------------------- Shares redeemed: Class A (1,113,602) (12,955,574) (2,625,909) (30,776,396) Class B (78,834) (912,966) (157,814) (1,844,648) Class C (147,441) (1,713,298) (774,769) (9,064,066) Class R (77,120) (895,560) (144,833) (1,702,109) ----------------------------------------------------------------------------------------------------- (1,416,997) (16,477,398) (3,703,325) (43,387,219) ----------------------------------------------------------------------------------------------------- Net increase (decrease) (453,483) $ (5,264,110) (1,505,749) $(17,576,017) ----------------------------------------------------------------------------------------------------- Missouri -------------------------------------------------- Six Months Ended Year Ended 11/30/04 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount ----------------------------------------------------------------------------------------------------- Shares sold: Class A 923,885 $ 10,052,765 1,896,429 $ 20,766,655 Class B 25,060 277,652 106,461 1,175,381 Class C 52,853 579,835 204,008 2,244,513 Class R 911 10,040 15 171 Shares issued to shareholders due to reinvestment of distributions: Class A 204,856 2,243,587 418,334 4,614,441 Class B 8,133 89,110 18,993 209,608 Class C 11,625 127,146 27,661 305,073 Class R 158 1,737 278 3,066 ----------------------------------------------------------------------------------------------------- 1,227,481 13,381,872 2,672,179 29,318,908 ----------------------------------------------------------------------------------------------------- Shares redeemed: Class A (815,844) (8,962,951) (2,434,553) (26,768,972) Class B (95,883) (1,053,190) (295,500) (3,248,762) Class C (226,353) (2,460,730) (311,727) (3,408,979) Class R -- -- (2,688) (30,000) ----------------------------------------------------------------------------------------------------- (1,138,080) (12,476,871) (3,044,468) (33,456,713) ----------------------------------------------------------------------------------------------------- Net increase (decrease) 89,401 $ 905,001 (372,289) $ (4,137,805) -----------------------------------------------------------------------------------------------------
---- 60
Ohio -------------------------------------------------- Six Months Ended Year Ended 11/30/04 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount ----------------------------------------------------------------------------------------------------- Shares sold: Class A 1,152,597 $ 13,168,205 2,304,454 $ 26,549,245 Class B 58,440 668,652 267,211 3,083,903 Class C 173,107 1,980,686 489,022 5,609,952 Class R 71,218 804,980 171,767 1,979,037 Shares issued to shareholders due to reinvestment of distributions: Class A 291,636 3,315,067 599,545 6,881,391 Class B 15,662 177,807 34,215 392,111 Class C 29,969 339,983 66,384 760,754 Class R 203,687 2,312,494 442,465 5,073,558 ----------------------------------------------------------------------------------------------------- 1,996,316 22,767,874 4,375,063 50,329,951 ----------------------------------------------------------------------------------------------------- Shares redeemed: Class A (1,900,066) (21,558,435) (4,517,200) (51,533,122) Class B (115,670) (1,316,330) (352,580) (4,031,327) Class C (282,919) (3,196,826) (894,505) (10,208,729) Class R (703,180) (7,990,584) (1,243,807) (14,218,360) ----------------------------------------------------------------------------------------------------- (3,001,835) (34,062,175) (7,008,092) (79,991,538) ----------------------------------------------------------------------------------------------------- Net increase (decrease) (1,005,519) $(11,294,301) (2,633,029) $(29,661,587) ----------------------------------------------------------------------------------------------------- Wisconsin -------------------------------------------------- Six Months Ended Year Ended 11/30/04 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount ----------------------------------------------------------------------------------------------------- Shares sold: Class A 174,959 $1,816,416 464,905 $ 4,873,006 Class B 24,756 251,445 38,553 404,420 Class C 49,300 511,167 132,785 1,393,067 Class R 14 137 197 2,148 Shares issued to shareholders due to reinvestment of distributions: Class A 41,929 433,168 94,737 985,477 Class B 4,001 41,376 9,370 97,772 Class C 4,948 51,190 10,299 107,357 Class R 307 3,184 687 7,170 ----------------------------------------------------------------------------------------------------- 300,214 3,108,083 751,533 7,870,417 ----------------------------------------------------------------------------------------------------- Shares redeemed: Class A (536,698) (5,584,421) (704,255) (7,287,114) Class B (15,961) (163,084) (158,637) (1,626,947) Class C (67,105) (695,597) (114,245) (1,182,167) Class R (2,970) (30,260) -- -- ----------------------------------------------------------------------------------------------------- (622,734) (6,473,362) (977,137) (10,096,228) ----------------------------------------------------------------------------------------------------- Net increase (decrease) (322,520) $(3,365,279) (225,604) $ (2,225,811) -----------------------------------------------------------------------------------------------------
---- 61 Notes to Financial Statements (Unaudited) (continued) 3. Securities Transactions Purchases and sales (including maturities) of investments in long-term municipal securities for the six months ended November 30, 2004, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ---------------------------------------------------------------------------------- Purchases $15,592,726 $40,761,063 $13,650,018 $30,966,269 $33,053,145 $4,529,654 Sales and maturities 18,737,091 43,428,858 10,901,977 27,621,767 40,833,335 7,785,928 ----------------------------------------------------------------------------------
4. Income Tax Information The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses on investments, timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At November 30, 2004, the cost of investments was as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------------------------------------------ Cost of investments $120,680,177 $455,509,345 $233,246,125 $245,854,820 $520,124,672 $43,592,915 ------------------------------------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2004, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ---------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $6,565,052 $23,267,468 $17,549,855 $12,305,442 $36,498,499 $1,878,071 Depreciation (310,278) (1,659,579) (763,809) (1,346,864) (1,208,195) (144,758) ---------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $6,254,774 $21,607,889 $16,786,046 $10,958,578 $35,290,304 $1,733,313 ----------------------------------------------------------------------------------------------------------------------
The tax components of undistributed net investment income and net realized gains at May 31, 2004, the Funds' last fiscal year end, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ---------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income* $285,259 $1,271,426 $587,061 $746,553 $1,625,609 $123,512 Undistributed net ordinary income** -- -- 16,192 -- -- -- Undistributed net long-term capital gains -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 7, 2004, paid on June 1, 2004. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal year ended May 31, 2004, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin -------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $5,889,048 $22,797,140 $12,369,021 $11,548,175 $27,679,862 $2,048,961 Distributions from net ordinary income** -- 66,682 78,164 -- 9,397 1,079 Distributions from net long-term capital gains -- 1,687,946 2,769,039 -- -- -- --------------------------------------------------------------------------------------------------------------------
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At May 31, 2004, the Funds' last fiscal 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:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------------------------- Expiration year: 2008 $ 671,721 $ -- $ -- $ 287,168 $ -- $ -- 2009 424,368 -- -- 691,893 -- 504,194 2010 -- -- -- 204,566 1,790,953 -- 2011 -- -- -- -- -- -- 2012 1,614,137 1,829,281 225,407 -- -- -- ------------------------------------------------------------------------------- $2,710,226 $1,829,281 $225,407 $1,183,627 $1,790,953 $504,194 -------------------------------------------------------------------------------
---- 62 The following Funds elected to defer net realized losses from investments incurred from November 1, 2003 through May 31, 2004 ("post-October losses") in accordance with Federal income tax regulations. The following post-October losses were treated as having arisen on the first day of the current fiscal year:
Kansas Kentucky Michigan --------------------------- $51,137 $105,059 $61,811 ---------------------------
5. Management Fee and Other Transactions with Affiliates As approved by the Board of Trustees, effective August 1, 2004, a complex-wide management fee structure was adopted for all funds sponsored by Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and its affiliates. This fee structure separates each fund's management fee into two components - a complex-level component, based on the aggregate amount of all funds assets managed by the Adviser and its affiliates, 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 and its affiliates. Under no circumstances will this pricing structure result in a fund paying management fees at a rate higher than would otherwise have been applicable had the complex-wide management fee structure not been implemented. As a consequence of this new management fee structure, the funds' effective management fees were reduced by approximately .007% as of December 31, 2004. Effective August 1, 2004, the annual fund-level fee, payable monthly, for each of the Funds is based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Fund-Level Fee Rate --------------------------------------------------- For the first $125 million .3500% For the next $125 million .3375 For the next $250 million .3250 For the next $500 million .3125 For the next $1 billion .3000 For the next $3 billion .2750 For net assets over $5 billion .2500 ---------------------------------------------------
Effective August 1, 2004, the annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as follows:
Complex-Level Assets /(1)/ Complex-Level Fee Rate ----------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion /(2)/ .1400 -----------------------------------------------------------------
(1)The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2)With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. Each Fund paid through July 31, 2004, an annual management fee, payable monthly, at the rates set forth below, which were based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Management Fee Rate --------------------------------------------------- For the first $125 million .5500% For the next $125 million .5375 For the next $250 million .5250 For the next $500 million .5125 For the next $1 billion .5000 For the next $3 billion .4750 For net assets over $5 billion .4500 ---------------------------------------------------
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Trust pays no compensation directly to those of its Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board of Trustees has adopted a ---- 63 Notes to Financial Statements (Unaudited) (continued) deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised Funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised Funds. The Adviser has agreed to waive part of its management fees or reimburse certain expenses of Ohio in order to limit total expenses (excluding 12b-1 distribution and service fees and extraordinary expenses) from exceeding .75% of the average daily net assets. The Adviser may also voluntarily reimburse additional expenses from time to time in any of the Funds. Voluntary reimbursements may be terminated at any time at the Adviser's discretion. During the six months ended November 30, 2004, Nuveen Investments, LLC (the "Distributor"), a wholly owned subsidiary of Nuveen Investments, Inc., collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to authorized dealers as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin -------------------------------------------------------------------------------- Sales charges collected $98,587 $321,237 $98,011 $108,415 $183,812 $44,656 Paid to authorized dealers 85,454 280,035 85,785 95,064 162,516 38,939 --------------------------------------------------------------------------------
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate authorized dealers for providing services to shareholders relating to their investments. During the six months ended November 30, 2004, the Distributor compensated authorized dealers directly with commission advances at the time of purchase as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------------------ Commission advances $26,491 $63,201 $40,441 $30,934 $70,750 $19,998 ------------------------------------------------------------------------
To compensate for commissions advanced to authorized dealers, all 12b-1 service fees collected on Class B Shares during the first year following a purchase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the six months ended November 30, 2004, the Distributor retained such 12b-1 fees as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------------------- 12b-1 fees retained $55,600 $95,294 $56,536 $43,471 $121,353 $23,687 -------------------------------------------------------------------------
The remaining 12b-1 fees charged to the Funds were paid to compensate authorized dealers for providing services to shareholders relating to their investments. The Distributor also collected and retained CDSC on share redemptions during the six months ended November 30, 2004, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ----------------------------------------------------------------- CDSC retained $6,553 $19,967 $31,051 $10,871 $19,492 $6,101 -----------------------------------------------------------------
6. Subsequent Events Distributions to Shareholders The Funds declared dividend distributions from their tax-exempt net investment income which were paid on December 27, 2004, to shareholders of record on December 9, 2004, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------- Dividend per share: Class A $.0375 $.0410 $.0415 $.0400 $.0430 $.0345 Class B .0310 .0340 .0340 .0330 .0360 .0280 Class C .0330 .0355 .0360 .0350 .0380 .0300 Class R .0395 .0425 .0435 .0420 .0450 .0365 -------------------------------------------------------------
The following Funds also declared capital gain and net ordinary income distributions, which were paid on December 3, 2004, to shareholders of record on December 1, 2004, as follows:
Kentucky Michigan ------------------------------------------------------------- Capital gains distribution per share $.0057 $.0051 Net ordinary income distribution per share* .0005 .0008 -------------------------------------------------------------
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. Adviser Merger Effective January 1, 2005, the Adviser and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), also a wholly owned subsidiary of Nuveen Investments, Inc. As a result of the merger, NAM is now the adviser to all funds previously advised by either NIAC or the Adviser. ---- 64 Financial Highlights (Unaudited) Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ---------------------- ----------------------------- Before Credit/ Reimbursement KANSAS ------------------ Ratio of Net Net Invest- Realized/ Ratio of ment Unrealized Expenses Income Beginning Net Invest- Net Ending Ending to to Net Invest- ment Invest- Net Net Average Average Year Ended Asset ment Gain ment Capital Asset Total Assets Net Net May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets -------------------------------------------------------------------------------------------------------------------------- Class A (1/92) 2005(e) $10.20 $.22 $ .25 $ .47 $(.23) $-- $(.23) $10.44 4.58% $ 93,524 .88%* 4.29%* 2004 10.77 .46 (.57) (.11) (.46) -- (.46) 10.20 (1.02) 91,744 .90 4.36 2003 10.25 .48 .52 1.00 (.48) -- (.48) 10.77 10.03 102,938 .88 4.57 2002 10.16 .50 .10 .60 (.51) -- (.51) 10.25 6.06 96,411 .90 4.90 2001 9.54 .51 .62 1.13 (.51) -- (.51) 10.16 12.02 91,062 .90 5.13 2000 10.49 .50 (.96) (.46) (.49) -- (.49) 9.54 (4.38) 86,460 1.01 5.04 Class B (2/97) 2005(e) 10.12 .18 .25 .43 (.19) -- (.19) 10.36 4.23 11,074 1.63* 3.54* 2004 10.69 .38 (.57) (.19) (.38) -- (.38) 10.12 (1.77) 11,001 1.64 3.61 2003 10.18 .40 .52 .92 (.41) -- (.41) 10.69 9.18 12,797 1.63 3.81 2002 10.09 .42 .11 .53 (.44) -- (.44) 10.18 5.30 10,210 1.65 4.13 2001 9.48 .44 .61 1.05 (.44) -- (.44) 10.09 11.17 6,851 1.65 4.38 2000 10.43 .42 (.95) (.53) (.42) -- (.42) 9.48 (5.14) 5,361 1.77 4.31 Class C (2/97) 2005(e) 10.21 .20 .24 .44 (.20) -- (.20) 10.45 4.31 22,131 1.43* 3.74* 2004 10.78 .40 (.56) (.16) (.41) -- (.41) 10.21 (1.53) 23,656 1.45 3.81 2003 10.27 .42 .52 .94 (.43) -- (.43) 10.78 9.35 25,049 1.43 4.01 2002 10.17 .44 .12 .56 (.46) -- (.46) 10.27 5.60 16,943 1.44 4.31 2001 9.56 .46 .61 1.07 (.46) -- (.46) 10.17 11.29 6,359 1.45 4.58 2000 10.51 .45 (.96) (.51) (.44) -- (.44) 9.56 (4.89) 5,633 1.57 4.51 Class R (2/97) 2005(e) 10.24 .24 .25 .49 (.24) -- (.24) 10.49 4.78 1,194 .68* 4.49* 2004 10.82 .48 (.58) (.10) (.48) -- (.48) 10.24 (.89) 1,204 .70 4.56 2003 10.30 .50 .53 1.03 (.51) -- (.51) 10.82 10.23 1,310 .68 4.77 2002 10.20 .53 .11 .64 (.54) -- (.54) 10.30 6.38 1,475 .70 5.12 2001 9.59 .54 .60 1.14 (.53) -- (.53) 10.20 12.12 1,967 .69 5.33 2000 10.55 .52 (.96) (.44) (.52) -- (.52) 9.59 (4.22) 1,360 .85 5.32 --------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ---------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) KANSAS ------------------ ------------------ Ratio Ratio of Net of Net Invest- Invest- Ratio of ment Ratio of ment Expenses Income Expenses Income to to to to Average Average Average Average Portfolio Year Ended Net Net Net Net Turnover May 31, Assets Assets Assets Assets Rate --------------------------------------------------------------- Class A (1/92) 2005(e) .88%* 4.29%* .88%* 4.30%* 12% 2004 .90 4.36 .89 4.37 11 2003 .88 4.57 .87 4.58 12 2002 .90 4.90 .89 4.91 17 2001 .90 5.13 .89 5.14 18 2000 1.01 5.05 1.00 5.06 54 Class B (2/97) 2005(e) 1.63* 3.54* 1.63* 3.55* 12 2004 1.64 3.61 1.64 3.62 11 2003 1.63 3.81 1.62 3.82 12 2002 1.65 4.13 1.64 4.15 17 2001 1.65 4.38 1.64 4.39 18 2000 1.77 4.31 1.76 4.32 54 Class C (2/97) 2005(e) 1.43* 3.74* 1.42* 3.75* 12 2004 1.45 3.81 1.44 3.82 11 2003 1.43 4.01 1.42 4.02 12 2002 1.44 4.31 1.43 4.32 17 2001 1.45 4.58 1.44 4.59 18 2000 1.56 4.51 1.56 4.52 54 Class R (2/97) 2005(e) .68* 4.49* .68* 4.50* 12 2004 .70 4.56 .69 4.57 11 2003 .68 4.77 .67 4.78 12 2002 .70 5.12 .69 5.13 17 2001 .69 5.33 .68 5.34 18 2000 .85 5.32 .84 5.33 54 ---------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the six months ended November 30, 2004. See accompanying notes to financial statements. ---- 65 Financial Highlights (Unaudited) (continued) Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ----------------------- ----------------------------- Before Credit/ Reimbursement KENTUCKY ------------------ Ratio of Net Net Invest- Realized/ Ratio of ment Unrealized Expenses Income Beginning Net Invest- Net Ending Ending to to Net Invest- ment Invest- Net Net Average Average Year Ended Asset ment Gain ment Capital Asset Total Assets Net Net May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets --------------------------------------------------------------------------------------------------------------------------- Class A (5/87) 2005(e) $10.88 $.25 $ .20 $ .45 $(.25) $ -- $(.25) $11.08 4.15% $416,228 .83%* 4.44%* 2004 11.35 .51 (.42) .09 (.52) (.04) (.56) 10.88 .90 410,109 .84 4.58 2003 10.92 .53 .44 .97 (.53) (.01) (.54) 11.35 9.03 426,782 .84 4.79 2002 10.80 .54 .12 .66 (.54) -- (.54) 10.92 6.22 407,706 .85 4.99 2001 10.30 .55 .50 1.05 (.55) -- (.55) 10.80 10.40 403,793 .87 5.11 2000 11.22 .55 (.92) (.37) (.55) -- (.55) 10.30 (3.27) 394,048 .96 5.23 Class B (2/97) 2005(e) 10.88 .21 .21 .42 (.21) -- (.21) 11.09 3.85 20,882 1.58* 3.69* 2004 11.35 .43 (.42) .01 (.44) (.04) (.48) 10.88 .14 20,874 1.59 3.83 2003 10.92 .45 .44 .89 (.45) (.01) (.46) 11.35 8.21 21,206 1.59 4.04 2002 10.80 .46 .12 .58 (.46) -- (.46) 10.92 5.42 16,808 1.59 4.24 2001 10.30 .47 .51 .98 (.48) -- (.48) 10.80 9.60 12,977 1.62 4.36 2000 11.22 .47 (.92) (.45) (.47) -- (.47) 10.30 (3.99) 10,148 1.72 4.48 Class C (10/93) 2005(e) 10.87 .22 .20 .42 (.22) -- (.22) 11.07 3.87 44,884 1.38* 3.89* 2004 11.34 .45 (.42) .03 (.46) (.04) (.50) 10.87 .35 45,303 1.39 4.03 2003 10.91 .47 .44 .91 (.47) (.01) (.48) 11.34 8.45 50,194 1.39 4.24 2002 10.79 .48 .12 .60 (.48) -- (.48) 10.91 5.64 40,746 1.40 4.44 2001 10.29 .49 .50 .99 (.49) -- (.49) 10.79 9.80 35,770 1.42 4.56 2000 11.21 .50 (.93) (.43) (.49) -- (.49) 10.29 (3.82) 31,078 1.51 4.68 Class R (2/97) 2005(e) 10.87 .26 .20 .46 (.26) -- (.26) 11.07 4.24 1,554 .63* 4.63* 2004 11.33 .53 (.41) .12 (.54) (.04) (.58) 10.87 1.15 1,285 .64 4.78 2003 10.90 .55 .44 .99 (.55) (.01) (.56) 11.33 9.23 1,172 .64 4.99 2002 10.78 .57 .11 .68 (.56) -- (.56) 10.90 6.40 983 .65 5.19 2001 10.27 .57 .51 1.08 (.57) -- (.57) 10.78 10.72 889 .67 5.31 2000 11.20 .57 (.93) (.36) (.57) -- (.57) 10.27 (3.18) 842 .77 5.43 ---------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ---------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) KENTUCKY ------------------ ------------------ Ratio Ratio of Net of Net Invest- Invest- Ratio of ment Ratio of ment Expenses Income Expenses Income to to to to Average Average Average Average Portfolio Year Ended Net Net Net Net Turnover May 31, Assets Assets Assets Assets Rate --------------------------------------------------------------- Class A (5/87) 2005(e) .83%* 4.44%* .83%* 4.45%* 9% 2004 .84 4.58 .83 4.58 16 2003 .84 4.79 .83 4.79 14 2002 .85 4.99 .84 5.00 14 2001 .87 5.11 .85 5.13 14 2000 .96 5.23 .96 5.23 7 Class B (2/97) 2005(e) 1.58* 3.69* 1.58* 3.70* 9 2004 1.59 3.83 1.58 3.83 16 2003 1.59 4.04 1.58 4.04 14 2002 1.59 4.24 1.58 4.25 14 2001 1.62 4.36 1.60 4.38 14 2000 1.72 4.48 1.72 4.48 7 Class C (10/93) 2005(e) 1.38* 3.89* 1.38* 3.90* 9 2004 1.39 4.03 1.38 4.03 16 2003 1.39 4.24 1.38 4.24 14 2002 1.40 4.44 1.39 4.45 14 2001 1.42 4.56 1.40 4.58 14 2000 1.51 4.68 1.51 4.68 7 Class R (2/97) 2005(e) .63* 4.63* .63* 4.64* 9 2004 .64 4.78 .63 4.78 16 2003 .64 4.99 .63 4.99 14 2002 .65 5.19 .64 5.20 14 2001 .67 5.31 .65 5.33 14 2000 .77 5.43 .77 5.43 7 ---------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the six months ended November 30, 2004. See accompanying notes to financial statements. ---- 66 Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ----------------------- ----------------------------- Before Credit/ Reimbursement MICHIGAN ------------------ Ratio of Net Net Invest- Realized/ Ratio of ment Unrealized Expenses Income Beginning Net Invest- Net Ending Ending to to Net Invest- ment Invest- Net Net Average Average Year Ended Asset ment Gain ment Capital Asset Total Assets Net Net May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets --------------------------------------------------------------------------------------------------------------------------- Class A (6/85) 2005(e) $11.45 $.26 $ .23 $ .49 $(.26) $ -- $(.26) $11.68 4.29% $179,045 .86%* 4.40%* 2004 12.16 .54 (.58) (.04) (.55) (.12) (.67) 11.45 (.27) 179,956 .87 4.61 2003 11.55 .55 .63 1.18 (.56) (.01) (.57) 12.16 10.40 204,652 .86 4.67 2002 11.39 .56 .20 .76 (.57) (.03) (.60) 11.55 6.70 205,808 .87 4.86 2001 10.75 .58 .63 1.21 (.57) -- (.57) 11.39 11.45 211,992 .87 5.15 2000 11.83 .58 (1.03) (.45) (.58) (.05) (.63) 10.75 (3.80) 208,290 .97 5.22 Class B (2/97) 2005(e) 11.47 .21 .23 .44 (.21) -- (.21) 11.70 3.89 9,735 1.61* 3.66* 2004 12.18 .45 (.58) (.13) (.46) (.12) (.58) 11.47 (1.03) 10,112 1.62 3.86 2003 11.57 .46 .63 1.09 (.47) (.01) (.48) 12.18 9.56 11,179 1.61 3.91 2002 11.41 .48 .19 .67 (.48) (.03) (.51) 11.57 5.88 9,214 1.62 4.11 2001 10.77 .50 .63 1.13 (.49) -- (.49) 11.41 10.61 8,642 1.62 4.40 2000 11.85 .50 (1.03) (.53) (.50) (.05) (.55) 10.77 (4.52) 7,741 1.73 4.48 Class C (6/93) 2005(e) 11.43 .23 .24 .47 (.23) -- (.23) 11.67 4.10 37,906 1.41* 3.85* 2004 12.14 .48 (.58) (.10) (.49) (.12) (.61) 11.43 (.83) 36,912 1.42 4.06 2003 11.54 .49 .61 1.10 (.49) (.01) (.50) 12.14 9.71 43,693 1.41 4.12 2002 11.38 .50 .19 .69 (.50) (.03) (.53) 11.54 6.11 38,763 1.42 4.31 2001 10.74 .52 .63 1.15 (.51) -- (.51) 11.38 10.84 36,123 1.42 4.60 2000 11.82 .52 (1.03) (.51) (.52) (.05) (.57) 10.74 (4.35) 35,678 1.51 4.66 Class R (2/97) 2005(e) 11.45 .27 .23 .50 (.27) -- (.27) 11.68 4.40 23,691 .66* 4.60* 2004 12.16 .57 (.58) (.01) (.58) (.12) (.70) 11.45 (.07) 23,618 .67 4.81 2003 11.56 .58 .61 1.19 (.58) (.01) (.59) 12.16 10.53 24,951 .66 4.87 2002 11.39 .59 .20 .79 (.59) (.03) (.62) 11.56 6.99 23,643 .67 5.06 2001 10.75 .60 .63 1.23 (.59) -- (.59) 11.39 11.63 22,799 .67 5.35 2000 11.83 .60 (1.03) (.43) (.60) (.05) (.65) 10.75 (3.62) 22,035 .77 5.42 ---------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ---------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) MICHIGAN ------------------ ------------------ Ratio Ratio of Net of Net Invest- Invest- Ratio of ment Ratio of ment Expenses Income Expenses Income to to to to Average Average Average Average Portfolio Year Ended Net Net Net Net Turnover May 31, Assets Assets Assets Assets Rate --------------------------------------------------------------- Class A (6/85) 2005(e) .86%* 4.40%* .86%* 4.41%* 4% 2004 .87 4.61 .86 4.61 9 2003 .86 4.67 .86 4.67 10 2002 .87 4.86 .87 4.86 19 2001 .87 5.15 .86 5.16 11 2000 .97 5.22 .96 5.22 28 Class B (2/97) 2005(e) 1.61* 3.66* 1.61* 3.66* 4 2004 1.62 3.86 1.61 3.86 9 2003 1.61 3.91 1.61 3.92 10 2002 1.62 4.11 1.62 4.11 19 2001 1.62 4.40 1.61 4.41 11 2000 1.73 4.48 1.72 4.49 28 Class C (6/93) 2005(e) 1.41* 3.85* 1.41* 3.86* 4 2004 1.42 4.06 1.41 4.06 9 2003 1.41 4.12 1.41 4.12 10 2002 1.42 4.31 1.42 4.31 19 2001 1.42 4.60 1.41 4.61 11 2000 1.51 4.66 1.50 4.67 28 Class R (2/97) 2005(e) .66* 4.60* .66* 4.61* 4 2004 .67 4.81 .66 4.81 9 2003 .66 4.87 .66 4.87 10 2002 .67 5.06 .67 5.06 19 2001 .67 5.35 .66 5.36 11 2000 .77 5.42 .76 5.43 28 ---------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the six months ended November 30, 2004. See accompanying notes to financial statements. ---- 67 Financial Highlights (Unaudited) (continued) Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ----------------------- ----------------------------- Before Credit/ Reimbursement MISSOURI ------------------ Ratio of Net Net Invest- Realized/ Ratio of ment Unrealized Expenses Income Beginning Net Invest- Net Ending Ending to to Net Invest- ment Invest- Net Net Average Average Year Ended Asset ment Gain ment Capital Asset Total Assets Net Net May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets --------------------------------------------------------------------------------------------------------------------------- Class A (8/87) 2005(e) $10.78 $.24 $ .23 $ .47 $(.24) $ -- $(.24) $11.01 4.38% $230,190 .85%* 4.39%* 2004 11.30 .50 (.53) (.03) (.49) -- (.49) 10.78 (.28) 221,955 .85 4.50 2003 10.81 .51 .51 1.02 (.53) -- (.53) 11.30 9.63 233,996 .86 4.65 2002 10.71 .54 .11 .65 (.55) -- (.55) 10.81 6.20 207,890 .87 5.02 2001 10.18 .56 .53 1.09 (.56) -- (.56) 10.71 10.93 202,698 .87 5.31 2000 11.12 .55 (.93) (.38) (.55) (.01) (.56) 10.18 (3.47) 194,271 .96 5.25 Class B (2/97) 2005(e) 10.79 .20 .23 .43 (.20) -- (.20) 11.02 3.98 9,048 1.60* 3.64* 2004 11.30 .41 (.52) (.11) (.40) -- (.40) 10.79 (.95) 9,532 1.60 3.75 2003 10.81 .43 .50 .93 (.44) -- (.44) 11.30 8.80 11,912 1.61 3.90 2002 10.71 .46 .11 .57 (.47) -- (.47) 10.81 5.38 9,091 1.62 4.27 2001 10.18 .48 .53 1.01 (.48) -- (.48) 10.71 10.10 6,991 1.62 4.55 2000 11.11 .47 (.93) (.46) (.46) (.01) (.47) 10.18 (4.13) 5,165 1.71 4.51 Class C (2/94) 2005(e) 10.77 .21 .24 .45 (.21) -- (.21) 11.01 4.20 20,081 1.40* 3.84* 2004 11.29 .44 (.53) (.09) (.43) -- (.43) 10.77 (.84) 21,402 1.40 3.95 2003 10.81 .45 .49 .94 (.46) -- (.46) 11.29 8.93 23,336 1.41 4.10 2002 10.70 .48 .12 .60 (.49) -- (.49) 10.81 5.72 20,076 1.41 4.46 2001 10.17 .50 .53 1.03 (.50) -- (.50) 10.70 10.31 12,589 1.42 4.76 2000 11.11 .49 (.93) (.44) (.49) (.01) (.50) 10.17 (4.03) 10,229 1.50 4.69 Class R (2/97) 2005(e) 10.79 .25 .24 .49 (.25) -- (.25) 11.03 4.59 505 .65* 4.58* 2004 11.31 .52 (.53) (.01) (.51) -- (.51) 10.79 (.10) 483 .65 4.70 2003 10.82 .53 .50 1.03 (.54) -- (.54) 11.31 9.80 534 .66 4.86 2002 10.71 .57 .11 .68 (.57) -- (.57) 10.82 6.47 507 .67 5.22 2001 10.18 .58 .53 1.11 (.58) -- (.58) 10.71 11.11 470 .67 5.51 2000 11.12 .57 (.93) (.36) (.57) (.01) (.58) 10.18 (3.29) 442 .77 5.47 ---------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ---------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) MISSOURI ------------------ ------------------ Ratio Ratio of Net of Net Invest- Invest- Ratio of ment Ratio of ment Expenses Income Expenses Income to to to to Average Average Average Average Portfolio Year Ended Net Net Net Net Turnover May 31, Assets Assets Assets Assets Rate --------------------------------------------------------------- Class A (8/87) 2005(e) .85%* 4.39%* .84%* 4.39%* 11% 2004 .85 4.50 .85 4.51 13 2003 .86 4.65 .85 4.66 14 2002 .87 5.02 .86 5.03 13 2001 .87 5.31 .87 5.31 13 2000 .96 5.25 .95 5.26 21 Class B (2/97) 2005(e) 1.60* 3.64* 1.59* 3.64* 11 2004 1.60 3.75 1.60 3.75 13 2003 1.61 3.90 1.60 3.91 14 2002 1.62 4.27 1.61 4.27 13 2001 1.62 4.55 1.61 4.56 13 2000 1.71 4.51 1.70 4.52 21 Class C (2/94) 2005(e) 1.40* 3.84* 1.39* 3.85* 11 2004 1.40 3.95 1.40 3.95 13 2003 1.41 4.10 1.40 4.11 14 2002 1.41 4.46 1.41 4.47 13 2001 1.42 4.76 1.42 4.76 13 2000 1.50 4.69 1.49 4.70 21 Class R (2/97) 2005(e) .65* 4.58* .64* 4.59* 11 2004 .65 4.70 .65 4.71 13 2003 .66 4.86 .65 4.86 14 2002 .67 5.22 .66 5.23 13 2001 .67 5.51 .67 5.51 13 2000 .77 5.47 .76 5.48 21 ---------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the six months ended November 30, 2004. See accompanying notes to financial statements. ---- 68 Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ----------------------- ----------------------------- Before Credit/ Reimbursement OHIO ------------------ Ratio of Net Net Invest- Realized/ Ratio of ment Unrealized Expenses Income Beginning Net Invest- Net Ending Ending to to Net Invest- ment Invest- Net Net Average Average Year Ended Asset ment Gain ment Capital Asset Total Assets Net Net May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets --------------------------------------------------------------------------------------------------------------------------- Class A (6/85) 2005(e) $11.17 $.26 $ .27 $ .53 $(.26) $ -- $(.26) $11.44 4.75% $350,941 .84%* 4.54%* 2004 11.78 .53 (.60) (.07) (.54) -- (.54) 11.17 (.62) 347,733 .85 4.65 2003 11.16 .54 .62 1.16 (.54) -- (.54) 11.78 10.65 385,619 .87 4.69 2002 11.10 .55 .06 .61 (.55) -- (.55) 11.16 5.57 379,342 .86 4.93 2001 10.62 .57 .48 1.05 (.57) -- (.57) 11.10 10.05 385,226 .86 5.13 2000 11.57 .57 (.93) (.36) (.57) (.02) (.59) 10.62 (3.18) 389,898 .90 5.25 Class B (2/97) 2005(e) 11.16 .22 .27 .49 (.22) -- (.22) 11.43 4.37 26,210 1.59* 3.79* 2004 11.77 .45 (.61) (.16) (.45) -- (.45) 11.16 (1.34) 26,057 1.60 3.90 2003 11.15 .45 .63 1.08 (.46) -- (.46) 11.77 9.85 28,080 1.62 3.94 2002 11.09 .47 .05 .52 (.46) -- (.46) 11.15 4.79 22,433 1.61 4.17 2001 10.62 .48 .48 .96 (.49) -- (.49) 11.09 9.16 19,846 1.61 4.37 2000 11.56 .49 (.93) (.44) (.48) (.02) (.50) 10.62 (3.82) 14,970 1.65 4.51 Class C (8/93) 2005(e) 11.15 .23 .27 .50 (.23) -- (.23) 11.42 4.49 44,736 1.39* 3.99* 2004 11.76 .47 (.60) (.13) (.48) -- (.48) 11.15 (1.14) 44,575 1.40 4.10 2003 11.15 .47 .62 1.09 (.48) -- (.48) 11.76 9.99 50,999 1.42 4.14 2002 11.09 .49 .06 .55 (.49) -- (.49) 11.15 5.01 44,984 1.41 4.37 2001 10.61 .51 .48 .99 (.51) -- (.51) 11.09 9.46 41,396 1.41 4.57 2000 11.56 .51 (.93) (.42) (.51) (.02) (.53) 10.61 (3.71) 41,220 1.45 4.69 Class R (2/97) 2005(e) 11.16 .27 .27 .54 (.27) -- (.27) 11.43 4.87 138,240 .64* 4.74* 2004 11.77 .56 (.61) (.05) (.56) -- (.56) 11.16 (.41) 139,762 .65 4.85 2003 11.15 .56 .62 1.18 (.56) -- (.56) 11.77 10.89 154,781 .67 4.89 2002 11.09 .57 .06 .63 (.57) -- (.57) 11.15 5.80 148,302 .66 5.12 2001 10.62 .59 .48 1.07 (.60) -- (.60) 11.09 10.19 146,678 .66 5.32 2000 11.57 .60 (.94) (.34) (.59) (.02) (.61) 10.62 (2.97) 142,031 .70 5.45 ---------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ---------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) OHIO ------------------ ------------------ Ratio Ratio of Net of Net Invest- Invest- Ratio of ment Ratio of ment Expenses Income Expenses Income to to to to Average Average Average Average Portfolio Year Ended Net Net Net Net Turnover May 31, Assets Assets Assets Assets Rate --------------------------------------------------------------- Class A (6/85) 2005(e) .84%* 4.54%* .84%* 4.54%* 6% 2004 .85 4.65 .85 4.65 12 2003 .87 4.69 .87 4.69 12 2002 .86 4.93 .86 4.93 21 2001 .86 5.13 .85 5.13 12 2000 .90 5.25 .89 5.25 11 Class B (2/97) 2005(e) 1.59* 3.79* 1.59* 3.79* 6 2004 1.60 3.90 1.60 3.90 12 2003 1.62 3.94 1.61 3.94 12 2002 1.61 4.17 1.61 4.18 21 2001 1.61 4.37 1.60 4.37 12 2000 1.65 4.51 1.64 4.52 11 Class C (8/93) 2005(e) 1.39* 3.99* 1.39* 3.99* 6 2004 1.40 4.10 1.40 4.10 12 2003 1.42 4.14 1.41 4.14 12 2002 1.41 4.37 1.41 4.38 21 2001 1.41 4.57 1.40 4.58 12 2000 1.45 4.69 1.44 4.70 11 Class R (2/97) 2005(e) .64* 4.74* .64* 4.74* 6 2004 .65 4.85 .65 4.85 12 2003 .67 4.89 .67 4.89 12 2002 .66 5.12 .66 5.13 21 2001 .66 5.32 .65 5.33 12 2000 .70 5.45 .69 5.46 11 ---------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the six months ended November 30, 2004. See accompanying notes to financial statements. ---- 69 Financial Highlights (Unaudited) (continued) Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ----------------------- ---------------------------- Before Credit/ Reimbursement WISCONSIN ------------------ Ratio of Net Net Invest- Realized/ Ratio of ment Unrealized Expenses Income Beginning Net Invest- Net Ending Ending to to Net Invest- ment Invest- Net Net Average Average Year Ended Asset ment Gain ment Capital Asset Total Assets Net Net May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets -------------------------------------------------------------------------------------------------------------------------- Class A (6/94) 2005(e) $10.16 $.21 $ .20 $ .41 $(.21) $ -- $(.21) $10.36 4.02% $36,503 .91%* 4.05%* 2004 10.62 .43 (.45) (.02) (.44) -- (.44) 10.16 (.33) 39,033 .92 4.12 2003 10.14 .43 .49 .92 (.44) -- (.44) 10.62 9.41 42,360 .93 4.19 2002 9.97 .44 .17 .61 (.44) -- (.44) 10.14 6.26 40,199 .93 4.39 2001 9.24 .45 .72 1.17 (.44) -- (.44) 9.97 12.84 30,944 .97 4.59 2000 10.20 .44 (.95) (.51) (.44) (.01) (.45) 9.24 (5.04) 30,146 1.14 4.50 Class B (2/97) 2005(e) 10.18 .17 .20 .37 (.17) -- (.17) 10.38 3.65 4,792 1.66* 3.30* 2004 10.65 .35 (.46) (.11) (.36) -- (.36) 10.18 (1.01) 4,568 1.67 3.37 2003 10.17 .36 .49 .85 (.37) -- (.37) 10.65 8.53 5,960 1.67 3.44 2002 10.00 .37 .17 .54 (.37) -- (.37) 10.17 5.49 5,224 1.68 3.65 2001 9.27 .38 .72 1.10 (.37) -- (.37) 10.00 11.98 4,401 1.72 3.84 2000 10.23 .37 (.95) (.58) (.37) (.01) (.38) 9.27 (5.75) 3,977 1.89 3.75 Class C (2/97) 2005(e) 10.18 .18 .21 .39 (.18) -- (.18) 10.39 3.84 4,591 1.46* 3.50* 2004 10.65 .37 (.46) (.09) (.38) -- (.38) 10.18 (.84) 4,632 1.47 3.57 2003 10.16 .38 .50 .88 (.39) -- (.39) 10.65 8.83 4,536 1.47 3.64 2002 10.00 .39 .16 .55 (.39) -- (.39) 10.16 5.58 3,282 1.51 3.85 2001 9.26 .40 .73 1.13 (.39) -- (.39) 10.00 12.31 5,408 1.52 4.04 2000 10.22 .39 (.95) (.56) (.39) (.01) (.40) 9.26 (5.56) 4,366 1.69 3.95 Class R (2/97) 2005(e) 10.20 .22 .21 .43 (.22) -- (.22) 10.41 4.23 153 .71* 4.26* 2004 10.67 .45 (.46) (.01) (.46) -- (.46) 10.20 (.10) 177 .72 4.32 2003 10.18 .46 .50 .96 (.47) -- (.47) 10.67 9.62 176 .72 4.39 2002 10.02 .47 .16 .63 (.47) -- (.47) 10.18 6.36 97 .73 4.60 2001 9.28 .47 .73 1.20 (.46) -- (.46) 10.02 13.10 51 .77 4.79 2000 10.23 .46 (.94) (.48) (.46) (.01) (.47) 9.28 (4.73) 45 .92 4.67 --------------------------------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ---------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) WISCONSIN ------------------ ------------------ Ratio Ratio of Net of Net Invest- Invest- Ratio of ment Ratio of ment Expenses Income Expenses Income to to to to Average Average Average Average Portfolio Year Ended Net Net Net Net Turnover May 31, Assets Assets Assets Assets Rate --------------------------------------------------------------- Class A (6/94) 2005(e) .91%* 4.05%* .91%* 4.06%* 9% 2004 .92 4.12 .91 4.13 21 2003 .93 4.19 .91 4.20 8 2002 .93 4.39 .92 4.40 19 2001 .97 4.59 .95 4.61 16 2000 1.02 4.62 1.01 4.63 26 Class B (2/97) 2005(e) 1.66* 3.30* 1.66* 3.31* 9 2004 1.67 3.37 1.66 3.38 21 2003 1.67 3.44 1.66 3.45 8 2002 1.68 3.65 1.67 3.66 19 2001 1.72 3.84 1.70 3.86 16 2000 1.76 3.87 1.75 3.88 26 Class C (2/97) 2005(e) 1.46* 3.50* 1.46* 3.51* 9 2004 1.47 3.57 1.46 3.58 21 2003 1.47 3.64 1.45 3.65 8 2002 1.51 3.85 1.49 3.86 19 2001 1.52 4.04 1.50 4.05 16 2000 1.57 4.07 1.56 4.08 26 Class R (2/97) 2005(e) .71* 4.26* .70* 4.26* 9 2004 .72 4.32 .71 4.33 21 2003 .72 4.39 .70 4.41 8 2002 .73 4.60 .72 4.62 19 2001 .77 4.79 .75 4.80 16 2000 .79 4.81 .78 4.82 26 ---------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the six months ended November 30, 2004. See accompanying notes to financial statements. ---- 70 Notes -------------------------------------------------------------------------------- 71 Notes -------------------------------------------------------------------------------- 72 -------------------------------------------------------------------------------- Fund Information ================================================================================ Fund Manager Legal Counsel Transfer Agent and Nuveen Asset Management* Chapman and Cutler LLP Shareholder Services 333 West Wacker Drive Chicago, IL Boston Financial Chicago, IL 60606 Data Services, Inc. Independent Registered Nuveen Investor Services Public Accounting Firm P.O. Box 8530 PricewaterhouseCoopers LLP Boston, MA 02266-8530 Chicago, IL (800) 257-8787 Custodian State Street Bank & Trust Boston, MA ================================================================================ Glossary of Terms Used in this Report Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered. Average Effective Maturity: The average of all the maturities of the bonds in a fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. Average Duration: Duration is a measure of the sensitivity of a bond or bond fund's value to changes when interest rates change. Generally, the longer a bond or fund's duration, the more the price of the bond or fund will change as interest rates change. Dividend Yield (also known as Market Yield or Current Yield): An investment's current annualized dividend divided by its current offering price. Net Asset Value (NAV): A fund's NAV is the dollar value of one share in the fund. It is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. SEC 30-Day Yield: A standardized measure of a fund's yield that accounts for the future amortization of premiums or discounts of bonds held in the fund's portfolio. Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis at a specified assumed tax rate, the yield of a municipal bond investment. *NAC and NIAC Merge into NAM--Effective Jan. 1, 2005, the asset management services and operations of Nuveen Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part of Nuveen Asset Management (NAM). This internal consolidation is intended to simplify the delivery of services to the investment management clients of Nuveen Investments. It does not affect the investment objectives or portfolio management of any Fund. ================================================================================ Quarterly Portfolio of Investments and Proxy Voting information: Each Fund's (i) quarterly portfolio of investments and (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30; are available without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section at 450 Fifth Street NW, Washington, D.C. 20549. ================================================================================ NASD Regulation, Inc. provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of NASD members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an investor brochure that includes information describing the Public Disclosure Program. ---- 73 [PHOTO] Learn more about Nuveen Funds at www.nuveen.com/mf Nuveen Investments: SERVING Investors For GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing approximately $115 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. Find out how we can help you reach your financial goals. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. . Share prices . Fund details . Daily financial news . Investor education [LOGO] Nuveen Investments MSA-MS6-1104D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable to this registrant. ITEM 6. SCHEDULE OF INVESTMENTS See Schedule I in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS Not applicable to this registrant. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS In the event of a vacancy on the Board, the nominating and governance committee receives suggestions from various sources, including shareholders, as to suitable candidates. Suggestions should be sent in writing to Lorna Ferguson, Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive, Chicago, IL 60606. The nominating and governance committee sets appropriate standards and requirements for nominations for new directors and reserves the right to interview all candidates and to make the final selection of any new directors. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment hereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: EX-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference. EX-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Multistate Trust IV -------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ------------------------------------------- Jessica R. Droeger Vice President and Secretary Date February 4, 2005 ---------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date February 4, 2005 ---------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date February 4, 2005 ---------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.