N-CSR 1 dncsr.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: May 31, 2005 ------------ 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 -------------------------------------------------------------------------------- Annual Report dated May 31, 2005 ----------------------------------- 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. Some of you may have heard that in April, 2005, The St. Paul Travelers Companies, Inc., which owned 79% of Nuveen Investments, Inc. (the parent of your Fund's investment adviser) completed a public offering of a substantial portion of its equity stake in Nuveen. At the same time, St. Paul Travelers also entered into agreements to sell the balance of its shares in Nuveen to us or to others at a future date. These transactions will have no impact on the investment objectives or management of your Fund. However, taken as a whole they are considered to be an "assignment" of your Fund's investment management agreement. This means that you and your fellow Fund shareholders have been asked to formally approve the continuation of your Fund's management contract with Nuveen. You should have already received proxy materials asking for such approval in recent weeks. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board July 14, 2005 "No one knows what the future will bring, which is why we think a well-balanced portfolio ... is an important component in achieving your long-term financial goals." Annual Report Page 1 Portfolio Managers' Comments for the Nuveen Kansas, Kentucky, Michigan, Missouri, Ohio, and Wisconsin Municipal Bond Funds Portfolio managers Scott Romans and Cathryn Steeves examine economic and market conditions, key investment strategies, and the performance of the Nuveen Kansas, Kentucky, Michigan, Missouri, Ohio, and Wisconsin Municipal Bond Funds. Scott, who has 5 years of investment experience, began managing the Kansas, Missouri, and Wisconsin Funds in 2003. Cathryn has 9 years of investment experience and began managing the Kentucky and Ohio Funds in August 2004 and the Michigan Fund in January 2005. -------------------------------------------------------------------------------- What factors had the greatest influence on the U.S. economy and the municipal market during the 12-month reporting period ended May 31, 2005? The U.S. economy continued to see solid growth during the past 12 months. Gross domestic product, a measure of the goods and services produced in a nation, grew at an annualized rate of 3.3 percent during the second quarter of 2004, 4.0 percent during the year's third quarter, 3.8 percent in the fourth quarter, and 3.8 percent during the first quarter of 2005. The economy grew despite high energy prices, which fell in the final months of 2004 but rose sharply throughout most of the rest of the period. As another sign of the continued recovering economy, employment trended upward. Nearly 275,000 jobs were created in April 2005, although the following month's increase was a much smaller 78,000 jobs. On May 31, 2005, the unemployment rate was 5.1 percent, below the 5.6 percent rate of a year earlier. With the economy's expansion came increased concerns about rising inflation. When the period began, it was becoming increasingly apparent that consumer prices, led by the cost of gasoline, were rising. Beginning in June 2004, the Federal Reserve, worried about inflation, started to raise short-term interest rates for the first time in more than four years. During the 12-month period, the Fed increased rates a total of eight times. By May 2005, the short-term federal funds rate stood at 3 percent, up from 1 percent at the start of the period. (After the end of the reporting period, the Fed raised the rate an additional 0.25 percent to 3.25 percent.) Although inflation generally was rising, its rate of increase was in line with bond investors' expectations. Accordingly, investors remained confident that the Fed would continue its policy of "measured" interest rate hikes and would not need to raise rates more quickly. This confidence that inflation was manageable and that the Fed would proceed in a deliberate fashion supported long-term municipal bond prices, while their yields fell accordingly (a bond's yield and price move in opposite directions). By contrast, short-term municipal bond yields rose in line with the Fed's rate hikes. Lower-rated credits were among the best-performing securities in the municipal market during the period. Investors saw in these bonds opportunities to pick up additional income and were willing to take on additional credit risk to do so. Throughout the period, supply of new municipal debt remained strong. Many issuers sought to take advantage of still-historically low interest rates to refinance outstanding obligations. During the first five months of 2005, for example, new municipal issuance totaled $164 billion, an increase of about 6 percent over new supply in the first five months of 2004. How did the Funds perform during the 12-month reporting period ended May 31, 2005? The table on the next page provides total return performance information for the six Funds discussed in this report for the one-year, five-year, and ten-year periods ended May 31, 2005. Each Fund's performance is compared with the national Lehman Brothers Municipal Bond Index, as well as with its -------------------------------------------------------------------------------- The views expressed reflect those of the portfolio managers and are subject to change at any time, based on market and other conditions. Annual Report Page 2 Class A Shares-- Average Annual Total Returns as of 5/31/05 --------------------------------------------------------------------------------
1-Year 5-Year 10-Year --------------------- Nuveen Kansas Municipal Bond Fund A Shares at NAV 8.95% 7.11% 5.64% A Shares at Offer 4.35% 6.19% 5.19% Lipper Kansas Municipal Debt Funds Category Average/1/ 5.01% 5.68% 4.58% Lehman Brothers Municipal Bond Index/2/ 7.96% 7.30% 6.22% ----------------------------------------------- Nuveen Kentucky Municipal Bond Fund A Shares at NAV 8.51% 6.96% 5.56% A Shares at Offer 3.93% 6.05% 5.11% Lipper Kentucky Municipal Debt Funds Category Average/1/ 6.78% 5.88% 5.16% Lehman Brothers Municipal Bond Index/2/ 7.96% 7.30% 6.22% ----------------------------------------------- Nuveen Michigan Municipal Bond Fund A Shares at NAV 8.48% 7.27% 5.64% A Shares at Offer 3.95% 6.36% 5.18% Lipper Michigan Municipal Debt Funds Category Average/1/ 6.58% 6.33% 5.22% Lehman Brothers Municipal Bond Index/2/ 7.96% 7.30% 6.22% -----------------------------------------------
1-Year 5-Year 10-Year --------------------- Nuveen Missouri Municipal Bond Fund A Shares at NAV 8.97% 7.01% 5.61% A Shares at Offer 4.42% 6.09% 5.15% Lipper Missouri Municipal Debt Funds Category Average/1/ 7.30% 6.54% 5.31% Lehman Brothers Municipal Bond Index/2/ 7.96% 7.30% 6.22% ----------------------------------------------------- Nuveen Ohio Municipal Bond Fund A Shares at NAV 9.00% 6.85% 5.42% A Shares at Offer 4.42% 5.93% 4.97% Lipper Ohio Municipal Debt Funds Category Average/1/ 7.10% 6.24% 5.16% Lehman Brothers Municipal Bond Index/2/ 7.96% 7.30% 6.22% ----------------------------------------------------- Nuveen Wisconsin Municipal Bond Fund A Shares at NAV 7.94% 7.13% 5.46% A Shares at Offer 3.36% 6.21% 5.01% Lipper Other States Municipal Debt Funds Category Average/1/ 5.91% 5.95% 4.96% Lehman Brothers Municipal Bond Index/2/ 7.96% 7.30% 6.22% -----------------------------------------------------
Returns quoted represent past performance, which is no guarantee of future results. Returns at NAV would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Class A shares have a 4.2% maximum sales charge. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance, visit www.nuveen.com or call (800) 257-8787. -------------------------------------------------------------------------------- Lipper peer fund category average. The factors determining the performance of each Fund are discussed later in the report. Although we believe that comparing the performance of a state Fund with that of a national municipal index may offer some insights into how the Fund performed relative to the general municipal market, we also think that closely comparing the results of state Funds with a national average is imperfect since most of the national index's results come from out-of-state bonds. Each Fund seeks to pay dividends at a rate that reflects the past and projected performance of the Fund. To permit a Fund to maintain a more stable -------------------------------------------------------------------------------- 1For each Fund, the Lipper category average shown represents the average annualized total return for all reporting funds for the periods ended May 31, 2005. The Lipper categories contained 11, 10 and 6 funds in the Lipper Kansas Municipal Debt Funds Category, 17, 16 and 7 funds in the Lipper Kentucky Municipal Debt Funds Category, 37, 36 and 29 funds in the Lipper Michigan Municipal Debt Funds Category, 21, 20 and 16 funds in the Lipper Missouri Municipal Debt Funds Category, 42, 38 and 32 funds in the Lipper Ohio Municipal Debt Funds Category and 63, 55 and 33 funds in the Lipper Wisconsin Municipal Debt Funds Category for the respective one-, five- and ten-year periods ended May 31, 2005. The returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in a Lipper Category. 2The Lehman Brothers Municipal Bond Index is an unmanaged index composed of a broad range of investment-grade municipal bonds and does not reflect any initial or ongoing expenses. An index is not available for direct investment. Annual Report Page 3 monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If the Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund's net asset value. Conversely, if the Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund's net asset value. Each Fund will, over time, pay all its net investment income, as dividends to shareholders. As of May 31, 2005, each Fund had negative UNII for financial statement purposes and positive UNII balances for tax purposes. What type of economic environment did the six states profiled in this report experience during the period? The Kansas economy continued to recover, despite its exposure to certain challenged sectors, such as manufacturing, telecommunications, and agriculture. The state's May 2005 unemployment rate was 5.3 percent, down 0.3 percent from May 2004 but slightly above the national average. To balance its fiscal year 2005 budget, Kansas continued to rely on nonrecurring revenues, a trend in evidence for the fiscal 2006 budget as well. New municipal debt issuance in the state for the first five months of 2005 was $1.02 billion, a 36 percent decline over the same time period in 2004 and well below the national increase of 6 percent. At period end, Kansas maintained credit ratings of Aa1 and AA+ by Moody's and Standard & Poor's, respectively, both of which maintained a negative outlook on the state's debt, citing the state's fiscal stresses and recent economic weakness. As of May 31, 2005, Kentucky maintained credit ratings of Aa3 and A+ from Moody's and Standard & Poor's, respectively. The state's municipal issuance during the first five months of 2005 totaled $1.47 billion, a modest 1 percent decline over the prior year's issuance. Kentucky's economy continued to expand modestly during the reporting period. The state saw favorable job growth that was helped by strength in the leisure and hospitality industries. Nevertheless, Kentucky's unemployment rate was 5.7 percent in May 2005, 0.2 percent above the prior year's rate and 0.6 percent higher than the national average. The state's revenues for the 2005 fiscal year continue to outpace projections, growing at a nearly 9 percent pace. Michigan's manufacturing-based economy remained in recession during the past 12 months, due primarily to the state's dependence on the challenged automotive industry. At period end, the state's jobless rate was 7.1 percent, tied with Mississippi for the nation's highest. Governor Jennifer Granholm's proposed budget for the 2006 fiscal year eliminates a general fund budget gap by relying on spending cuts, revenue enhancements, and proposed Medicaid reforms providing estimated savings of $80 million per year. Despite the state's financial challenges, Michigan's debt levels remained manageable, providing flexibility if revenue collections lag expectations. Michigan was an active issuer of bonds during the first five months of 2005, with new supply 128 percent higher than in the first five months of 2004. Both Moody's and Standard & Poor's downgraded Michigan's general obligation bond credit ratings during the period. Moody's rating fell from Aa1 to Aa2, while Standard & Poor's lowered its rating on the state's debt from AA+ to AA. Missouri's economy continued to perform better than the overall Midwest region, following a deep recession that saw the loss of thousands of manufacturing-related jobs. The Show-Me State has benefited from its relatively diverse economy. At period end, Missouri's unemployment rate was 5.6 percent, same as a year ago but higher than the national average of 5.1 percent. The state's recently elected governor, Matt Blunt, proposed a $19 billion budget for the 2006 fiscal year that is structurally balanced. Despite declines in four of the past five years, Missouri maintains a healthy unreserved fund balance. Municipal issuance in the state totaled $1.97 billion for the first five months Annual Report Page 4 of 2005, more than 23 percent below the prior year's supply and lagging the national increase of 6 percent. Missouri continued to maintain the highest credit ratings of Aaa and AAA from Moody's and Standard & Poor's, respectively, reflecting the state's sound financial management. Ohio's economy remained stagnant during the past year, with an unemployment rate of 6.1 percent in May 2005, a full percentage point above the national average. Although the state has seen job growth in healthcare and professional services, neither industry has made up for the substantial manufacturing job losses of prior years. Ohio's 2006 - 07 biennial budget is largely in balance. Revenue collections are slightly ahead of projections for the 2005 fiscal year, although ongoing economic challenges could weaken the state's financial position. Ohio issued $4.89 billion in municipal debt during the first five months of 2005, a modest 4 percent year-over-year increase. At period end, the state had credit ratings of Aa1 from Moody's and AA+ from Standard & Poor's. Wisconsin's economy moderated during the past 12 months, benefiting from strength in service sectors such as education and healthcare but hurt by weakness in the leisure, hospitality, and transportation industries. In May 2005, the state's unemployment rate was 4.7 percent, a 0.3 percent improvement from May 2004 and better than the national average. Governor Doyle's fiscal 2005-07 biennial budget is balanced but relies on continued strong revenue growth as well as spending cuts to close a $1.6 billion shortfall. New municipal issuance in Wisconsin rose during the first five months of 2005, an 18 percent year-over-year increase in supply. As of May 31, 2005, Moody's and Standard & Poor's rated the state's general obligation debt Aa3 and AA-. In March 2005, Moody's upgraded its outlook for Wisconsin from negative to stable, citing the state's stabilizing economy and improved financial picture. S&P maintained its stable outlook throughout the period. What strategies were used to manage the Funds during the reporting period? How did these strategies influence performance? The total return of all six Funds outperformed their Lipper peer group averages. Five of the six Funds also outperformed the national Lehman Brothers Municipal Bond Index, with the sixth, Wisconsin, essentially performing in line with the Lehman Brothers national index. We pursued consistent management strategies across all six Funds, although our ability to implement the strategies varied depending on the types of securities available for purchase in each state. Our broad management themes during the past 12 months included: . Duration management. We sought to preserve each Fund's duration - its sensitivity to changes in interest rates - within a target range. With the Fed continuing to raise short-term rates but no consensus about how much rates would go up, we believed it was prudent to avoid making significant interest rate bets in the portfolios. . Reduction of concentrated credit positions. Throughout the past 12 months, credit spreads, the additional yield available to investors for taking on credit risk, narrowed considerably. As lower-rated bonds rallied, we took advantage of market conditions and reduced our holdings in securities that we believed had grown to a larger-than-desired weighting. Such a strategy allowed us to lock in some gains, reduce or at least diversify risk, and invest in parts of the market that offered more attractive value potential, in our view. . Yield curve positioning. We generally favored bonds in the long-intermediate part of the yield curve, with maturities of between 20 and 27 years, depending on the state, tending to offer the most compelling values, in our opinion. The Nuveen Kansas Municipal Bond Fund enjoyed strong performance relative to its Lipper peer group average and the Lehman Brothers Municipal Bond Index. An overweighting in lower-rated and non-rated bonds helped performance, as did strong Annual Report Page 5 security selection. For example, non-rated revenue bonds issued for the Overland Park Convention Center, offering 7.375 percent in coupon income and maturing in 2032, performed particularly well, as did non-rated revenue bonds issued for Citizens Medical Center in Colby County, providing coupon income of 5.625 percent and maturing in 2016. On the negative side, some of the Fund's single family housing bonds had a slightly negative effect on performance. This sector was under pressure as interest rates remained low and it became more likely that these high-coupon bonds would be called. Although none of our housing bonds performed negatively, they still lagged the market and detracted from results on a relative basis. During the period we worked to reposition the Fund to move closer to our desired portfolio structure. A greater-than-usual number of investment opportunities during the period enabled us to be fairly active with this portfolio. When appropriate, we sold some of the portfolio's lower-coupon intermediate-maturity holdings and replaced them with premium-coupon bonds offering 20-year maturity dates, which we believed offered good value as the period progressed. For example, we established a new position in Butler County Unified District bonds, which offered a 5 percent coupon and mature in 2025, the ideal structure we were looking to buy. By contrast, we sold the Fund's holdings in Johnson County Unified School District bonds. Although these securities offered a slightly higher coupon than the Butler County bonds, their 2017 maturity date represented a less attractive part of the yield curve, in our opinion. The Nuveen Kentucky Municipal Bond Fund performed well, surpassing both its Lipper peer group as well as the national Lehman Brothers Index. The Fund benefited from its somewhat longer-than-average duration, which helped performance as shorter-dated securities underperformed longer bonds. The portfolio's exposure to lower-rated bonds also helped, as did weightings in the healthcare and lifecare sectors. Finally, our tobacco bonds gained in value as investors perceived an improved legal environment for the tobacco companies whose revenues back the securities. By contrast, an overweight in pre-refunded bonds detracted from results, as these underperformed along with other short-maturity securities. Also, bonds backed by International Paper were called during the period, having a negative impact on the Fund's income stream. Supply of new debt was modest during the period, not unusual for Kentucky, and the difficulty of finding enough new bonds to meet our investment criteria kept our portfolio restructuring activity relatively limited. We did find some opportunities in the education sector, adding new bonds, for example, from the Kenton County School District. With the Fund's duration somewhat longer than our target, these bonds with maturity dates between 2017 and 2019 represented what we saw as a desirable part of the yield curve. Throughout the period, we continued to look for opportunities to reduce concentrated positions in lower-rated securities, taking advantage of market conditions to redeploy assets in better-valued, higher-rated bonds. The Nuveen Michigan Municipal Bond Fund, which also outperformed both benchmarks, was helped by its overweighting of lower-rated bonds. The Fund also benefited from tobacco bonds as well as from an overweighting in the healthcare sector, which generally performed well. The Fund's longer-than-average duration also added to performance. On the negative side, the Fund was modestly underweighted in the very longest bonds, which enjoyed strong performance during the period, and overweighted in very short bonds, which did not. Another negative influence was supplied by a small position in debt backed by General Motors, whose recent financial problems have been well publicized. Our management strategy in the Michigan Fund was similar to that of the other Funds during the period. To try to reduce the portfolio's risk, we continued to scale back our positions in lower-rated bonds that had recently performed well. We also sold some of our shorter holdings, including pre-refunded bonds, to maintain the Fund's Annual Report Page 6 duration, which was gradually declining as existing bonds rolled off or were called from the portfolio. As part of our duration-management efforts, we bought premium-coupon intermediate bonds, with 2025 and 2026 maturity dates representing our ideal target. For example, we purchased bonds issued by the Zeeland Public Schools, rated AAA, offering a 5 percent coupon, and maturing in 2022 and 2025. The Nuveen Missouri Municipal Bond Fund was another strong performer relative to both the Lehman Brothers Municipal Bond Index and its Lipper category average. An overweighted position in BBB-rated and non-rated bonds helped performance. Security selection among our lower-rated holdings also contributed to results, especially among certain bonds whose price consequently jumped substantially, during the period. When a lower-rated bond is pre-refunded, meaning that the issuer refunds as of a future date an older bond with proceeds from a newer bond issued at lower rates, its price often goes up sharply even as its income stream remains constant. (The downside is that the bonds usually mature and leave the portfolio sooner.) Our higher-coupon housing bonds, however, were modest detractors from performance. Although these securities did not underperform by a wide margin, they failed to perform as well as the market because investors were unwilling to pay more for these bonds, knowing the securities could be called in an environment of low interest rates. We believed the Missouri Fund was relatively well structured, so we did not make major changes to the portfolio during the period. We were able to reduce some of the portfolio's concentrated credit positions to help lower the Missouri Fund's risk. For example, we sold some of our Missouri Health and Educational Facilities Authority revenue bonds for Maryville University of St. Louis. Although we detected no credit problems with this issuer, we believed it was prudent to reduce exposure to this strong-performing bond and increase the portfolio's diversification. We also liquidated the Fund's holdings in CCC-rated Puerto Rico revenue bonds issued for American Airlines. Airport and airline bonds were strong perfomers during the period. We sold our American Airlines position because we were wary of its risk and reinvested the proceeds in other securities we believed offered better values. We looked to add issues providing coupons of 5 percent or more and with maturities around 20 years. The Nuveen Ohio Municipal Bond Fund also performed well during the past 12 months relative to its Lipper peer group and the Lehman Brothers index. The Ohio Fund benefited from an overweighting in BBB-rated and lower-rated bonds. For example, performance was helped by revenue refunding bonds issued for Emery Air Freight Corporation and Emery Worldwide Airlines, which rose as airport and airline bonds recovered off of low levels. An overweighting in the strong-performing healthcare sector also helped performance, as did the Fund's tobacco bonds, which performed better as the industry's litigation environment improved. The management strategies used in the Ohio Fund resembled that of the other portfolios during the period. When making new purchases, we favored intermediate-maturity premium-coupon bonds, which we believed offered our shareholders the best available values. At the same time, we reduced our weighting in pre-refunded bonds, whose short maturity dates hindered performance during a time of rising short-term yields. We also sold some of our concentrated lower-rated holdings to lock in recent gains and diversify the Fund's assets. The Nuveen Wisconsin Municipal Bond Fund, which outperformed its Lipper peer group average and earned returns in line with the Lehman Brothers index during the past 12 months, benefited from its relatively large weighting in lower-rated and non-rated securities. In addition, a number of the individual lower-rated holdings in the Fund were particularly strong performers. By contrast, the Fund's shorter-maturity and pre-refunded securities detracted from results. These bonds saw their prices fall and yields rise in line Annual Report Page 7 with the Fed's short-term interest rate hikes during the period. Wisconsin tends to be a challenging state in which to find suitable municipal bonds for investment, but we were able to find more opportunities than usual during the period. Accordingly, we were somewhat active in restructuring the portfolio. As in the other Funds, we reduced our exposure to concentrated positions in lower-rated bonds. We also increased the portfolio's diversification by adding to the number of issuers whose bonds are held in the Fund. When making new purchases, we invested further out on the yield curve, preferring bonds in the 20-year maturity range, which, as mentioned, we believed offered our shareholders the best values. Annual Report Page 8 Nuveen Kansas Municipal Bond Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen Kansas Nuveen Kansas Lehman Municipal Municipal Brothers Bond Fund Bond Fund Municipal (NAV) (Offer) Bond Index ----- ------- ---------- 5/31/95 $10,000 $ 9,580 $10,000 6/30/95 9,895 9,479 9,913 7/31/95 9,961 9,543 10,007 8/31/95 10,079 9,656 10,134 9/30/95 10,124 9,699 10,198 10/31/95 10,324 9,890 10,346 11/30/95 10,533 10,091 10,518 12/31/95 10,673 10,225 10,619 1/31/96 10,690 10,241 10,699 2/29/96 10,559 10,115 10,627 3/31/96 10,356 9,921 10,491 4/30/96 10,318 9,884 10,461 5/31/96 10,364 9,929 10,457 6/30/96 10,505 10,064 10,571 7/31/96 10,595 10,150 10,667 8/31/96 10,589 10,144 10,665 9/30/96 10,773 10,321 10,814 10/31/96 10,875 10,418 10,937 11/30/96 11,061 10,596 11,137 12/31/96 11,033 10,570 11,184 1/31/97 11,028 10,564 11,205 2/28/97 11,130 10,663 11,308 3/31/97 11,013 10,551 11,157 4/30/97 11,139 10,671 11,251 5/31/97 11,319 10,844 11,420 6/30/97 11,412 10,933 11,542 7/31/97 11,751 11,257 11,862 8/31/97 11,621 11,132 11,750 9/30/97 11,748 11,255 11,890 10/31/97 11,842 11,345 11,966 11/30/97 11,915 11,414 12,037 12/31/97 12,100 11,592 12,213 1/31/98 12,219 11,706 12,338 2/28/98 12,201 11,688 12,342 3/31/98 12,251 11,736 12,353 4/30/98 12,163 11,652 12,298 5/31/98 12,375 11,856 12,492 6/30/98 12,426 11,904 12,541 7/31/98 12,466 11,942 12,572 8/31/98 12,658 12,126 12,767 9/30/98 12,815 12,277 12,926 10/31/98 12,783 12,246 12,926 11/30/98 12,834 12,295 12,972 12/31/98 12,849 12,310 13,004 1/31/99 12,973 12,428 13,159 2/28/99 12,916 12,373 13,101 3/31/99 12,907 12,364 13,119 4/30/99 12,957 12,413 13,152 5/31/99 12,848 12,308 13,076 6/30/99 12,628 12,098 12,888 7/31/99 12,630 12,099 12,934 8/31/99 12,445 11,923 12,830 9/30/99 12,372 11,852 12,836 10/31/99 12,149 11,639 12,697 11/30/99 12,250 11,735 12,832 12/31/99 12,100 11,592 12,735 1/31/00 11,963 11,461 12,681 2/29/00 12,154 11,644 12,828 3/31/00 12,486 11,962 13,109 4/30/00 12,385 11,865 13,031 5/31/00 12,284 11,768 12,964 6/30/00 12,607 12,077 13,307 7/31/00 12,817 12,279 13,492 8/31/00 13,015 12,468 13,700 9/30/00 12,953 12,409 13,629 10/31/00 13,074 12,525 13,777 11/30/00 13,143 12,591 13,882 12/31/00 13,476 12,910 14,225 1/31/01 13,572 13,002 14,366 2/28/01 13,656 13,082 14,411 3/31/01 13,766 13,188 14,541 4/30/01 13,608 13,036 14,384 5/31/01 13,760 13,182 14,539 6/30/2001 13,859 13,277 14,637 7/31/2001 14,054 13,463 14,854 8/31/2001 14,290 13,690 15,099 9/30/2001 14,198 13,602 15,047 10/31/2001 14,353 13,751 15,226 11/30/2001 14,247 13,649 15,098 12/31/2001 14,140 13,546 14,955 1/31/2002 14,326 13,724 15,214 2/28/2002 14,512 13,902 15,398 3/31/2002 14,235 13,637 15,096 4/30/2002 14,507 13,898 15,390 5/31/2002 14,594 13,982 15,484 6/30/2002 14,753 14,134 15,648 7/31/2002 14,927 14,300 15,849 8/31/2002 15,101 14,467 16,039 9/30/2002 15,464 14,814 16,391 10/31/2002 15,061 14,428 16,119 11/30/2002 15,017 14,386 16,052 12/31/2002 15,381 14,735 16,391 1/31/2003 15,234 14,594 16,349 2/28/2003 15,482 14,832 16,578 3/31/2003 15,482 14,831 16,588 4/30/2003 15,673 15,015 16,698 5/31/2003 16,059 15,384 17,088 6/30/2003 15,954 15,284 17,016 7/31/2003 15,324 14,681 16,420 8/31/2003 15,429 14,781 16,543 9/30/2003 15,850 15,185 17,029 10/31/2003 15,744 15,082 16,943 11/30/2003 15,922 15,254 17,120 12/31/2003 16,056 15,381 17,262 1/31/2004 16,144 15,466 17,361 2/29/2004 16,463 15,771 17,622 3/31/2004 16,335 15,649 17,561 4/30/2004 15,898 15,231 17,145 5/31/2004 15,895 15,227 17,083 6/30/2004 15,969 15,299 17,145 7/31/2004 16,199 15,519 17,370 8/31/2004 16,525 15,831 17,718 9/30/2004 16,647 15,948 17,813 10/31/2004 16,785 16,080 17,966 11/30/2004 16,623 15,924 17,818 12/31/2004 16,905 16,195 18,035 1/31/2005 17,125 16,406 18,204 2/28/2005 17,020 16,306 18,143 3/31/2005 16,850 16,143 18,029 4/30/2005 17,148 16,428 18,313 5/31/2005 17,318 16,591 18,443 ================================================================================ Nuveen Kentucky Municipal Bond Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen Kentucky Nuveen Kentucky Lehman Municipal Municipal Brothers Bond Fund Bond Fund Municipal (NAV) (Offer) Bond Index ----- ------- ---------- 5/31/95 $10,000 $ 9,580 $10,000 6/30/95 9,900 9,484 9,913 7/31/95 9,966 9,548 10,007 8/31/95 10,079 9,656 10,134 9/30/95 10,125 9,700 10,198 10/31/95 10,285 9,853 10,346 11/30/95 10,472 10,033 10,518 12/31/95 10,586 10,141 10,619 1/31/96 10,633 10,187 10,699 2/29/96 10,583 10,139 10,627 3/31/96 10,403 9,966 10,491 4/30/96 10,365 9,930 10,461 5/31/96 10,404 9,967 10,457 6/30/96 10,509 10,068 10,571 7/31/96 10,597 10,151 10,667 8/31/96 10,598 10,152 10,665 9/30/96 10,752 10,301 10,814 10/31/96 10,860 10,404 10,937 11/30/96 11,036 10,572 11,137 12/31/96 10,993 10,531 11,184 1/31/97 11,013 10,550 11,205 2/28/97 11,102 10,635 11,308 3/31/97 10,991 10,529 11,157 4/30/97 11,081 10,615 11,251 5/31/97 11,222 10,750 11,420 6/30/97 11,333 10,857 11,542 7/31/97 11,639 11,150 11,862 8/31/97 11,556 11,071 11,750 9/30/97 11,678 11,188 11,890 10/31/97 11,760 11,266 11,966 11/30/97 11,821 11,325 12,037 12/31/97 11,988 11,485 12,213 1/31/98 12,091 11,583 12,338 2/28/98 12,100 11,591 12,342 3/31/98 12,129 11,619 12,353 4/30/98 12,051 11,545 12,298 5/31/98 12,231 11,717 12,492 6/30/98 12,282 11,766 12,541 7/31/98 12,311 11,794 12,572 8/31/98 12,472 11,948 12,767 9/30/98 12,589 12,060 12,926 10/31/98 12,564 12,036 12,926 11/30/98 12,615 12,085 12,972 12/31/98 12,626 12,096 13,004 1/31/99 12,722 12,188 13,159 2/28/99 12,697 12,164 13,101 3/31/99 12,715 12,181 13,119 4/30/99 12,743 12,207 13,152 5/31/99 12,682 12,149 13,076 6/30/99 12,495 11,970 12,888 7/31/99 12,513 11,987 12,934 8/31/99 12,336 11,818 12,830 9/30/99 12,286 11,770 12,836 10/31/99 12,107 11,599 12,697 11/30/99 12,184 11,672 12,832 12/31/99 12,067 11,560 12,735 1/31/00 11,992 11,489 12,681 2/29/00 12,163 11,652 12,828 3/31/00 12,405 11,884 13,109 4/30/00 12,341 11,823 13,031 5/31/00 12,265 11,750 12,964 6/30/00 12,511 11,985 13,307 7/31/00 12,698 12,164 13,492 8/31/00 12,874 12,333 13,700 9/30/00 12,833 12,294 13,629 10/31/00 12,938 12,395 13,777 11/30/00 13,007 12,461 13,882 12/31/00 13,284 12,726 14,225 1/31/01 13,365 12,804 14,366 2/28/01 13,434 12,870 14,411 3/31/01 13,540 12,971 14,541 4/30/01 13,422 12,858 14,384 5/31/01 13,541 12,973 14,539 6/30/2001 13,649 13,075 14,637 7/31/2001 13,844 13,263 14,854 8/31/2001 14,066 13,475 15,099 9/30/2001 13,959 13,373 15,047 10/31/2001 14,119 13,526 15,226 11/30/2001 14,035 13,445 15,098 12/31/2001 13,925 13,340 14,955 1/31/2002 14,099 13,506 15,214 2/28/2002 14,286 13,686 15,398 3/31/2002 14,057 13,467 15,096 4/30/2002 14,272 13,673 15,390 5/31/2002 14,383 13,779 15,484 6/30/2002 14,508 13,898 15,648 7/31/2002 14,646 14,031 15,849 8/31/2002 14,784 14,163 16,039 9/30/2002 15,044 14,412 16,391 10/31/2002 14,782 14,161 16,119 11/30/2002 14,788 14,167 16,052 12/31/2002 15,075 14,442 16,391 1/31/2003 15,013 14,383 16,349 2/28/2003 15,251 14,610 16,578 3/31/2003 15,202 14,564 16,588 4/30/2003 15,345 14,701 16,698 5/31/2003 15,682 15,024 17,088 6/30/2003 15,675 15,016 17,016 7/31/2003 15,139 14,503 16,420 8/31/2003 15,257 14,616 16,543 9/30/2003 15,655 14,998 17,029 10/31/2003 15,620 14,964 16,943 11/30/2003 15,821 15,156 17,120 12/31/2003 15,966 15,296 17,262 1/31/2004 16,041 15,367 17,361 2/29/2004 16,303 15,618 17,622 3/31/2004 16,234 15,552 17,561 4/30/2004 15,877 15,210 17,145 5/31/2004 15,823 15,158 17,083 6/30/2004 15,884 15,217 17,145 7/31/2004 16,107 15,430 17,370 8/31/2004 16,416 15,727 17,718 9/30/2004 16,492 15,799 17,813 10/31/2004 16,625 15,927 17,966 11/30/2004 16,479 15,787 17,818 12/31/2004 16,713 16,011 18,035 1/31/2005 16,908 16,198 18,204 2/28/2005 16,831 16,124 18,143 3/31/2005 16,738 16,035 18,029 4/30/2005 17,008 16,293 18,313 5/31/2005 17,171 16,450 18,443 The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes, that a shareholder may pay on Fund distributions or the redemption of shares. The index comparisons show the change in value of a $10,000 investment in the Class A shares of the Nuveen Funds compared with the Lehman Brothers Municipal Bond Index. Returns would be different for the other share classes. The Lehman Brothers Municipal Bond Index is an unmanaged index composed of a broad range of investment-grade municipal bonds. The index does not reflect any initial or ongoing expenses. You cannot invest directly in an index. The Nuveen Funds' returns include reinvestment of all dividends and distributions, and the Funds' returns at the offer price depicted in the charts reflect the initial maximum sales charge applicable to A shares (4.20%) and all ongoing Fund expenses. The performance data quoted represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance shown. Annual Report Page 9 Nuveen Michigan Municipal Bond Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen Michigan Nuveen Michigan Lehman Municipal Municipal Brothers Bond Fund Bond Fund Municipal (NAV) (Offer) Bond Index ----- ------- ---------- 5/31/95 $10,000 $ 9,580 $10,000 6/30/95 9,882 9,467 9,913 7/31/95 9,947 9,529 10,007 8/31/95 10,056 9,633 10,134 9/30/95 10,120 9,695 10,198 10/31/95 10,283 9,851 10,346 11/30/95 10,480 10,040 10,518 12/31/95 10,617 10,171 10,619 1/31/96 10,655 10,207 10,699 2/29/96 10,583 10,139 10,627 3/31/96 10,397 9,960 10,491 4/30/96 10,343 9,909 10,461 5/31/96 10,363 9,928 10,457 6/30/96 10,473 10,033 10,571 7/31/96 10,575 10,131 10,667 8/31/96 10,587 10,142 10,665 9/30/96 10,753 10,301 10,814 10/31/96 10,866 10,410 10,937 11/30/96 11,053 10,589 11,137 12/31/96 11,018 10,555 11,184 1/31/97 11,023 10,560 11,205 2/28/97 11,119 10,652 11,308 3/31/97 10,978 10,517 11,157 4/30/97 11,074 10,609 11,251 5/31/97 11,238 10,766 11,420 6/30/97 11,355 10,878 11,542 7/31/97 11,684 11,194 11,862 8/31/97 11,550 11,065 11,750 9/30/97 11,677 11,187 11,890 10/31/97 11,776 11,282 11,966 11/30/97 11,836 11,339 12,037 12/31/97 12,003 11,499 12,213 1/31/98 12,103 11,595 12,338 2/28/98 12,113 11,604 12,342 3/31/98 12,133 11,624 12,353 4/30/98 12,063 11,556 12,298 5/31/98 12,245 11,731 12,492 6/30/98 12,295 11,779 12,541 7/31/98 12,316 11,799 12,572 8/31/98 12,490 11,965 12,767 9/30/98 12,643 12,112 12,926 10/31/98 12,623 12,093 12,926 11/30/98 12,665 12,133 12,972 12/31/98 12,681 12,149 13,004 1/31/99 12,775 12,239 13,159 2/28/99 12,712 12,179 13,101 3/31/99 12,723 12,188 13,119 4/30/99 12,753 12,218 13,152 5/31/99 12,666 12,134 13,076 6/30/99 12,494 11,969 12,888 7/31/99 12,504 11,979 12,934 8/31/99 12,330 11,813 12,830 9/30/99 12,297 11,781 12,836 10/31/99 12,110 11,602 12,697 11/30/99 12,185 11,673 12,832 12/31/99 12,041 11,536 12,735 1/31/00 11,907 11,407 12,681 2/29/00 12,094 11,586 12,828 3/31/00 12,371 11,851 13,109 4/30/00 12,278 11,762 13,031 5/31/00 12,185 11,673 12,964 6/30/00 12,499 11,974 13,307 7/31/00 12,690 12,157 13,492 8/31/00 12,881 12,340 13,700 9/30/00 12,798 12,260 13,629 10/31/00 12,922 12,379 13,777 11/30/00 12,954 12,410 13,882 12/31/00 13,288 12,730 14,225 1/31/01 13,355 12,794 14,366 2/28/01 13,446 12,881 14,411 3/31/01 13,572 13,002 14,541 4/30/01 13,404 12,841 14,384 5/31/01 13,580 13,009 14,539 6/30/2001 13,732 13,156 14,637 7/31/2001 13,945 13,360 14,854 8/31/2001 14,207 13,611 15,099 9/30/2001 14,157 13,562 15,047 10/31/2001 14,360 13,757 15,226 11/30/2001 14,234 13,636 15,098 12/31/2001 14,066 13,476 14,955 1/31/2002 14,296 13,695 15,214 2/28/2002 14,489 13,880 15,398 3/31/2002 14,162 13,568 15,096 4/30/2002 14,419 13,814 15,390 5/31/2002 14,490 13,881 15,484 6/30/2002 14,661 14,046 15,648 7/31/2002 14,833 14,210 15,849 8/31/2002 15,031 14,400 16,039 9/30/2002 15,382 14,736 16,391 10/31/2002 15,085 14,451 16,119 11/30/2002 15,055 14,422 16,052 12/31/2002 15,394 14,747 16,391 1/31/2003 15,325 14,681 16,349 2/28/2003 15,579 14,925 16,578 3/31/2003 15,523 14,871 16,588 4/30/2003 15,688 15,029 16,698 5/31/2003 15,998 15,326 17,088 6/30/2003 15,875 15,208 17,016 7/31/2003 15,302 14,659 16,420 8/31/2003 15,443 14,795 16,543 9/30/2003 15,811 15,147 17,029 10/31/2003 15,753 15,092 16,943 11/30/2003 15,936 15,266 17,120 12/31/2003 16,006 15,334 17,262 1/31/2004 16,095 15,419 17,361 2/29/2004 16,419 15,729 17,622 3/31/2004 16,371 15,683 17,561 4/30/2004 15,992 15,320 17,145 5/31/2004 15,955 15,285 17,083 6/30/2004 16,001 15,329 17,145 7/31/2004 16,230 15,548 17,370 8/31/2004 16,543 15,848 17,718 9/30/2004 16,632 15,934 17,813 10/31/2004 16,807 16,101 17,966 11/30/2004 16,639 15,940 17,818 12/31/2004 16,892 16,182 18,035 1/31/2005 17,079 16,362 18,204 2/28/2005 16,967 16,254 18,143 3/31/2005 16,839 16,132 18,029 4/30/2005 17,131 16,411 18,313 5/31/2005 17,307 16,580 18,443 ================================================================================ Nuveen Missouri Municipal Bond Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen Missouri Nuveen Missouri Lehman Municipal Municipal Brothers Bond Fund Bond Fund Municipal (NAV) (Offer) Bond Index ----- ------- ---------- 5/31/95 $10,000 $ 9,580 $10,000 6/30/95 9,887 9,472 9,913 7/31/95 9,943 9,526 10,007 8/31/95 10,057 9,634 10,134 9/30/95 10,131 9,706 10,198 10/31/95 10,283 9,851 10,346 11/30/95 10,454 10,015 10,518 12/31/95 10,568 10,124 10,619 1/31/96 10,625 10,179 10,699 2/29/96 10,562 10,119 10,627 3/31/96 10,357 9,922 10,491 4/30/96 10,304 9,872 10,461 5/31/96 10,351 9,916 10,457 6/30/96 10,455 10,016 10,571 7/31/96 10,542 10,099 10,667 8/31/96 10,560 10,116 10,665 9/30/96 10,715 10,265 10,814 10/31/96 10,822 10,368 10,937 11/30/96 11,019 10,557 11,137 12/31/96 10,976 10,515 11,184 1/31/97 10,974 10,513 11,205 2/28/97 11,083 10,617 11,308 3/31/97 10,956 10,496 11,157 4/30/97 11,056 10,592 11,251 5/31/97 11,208 10,737 11,420 6/30/97 11,329 10,853 11,542 7/31/97 11,658 11,169 11,862 8/31/97 11,539 11,055 11,750 9/30/97 11,672 11,182 11,890 10/31/97 11,753 11,259 11,966 11/30/97 11,823 11,327 12,037 12/31/97 12,002 11,498 12,213 1/31/98 12,105 11,597 12,338 2/28/98 12,101 11,593 12,342 3/31/98 12,130 11,621 12,353 4/30/98 12,072 11,565 12,298 5/31/98 12,252 11,737 12,492 6/30/98 12,302 11,786 12,541 7/31/98 12,331 11,813 12,572 8/31/98 12,513 11,987 12,767 9/30/98 12,652 12,121 12,926 10/31/98 12,625 12,095 12,926 11/30/98 12,677 12,145 12,972 12/31/98 12,695 12,162 13,004 1/31/99 12,802 12,264 13,159 2/28/99 12,763 12,227 13,101 3/31/99 12,758 12,222 13,119 4/30/99 12,810 12,272 13,152 5/31/99 12,737 12,202 13,076 6/30/99 12,560 12,033 12,888 7/31/99 12,578 12,050 12,934 8/31/99 12,422 11,900 12,830 9/30/99 12,382 11,862 12,836 10/31/99 12,179 11,668 12,697 11/30/99 12,244 11,729 12,832 12/31/99 12,143 11,633 12,735 1/31/00 12,032 11,526 12,681 2/29/00 12,180 11,669 12,828 3/31/00 12,413 11,892 13,109 4/30/00 12,372 11,852 13,031 5/31/00 12,294 11,778 12,964 6/30/00 12,555 12,027 13,307 7/31/00 12,733 12,198 13,492 8/31/00 12,900 12,358 13,700 9/30/00 12,847 12,308 13,629 10/31/00 12,979 12,434 13,777 11/30/00 13,061 12,513 13,882 12/31/00 13,355 12,794 14,225 1/31/01 13,439 12,874 14,366 2/28/01 13,510 12,943 14,411 3/31/01 13,619 13,047 14,541 4/30/01 13,489 12,923 14,384 5/31/01 13,638 13,065 14,539 6/30/2001 13,736 13,159 14,637 7/31/2001 13,924 13,339 14,854 8/31/2001 14,203 13,606 15,099 9/30/2001 14,134 13,540 15,047 10/31/2001 14,285 13,685 15,226 11/30/2001 14,188 13,592 15,098 12/31/2001 14,078 13,487 14,955 1/31/2002 14,256 13,657 15,214 2/28/2002 14,421 13,815 15,398 3/31/2002 14,177 13,582 15,096 4/30/2002 14,397 13,792 15,390 5/31/2002 14,483 13,875 15,484 6/30/2002 14,623 14,009 15,648 7/31/2002 14,777 14,156 15,849 8/31/2002 14,945 14,317 16,039 9/30/2002 15,209 14,570 16,391 10/31/2002 14,916 14,289 16,119 11/30/2002 14,879 14,254 16,052 12/31/2002 15,200 14,562 16,391 1/31/2003 15,122 14,487 16,349 2/28/2003 15,348 14,704 16,578 3/31/2003 15,353 14,708 16,588 4/30/2003 15,553 14,900 16,698 5/31/2003 15,877 15,211 17,088 6/30/2003 15,781 15,118 17,016 7/31/2003 15,163 14,526 16,420 8/31/2003 15,321 14,677 16,543 9/30/2003 15,735 15,074 17,029 10/31/2003 15,694 15,035 16,943 11/30/2003 15,881 15,214 17,120 12/31/2003 15,996 15,324 17,262 1/31/2004 16,082 15,407 17,361 2/29/2004 16,372 15,684 17,622 3/31/2004 16,299 15,615 17,561 4/30/2004 15,906 15,238 17,145 5/31/2004 15,833 15,168 17,083 6/30/2004 15,905 15,237 17,145 7/31/2004 16,112 15,435 17,370 8/31/2004 16,438 15,747 17,718 9/30/2004 16,526 15,832 17,813 10/31/2004 16,675 15,975 17,966 11/30/2004 16,525 15,831 17,818 12/31/2004 16,781 16,076 18,035 1/31/2005 16,978 16,264 18,204 2/28/2005 16,916 16,206 18,143 3/31/2005 16,779 16,075 18,029 4/30/2005 17,083 16,366 18,313 5/31/2005 17,250 16,526 18,443 The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes, that a shareholder may pay on Fund distributions or the redemption of shares. The index comparisons show the change in value of a $10,000 investment in the Class A shares of the Nuveen Funds compared with the Lehman Brothers Municipal Bond Index. Returns would be different for the other share classes. The Lehman Brothers Municipal Bond Index is an unmanaged index composed of a broad range of investment-grade municipal bonds. The index does not reflect any initial or ongoing expenses. You cannot invest directly in an index. The Nuveen Funds' returns include reinvestment of all dividends and distributions, and the Funds' returns at the offer price depicted in the charts reflect the initial maximum sales charge applicable to A shares (4.20%) and all ongoing Fund expenses. The performance data quoted represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance shown. Annual Report Page 10 Nuveen Ohio Municipal Bond Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen Ohio Nuveen Ohio Lehman Municipal Municipal Brothers Bond Fund Bond Fund Municipal (NAV) (Offer) Bond Index ----- ------- ---------- 5/31/1995 $10,000 $ 9,580 $10,000 6/30/1995 9,906 9,490 9,913 7/31/1995 9,971 9,553 10,007 8/31/1995 10,081 9,658 10,134 9/30/1995 10,137 9,711 10,198 10/31/1995 10,292 9,859 10,346 11/30/1995 10,473 10,033 10,518 12/31/1995 10,583 10,138 10,619 1/31/1996 10,612 10,167 10,699 2/29/1996 10,539 10,096 10,627 3/31/1996 10,377 9,941 10,491 4/30/1996 10,331 9,897 10,461 5/31/1996 10,360 9,925 10,457 6/30/1996 10,471 10,031 10,571 7/31/1996 10,565 10,121 10,667 8/31/1996 10,558 10,114 10,665 9/30/1996 10,698 10,249 10,814 10/31/1996 10,803 10,349 10,937 11/30/1996 10,973 10,512 11,137 12/31/1996 10,936 10,477 11,184 1/31/1997 10,939 10,479 11,205 2/28/1997 11,035 10,571 11,308 3/31/1997 10,901 10,443 11,157 4/30/1997 10,979 10,518 11,251 5/31/1997 11,125 10,658 11,420 6/30/1997 11,233 10,761 11,542 7/31/1997 11,517 11,033 11,862 8/31/1997 11,409 10,929 11,750 9/30/1997 11,527 11,043 11,890 10/31/1997 11,607 11,119 11,966 11/30/1997 11,667 11,177 12,037 12/31/1997 11,839 11,341 12,213 1/31/1998 11,958 11,456 12,338 2/28/1998 11,957 11,455 12,342 3/31/1998 11,987 11,483 12,353 4/30/1998 11,914 11,413 12,298 5/31/1998 12,097 11,589 12,492 6/30/1998 12,137 11,627 12,541 7/31/1998 12,168 11,656 12,572 8/31/1998 12,322 11,805 12,767 9/30/1998 12,467 11,944 12,926 10/31/1998 12,455 11,932 12,926 11/30/1998 12,506 11,981 12,972 12/31/1998 12,520 11,994 13,004 1/31/1999 12,635 12,104 13,159 2/28/1999 12,591 12,062 13,101 3/31/1999 12,600 12,070 13,119 4/30/1999 12,641 12,110 13,152 5/31/1999 12,574 12,046 13,076 6/30/1999 12,420 11,898 12,888 7/31/1999 12,417 11,896 12,934 8/31/1999 12,261 11,746 12,830 9/30/1999 12,203 11,690 12,836 10/31/1999 12,022 11,517 12,697 11/30/1999 12,108 11,599 12,832 12/31/1999 11,988 11,484 12,735 1/31/2000 11,928 11,427 12,681 2/29/2000 12,083 11,575 12,828 3/31/2000 12,317 11,799 13,109 4/30/2000 12,257 11,742 13,031 5/31/2000 12,173 11,662 12,964 6/30/2000 12,456 11,933 13,307 7/31/2000 12,637 12,107 13,492 8/31/2000 12,820 12,281 13,700 9/30/2000 12,770 12,234 13,629 10/31/2000 12,861 12,320 13,777 11/30/2000 12,940 12,397 13,882 12/31/2000 13,232 12,676 14,225 1/31/2001 13,312 12,753 14,366 2/28/2001 13,345 12,785 14,411 3/31/2001 13,450 12,885 14,541 4/30/2001 13,304 12,746 14,384 5/31/2001 13,396 12,834 14,539 6/30/2001 13,501 12,934 14,637 7/31/2001 13,702 13,127 14,854 8/31/2001 13,905 13,321 15,099 9/30/2001 13,803 13,223 15,047 10/31/2001 13,958 13,372 15,226 11/30/2001 13,866 13,283 15,098 12/31/2001 13,736 13,159 14,955 1/31/2002 13,941 13,355 15,214 2/28/2002 14,109 13,517 15,398 3/31/2002 13,828 13,247 15,096 4/30/2002 14,047 13,457 15,390 5/31/2002 14,142 13,548 15,484 6/30/2002 14,275 13,676 15,648 7/31/2002 14,460 13,852 15,849 8/31/2002 14,632 14,017 16,039 9/30/2002 14,972 14,343 16,391 10/31/2002 14,644 14,029 16,119 11/30/2002 14,599 13,985 16,052 12/31/2002 14,943 14,315 16,391 1/31/2003 14,858 14,234 16,349 2/28/2003 15,113 14,478 16,578 3/31/2003 15,106 14,472 16,588 4/30/2003 15,258 14,617 16,698 5/31/2003 15,648 14,991 17,088 6/30/2003 15,549 14,896 17,016 7/31/2003 14,915 14,289 16,420 8/31/2003 15,043 14,411 16,543 9/30/2003 15,479 14,829 17,029 10/31/2003 15,432 14,784 16,943 11/30/2003 15,656 14,998 17,120 12/31/2003 15,786 15,123 17,262 1/31/2004 15,833 15,168 17,361 2/29/2004 16,142 15,464 17,622 3/31/2004 16,052 15,378 17,561 4/30/2004 15,617 14,961 17,145 5/31/2004 15,552 14,899 17,083 6/30/2004 15,625 14,969 17,145 7/31/2004 15,853 15,187 17,370 8/31/2004 16,194 15,514 17,718 9/30/2004 16,283 15,599 17,813 10/31/2004 16,457 15,766 17,966 11/30/2004 16,291 15,607 17,818 12/31/2004 16,552 15,857 18,035 1/31/2005 16,742 16,039 18,204 2/28/2005 16,643 15,944 18,143 3/31/2005 16,515 15,821 18,029 4/30/2005 16,806 16,100 18,313 5/31/2005 16,952 16,240 18,443 ================================================================================ Nuveen Wisconsin Municipal Bond Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen Wisconsin Nuveen Wisconsin Lehman Municipal Municipal Brothers Bond Fund Bond Fund Municipal (NAV) (Offer) Bond Index ----- ------- ---------- 5/31/95 $10,000 $ 9,580 $10,000 6/30/95 9,859 9,445 9,913 7/31/95 9,974 9,555 10,007 8/31/95 10,080 9,657 10,134 9/30/95 10,144 9,718 10,198 10/31/95 10,303 9,870 10,346 11/30/95 10,472 10,032 10,518 12/31/95 10,622 10,175 10,619 1/31/96 10,646 10,199 10,699 2/29/96 10,562 10,118 10,627 3/31/96 10,342 9,908 10,491 4/30/96 10,301 9,868 10,461 5/31/96 10,336 9,902 10,457 6/30/96 10,434 9,996 10,571 7/31/96 10,524 10,082 10,667 8/31/96 10,505 10,064 10,665 9/30/96 10,648 10,200 10,814 10/31/96 10,761 10,309 10,937 11/30/96 10,927 10,468 11,137 12/31/96 10,886 10,429 11,184 1/31/97 10,889 10,432 11,205 2/28/97 10,981 10,519 11,308 3/31/97 10,849 10,393 11,157 4/30/97 10,941 10,481 11,251 5/31/97 11,101 10,635 11,420 6/30/97 11,194 10,724 11,542 7/31/97 11,560 11,075 11,862 8/31/97 11,403 10,924 11,750 9/30/97 11,554 11,069 11,890 10/31/97 11,649 11,160 11,966 11/30/97 11,721 11,229 12,037 12/31/97 11,910 11,410 12,213 1/31/98 12,063 11,556 12,338 2/28/98 12,064 11,557 12,342 3/31/98 12,088 11,580 12,353 4/30/98 11,995 11,491 12,298 5/31/98 12,234 11,720 12,492 6/30/98 12,270 11,755 12,541 7/31/98 12,294 11,777 12,572 8/31/98 12,498 11,973 12,767 9/30/98 12,690 12,157 12,926 10/31/98 12,642 12,111 12,926 11/30/98 12,690 12,157 12,972 12/31/98 12,690 12,157 13,004 1/31/99 12,809 12,271 13,159 2/28/99 12,758 12,222 13,101 3/31/99 12,768 12,232 13,119 4/30/99 12,803 12,265 13,152 5/31/99 12,702 12,168 13,076 6/30/99 12,463 11,939 12,888 7/31/99 12,448 11,925 12,934 8/31/99 12,230 11,716 12,830 9/30/99 12,137 11,627 12,836 10/31/99 11,868 11,369 12,697 11/30/99 11,965 11,462 12,832 12/31/99 11,828 11,332 12,735 1/31/00 11,734 11,242 12,681 2/29/00 11,961 11,459 12,828 3/31/00 12,292 11,776 13,109 4/30/00 12,197 11,685 13,031 5/31/00 12,062 11,556 12,964 6/30/00 12,449 11,927 13,307 7/31/00 12,681 12,148 13,492 8/31/00 12,900 12,358 13,700 9/30/00 12,816 12,277 13,629 10/31/00 12,930 12,387 13,777 11/30/00 13,020 12,473 13,882 12/31/00 13,403 12,840 14,225 1/31/01 13,466 12,900 14,366 2/28/01 13,569 12,999 14,411 3/31/01 13,660 13,086 14,541 4/30/01 13,466 12,900 14,384 5/31/01 13,611 13,040 14,539 6/30/2001 13,730 13,153 14,637 7/31/2001 13,972 13,386 14,854 8/31/2001 14,202 13,606 15,099 9/30/2001 14,101 13,509 15,047 10/31/2001 14,249 13,651 15,226 11/30/2001 14,134 13,540 15,098 12/31/2001 13,976 13,389 14,955 1/31/2002 14,168 13,573 15,214 2/28/2002 14,375 13,771 15,398 3/31/2002 14,074 13,483 15,096 4/30/2002 14,311 13,710 15,390 5/31/2002 14,463 13,856 15,484 6/30/2002 14,616 14,002 15,648 7/31/2002 14,783 14,162 15,849 8/31/2002 14,980 14,351 16,039 9/30/2002 15,278 14,637 16,391 10/31/2002 14,883 14,258 16,119 11/30/2002 14,865 14,240 16,052 12/31/2002 15,239 14,599 16,391 1/31/2003 15,118 14,483 16,349 2/28/2003 15,319 14,676 16,578 3/31/2003 15,285 14,643 16,588 4/30/2003 15,473 14,823 16,698 5/31/2003 15,824 15,160 17,088 6/30/2003 15,745 15,084 17,016 7/31/2003 15,188 14,550 16,420 8/31/2003 15,304 14,661 16,543 9/30/2003 15,720 15,060 17,029 10/31/2003 15,686 15,027 16,943 11/30/2003 15,831 15,166 17,120 12/31/2003 15,947 15,277 17,262 1/31/2004 16,033 15,359 17,361 2/29/2004 16,317 15,632 17,622 3/31/2004 16,219 15,538 17,561 4/30/2004 15,843 15,178 17,145 5/31/2004 15,773 15,110 17,083 6/30/2004 15,842 15,177 17,145 7/31/2004 16,067 15,392 17,370 8/31/2004 16,371 15,683 17,718 9/30/2004 16,441 15,751 17,813 10/31/2004 16,574 15,878 17,966 11/30/2004 16,409 15,719 17,818 12/31/2004 16,653 15,954 18,035 1/31/2005 16,835 16,128 18,204 2/28/2005 16,762 16,058 18,143 3/31/2005 16,625 15,927 18,029 4/30/2005 16,889 16,180 18,313 5/31/2005 17,026 16,311 18,443 The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes, that a shareholder may pay on Fund distributions or the redemption of shares. The index comparisons show the change in value of a $10,000 investment in the Class A shares of the Nuveen Funds compared with the Lehman Brothers Municipal Bond Index. Returns would be different for the other share classes. The Lehman Brothers Municipal Bond Index is an unmanaged index composed of a broad range of investment-grade municipal bonds. The index does not reflect any initial or ongoing expenses. You cannot invest directly in an index. The Nuveen Funds' returns include reinvestment of all dividends and distributions, and the Funds' returns at the offer price depicted in the charts reflect the initial maximum sales charge applicable to A shares (4.20%) and all ongoing Fund expenses. The performance data quoted represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance shown. Annual Report Page 11 Fund Spotlight as of 5/31/05 Nuveen Kansas Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------- NAV $10.66 $10.58 $10.67 $10.71 -------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0345 $0.0280 $0.0300 $0.0365 -------------------------------------------------------------- Inception Date 1/09/92 2/19/97 2/11/97 2/25/97 --------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Classes B and C) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05 A Shares NAV Offer --------------------------------------------- 1-Year 8.95% 4.35% --------------------------------------------- 5-Year 7.11% 6.19% --------------------------------------------- 10-Year 5.64% 5.19% --------------------------------------------- B Shares w/o CDSC w/CDSC --------------------------------------------- 1-Year 8.21% 4.21% --------------------------------------------- 5-Year 6.32% 6.16% --------------------------------------------- 10-Year 4.99% 4.99% --------------------------------------------- C Shares NAV --------------------------------------------- 1-Year 8.39% --------------------------------------------- 5-Year 6.52% --------------------------------------------- 10-Year 5.13% --------------------------------------------- R Shares NAV --------------------------------------------- 1-Year 9.26% --------------------------------------------- 5-Year 7.32% --------------------------------------------- 10-Year 5.88% --------------------------------------------- Tax-Free Yields A Shares NAV Offer --------------------------------------------- Dividend Yield/2/ 3.88% 3.72% --------------------------------------------- SEC 30-Day Yield/3/ 3.37% 3.22% --------------------------------------------- Taxable-Equivalent Yield/3,4/ 4.99% 4.77% --------------------------------------------- B Shares NAV --------------------------------------------- Dividend Yield/2/ 3.18% --------------------------------------------- SEC 30-Day Yield 2.62% --------------------------------------------- Taxable-Equivalent Yield/4/ 3.88% --------------------------------------------- C Shares NAV --------------------------------------------- Dividend Yield/2/ 3.37% --------------------------------------------- SEC 30-Day Yield 2.82% --------------------------------------------- Taxable-Equivalent Yield/4/ 4.18% --------------------------------------------- R Shares NAV --------------------------------------------- Dividend Yield/2/ 4.09% --------------------------------------------- SEC 30-Day Yield 3.57% --------------------------------------------- Taxable-Equivalent Yield/4/ 5.29% ---------------------------------------------
Average Annual Total Returns as of 6/30/05 A Shares NAV Offer ------------------------------------------ 1-Year 9.10% 4.50% ------------------------------------------ 5-Year 6.68% 5.77% ------------------------------------------ 10-Year 5.82% 5.37% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 8.37% 4.37% ------------------------------------------ 5-Year 5.90% 5.74% ------------------------------------------ 10-Year 5.16% 5.16% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 8.54% ------------------------------------------ 5-Year 6.10% ------------------------------------------ 10-Year 5.30% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 9.31% ------------------------------------------ 5-Year 6.92% ------------------------------------------ 10-Year 6.05% ------------------------------------------
Portfolio Statistics Net Assets ($000) $132,176 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.76 --------------------------------------------------------- Average Duration 6.02 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared during the period ended May 31, 2005. 2Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the Fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 4The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis at a specified tax rate. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.5%. Annual Report Page 12 Fund Spotlight as of 5/31/05 Nuveen Kansas Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 63.4% AA 17.0% A 9.9% BBB 6.7% NR 3.0% Sectors/1/ Tax Obligation/Limited 25.2% --------------------------------------- Tax Obligation/General 18.5% --------------------------------------- Healthcare 18.0% --------------------------------------- U.S. Guaranteed 9.9% --------------------------------------- Water and Sewer 7.3% --------------------------------------- Utilities 4.6% --------------------------------------- Education and Civic Organizations 4.3% --------------------------------------- Other 12.2% ---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to change. -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ------------------------------------------------------------------------------------------------------------------ Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ------------------------------------------------------------------------------------------------------------------ Ending Account Value (5/31/05) $1,041.80 $1,038.30 $1,039.10 $1,042.80 $1,020.64 $1,016.95 $1,017.90 $1,021.59 ------------------------------------------------------------------------------------------------------------------ Expenses Incurred During Period $ 4.38 $ 8.13 $ 7.17 $ 3.41 $ 4.33 $ 8.05 $ 7.09 $ 3.38 ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .86%, 1.60%, 1.41% and .67% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Annual Report Page 13 Fund Spotlight as of 5/31/05 Nuveen Kentucky Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------- NAV $11.30 $11.31 $11.29 $11.29 -------------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0380 $0.0310 $0.0325 $0.0395 -------------------------------------------------------------------- Latest Capital Gain and Ordinary Income Distribution/2/ $0.0062 $0.0062 $0.0062 $0.0062 -------------------------------------------------------------------- Inception Date 5/04/87 2/05/97 10/04/93 2/07/97 --------------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A and C share returns are actual. Class B and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Class B) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05 A Shares NAV Offer --------------------------------------------- 1-Year 8.51% 3.93% --------------------------------------------- 5-Year 6.96% 6.05% --------------------------------------------- 10-Year 5.56% 5.11% --------------------------------------------- B Shares w/o CDSC w/CDSC --------------------------------------------- 1-Year 7.80% 3.80% --------------------------------------------- 5-Year 6.18% 6.02% --------------------------------------------- 10-Year 4.96% 4.96% --------------------------------------------- C Shares NAV --------------------------------------------- 1-Year 7.91% --------------------------------------------- 5-Year 6.38% --------------------------------------------- 10-Year 4.98% --------------------------------------------- R Shares NAV --------------------------------------------- 1-Year 8.70% --------------------------------------------- 5-Year 7.19% --------------------------------------------- 10-Year 5.71% --------------------------------------------- Tax-Free Yields A Shares NAV Offer --------------------------------------------- Dividend Yield/3/ 4.04% 3.86% --------------------------------------------- SEC 30-Day Yield/4/ 3.35% 3.20% --------------------------------------------- Taxable-Equivalent Yield/4,5/ 4.96% 4.74% --------------------------------------------- B Shares NAV --------------------------------------------- Dividend Yield/3/ 3.29% --------------------------------------------- SEC 30-Day Yield 2.60% --------------------------------------------- Taxable-Equivalent Yield/5/ 3.85% --------------------------------------------- C Shares NAV --------------------------------------------- Dividend Yield/3/ 3.45% --------------------------------------------- SEC 30-Day Yield 2.80% --------------------------------------------- Taxable-Equivalent Yield/5/ 4.15% --------------------------------------------- R Shares NAV --------------------------------------------- Dividend Yield/3/ 4.20% --------------------------------------------- SEC 30-Day Yield 3.54% --------------------------------------------- Taxable-Equivalent Yield/5/ 5.24% ---------------------------------------------
Average Annual Total Returns as of 6/30/05 A Shares NAV Offer ------------------------------------------ 1-Year 8.74% 4.15% ------------------------------------------ 5-Year 6.66% 5.75% ------------------------------------------ 10-Year 5.72% 5.28% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 8.02% 4.02% ------------------------------------------ 5-Year 5.89% 5.73% ------------------------------------------ 10-Year 5.13% 5.13% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 8.13% ------------------------------------------ 5-Year 6.08% ------------------------------------------ 10-Year 5.15% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 8.93% ------------------------------------------ 5-Year 6.87% ------------------------------------------ 10-Year 5.88% ------------------------------------------
Portfolio Statistics Net Assets ($000) $496,063 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.55 --------------------------------------------------------- Average Duration 5.49 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared during the period ended May 31, 2005. 2Paid December 3, 2004. Capital gains and/or ordinary income are subject to federal taxation. 3Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the Fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 4The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 5The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis at a specified tax rate. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.5%. Annual Report Page 14 Fund Spotlight as of 5/31/05 Nuveen Kentucky Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 66.7% AA 9.0% A 9.1% BBB 12.3% BB or Lower 1.2% NR 1.7% Sectors/1/ Tax Obligation/Limited 31.0% --------------------------------------- U.S. Guaranteed 12.6% --------------------------------------- Healthcare 11.6% --------------------------------------- Utilities 8.7% --------------------------------------- Water and Sewer 8.4% --------------------------------------- Transportation 5.4% --------------------------------------- Education and Civic Organizations 4.9% --------------------------------------- Housing Single Family 4.4% --------------------------------------- Other 13.0% ---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to change. -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ------------------------------------------------------------------------------------------------------------------ Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ------------------------------------------------------------------------------------------------------------------ Ending Account Value (5/31/05) $1,041.90 $1,038.00 $1,038.90 $1,042.80 $1,020.89 $1,017.20 $1,018.15 $1,021.84 ------------------------------------------------------------------------------------------------------------------ Expenses Incurred During Period $ 4.12 $ 7.88 $ 6.91 $ 3.16 $ 4.08 $ 7.80 $ 6.84 $ 3.13 ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .81%, 1.55%, 1.36% and .62% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Annual Report Page 15 Fund Spotlight as of 5/31/05 Nuveen Michigan Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------- NAV $11.89 $11.92 $11.88 $11.89 -------------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0415 $0.0340 $0.0360 $0.0435 -------------------------------------------------------------------- Latest Capital Gain and Ordinary Income Distribution/2/ $0.0059 $0.0059 $0.0059 $0.0059 -------------------------------------------------------------------- Inception Date 6/27/85 2/03/97 6/22/93 2/03/97 --------------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A and C share returns are actual. Class B and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Class B) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05 A Shares NAV Offer --------------------------------------------- 1-Year 8.48% 3.95% --------------------------------------------- 5-Year 7.27% 6.36% --------------------------------------------- 10-Year 5.64% 5.18% --------------------------------------------- B Shares w/o CDSC w/CDSC --------------------------------------------- 1-Year 7.73% 3.73% --------------------------------------------- 5-Year 6.47% 6.31% --------------------------------------------- 10-Year 5.05% 5.05% --------------------------------------------- C Shares NAV --------------------------------------------- 1-Year 7.98% --------------------------------------------- 5-Year 6.68% --------------------------------------------- 10-Year 5.06% --------------------------------------------- R Shares NAV --------------------------------------------- 1-Year 8.70% --------------------------------------------- 5-Year 7.48% --------------------------------------------- 10-Year 5.81% --------------------------------------------- Tax-Free Yields A Shares NAV Offer --------------------------------------------- Dividend Yield/3/ 4.19% 4.01% --------------------------------------------- SEC 30-Day Yield/4/ 3.37% 3.23% --------------------------------------------- Taxable-Equivalent Yield/4,5/ 4.88% 4.68% --------------------------------------------- B Shares NAV --------------------------------------------- Dividend Yield/3/ 3.42% --------------------------------------------- SEC 30-Day Yield 2.62% --------------------------------------------- Taxable-Equivalent Yield/5/ 3.80% --------------------------------------------- C Shares NAV --------------------------------------------- Dividend Yield/3/ 3.64% --------------------------------------------- SEC 30-Day Yield 2.82% --------------------------------------------- Taxable-Equivalent Yield/5/ 4.09% --------------------------------------------- R Shares NAV --------------------------------------------- Dividend Yield/3/ 4.39% --------------------------------------------- SEC 30-Day Yield 3.57% --------------------------------------------- Taxable-Equivalent Yield/5/ 5.17% ---------------------------------------------
Average Annual Total Returns as of 6/30/05 A Shares NAV Offer ------------------------------------------ 1-Year 8.91% 4.35% ------------------------------------------ 5-Year 6.87% 5.96% ------------------------------------------ 10-Year 5.83% 5.38% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 7.97% 3.97% ------------------------------------------ 5-Year 6.06% 5.90% ------------------------------------------ 10-Year 5.25% 5.25% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 8.31% ------------------------------------------ 5-Year 6.28% ------------------------------------------ 10-Year 5.25% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 9.03% ------------------------------------------ 5-Year 7.08% ------------------------------------------ 10-Year 6.00% ------------------------------------------
Portfolio Statistics Net Assets ($000) $252,300 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.35 --------------------------------------------------------- Average Duration 5.63 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared during the period ended May 31, 2005. 2Paid December 3, 2004. Capital gains and/or ordinary income are subject to federal taxation. 3Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the Fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 4The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 5The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis at a specified tax rate. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 31%. Annual Report Page 16 Fund Spotlight as of 5/31/05 Nuveen Michigan Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 73.9% AA 10.3% A 5.2% BBB 5.6% BB or Lower 3.1% NR 1.9% Sectors/1/ Tax Obligation/General 32.2% ---------------------------- U.S. Guaranteed 17.7% ---------------------------- Tax Obligation/Limited 15.5% ---------------------------- Healthcare 11.0% ---------------------------- Water and Sewer 7.5% ---------------------------- Utilities 4.3% ---------------------------- Other 11.8% ----------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to change. -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ------------------------------------------------------------------------------------------------------------------ Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ------------------------------------------------------------------------------------------------------------------ Ending Account Value (5/31/05) $1,040.20 $1,037.00 $1,037.30 $1,041.20 $1,020.64 $1,017.00 $1,017.95 $1,021.64 ------------------------------------------------------------------------------------------------------------------ Expenses Incurred During Period $ 4.37 $ 8.07 $ 7.11 $ 3.36 $ 4.33 $ 8.00 $ 7.04 $ 3.33 ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .86%, 1.59%, 1.40% and .66% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Annual Report Page 17 Fund Spotlight as of 5/31/05 Nuveen Missouri Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------- NAV $11.25 $11.26 $11.24 $11.26 -------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0400 $0.0330 $0.0350 $0.0420 -------------------------------------------------------------- Inception Date 8/03/87 2/06/97 2/02/94 2/19/97 --------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A and C share returns are actual. Class B and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Class B) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05 A Shares NAV Offer --------------------------------------------- 1-Year 8.97% 4.42% --------------------------------------------- 5-Year 7.01% 6.09% --------------------------------------------- 10-Year 5.61% 5.15% --------------------------------------------- B Shares w/o CDSC w/CDSC --------------------------------------------- 1-Year 8.15% 4.15% --------------------------------------------- 5-Year 6.22% 6.06% --------------------------------------------- 10-Year 5.01% 5.01% --------------------------------------------- C Shares NAV --------------------------------------------- 1-Year 8.39% --------------------------------------------- 5-Year 6.43% --------------------------------------------- 10-Year 5.02% --------------------------------------------- R Shares NAV --------------------------------------------- 1-Year 9.20% --------------------------------------------- 5-Year 7.22% --------------------------------------------- 10-Year 5.78% --------------------------------------------- Tax-Free Yields A Shares NAV Offer --------------------------------------------- Dividend Yield/2/ 4.27% 4.09% --------------------------------------------- SEC 30-Day Yield/3/ 3.67% 3.52% --------------------------------------------- Taxable-Equivalent Yield/3,4/ 5.44% 5.21% --------------------------------------------- B Shares NAV --------------------------------------------- Dividend Yield/2/ 3.52% --------------------------------------------- SEC 30-Day Yield 2.92% --------------------------------------------- Taxable-Equivalent Yield/4/ 4.33% --------------------------------------------- C Shares NAV --------------------------------------------- Dividend Yield/2/ 3.74% --------------------------------------------- SEC 30-Day Yield 3.12% --------------------------------------------- Taxable-Equivalent Yield/4/ 4.62% --------------------------------------------- R Shares NAV --------------------------------------------- Dividend Yield/2/ 4.48% --------------------------------------------- SEC 30-Day Yield 3.87% --------------------------------------------- Taxable-Equivalent Yield/4/ 5.73% ---------------------------------------------
Average Annual Total Returns as of 6/30/05 A Shares NAV Offer ------------------------------------------ 1-Year 9.05% 4.50% ------------------------------------------ 5-Year 6.68% 5.77% ------------------------------------------ 10-Year 5.78% 5.33% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 8.32% 4.32% ------------------------------------------ 5-Year 5.91% 5.75% ------------------------------------------ 10-Year 5.19% 5.19% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 8.47% ------------------------------------------ 5-Year 6.10% ------------------------------------------ 10-Year 5.21% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 9.27% ------------------------------------------ 5-Year 6.88% ------------------------------------------ 10-Year 5.96% ------------------------------------------
Portfolio Statistics Net Assets ($000) $261,883 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 17.65 --------------------------------------------------------- Average Duration 5.68 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared during the period ended May 31, 2005. 2Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the Fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 4The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis at a specified tax rate. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.5%. Annual Report Page 18 Fund Spotlight as of 5/31/05 Nuveen Missouri Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 58.2% AA 12.0% A 5.9% BBB 7.8% NR 16.1% Sectors/1/ Tax Obligation/Limited 19.0% --------------------------------------- Tax Obligation/General 14.5% --------------------------------------- Long-Term Care 10.6% --------------------------------------- Healthcare 9.7% --------------------------------------- Education and Civic Organizations 8.4% --------------------------------------- Housing/Multifamily 8.3% --------------------------------------- Transportation 7.0% --------------------------------------- Water and Sewer 5.5% --------------------------------------- Utilities 5.1% --------------------------------------- Other 11.9% ---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to change. -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ------------------------------------------------------------------------------------------------------------------ Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ------------------------------------------------------------------------------------------------------------------ Ending Account Value (5/31/05) $1,044.00 $1,040.00 $1,040.30 $1,044.10 $1,020.79 $1,017.10 $1,018.10 $1,021.79 ------------------------------------------------------------------------------------------------------------------ Expenses Incurred During Period $ 4.23 $ 7.99 $ 6.97 $ 3.21 $ 4.18 $ 7.90 $ 6.89 $ 3.18 ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .83%, 1.57%, 1.37% and .63% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Annual Report Page 19 Fund Spotlight as of 5/31/05 Nuveen Ohio Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------- NAV $11.65 $11.64 $11.63 $11.64 -------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0410 $0.0340 $0.0360 $0.0430 -------------------------------------------------------------- Inception Date 6/27/85 2/03/97 8/03/93 2/03/97 --------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A and C share returns are actual. Class B and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Class B) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05 A Shares NAV Offer --------------------------------------------- 1-Year 9.00% 4.42% --------------------------------------------- 5-Year 6.85% 5.93% --------------------------------------------- 10-Year 5.42% 4.97% --------------------------------------------- B Shares w/o CDSC w/CDSC --------------------------------------------- 1-Year 8.22% 4.22% --------------------------------------------- 5-Year 6.05% 5.90% --------------------------------------------- 10-Year 4.83% 4.83% --------------------------------------------- C Shares NAV --------------------------------------------- 1-Year 8.45% --------------------------------------------- 5-Year 6.27% --------------------------------------------- 10-Year 4.85% --------------------------------------------- R Shares NAV --------------------------------------------- 1-Year 9.24% --------------------------------------------- 5-Year 7.06% --------------------------------------------- 10-Year 5.60% --------------------------------------------- Tax-Free Yields A Shares NAV Offer --------------------------------------------- Dividend Yield/2/ 4.22% 4.05% --------------------------------------------- SEC 30-Day Yield/3/ 3.29% 3.15% --------------------------------------------- Taxable-Equivalent Yield/3,4/ 4.91% 4.70% --------------------------------------------- B Shares NAV --------------------------------------------- Dividend Yield/2/ 3.51% --------------------------------------------- SEC 30-Day Yield 2.54% --------------------------------------------- Taxable-Equivalent Yield/4/ 3.79% --------------------------------------------- C Shares NAV --------------------------------------------- Dividend Yield/2/ 3.71% --------------------------------------------- SEC 30-Day Yield 2.74% --------------------------------------------- Taxable-Equivalent Yield/4/ 4.09% --------------------------------------------- R Shares NAV --------------------------------------------- Dividend Yield/2/ 4.43% --------------------------------------------- SEC 30-Day Yield 3.48% --------------------------------------------- Taxable-Equivalent Yield/4/ 5.19% ---------------------------------------------
Average Annual Total Returns as of 6/30/05 A Shares NAV Offer ------------------------------------------ 1-Year 9.15% 4.56% ------------------------------------------ 5-Year 6.49% 5.58% ------------------------------------------ 10-Year 5.58% 5.13% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 8.37% 4.37% ------------------------------------------ 5-Year 5.70% 5.54% ------------------------------------------ 10-Year 4.98% 4.98% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 8.51% ------------------------------------------ 5-Year 5.90% ------------------------------------------ 10-Year 5.01% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 9.29% ------------------------------------------ 5-Year 6.70% ------------------------------------------ 10-Year 5.75% ------------------------------------------
Portfolio Statistics Net Assets ($000) $568,958 --------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.31 --------------------------------------------------------- Average Duration 5.77 ---------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared during the period ended May 31, 2005. 2Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the Fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 4The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis at a specified tax rate. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 33%. Annual Report Page 20 Fund Spotlight as of 5/31/05 Nuveen Ohio Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 65.0% AA 18.8% A 5.7% BBB 7.7% BB or Lower 0.2% NR 2.6% Sectors/1/ Tax Obligation/General 24.2% --------------------------------------- Healthcare 16.9% --------------------------------------- U.S. Guaranteed 12.6% --------------------------------------- Tax Obligation/Limited 11.6% --------------------------------------- Utilities 7.7% --------------------------------------- Education and Civic Organizations 7.1% --------------------------------------- Water and Sewer 5.0% --------------------------------------- Transportation 4.4% --------------------------------------- Other 10.5% ---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to change. -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ------------------------------------------------------------------------------------------------------------------ Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ------------------------------------------------------------------------------------------------------------------ Ending Account Value (5/31/05) $1,040.50 $1,036.80 $1,037.90 $1,041.70 $1,020.79 $1,017.10 $1,018.10 $1,021.79 ------------------------------------------------------------------------------------------------------------------ Expenses Incurred During Period $ 4.22 $ 7.97 $ 6.96 $ 3.21 $ 4.18 $ 7.90 $ 6.89 $ 3.18 ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .83%, 1.57%, 1.37% and .63% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Annual Report Page 21 Fund Spotlight as of 5/31/05 Nuveen Wisconsin Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------- NAV $10.54 $10.57 $10.57 $10.59 -------------------------------------------------------------- Latest Monthly Dividend/1/ $0.0345 $0.0280 $0.0300 $0.0365 -------------------------------------------------------------- Inception Date 6/01/94 2/25/97 2/25/97 2/25/97 --------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future results. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and (in the case of Classes B and C) expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Average Annual Total Returns as of 5/31/05 A Shares NAV Offer --------------------------------------------- 1-Year 7.94% 3.36% --------------------------------------------- 5-Year 7.13% 6.21% --------------------------------------------- 10-Year 5.46% 5.01% --------------------------------------------- B Shares w/o CDSC w/CDSC --------------------------------------------- 1-Year 7.25% 3.25% --------------------------------------------- 5-Year 6.36% 6.20% --------------------------------------------- 10-Year 4.89% 4.89% --------------------------------------------- C Shares NAV --------------------------------------------- 1-Year 7.47% --------------------------------------------- 5-Year 6.58% --------------------------------------------- 10-Year 4.96% --------------------------------------------- R Shares NAV --------------------------------------------- 1-Year 8.25% --------------------------------------------- 5-Year 7.36% --------------------------------------------- 10-Year 5.68% --------------------------------------------- Tax-Free Yields A Shares NAV Offer --------------------------------------------- Dividend Yield/2/ 3.93% 3.76% --------------------------------------------- SEC 30-Day Yield/3/ 3.27% 3.13% --------------------------------------------- Taxable-Equivalent Yield/3,4/ 4.88% 4.67% --------------------------------------------- B Shares NAV --------------------------------------------- Dividend Yield/2/ 3.18% --------------------------------------------- SEC 30-Day Yield 2.52% --------------------------------------------- Taxable-Equivalent Yield/4/ 3.76% --------------------------------------------- C Shares NAV --------------------------------------------- Dividend Yield/2/ 3.41% --------------------------------------------- SEC 30-Day Yield 2.72% --------------------------------------------- Taxable-Equivalent Yield/4/ 4.06% --------------------------------------------- R Shares NAV --------------------------------------------- Dividend Yield/2/ 4.14% --------------------------------------------- SEC 30-Day Yield 3.46% --------------------------------------------- Taxable-Equivalent Yield/4/ 5.16% ---------------------------------------------
Average Annual Total Returns as of 6/30/05 A Shares NAV Offer ------------------------------------------ 1-Year 8.02% 3.44% ------------------------------------------ 5-Year 6.57% 5.65% ------------------------------------------ 10-Year 5.67% 5.22% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 7.23% 3.23% ------------------------------------------ 5-Year 5.78% 5.62% ------------------------------------------ 10-Year 5.11% 5.11% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 7.55% ------------------------------------------ 5-Year 6.02% ------------------------------------------ 10-Year 5.16% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 8.34% ------------------------------------------ 5-Year 6.82% ------------------------------------------ 10-Year 5.89% ------------------------------------------
Portfolio Statistics Net Assets ($000) $45,784 -------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.29 -------------------------------------------------------- Average Duration 5.61 --------------------------------------------------------
-------------------------------------------------------------------------------- 1Paid June 1, 2005. This is the latest monthly tax-exempt dividend declared during the period ended May 31, 2005. 2Dividend Yield is the most recent dividend per share (annualized) divided by the appropriate price per share. The SEC 30-Day Yield is a standardized measure of the current market yield on the Fund's portfolio and is based on the maximum offer price per share. The Dividend Yield also differs from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium. 3The SEC 30-Day Yield and Taxable Equivalent Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund's policy permitting waiver of the A Share load in certain specified circumstances. 4The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield on the Nuveen Investments Fund on an after-tax basis at a specified tax rate. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is based on the Fund's SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 33%. Annual Report Page 22 Fund Spotlight as of 5/31/05 Nuveen Wisconsin Municipal Bond Fund ================================================================================ Bond Credit Quality/1/ [CHART] AAA/U.S. Guaranteed 50.6% AA 13.9% A 14.2% BBB 5.1% BB or Lower 0.6% NR 15.6% Sectors/1/ Tax Obligation/Limited 65.7% --------------------------------------- U.S. Guaranteed 12.6% --------------------------------------- Housing/Multifamily 10.0% --------------------------------------- Education and Civic Organizations 5.9% --------------------------------------- Other 5.8% ---------------------------------------
1As a percentage of total holdings as of May 31, 2005. Holdings are subject to change. -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% annualized return before expenses) --------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares ------------------------------------------------------------------------------------------------------------------ Beginning Account Value (12/01/04) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 ------------------------------------------------------------------------------------------------------------------ Ending Account Value (5/31/05) $1,037.60 $1,034.70 $1,034.90 $1,038.60 $1,020.39 $1,016.75 $1,017.70 $1,021.39 ------------------------------------------------------------------------------------------------------------------ Expenses Incurred During Period $ 4.62 $ 8.32 $ 7.36 $ 3.61 $ 4.58 $ 8.25 $ 7.29 $ 3.58 ------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized net expense ratio of .91%, 1.64%, 1.45% and .71% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Annual Report Page 23 Portfolio of Investments NUVEEN KANSAS MUNICIPAL BOND FUND May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 4.2% $ 1,000 Kansas Development Finance Authority, Athletic Facility 6/14 at 100.00 A1 $ 1,067,940 Revenue Bonds, University of Kansas Athletic Corporation Project, Series 2004K, 5.000%, 6/01/19 1,480 Kansas Development Finance Authority, Board of Regents, 4/15 at 100.00 AAA 1,601,153 Revenue Bonds, Kansas State University Housing System, Series 2005A, 5.000%, 4/01/22 - MBIA Insured 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 1,561,710 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 955 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 1,037,092 Series 2001A, 5.500%, 7/01/16 - AMBAC Insured 270 Washburn University of Topeka, Kansas, Revenue Bonds, 7/09 at 100.00 AAA 293,209 Series 2001B, 5.500%, 7/01/16 - AMBAC Insured -------------------------------------------------------------------------------------------------------------------- Healthcare - 17.7% Coffeyville Public Building Commission, Kansas, Healthcare Facilities Revenue Bonds, Coffeyville Regional Medical Center, Series 2002: 1,005 5.000%, 8/01/18 - AMBAC Insured 8/12 at 100.00 AAA 1,070,255 1,050 5.000%, 8/01/19 - AMBAC Insured 8/12 at 100.00 AAA 1,114,134 1,000 5.000%, 8/01/20 - AMBAC Insured 8/12 at 100.00 AAA 1,059,800 2,000 Colby, Kansas, Health Facilities Revenue Refunding Bonds, 8/08 at 100.00 N/R 1,978,380 Citizens Medical Center Inc., Series 1998, 5.625%, 8/15/16 1,285 Kansas Development Finance Authority, Hospital Revenue 12/12 at 100.00 AA 1,397,258 Bonds, Susan B. Allen Memorial Hospital, Series 2002Q, 5.375%, 12/15/16 - RAAI Insured 4,580 Kansas Development Finance Authority, Health Facilities 6/10 at 101.00 AA 5,178,469 Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2000K, 6.500%, 12/01/16 1,110 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial 7/09 at 100.00 AA 1,188,732 Hospital, Series 1999, 5.750%, 7/01/24 - RAAI Insured Manhattan, Kansas, Hospital Revenue Bonds, Mercy Health Center, Series 2001: 1,025 5.000%, 8/15/14 - FSA Insured 8/11 at 100.00 AAA 1,099,692 1,075 5.000%, 8/15/15 - FSA Insured 8/11 at 100.00 AAA 1,147,186 Newton, Kansas, Hospital Revenue Refunding Bonds, Newton Healthcare Corporation, Series 1998A: 1,000 5.700%, 11/15/18 11/08 at 100.00 BBB- 1,032,880 1,750 5.750%, 11/15/24 11/08 at 100.00 BBB- 1,796,988 100 Puerto Rico Industrial, Tourist, Educational, Medical and 7/05 at 102.00 AAA 101,478 Environmental Control Facilities Financing Authority, Hospital Revenue Bonds, Auxilio Mutuo Hospital, Series 1995A, 6.250%, 7/01/24 - MBIA Insured 4,780 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/09 at 101.00 A+ 5,251,834 Improvement Bonds, Via Christi Health System Inc., Series 1999-XI, 6.250%, 11/15/24 -------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 2.8% Wichita, Kansas, Multifamily Housing Revenue Refunding Bonds, Shores Apartments, Series 1994XI-A: 1,500 6.700%, 4/01/19 - RAAI Insured 4/09 at 102.00 AA 1,603,410 2,000 6.800%, 4/01/24 - RAAI Insured 4/09 at 102.00 AA 2,145,480 -------------------------------------------------------------------------------------------------------------------- Housing/Single Family - 4.1% 355 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 361,131 Securities Program Single Family Revenue Bonds, Series 1997A-1, 6.950%, 6/01/29 (Alternative Minimum Tax) 1,075 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 6/08 at 105.00 Aaa 1,111,722 Securities Program Single Family Revenue Bonds, Series 1998A-1, 6.500%, 12/01/22 (Alternative Minimum Tax) 440 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 12/09 at 105.00 Aaa 464,939 Securities Program Single Family Revenue Bonds, Series 2000A-2, 7.600%, 12/01/31 (Alternative Minimum Tax) - MBIA Insured 260 Sedgwick and Shawnee Counties, Kansas, FNMA/GNMA 12/10 at 105.00 Aaa 268,239 Mortgage-Backed Securities Program Single Family Revenue Bonds, Series 2001A, 6.300%, 12/01/32 (Alternative Minimum Tax) 3,135 Sedgwick and Shawnee Counties, Kansas, FNMA/GNMA 12/12 at 105.00 Aaa 3,272,470 Mortgage-Backed Securities Program Single Family Revenue Bonds, Series 2002B-1, 5.950%, 12/01/33 (Alternative Minimum Tax) -------------------------------------------------------------------------------------------------------------------- Industrials - 1.6% 1,000 Wichita Airport Authority, Kansas, Special Facilities 6/12 at 101.00 A- 1,071,350 Revenue Bonds, Cessna Citation Service Center, Series 2002A, 6.250%, 6/15/32 (Alternative Minimum Tax)
---- 24
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Industrials (continued) $ 1,000 Wichita, Kansas, Industrial Revenue Bonds, NMF America Inc. 8/07 at 101.00 AA- $ 1,041,610 Series 2000-II, 5.800%, 8/01/15 (Alternative Minimum Tax) -------------------------------------------------------------------------------------------------------------------- Long-Term Care - 0.4% 500 Sedgwick County, Kansas, Healthcare Facilities Revenue 11/09 at 100.00 A 526,100 Bonds, Catholic Care Center Inc., Series 2001, 5.750%, 11/15/23 -------------------------------------------------------------------------------------------------------------------- Materials - 2.9% 3,700 Ford County, Kansas, Sewage and Solid Waste Disposal 6/08 at 102.00 A+ 3,879,524 Revenue Bonds, Excel Corporation/Cargill Inc. Project, Series 1998, 5.400%, 6/01/28 (Alternative Minimum Tax) -------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 18.3% 2,500 Butler and Sedgwick Counties Unified School District 385, No Opt. Call AAA 3,023,775 Andover, Kansas, General Obligation Refunding and Improvement Bonds, Series 2000, 6.000%, 9/01/16 - FSA Insured 2,615 Butler County Unified School District 394, Kansas, General 9/14 at 100.00 AAA 2,818,525 Obligation Bonds, Series 2004, 5.000%, 9/01/23 - FSA Insured 1,170 Butler County Unified School District 490, Kansas, General 9/15 at 100.00 AAA 1,254,802 Obligation Bonds, Series 2005B, 5.000%, 9/01/25 - FSA Insured 1,675 Cowley County Unified School District 465, Winfield, 10/13 at 100.00 AAA 1,855,833 Kansas, General Obligation Bonds, Series 2003, 5.250%, 10/01/23 - MBIA Insured 750 Derby, Kansas, General Obligation Bonds, Series 2001A, 12/11 at 100.00 Aaa 817,523 5.250%, 12/01/21 - AMBAC Insured 560 Derby, Kansas, General Obligation Bonds, Series 2002B, 12/10 at 100.00 Aaa 605,332 5.000%, 12/01/18 - FSA Insured 650 Harvey County Unified School District 460, Hesston, Kansas, 9/12 at 100.00 AAA 693,050 General Obligation Bonds, Series 2002, 5.000%, 9/01/22 - FGIC Insured 1,450 Leavenworth County Unified School District 464, Tonganoxie, 9/15 at 100.00 AAA 1,558,852 Kansas, General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 - MBIA Insured 1,020 Miami County Unified School District 367, Osawatomie, 9/15 at 100.00 AAA 1,116,247 Kansas, General Obligation Bonds, Series 2005A, 5.000%, 9/01/20 - FSA Insured 1,100 Montgomery County Unified School District 445, Coffeyville, 4/12 at 100.00 AAA 1,169,201 Kansas, General Obligation Bonds, Series 2002, 5.000%, 4/01/22 - FGIC Insured Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A: 1,000 5.500%, 7/01/20 - MBIA Insured No Opt. Call AAA 1,191,860 330 5.375%, 7/01/28 7/11 at 100.00 BBB 355,568 1,070 Scott County Unified School District 466, Kansas, General 9/12 at 100.00 AAA 1,183,516 Obligation Refunding Bonds, Series 2002, 5.250%, 9/01/18 - FGIC Insured 1,250 Sedgwick County Unified School District 259, Wichita, 9/10 at 100.00 AA 1,216,438 Kansas, General Obligation Bonds, Series 2000, 3.500%, 9/01/16 1,795 Wichita, Kansas, General Obligation Bonds, Series 2002, 4/09 at 101.00 AA 1,912,770 5.000%, 4/01/17 3,000 Wyandotte County Unified School District 500, Kansas, 9/12 at 100.00 AAA 3,325,920 General Obligation Bonds, Series 2002, 5.000%, 9/01/20 (Pre-refunded to 9/01/12) - FSA Insured -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 25.0% 3,000 Butler County Public Building Commission, Kansas, 10/10 at 100.00 Aaa 3,302,820 Improvement Revenue Bonds, Public Facilities Projects, Series 2000, 5.550%, 10/01/21 - MBIA Insured Kansas Department of Transportation, Highway Revenue Bonds, Series 2004A: 1,000 5.000%, 3/01/20 3/14 at 100.00 AA+ 1,083,530 5,000 5.000%, 3/01/23 3/14 at 100.00 AA+ 5,375,350 500 Kansas Development Finance Authority, Lease Revenue Bonds, 10/12 at 100.00 AAA 533,445 Department of Administration, State Capitol Restoration Parking Facility Project, Series 2002C, 5.000%, 10/01/21 - FSA Insured 1,140 Kansas Development Finance Authority, Lease Revenue Bonds, 4/14 at 100.00 AAA 1,242,292 Department of Administration, State Capitol Restoration Project, Series 2004G-1, 5.125%, 4/01/21 - MBIA Insured 1,000 Kansas Development Finance Authority, Revenue Bonds, State 10/11 at 100.00 AAA 1,081,840 Projects, Series 2001W, 5.000%, 10/01/17 - MBIA Insured 2,085 Kansas Development Finance Authority, Revenue Bonds, State 10/12 at 100.00 AAA 2,308,429 Projects, Series 2002N, 5.250%, 10/01/18 - AMBAC Insured
---- 25 Portfolio of Investments NUVEEN KANSAS MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 5,000 Kansas Development Finance Authority, Board of Regents, 4/13 at 102.00 AAA $ 5,380,150 Revenue Bonds, Scientific Research and Development Facilities Projects, Series 2003C, 5.000%, 10/01/23 - AMBAC Insured 2,355 Kansas Development Finance Authority, Revenue Bonds, State 8/13 at 100.00 AAA 2,574,533 Projects, Series 2003J, 5.250%, 8/01/20 - AMBAC Insured 1,800 Overland Park Development Corporation, Kansas, First Tier 1/11 at 101.00 N/R 1,974,816 Revenue Bonds, Overland Park Convention Center, Series 2001A, 7.375%, 1/01/32 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 3,135 6.000%, 8/01/26 - AGC Insured No Opt. Call AAA 3,995,620 630 5.500%, 8/01/29 2/12 at 100.00 BBB- 677,534 1,000 Virgin Islands Public Finance Authority, Senior Lien 10/08 at 101.00 BBB 1,048,880 Revenue Refunding Bonds, Matching Fund Loan Note, Series 1998A, 5.625%, 10/01/25 2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,284,080 Taxes Loan Note, Series 1999A, 6.375%, 10/01/19 -------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed*** - 9.8% 2,000 Augusta, Kansas, Waterworks System Revenue Bonds, Series 10/08 at 101.50 AA*** 2,229,220 2000A, 6.150%, 10/01/20 (Pre-refunded to 10/01/08) - RAAI Insured 12,175 Johnson County, Kansas, Residual Revenue and Refunding No Opt. Call Aaa 9,501,492 Bonds, Series 1992, 0.000%, 5/01/12 1,010 Wichita, Kansas, Revenue Bonds, CSJ Health System of 11/05 at 100.00 A+*** 1,190,719 Wichita, Inc., Series 1985-XXV, 7.200%, 10/01/15 -------------------------------------------------------------------------------------------------------------------- Utilities - 4.5% 1,000 Burlington, Kansas, Environmental Improvement Revenue No Opt. Call A3 1,029,340 Bonds, Kansas City Power and Light Company Project, Series 1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07) 500 Pratt, Kansas, Electric System Revenue Bonds, Series 5/10 at 100.00 AAA 540,955 2001-1, 5.250%, 5/01/18 - AMBAC Insured 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,071,550 Series 2005RR, 5.000%, 7/01/30 - XLCA Insured Wellington, Kansas, Electric, Water, and Sewer Utility System Revenue Bonds, Series 2002: 335 5.250%, 11/01/25 - AMBAC Insured 11/12 at 100.00 AAA 364,999 785 5.250%, 11/01/27 - AMBAC Insured 11/12 at 100.00 AAA 855,297 1,000 Wyandotte County-Kansas City Unified Government, Kansas, 9/14 at 100.00 AAA 1,075,420 Utility System Revenue Bonds, Series 2004B, 5.000%, 9/01/24 - FSA Insured 1,000 Wynadotte County-Kansas City Unified Government, Kansas, 5/11 at 100.00 AAA 1,064,110 Industrial Revenue Bonds, Board of Public Utilities Office Building Complex, Series 2001, 5.000%, 5/01/21 - MBIA Insured -------------------------------------------------------------------------------------------------------------------- Water and Sewer - 7.2% 1,040 Chisholm Creek Utility Authority, Kansas, Water and 9/12 at 100.00 Aaa 1,138,862 Wastewater Facilities Revenue Bonds, Series 2002, 5.250%, 9/01/22 - MBIA Insured 2,300 Kansas Development Finance Authority, Water Pollution 11/12 at 100.00 AAA 2,455,411 Control Revolving Fund Leveraged Bonds, Series 2002-II, 5.000%, 11/01/23 5,500 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/13 at 100.00 AAA 5,953,912 Series 2003, 5.000%, 10/01/22 - FGIC Insured -------------------------------------------------------------------------------------------------------------------- $123,155 Total Long-Term Investments (cost $121,375,388) - 98.5% 130,157,983 -------------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 1.5% 2,017,901 ------------------------------------------------------------------------------------------------------ Net Assets - 100% $ 132,175,884 ------------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. See accompanying notes to financial statements. ---- 26 Portfolio of Investments NUVEEN KENTUCKY MUNICIPAL BOND FUND May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Consumer Staples - 1.0% $ 4,970 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 5,029,342 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 -------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 4.8% 1,000 Campbellsville, Kentucky, Revenue Bonds, Campbellsville 3/15 at 100.00 N/R 1,017,710 University, Series 2005, 5.700%, 3/01/34 8,960 Columbia, Kentucky, Educational Development Revenue Bonds, 4/11 at 101.00 BBB- 9,745,792 Lindsey Wilson College Project, Series 2001, 6.250%, 4/01/21 5,930 Jefferson County, Kentucky, College Revenue Bonds, 5/09 at 101.00 Baa2 5,997,543 Bellarmine College Project, Series 1999, 5.250%, 5/01/29 1,500 Kentucky Economic Development Finance Authority, College 10/12 at 100.00 AAA 1,573,530 Revenue Refunding and Improvement Bonds, Centre College Project, Series 2002, 5.000%, 4/01/32 - FSA Insured 2,500 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 2,578,850 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/29 3,000 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 3,080,880 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, Series 2001, 5.250%, 9/01/31 -------------------------------------------------------------------------------------------------------------------- Energy - 1.9% 9,000 Ashland, Kentucky, Sewerage and Solid Waste Revenue Bonds, 8/05 at 102.00 Baa2 9,432,000 Ashland Inc. Project, Series 1995, 7.125%, 2/01/22 (Alternative Minimum Tax) -------------------------------------------------------------------------------------------------------------------- Healthcare - 11.5% 1,310 Christian County, Kentucky, Hospital Revenue Bonds, Jennie 7/06 at 102.00 A- 1,356,020 Stuart Medical Center, Series 1996A, 6.000%, 7/01/17 3,500 Christian County, Kentucky, Hospital Revenue Refunding 7/06 at 102.00 A- 3,632,440 Bonds, Jennie Stuart Medical Center, Series 1997A, 6.000%, 7/01/13 4,820 Clark County, Kentucky, Hospital Revenue Refunding and 3/07 at 102.00 BBB- 5,027,983 Improvement Bonds, Clark Regional Medical Center Project, Series 1997, 6.200%, 4/01/13 9,500 Kentucky Economic Development Finance Authority, Hospital 2/07 at 102.00 AAA 10,030,575 Revenue Refunding Bonds, Pikeville, United Methodist Hospital of Kentucky Inc. Project, Series 1997, 5.700%, 2/01/28 - CONNIE LEE/ AMBAC Insured Kentucky Economic Development Finance Authority, Hospital System Revenue Refunding and Improvement Bonds, Appalachian Regional Healthcare Inc., Series 1997: 500 5.500%, 10/01/07 No Opt. Call BB- 505,845 500 5.600%, 10/01/08 4/08 at 102.00 BB- 508,100 3,500 5.850%, 10/01/17 4/08 at 102.00 BB- 3,430,525 1,500 5.875%, 10/01/22 4/08 at 102.00 BB- 1,450,050 6,000 Kentucky Economic Development Finance Authority, Revenue 6/08 at 101.00 AA 6,148,560 Refunding and Improvement Bonds, Catholic Health Initiatives, Series 1998A, 5.000%, 12/01/27 Kentucky Economic Development Finance Authority, Revenue Bonds, Catholic Health Initiatives, Series 2001: 1,000 5.250%, 9/01/21 9/11 at 100.00 AA 1,057,410 1,000 5.250%, 9/01/24 9/11 at 100.00 AA 1,051,230 10,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 3,442,083 System Revenue Bonds, Norton Healthcare Inc., Series 2000B, 0.000%, 10/01/28 - MBIA Insured 1,665 McCracken County, Kentucky, Hospital Facilities Revenue 11/05 at 101.00 AAA 1,702,696 Refunding Bonds, Mercy Health System, Series 1994A, 6.300%, 11/01/06 - MBIA Insured 16,500 Russell, Kentucky, Revenue Bonds, Bon Secours Health 11/12 at 100.00 A- 17,573,985 System, Series 2002A, 5.625%, 11/15/30 -------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 0.6% 3,325 Henderson, Kentucky, Senior Tax-Exempt Residential 5/09 at 102.00 N/R 3,119,050 Facilities Revenue Bonds, Pleasant Pointe Project, Series 1999A, 6.125%, 5/01/29
---- 27 Portfolio of Investments NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Housing/Single Family - 4.3% $ 2,000 Kentucky Housing Corporation, Housing Revenue Bonds, Series 11/10 at 100.00 AAA $ 2,117,300 2000F, 5.850%, 7/01/20 (Alternative Minimum Tax) 595 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/09 at 101.00 AAA 610,887 1998F, 5.000%, 7/01/18 (Alternative Minimum Tax) 9,480 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 9,752,076 1999A, 5.200%, 1/01/31 1,580 Kentucky Housing Corporation, Housing Revenue Bonds, Series 4/09 at 101.00 AAA 1,622,439 1999B, 5.250%, 1/01/28 (Alternative Minimum Tax) 5,000 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/14 at 100.00 AAA 4,974,700 2004F, 3.900%, 7/01/31 (Alternative Minimum Tax) 2,500 Kentucky Housing Corporation, Housing Revenue Bonds, Series 7/14 at 100.00 AAA 2,485,450 2005H, 4.000%, 1/01/33 (Alternative Minimum Tax) -------------------------------------------------------------------------------------------------------------------- Long-Term Care - 3.5% 4,840 Florence, Kentucky, Housing Facilities Revenue Bonds, 8/09 at 101.00 A 5,182,624 Bluegrass RHF Housing Inc., Series 1999, 6.375%, 8/15/29 - ACA Insured 555 Jefferson County, Kentucky, First Mortgage Revenue Bonds, 11/05 at 101.00 BBB 565,539 First Christian Church Homes of Kentucky Project, Series 1994, 6.000%, 11/15/09 Kentucky Economic Development Finance Authority, Revenue Bonds, Christian Church Homes of Kentucky Inc. Obligated Group, Series 1998: 1,800 5.375%, 11/15/23 5/08 at 102.00 BBB 1,813,950 3,500 5.500%, 11/15/30 5/08 at 102.00 BBB 3,521,875 Kentucky Economic Development Finance Authority, Mortgage Revenue Bonds, South Central Nursing Homes Inc., Series 1997A: 2,000 6.000%, 1/01/27 (Mandatory put 7/01/20) - MBIA Insured 1/08 at 105.00 AAA 2,215,700 3,700 6.000%, 1/01/27 (Mandatory put 1/01/24) - MBIA Insured 1/08 at 105.00 AAA 4,099,045 -------------------------------------------------------------------------------------------------------------------- Materials - 2.6% 2,370 Hancock County, Kentucky, Solid Waste Disposal Revenue 5/06 at 102.00 BBB 2,439,346 Bonds, Willamette Industries Inc. Project, Series 1996, 6.600%, 5/01/26 (Alternative Minimum Tax) (a) 1,000 Jefferson County, Kentucky, Pollution Control Revenue 7/05 at 102.00 AA- 1,027,490 Bonds, E.I. DuPont de Nemours and Company, Series 1982A, 6.300%, 7/01/12 4,240 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 5/06 at 102.00 N/R 4,395,142 Weyerhaeuser Company - TJ International Project, Series 1996, 6.800%, 5/01/26 (Alternative Minimum Tax) 2,000 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds, 4/07 at 102.00 Baa2 2,118,160 Weyerhaeuser Company - TJ International Project, Series 1997, 6.550%, 4/15/27 (Alternative Minimum Tax) 2,820 Wickliffe, Kentucky, Solid Waste Disposal Facility Revenue 4/06 at 102.00 BBB 2,908,069 Bonds, Westvaco Corporation, Series 1996, 6.375%, 4/01/26 (Alternative Minimum Tax) -------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 3.3% 2,500 Jefferson County, Kentucky, General Obligation Refunding 5/09 at 100.00 AA 2,728,700 Bonds, Series 1999C, 6.150%, 5/15/16 (Alternative Minimum Tax) Louisville and Jefferson County Metropolitan Government, Kentucky, General Obligation Bonds, Series 2004A-B: 1,195 5.000%, 11/01/16 - AMBAC Insured 11/14 at 100.00 AAA 1,320,045 1,000 5.000%, 11/01/17 - AMBAC Insured 11/14 at 100.00 AAA 1,099,620 1,175 Louisville, Kentucky, General Obligation Bonds, Series 11/11 at 101.00 AA 1,273,947 2001A, 5.000%, 11/01/21 3,000 Louisville, Kentucky, General Obligation Bonds, Series 10/12 at 100.00 AAA 3,196,740 2002A, 5.000%, 10/01/23 - FGIC Insured 4,400 Puerto Rico, Public Improvement Bonds, TICS/TOCS, Series No Opt. Call AAA 6,574,216 2001, 5.955%, 7/01/19 - FSA Insured (IF) -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 30.8% 1,305 Ballard County School District Finance Corporation, 6/14 at 100.00 Aaa 1,408,447 Kentucky, School Building Revenue Bonds, Series 2004, 5.000%, 6/01/21 - AMBAC Insured 1,875 Bell County Public Properties Corporation, Kentucky, First 3/11 at 102.00 AAA 2,115,038 Mortgage Revenue Bonds, Judicial Center Project, Series 2000, 5.850%, 9/01/28 - AMBAC Insured
---- 28
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 1,465 Boone County, Kentucky, Public Properties Corporation, 9/12 at 101.00 Aa3 $ 1,606,856 First Mortgage Bonds, AOC Judicial Facility, Series 2001, 5.125%, 9/01/22 Boone County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004B: 1,460 5.000%, 5/01/20 - FSA Insured 5/14 at 100.00 Aaa 1,580,508 2,580 5.000%, 5/01/21 - FSA Insured 5/14 at 100.00 Aaa 2,782,865 Bowling Green, Kentucky, General Obligation and Special Revenue Bonds, Series 2002B: 1,785 5.000%, 6/01/23 6/12 at 100.00 Aa2 1,897,526 1,230 5.000%, 6/01/24 6/12 at 100.00 Aa2 1,307,539 1,665 5.000%, 6/01/25 6/12 at 100.00 Aa2 1,774,157 Butler County School District Finance Corporation, Kentucky, Revenue Bonds, School Buildings, Series 2004C: 1,220 5.000%, 6/01/20 6/14 at 100.00 Aa3 1,315,282 1,255 5.000%, 6/01/22 6/14 at 100.00 Aa3 1,345,159 Fayette County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2000: 1,665 5.500%, 6/01/18 6/10 at 101.00 AA- 1,837,394 2,795 5.500%, 6/01/20 6/10 at 101.00 AA- 3,067,485 4,500 Kenton County Public Properties Corporation, Kentucky, 3/09 at 101.00 Aa3 4,635,675 First Mortgage Revenue Bonds, Courthouse Facilities Project, Series 1998A, 5.000%, 3/01/29 Kenton County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004: 2,115 5.000%, 6/01/17 - MBIA Insured 6/14 at 100.00 Aaa 2,314,529 3,510 5.000%, 6/01/18 - MBIA Insured 6/14 at 100.00 Aaa 3,829,936 3,690 5.000%, 6/01/19 - MBIA Insured 6/14 at 100.00 Aaa 4,008,742 2,000 Kentucky Asset/Liability Commission, General Fund Revenue 5/15 at 100.00 AAA 2,141,180 Project Notes, First Series 2005, 5.000%, 5/01/25 (WI, settling 6/08/05) - MBIA Insured Kentucky Area Development Districts Financing Trust, Ewing, Lease Acquisition Program Revenue Bonds, Series 2000C: 750 5.850%, 6/01/20 6/10 at 102.00 AA 828,405 1,000 6.000%, 6/01/30 6/10 at 102.00 AA 1,116,620 2,365 Kentucky Local Correctional Facilities Authority, No Opt. Call AAA 2,672,639 Multi-County Lease Revenue Bonds, Series 2004, 5.250%, 11/01/14 - MBIA Insured Kentucky State Property and Buildings Commission, Revenue Bonds, Project 81, Series 2003: 1,000 5.000%, 11/01/19 - AMBAC Insured 11/13 at 100.00 AAA 1,089,480 3,740 5.000%, 11/01/21 - AMBAC Insured 11/13 at 100.00 AAA 4,056,105 2,845 5.000%, 11/01/23 - AMBAC Insured 11/13 at 100.00 AAA 3,070,580 4,000 Kentucky State Property and Buildings Commission, Revenue No Opt. Call AAA 4,486,840 Bonds, Project 84, Series 2005, 5.000%, 8/01/18 - MBIA Insured 4,000 Kentucky Turnpike Authority, Economic Development Road 7/11 at 100.00 AAA 4,348,440 Revenue Refunding Bonds, Revitalization Project, Series 2001B, 5.150%, 7/01/19 - FSA Insured 6,935 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 7,568,790 Revenue Bonds, Revitalization Project, Series 2005B, 5.000%, 7/01/20 - AMBAC Insured Letcher County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004: 1,430 5.000%, 6/01/18 - FSA Insured 6/14 at 100.00 Aaa 1,560,344 1,585 5.000%, 6/01/20 - FSA Insured 6/14 at 100.00 Aaa 1,716,888 11,000 Lexington-Fayette Urban County Government, Kentucky, First 7/08 at 102.00 AAA 11,694,320 Mortgage Bonds, Public Facilities Corporation, Series 1998, 5.125%, 10/01/31 - FSA Insured 1,695 Louisville and Jefferson County Visitors and Convention 6/14 at 101.00 AAA 1,882,535 Commission, Kentucky, Dedicated Tax Revenue Bonds, Series 2004A, 5.000%, 12/01/15 - FSA Insured 650 Magoffin County School District Finance Corporation, 6/10 at 101.00 Aa3 723,281 Kentucky, School Building Revenue Bonds, Series 2000, 5.750%, 6/01/20
---- 29 Portfolio of Investments NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 1,525 McCracken County Public Properties Corporation, Kentucky, 9/06 at 102.00 AAA $ 1,606,618 Public Project Revenue Bonds, Court Facilities, Series 1995, 5.900%, 9/01/26 - AMBAC Insured 5,100 Oldham County School District Finance Corporation, 4/11 at 101.00 Aa3 5,451,186 Kentucky, School Building Revenue Bonds, Series 2001A, 5.125%, 4/01/21 Oldham County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004: 1,230 5.000%, 5/01/18 - MBIA Insured 5/14 at 100.00 Aaa 1,341,192 1,635 5.000%, 5/01/20 - MBIA Insured 5/14 at 100.00 Aaa 1,769,953 1,715 5.000%, 5/01/21 - MBIA Insured 5/14 at 100.00 Aaa 1,849,850 1,360 Owen County School District Finance Corporation, Kentucky, 4/11 at 101.00 Aa3 1,467,372 School Building Revenue Bonds, Series 2001, 5.000%, 4/01/21 Pendleton County, Kentucky, Leasing Trust Revenue Bonds, Kentucky Association of Counties, Series 1993A: 16,460 6.500%, 3/01/19 9/05 at 100.00 A 16,494,237 500 6.400%, 3/01/19 No Opt. Call A 614,150 4,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 5,159,720 Transportation Authority, Reset Option Long Certificates II-R-66, Series 1996Y, 7.953%, 1/01/13 - MBIA Insured (IF) 6,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 7,136,880 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 2,545 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,954,185 Revenue Bonds, Series 1998A, 5.500%, 7/01/14 - AMBAC Insured 1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 1,055,120 Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured 3,185 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 3,812,795 Government Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 - FSA Insured 2,755 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 3,511,303 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC Insured 1,360 Shelby County School District Finance Corporation, 5/14 at 100.00 Aaa 1,466,937 Kentucky, Revenue Bonds, School Buildings, Series 2004, 5.000%, 5/01/21 - MBIA Insured 2,185 Spencer County School District Finance Corporation, 7/14 at 100.00 Aaa 2,362,946 Kentucky, Revenue Bonds, School Buildings, Series 2004, 5.000%, 7/01/21 - FSA Insured 1,010 Virgin Islands Public Finance Authority, Gross Receipts 10/14 at 100.00 AAA 1,125,382 Taxes Loan Note, Series 2003, 5.250%, 10/01/21 - FSA Insured 7,000 Warren County Justice Center Expansion Corporation, 9/07 at 102.00 AAA 7,406,560 Kentucky, First Mortgage Revenue Bonds, AOC Judicial Facility, Series 1997A, 5.250%, 9/01/24 - MBIA Insured -------------------------------------------------------------------------------------------------------------------- Transportation - 5.3% Guam International Airport Authority, Revenue Bonds, Series 2003C: 5,000 5.250%, 10/01/22 (Alternative Minimum Tax) - MBIA Insured 10/10 at 100.00 AAA 5,353,000 2,195 5.000%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured 10/13 at 100.00 AAA 2,292,919 1,250 Kenton County Airport Board, Kentucky, Airport Revenue 3/06 at 102.00 AAA 1,298,850 Bonds, Cincinnati/Northern Kentucky International Airport, Series 1996B, 5.750%, 3/01/13 - MBIA Insured 5,090 Kenton County Airport Board, Kentucky, Airport Revenue 3/13 at 100.00 AAA 5,303,678 Bonds, Cincinnati/Northern Kentucky International Airport, Series 2003B, 5.000%, 3/01/23 (Alternative Minimum Tax) - MBIA Insured 5,000 Louisville and Jefferson County Regional Airport Authority, 7/05 at 102.00 AAA 5,107,850 Kentucky, Airport System Revenue Bonds, Series 1995A, 5.625%, 7/01/25 (Alternative Minimum Tax) - MBIA Insured 1,000 Louisville and Jefferson County Regional Airport Authority, 7/13 at 100.00 AAA 1,068,120 Kentucky, Airport System Revenue Bonds, Series 2003C, 5.250%, 7/01/22 (Alternative Minimum Tax) - FSA Insured 6,000 Louisville and Jefferson County Regional Airport Authority, 3/09 at 101.00 Baa3 6,008,100 Kentucky, Special Facilities Revenue Bonds, Airis Louisville LLC Project, Series 1999A, 5.500%, 3/01/19 (Alternative Minimum Tax)
---- 30
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 12.5% $ 5,085 Campbellsville, Kentucky, Industrial Building Revenue 3/09 at 102.00 A+*** $ 5,618,061 Bonds, Campbellsville University Project, Series 1999, 5.500%, 3/01/29 (Pre-refunded to 3/01/09) 3,155 Florence Public Properties Corporation, Kentucky, First 6/07 at 102.00 AAA 3,373,799 Mortgage Revenue Bonds, Administrative Office Complex Project, Series 1997, 5.500%, 6/01/27 (Pre-refunded to 6/01/07) - MBIA Insured 1,260 Floyd County Public Properties Corporation, Kentucky, First 3/06 at 102.00 N/R*** 1,309,921 Mortgage Revenue Bonds, Floyd County Justice Center Project, Series 1995A, 5.550%, 9/01/23 (Pre-refunded to 3/01/06) 3,550 Floyd County Public Properties Corporation, Kentucky, First 3/06 at 102.00 N/R*** 3,707,620 Mortgage Revenue Bonds, Floyd County Justice Center Project, Series 1996B, 6.200%, 9/01/26 (Pre-refunded to 3/01/06) 2,000 Jefferson County Collegiate Housing Foundation, Kentucky, 9/09 at 102.00 N/R*** 2,337,620 Student Housing Revenue Bonds, University of Louisville Project, Series 1999A, 7.125%, 9/01/29 (Pre-refunded to 9/01/09) 420 Kentucky Infrastructure Authority, Governmental Agencies 8/05 at 102.00 AA*** 430,311 Program Revenue Bonds, Series 1995G, 6.300%, 8/01/10 (Pre-refunded to 8/01/05) 400 Kentucky State Property and Buildings Commission, Agency 5/10 at 100.00 AAA 448,604 Fund Revenue Bonds, Project 66A, Series 2000, 5.750%, 5/01/20 (Pre-refunded to 5/01/10) - MBIA Insured 500 Kentucky State Property and Buildings Commission, Revenue 11/09 at 100.00 AAA 550,725 Bonds, Project 64, Series 1999, 5.500%, 5/01/18 (Pre-refunded to 11/01/09) - MBIA Insured Kentucky State Property and Buildings Commission, Revenue Refunding Bonds, Project 72, Series 2001: 4,375 5.375%, 10/01/18 (Pre-refunded to 10/01/11) - MBIA Insured 10/11 at 100.00 AAA 4,915,094 5,860 5.375%, 10/01/19 (Pre-refunded to 10/01/11) - MBIA Insured 10/11 at 100.00 AAA 6,583,417 2,000 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,205,920 Refunding Bonds, Project 74, Series 2002, 5.000%, 2/01/21 (Pre-refunded to 2/01/12) - FSA Insured Kentucky State Property and Buildings Commission, Revenue Refunding Bonds, Project 79, Series 2003: 5,780 5.125%, 10/01/19 (Pre-refunded to 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 6,486,836 5,000 5.000%, 10/01/21 (Pre-refunded to 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 5,566,500 6,500 5.000%, 10/01/22 (Pre-refunded to 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 7,236,450 1,365 McCreary County School District Finance Corporation, 8/05 at 102.00 Aa3*** 1,398,538 Kentucky, School Building Revenue Bonds, Second Series 1995, 5.600%, 8/01/16 (Pre-refunded to 8/01/05) 1,310 Puerto Rico, General Obligation and Public Improvement 7/06 at 101.50 BBB*** 1,365,203 Bonds, Series 1996, 5.400%, 7/01/25 (Pre-refunded to 7/01/06) 2,000 Puerto Rico, General Obligation and Public Improvement 7/07 at 100.00 BBB*** 2,102,440 Refunding Bonds, Series 1997, 5.375%, 7/01/25 (Pre-refunded to 7/01/07) 2,600 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 2,911,922 Bonds, Series 2000, 5.750%, 7/01/26 (Pre-refunded to 7/01/10) - MBIA Insured 245 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 311,851 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC Insured 2,800 Russell, Kentucky, Health System Revenue Bonds, Franciscan 1/10 at 100.00 Baa2*** 3,061,828 Health Partnership Inc. - Our Lady of Bellefonte Hospital, Series 1997, 5.500%, 7/01/15 (Pre-refunded to 1/01/10) -------------------------------------------------------------------------------------------------------------------- Utilities - 8.6% 6,000 Boone County, Kentucky, Collateralized Pollution Control 7/05 at 101.00 AAA 6,076,380 Revenue Refunding Bonds, Cincinnati Gas and Electric Company Project, Series 1994A, 5.500%, 1/01/24 - MBIA Insured Owensboro, Kentucky, Electric Light and Power System Revenue Bonds, Series 1991B: 7,100 0.000%, 1/01/11 - AMBAC Insured No Opt. Call AAA 5,846,992 6,475 0.000%, 1/01/12 - AMBAC Insured No Opt. Call AAA 5,087,149 5,810 0.000%, 1/01/15 - AMBAC Insured No Opt. Call AAA 3,954,925 7,900 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 4,873,510 13,300 0.000%, 1/01/18 - AMBAC Insured No Opt. Call AAA 7,802,046 3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 3,515,460 Series 2003NN, 5.250%, 7/01/23 - MBIA Insured 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 5,439,550 Series 2005RR, 5.000%, 7/01/24 - FGIC Insured
---- 31 Portfolio of Investments NUVEEN KENTUCKY MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Water and Sewer - 8.3% $ 1,405 Christian County Water District, Kentucky, Waterworks 10/09 at 101.00 Aaa $ 1,565,507 Revenue Bonds, Series 1999, 6.000%, 1/01/30 - AMBAC Insured Kentucky Infrastructure Authority, Governmental Agencies Program Revenue Bonds, Series 1995G: 445 6.350%, 8/01/11 8/05 at 102.00 AA 456,165 825 6.375%, 8/01/14 8/05 at 102.00 AA 845,732 1,000 Kentucky Rural Water Finance Corporation, Multimodal Public 2/11 at 102.00 AA- 1,090,620 Projects Revenue Bonds, Flexible Term Program, Series 2001A, 5.375%, 2/01/20 Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997B: 6,000 5.350%, 5/15/22 - MBIA Insured 11/07 at 101.00 AAA 6,340,200 2,500 5.200%, 5/15/25 - MBIA Insured 11/07 at 101.00 AAA 2,622,450 3,200 Louisville and Jefferson County Metropolitan Sewer 5/08 at 101.00 AAA 3,345,952 District, Kentucky, Sewer and Drainage System Revenue Bonds, Series 1998A, 5.000%, 5/15/30 - FGIC Insured 16,000 Louisville and Jefferson County Metropolitan Sewer 11/11 at 101.00 AAA 17,727,520 District, Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A, 5.500%, 5/15/34 - MBIA Insured 6,920 Northern Kentucky Water District, Revenue Refunding Bonds, 2/12 at 100.00 Aaa 7,269,391 Series 2002A, 5.000%, 2/01/27 - FGIC Insured -------------------------------------------------------------------------------------------------------------------- $479,365 Total Long-Term Investments (cost $460,357,650) - 99.0% 491,119,956 -------------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 1.0% 4,942,665 ------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 496,062,621 -------------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (a)The issuer has received a preliminary adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. (WI)Security purchased on a when-issued basis. (IF)Inverse floating rate security. See accompanying notes to financial statements. ---- 32 Portfolio of Investments NUVEEN MICHIGAN MUNICIPAL BOND FUND May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ----------------------------------------------------------------------------------------------------------------------- Consumer Discretionary - 0.8% $ 2,000 Michigan Strategic Fund, Multi-Modal Interchangeable Rate 9/05 at 102.00 Baa3 $ 1,977,640 Pollution Control Revenue Refunding Bonds, General Motors Corporation, Series 1995, 6.200%, 9/01/20 ----------------------------------------------------------------------------------------------------------------------- Consumer Staples - 0.4% 915 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 925,925 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ----------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 3.9% Michigan Technological University, General Revenue Bonds, Series 2004A: 1,230 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,323,874 1,850 5.000%, 10/01/29 - MBIA Insured 10/13 at 100.00 AAA 1,959,058 6,150 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 6,550,181 Series 1999, 5.125%, 11/15/29 - FGIC Insured ----------------------------------------------------------------------------------------------------------------------- Healthcare - 10.9% Flint Hospital Building Authority, Michigan, Revenue Rental Bonds, Hurley Medical Center, Series 1998B: 1,000 5.375%, 7/01/18 7/08 at 101.00 Baa3 999,950 1,000 5.375%, 7/01/28 7/08 at 101.00 Baa3 994,060 3,530 Lake View Community Hospital Authority, Michigan, Hospital 2/07 at 101.00 N/R 3,595,270 Revenue Refunding Bonds, Series 1997, 6.250%, 2/15/13 3,755 Michigan State Hospital Finance Authority, Revenue 8/05 at 100.00 BB- 3,757,704 Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 3,000 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 3,272,850 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 550 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call BBB 571,445 Refunding Bonds, Gratiot Community Hospital, Series 1995, 6.100%, 10/01/07 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 10/06 at 102.00 BBB- 1,028,440 Bonds, Michigan Community Hospital, Series 1996, 6.250%, 10/01/27 1,475 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 101.00 BBB 1,509,913 Refunding Bonds, Chelsea Community Hospital, Series 1998, 5.375%, 5/15/19 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 3/12 at 101.00 A+ 1,076,730 Refunding Bonds, Crittenton Hospital, Series 2002A, 5.625%, 3/01/27 2,200 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 2,367,860 Bonds, Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 515,215 Marquette General Hospital, Series 2005A, 5.000%, 5/15/26 1,600 Pontiac Hospital Finance Authority, Michigan, Hospital 8/05 at 100.00 BB 1,513,632 Revenue Refunding Bonds, NOMC Obligated Group, Series 1993, 6.000%, 8/01/23 3,000 Royal Oak Hospital Finance Authority, Michigan, Hospital 1/06 at 102.00 AAA 3,090,870 Revenue Refunding Bonds, William Beaumont Hospital, Series 1996, 5.250%, 1/01/20 - MBIA Insured Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Series 2001M: 1,000 5.250%, 11/15/31 - MBIA Insured 11/11 at 100.00 AAA 1,058,810 2,000 5.250%, 11/15/35 - MBIA Insured 11/11 at 100.00 AAA 2,116,460 ----------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 1.8% 1,190 Michigan Housing Development Authority, GNMA Collateralized 6/05 at 102.00 Aaa 1,215,299 Limited Obligation Multifamily Revenue Refunding Bonds, Parc Point Apartments, Series 1995A, 6.500%, 10/01/15 6,000 Michigan Housing Development Authority, Section 8 Assisted No Opt. Call AA- 2,689,080 Mortgage Revenue Bonds, Series 1983I, 0.000%, 4/01/14 620 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 633,249 Revenue Bonds, Series 1995B, 6.150%, 10/01/15 - MBIA Insured
---- 33 Portfolio of Investments NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ----------------------------------------------------------------------------------------------------------------------- Housing/Single Family - 0.1% $ 180 Michigan Housing Development Authority, Single Family 6/12 at 100.00 AAA $ 187,906 Mortgage Revenue Bonds, Series 2002B, 5.500%, 6/01/30 (Alternative Minimum Tax) - MBIA Insured ----------------------------------------------------------------------------------------------------------------------- Long-Term Care - 2.9% 2,500 Kalamazoo Economic Development Corporation, Michigan, 5/07 at 102.00 BB+ 2,504,750 Limited Obligation Revenue and Refunding Bonds, Friendship Village of Kalamazoo, Series 1997A, 6.250%, 5/15/27 1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 1,011,180 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, Porter Hills Presbyterian Village, Series 1998: 140 5.300%, 7/01/18 7/08 at 101.00 BBB+ 144,193 260 5.375%, 7/01/28 7/08 at 101.00 BBB+ 265,086 3,300 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 6/08 at 100.00 BBB- 3,311,880 Clark Retirement Community Inc., Series 1998, 5.250%, 6/01/18 ----------------------------------------------------------------------------------------------------------------------- Materials - 0.7% 1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,781,395 Michigan, Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ----------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 31.8% 1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA 1,115,710 Michigan, General Obligation Bonds, Series 2002-3, 5.500%, 5/01/18 1,175 Birmingham, Michigan, General Obligation Bonds, Series 10/12 at 100.50 AAA 1,272,819 2002, 5.000%, 10/01/21 1,625 Brighton Township Sanitary Sewer Drainage District, 4/09 at 100.00 AAA 1,736,638 Livingston County, Michigan, Limited Tax General Obligation Bonds, Series 2000, 5.250%, 10/01/19 - FSA Insured 1,020 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AA 1,121,000 Counties, Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/22 Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation Bonds, Series 2005: 1,000 5.000%, 5/01/25 - MBIA Insured 5/15 at 100.00 AAA 1,074,810 1,135 5.000%, 5/01/26 - MBIA Insured 5/15 at 100.00 AAA 1,217,038 1,195 Carman-Ainsworth Community School District, Genesee County, 5/12 at 100.00 AAA 1,334,827 Michigan, General Obligation Bonds, Series 2002, 5.500%, 5/01/19 - FGIC Insured 1,850 Chippewa Valley Schools, Macomb County, Michigan, General 5/15 at 100.00 AAA 1,994,652 Obligation Bonds, Series 2005, 5.000%, 5/01/24 - MBIA Insured 1,800 Coopersville Area Public Schools, Ottawa and Muskegon 5/09 at 100.00 AAA 1,881,864 Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 5.000%, 5/01/29 - MBIA Insured 6,085 Detroit, Michigan, General Obligation Bonds, Series 4/14 at 100.00 AAA 6,700,680 2004A-1, 5.250%, 4/01/20 - AMBAC Insured 1,000 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 1,110,390 General Obligation Bonds, Series 2002A, 5.375%, 5/01/24 - FGIC Insured Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site Improvement Bonds, Series 2001A: 2,000 5.500%, 5/01/21 - FSA Insured 5/12 at 100.00 AAA 2,210,160 250 5.125%, 5/01/31 - FSA Insured 5/12 at 100.00 AAA 263,595 1,245 Edwardsburg Public School, Cass County, Michigan, General 5/14 at 100.00 AAA 1,334,179 Obligation Bonds, Series 2004, 5.000%, 5/01/24 - FSA Insured 1,125 Ferndale Public School District, Oakland County, Michigan, No Opt. Call AAA 1,208,205 General Obligation Bonds, Series 2004, 5.000%, 5/01/23 - FGIC Insured Fitzgerald Public School District, Macomb County, Michigan, General Obligation Bonds, Series 2004B: 2,125 5.000%, 5/01/18 - AMBAC Insured 11/14 at 100.00 AAA 2,326,089 1,125 5.000%, 5/01/19 - AMBAC Insured 11/14 at 100.00 AAA 1,225,879 2,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AA 2,087,780 General Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26
---- 34
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Tax Obligation/General (continued) $ 4,350 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA $ 4,558,496 Michigan, General Obligation Refunding Bonds, Series 2001, 5.125%, 5/01/29 1,000 Hastings Area School System, Barry County, Michigan, 5/11 at 100.00 AAA 1,045,490 Unlimited Tax General Obligation, Building and Site Bonds, Series 2001, 5.000%, 5/01/26 - MBIA Insured 2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA 2,150,540 Obligation Bonds, Series 2003, 5.000%, 5/01/24 1,000 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,075,510 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 1,030 Kent County, Michigan, General Obligation Bonds, Series 12/14 at 100.00 AAA 1,117,952 2004A, 5.000%, 12/01/22 1,300 Lansing Community College, Michigan, General Obligation 5/13 at 100.00 AAA 1,410,383 Bonds, Series 2003, 5.000%, 5/01/20 - MBIA Insured 1,000 Livonia Municipal Building Authority, Wayne County, 5/10 at 100.00 AAA 1,051,490 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/27 - FGIC Insured 2,700 Livonia Public Schools, Wayne County, Michigan, Unlimited No Opt. Call AAA 2,467,368 Tax General School Building and Site Bonds, Series 1992-II, 0.000%, 5/01/08 - FGIC Insured 2,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 2,157,260 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured 2,800 Michigan Municipal Bond Authority, Local Government Loan No Opt. Call AAA 2,549,512 Program Revenue Bonds, Pontiac School District, Series 1991C, 0.000%, 6/15/08 - FSA Insured 3,250 Michigan, General Obligation Bonds, Environmental 5/13 at 100.00 AA 3,581,142 Protection Program, Series 2003A, 5.250%, 5/01/21 2,000 Muskegon Public Schools, Muskegon County, Michigan, General 5/14 at 100.00 AAA 2,165,080 Obligation Bonds, Series 2004, 5.000%, 5/01/20 - FSA Insured 1,130 Novi, Michigan, General Obligation Bonds, Series 2002, 10/13 at 100.00 AAA 1,265,747 5.250%, 10/01/15 - FSA Insured Okemos Public School District, Ingham County, Michigan, General Obligation Refunding Bonds, Series 1993: 1,000 0.000%, 5/01/17 - MBIA Insured No Opt. Call AAA 608,670 1,020 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 590,254 3,000 Southgate Community School District, Wayne County, 5/09 at 100.00 AAA 3,099,420 Michigan, General Obligation Bonds, Series 1999, 5.000%, 5/01/25 - FGIC Insured 1,625 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,786,899 Michigan, General Obligation Bonds, Series 2004, 5.250%, 5/01/22 - MBIA Insured 1,170 Waverly Community Schools, Ingham County, Michigan, General 5/15 at 100.00 AAA 1,270,456 Obligation Bonds, Series 2005, 5.000%, 5/01/21 - FSA Insured 3,270 West Ottawa Public School District, Ottawa County, No Opt. Call AAA 1,990,351 Michigan, General Obligation Refunding Bonds, Series 1992, 0.000%, 5/01/17 - FGIC Insured 5,175 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 6,142,673 Tax General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - MBIA Insured Zeeland Public Schools, Ottawa and Allegan Counties, Michigan, General Obligation Bonds, Series 2005: 3,170 5.000%, 5/01/22 - FGIC Insured 5/15 at 100.00 AAA 3,431,335 3,350 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 3,600,613 -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 15.3% 1,655 Detroit, Michigan, Building Authority Revenue Bonds, 2/07 at 101.00 A 1,698,791 District Court Madison Center, Series 1996A, 6.150%, 2/01/11 11,000 Detroit-Wayne County Stadium Authority, Michigan, Limited 2/07 at 102.00 AAA 11,531,960 Tax General Obligation Building Authority Stadium Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured Grand Rapids Downtown Development Authority, Michigan, Tax Increment Revenue Bonds, Series 1994: 3,985 0.000%, 6/01/17 - MBIA Insured No Opt. Call AAA 2,419,971 3,295 0.000%, 6/01/18 - MBIA Insured No Opt. Call AAA 1,902,467 1,650 6.875%, 6/01/24 - MBIA Insured 6/05 at 101.00 AAA 1,671,896
---- 35 Portfolio of Investments NUVEEN MICHIGAN MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 250 Michigan Municipal Bond Authority, Wayne County, Local 6/05 at 100.00 AAA $ 250,380 Government Loan Program Revenue Bonds, Series 1991A, 4.750%, 12/01/09 - FGIC Insured 4,055 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 4,366,424 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/24 Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I: 2,720 5.500%, 10/15/19 10/11 at 100.00 AA- 3,022,110 5,000 5.000%, 10/15/24 10/11 at 100.00 AA- 5,324,850 2,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 2,162,740 Facilities Program, Series 2003II, 5.000%, 10/15/22 - MBIA Insured 1,500 Michigan, Certificates of Participation, Series 2000, 6/10 at 100.00 AAA 1,632,210 5.500%, 6/01/20 - AMBAC Insured 6,000 Michigan House of Representatives, Certificates of No Opt. Call AAA 2,630,940 Participation, Series 1998, 0.000%, 8/15/23 - AMBAC Insured -------------------------------------------------------------------------------------------------------------------- Transportation - 1.2% 3,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 3,146,760 Metropolitan Airport, Series 1998B, 5.000%, 12/01/28 - MBIA Insured -------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 17.4% 185 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 196,448 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 2,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,818,800 Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 6,500 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 8,088,730 Residual Option Long Series II-R-103, 8.430%, 7/01/20 (Pre-refunded to 1/01/10) (IF) 2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,244,420 Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured 1,000 Frankenmuth School District, Saginaw and Tuscola Counties, 5/10 at 100.00 AAA 1,114,400 Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 2000, 5.625%, 5/01/16 (Pre-refunded to 5/01/10) - FGIC Insured 2,000 Jonesville Community Schools, Hillsdale and Jackson 5/09 at 100.00 AAA 2,200,820 Counties, Michigan, Unlimited Tax General Obligation Building and Site Bonds, Series 1999, 5.750%, 5/01/29 (Pre-refunded to 5/01/09) - FGIC Insured 3,750 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 6/05 at 100.00 AA*** 4,015,538 Spectrum Health, Series 2001A, 5.500%, 1/15/31 (Pre-refunded to 6/02/05) 2,000 Macomb Township Building Authority, Macomb County, 4/08 at 101.00 AAA 2,184,960 Michigan, General Obligation Bonds, Series 2000, 6.000%, 4/01/27 (Pre-refunded to 4/01/08) - FGIC Insured 1,220 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,362,435 Development Inc., Series 2001, 5.375%, 9/01/21 (Pre-refunded to 9/01/11) - MBIA Insured 5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 5,668,450 Bonds, Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26 (Pre-refunded to 11/15/09) Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Presbyterian Villages of Michigan Obligated Group, Series 1997: 600 6.375%, 1/01/15 (Pre-refunded to 1/01/07) 1/07 at 102.00 N/R*** 642,078 500 6.375%, 1/01/25 (Pre-refunded to 1/01/07) 1/07 at 102.00 N/R*** 535,065 75 Michigan South Central Power Agency, Power Supply System No Opt. Call A3*** 85,912 Revenue Bonds, Series 2000, 6.000%, 5/01/12 2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,200,580 5.000%, 11/01/25 (Pre-refunded to 11/01/11) - FSA Insured 1,500 Portage Lake Water and Sewerage Authority, Houghton County, 10/05 at 102.00 AAA 1,546,785 Michigan, Limited Tax General Obligation Refunding Bonds, Series 1995, 6.200%, 10/01/20 (Pre-refunded to 10/01/05) - AMBAC Insured 1,215 Potterville Public Schools, Easton County, Michigan, 5/09 at 100.00 AAA 1,336,998 Unlimited Tax School Building and Site Bonds, Series 1999, 5.750%, 5/01/20 (Pre-refunded to 5/01/09) - FSA Insured
---- 36
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** (continued) $ 1,235 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA $ 1,383,274 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured 1,085 Romulus Tax Increment Finance Authority, Wayne County, 11/06 at 100.00 N/R*** 1,136,896 Michigan, Limited Obligation Development Revenue Bonds, Series 1994, 6.750%, 11/01/19 (Pre-refunded to 11/01/06) 2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,723,950 General Obligation Bonds, Series 2000, 5.125%, 3/01/17 (Pre-refunded to 3/01/10) - AMBAC Insured 7,000 Vicksburg Community Schools, Kalamazoo and St. Joseph 5/06 at 37.24 AAA 2,539,740 Counties, Michigan, General Obligation Bonds, Series 1991, 0.000%, 5/01/20 (Pre-refunded to 5/01/06) - MBIA Insured -------------------------------------------------------------------------------------------------------------------- Utilities - 4.2% 1,000 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,083,320 Electric Utility System Revenue Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,079,490 Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 925 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 1,024,299 Revenue Bonds, Series 2000, 6.000%, 5/01/12 3,300 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 3,502,483 Pollution Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 (Alternative Minimum Tax) 1,000 Monroe County Economic Development Corporation, Michigan, No Opt. Call AAA 1,341,970 Collateralized Limited Obligation Revenue Refunding Bonds, Detroit Edison Company, Series 1992AA, 6.950%, 9/01/22 - FGIC Insured 4,000 Puerto Rico Electric Power Authority, Power Revenue No Opt. Call AAA 2,508,240 Refunding Bonds, Series 1989O, 0.000%, 7/01/17 - MBIA Insured -------------------------------------------------------------------------------------------------------------------- Water and Sewer - 7.4% 4,455 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, No Opt. Call AAA 2,430,203 Series 1999A, 0.000%, 7/01/19 - FGIC Insured 3,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/11 at 100.00 AAA 3,189,030 Revenue Bonds, Series 2001A, 5.125%, 7/01/31 - FGIC Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 2,500 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 2,602,900 3,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 3,305,310 5,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 5,355,850 Bonds, Series 2003A, 5.000%, 7/01/25 - MBIA Insured 1,625 Lansing, Michigan, Sewerage Disposal System Revenue Bonds, 5/14 at 100.00 AAA 1,752,774 Series 2003, 5.000%, 5/01/21 - FGIC Insured -------------------------------------------------------------------------------------------------------------------- $253,570 Total Long-Term Investments (cost $229,991,818) - 98.8% 249,246,508 -------------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 1.2% 3,053,970 ------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 252,300,478 -------------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (IF)Inverse floating rate security. See accompanying notes to financial statements. ---- 37 Portfolio of Investments NUVEEN MISSOURI MUNICIPAL BOND FUND May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------------------------------------------- Consumer Discretionary - 0.8% $ 3,225 St. Louis Industrial Development Authority, Missouri, No Opt. Call AAA $ 2,138,530 Senior Lien Revenue Bonds, St. Louis Convention Center Headquarters Hotel, Series 2000A, 0.000%, 7/15/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------- Consumer Staples - 4.6% 3,000 Cape Girardeau County Industrial Development Authority, 5/08 at 101.00 AA- 3,097,080 Missouri, Solid Waste Disposal Revenue Bonds, Procter & Gamble Products Company Project, Series 1998, 5.300%, 5/15/28 (Alternative Minimum Tax) 8,100 Missouri Development Finance Board, Solid Waste Disposal No Opt. Call AA- 9,055,638 Revenue Bonds, Procter and Gamble Inc., Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 8.4% Curators of the University of Missouri, System Facilities Revenue Bonds, Series 2003A: 1,000 5.000%, 11/01/21 11/13 at 100.00 AA 1,087,000 1,200 5.000%, 11/01/31 11/13 at 100.00 AA 1,269,612 1,000 Kansas City Metropolitan Community Colleges Building 7/11 at 100.00 Aaa 1,108,410 Corporation, Missouri, Leasehold Revenue Bonds, Junior College District of Metropolitan Kansas City, Series 2001, 5.500%, 7/01/18 - FGIC Insured 4,190 Missouri Higher Education Loan Authority, Subordinate Lien 8/05 at 101.00 A2 4,325,337 Student Loan Revenue Bonds, Series 1994F, 6.750%, 2/15/09 (Alternative Minimum Tax) 1,000 Missouri Health and Educational Facilities Authority, No Opt. Call AAA 1,168,320 Revenue Bonds, Washington University, Series 2001A, 5.500%, 6/15/16 Missouri Health and Educational Facilities Authority, Revenue Bonds, Maryville University of St. Louis, Series 1997: 1,000 5.625%, 6/15/13 6/07 at 101.00 Baa2 1,038,780 1,750 5.750%, 6/15/17 6/07 at 101.00 Baa2 1,811,915 1,100 Missouri Health and Educational Facilities Authority, 10/08 at 100.00 N/R 1,106,424 Revenue Bonds, Barstow School, Series 1998, 5.250%, 10/01/23 1,000 Missouri Health and Educational Facilities Authority, 1/10 at 100.00 AA 1,083,920 Revenue Bonds, Central Institute for the Deaf, Series 1999, 5.850%, 1/01/22 - RAAI Insured 900 Missouri Health and Educational Facilities Authority, 6/08 at 102.00 A1 960,975 Revenue Bonds, Stephens College, Series 1999, 6.000%, 6/01/24 1,100 Missouri Health and Educational Facilities Authority, 6/10 at 100.00 Baa2 1,184,524 Revenue Bonds, Maryville University of St. Louis, Series 2000, 6.750%, 6/15/30 1,360 Missouri Health and Educational Facilities Authority, 4/11 at 100.00 Aaa 1,502,705 Revenue Bonds, Webster University, Series 2001, 5.500%, 4/01/18 - MBIA Insured St. Louis County Industrial Development Authority, Missouri, Revenue Bonds, Kiel Center Multipurpose Arena, Series 1992: 650 7.625%, 12/01/09 (Alternative Minimum Tax) 6/05 at 100.00 N/R 653,504 1,000 7.750%, 12/01/13 (Alternative Minimum Tax) 6/05 at 100.00 N/R 1,018,900 500 7.875%, 12/01/24 (Alternative Minimum Tax) 6/05 at 100.00 N/R 510,700 2,060 Southeast Missouri State University, System Facilities 4/11 at 100.00 Aaa 2,153,586 Revenue Refunding and Improvement Bonds, Series 2001, 5.000%, 4/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------- Healthcare - 9.6% 1,250 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 1,315,425 Facilities Revenue Bonds, Freeman Health System, Series 2004, 5.500%, 2/15/29 1,000 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AAA 1,065,440 Revenue Bonds, St. Luke's Health System, Series 2001, 5.250%, 12/01/26 - FSA Insured 1,000 Missouri Health and Educational Facilities Authority, 5/13 at 100.00 AA 1,059,910 Revenue Bonds, BJC Health System, Series 2003, 5.125%, 5/15/25 2,750 Missouri Health and Educational Facilities Authority, 2/14 at 100.00 BBB+ 2,935,708 Revenue Bonds, Lake Regional Health System, Series 2003, 5.700%, 2/15/34 1,000 Missouri Health and Educational Facilities Authority, 5/15 at 100.00 AA 1,066,200 Revenue Bonds, BJC Health System, Series 2005A, 5.000%, 5/15/22
---- 38
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------------------------------------------- Healthcare (continued) Missouri Health and Educational Facilities Authority, Revenue Bonds, Freeman Health System, Series 1998: $ 1,500 5.250%, 2/15/18 2/08 at 102.00 BBB+ $ 1,542,900 1,300 5.250%, 2/15/28 2/08 at 102.00 BBB+ 1,316,913 500 Missouri Health and Educational Facilities Authority, 11/06 at 100.00 BBB+ 503,535 Revenue Bonds, Capital Region Medical Center, Series 1998, 5.250%, 11/01/23 Missouri Health and Educational Facilities Authority, Revenue Bonds, St. Anthony's Medical Center, Series 2000: 1,220 6.250%, 12/01/12 12/10 at 101.00 A 1,373,269 2,000 6.250%, 12/01/30 12/10 at 101.00 A 2,165,820 Missouri Health and Educational Facilities Authority, Revenue Bonds, Lester E. Cox Medical Center, Series 1992H: 2,650 0.000%, 9/01/17 - MBIA Insured No Opt. Call AAA 1,586,900 4,740 0.000%, 9/01/21 - MBIA Insured No Opt. Call AAA 2,318,334 6,300 0.000%, 9/01/22 - MBIA Insured No Opt. Call AAA 2,923,830 1,000 New Liberty Hospital District, Missouri, Revenue Bonds, 12/11 at 100.00 AAA 1,054,110 Series 2001, 5.000%, 12/01/21 - AMBAC Insured 2,880 Taney County Industrial Development Authority, Missouri, 5/08 at 101.00 BBB 2,931,322 Hospital Revenue Bonds, Skaggs Community Hospital Association, Series 1998, 5.400%, 5/15/28 ------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 8.2% Clay County Industrial Development Authority, Missouri, GNMA Multifamily Housing Revenue Bonds, Oak Creek Apartments, Series 2002: 1,320 6.125%, 7/20/25 (Alternative Minimum Tax) 7/13 at 105.00 AAA 1,423,963 2,530 6.300%, 1/20/38 (Alternative Minimum Tax) 7/13 at 103.00 AAA 2,726,708 70 Missouri Housing Development Commission, FHA-Insured 7/05 at 100.00 Aaa 70,085 Mortgage Loan Housing Development Refunding Bonds, Series 1992, 6.600%, 7/01/24 (Pre-refunded to 7/01/05) 885 Missouri Housing Development Commission, Multifamily 12/05 at 103.00 N/R 910,258 Housing Revenue Bonds, Primm Place Apartments, Series 1995A, 6.250%, 12/01/17 (Alternative Minimum Tax) 2,545 Missouri Housing Development Commission, Multifamily 4/08 at 102.00 N/R 2,502,804 Housing Revenue Bonds, Mansion Apartments II, Series 1999, 6.125%, 4/01/22 (Alternative Minimum Tax) Missouri Housing Development Commission, GNMA Collateralized Multifamily Housing Revenue Bonds, JB Hughes Apartments I and II, Series 2002G: 271 6.200%, 5/20/19 5/12 at 105.00 Aaa 292,832 975 6.300%, 5/20/37 5/12 at 105.00 Aaa 1,046,965 1,805 St. Louis County Industrial Development Authority, 1/09 at 105.00 AAA 1,866,280 Missouri, GNMA Collateralized Subordinate Lien Housing Revenue Refunding Bonds, Southfield and Oak Forest II Apartments, Series 2002A, 5.200%, 1/20/36 9,105 St. Louis County Industrial Development Authority, 8/06 at 105.00 AAA 9,684,989 Missouri, GNMA Mortgage-Backed Multifamily Housing Revenue Bonds, Covington Manor Apartments, Series 1996A, 6.875%, 8/20/36 (Alternative Minimum Tax) 925 Universal City Industrial Development Authority, Missouri, 8/07 at 102.00 Aaa 962,833 GNMA Collateralized Revenue Refunding Bonds, River Valley Apartments, Series 1997A, 5.900%, 2/20/37 ------------------------------------------------------------------------------------------------------------------- Housing/Single Family - 2.2% 240 Missouri Housing Development Commission, GNMA/FNMA Single 1/07 at 102.00 AAA 241,606 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 1996D, 6.125%, 3/01/28 (Alternative Minimum Tax) 85 Missouri Housing Development Commission, GNMA/FNMA Single 3/07 at 105.00 AAA 85,624 Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 1997A-2, 7.300%, 3/01/28 (Alternative Minimum Tax) 230 Missouri Housing Development Commission, Single Family 3/06 at 105.00 AAA 231,688 Mortgage Revenue Bonds, Homeownership Loan Program, Series 1995C, 7.250%, 9/01/26 (Alternative Minimum Tax) Missouri Housing Development Commission, GNMA Single Family Remarketed Mortgage Revenue Bonds, Homeownership Loan Program, Series 1995B: 420 6.375%, 9/01/20 (Alternative Minimum Tax) 9/06 at 102.00 AAA 422,549 340 6.450%, 9/01/27 (Alternative Minimum Tax) 9/06 at 102.00 AAA 342,128
---- 39 Portfolio of Investments NUVEEN MISSOURI MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------------------------------------------- Housing/Single Family (continued) $ 235 Missouri Housing Development Commission, Single Family 9/06 at 105.00 AAA $ 237,247 Mortgage Revenue Bonds, Homeownership Loan Program, Series 1996B, 7.550%, 9/01/27 (Alternative Minimum Tax) 185 Missouri Housing Development Commission, Single Family 3/08 at 105.00 AAA 186,289 Mortgage Revenue Bonds, Homeownership Loan Program, Series 1998B-2, 6.400%, 3/01/29 (Alternative Minimum Tax) 520 Missouri Housing Development Commission, Single Family 9/09 at 100.00 AAA 539,386 Mortgage Revenue Bonds, Homeownership Loan Program, Series 2000A-1, 6.300%, 9/01/25 (Alternative Minimum Tax) 300 Missouri Housing Development Commission, Single Family 3/10 at 100.00 AAA 317,403 Mortgage Revenue Bonds, Homeownership Loan Program, Series 2000B-1, 6.200%, 9/01/25 (Alternative Minimum Tax) 3,000 Missouri Housing Development Commission, Single Family 9/14 at 100.00 AAA 3,256,980 Mortgage Revenue Bonds, Homeownership Loan Program, Series 2005A-1, 5.900%, 9/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------- Long-Term Care - 10.5% 1,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,055,760 Revenue Bonds, Lutheran Senior Services - Heisinger Project, Series 2004, 5.500%, 2/01/35 4,250 Kansas City Industrial Development Authority, Missouri, 11/08 at 102.00 N/R 3,965,972 Retirement Center Revenue Refunding and Improvement Bonds, Kingswood Project, Series 1998A, 5.875%, 11/15/29 1,000 Lees Summit Industrial Development Authority, Missouri, 8/05 at 102.00 N/R 1,024,780 Health Facilities Revenue Bonds, John Knox Village, Series 1995, 6.625%, 8/15/13 5,000 Lees Summit Industrial Development Authority, Missouri, 8/09 at 101.00 N/R 5,357,100 Health Facilities Revenue Bonds, John Knox Village, Series 1999, 6.000%, 8/15/17 1,500 Lees Summit Industrial Development Authority, Missouri, 8/12 at 101.00 N/R 1,615,410 Health Facilities Revenue Bonds, John Knox Village, Series 2002, 5.700%, 8/15/22 1,285 Missouri Development Finance Board, Healthcare Facilities 11/11 at 100.00 A2 1,360,982 Revenue Bonds, Lutheran Home for the Aged, Series 2001A, 5.600%, 11/01/21 3,750 Missouri Health and Educational Facilities Authority, 2/06 at 102.00 N/R 3,870,075 Revenue Bonds, Lutheran Senior Services, Series 1996A, 6.375%, 2/01/27 3,500 Missouri Health and Educational Facilities Authority, 2/07 at 102.00 N/R 3,648,960 Revenue Bonds, Lutheran Senior Services, Series 1997, 5.875%, 2/01/23 1,800 St. Louis County Industrial Development Authority, 9/06 at 102.00 N/R 1,868,364 Missouri, Revenue Refunding Bonds, Friendship Village of West County, Series 1996A, 6.250%, 9/01/10 2,425 St. Louis County Industrial Development Authority, 8/05 at 104.00 AAA 2,532,767 Missouri, GNMA Collateralized Healthcare Facilities Revenue Bonds, Mother of Perpetual Help Residence Inc., Series 1995, 6.250%, 8/01/28 1,200 St. Louis County Industrial Development Authority, 3/10 at 102.00 AAA 1,280,532 Missouri, GNMA Collateralized Healthcare Facilities Revenue Bonds, Mary, Queen and Mother Association, Series 2001, 5.400%, 9/20/34 ------------------------------------------------------------------------------------------------------------------- Materials - 0.4% 1,000 Sugar Creek, Missouri, Industrial Development Revenue 6/13 at 101.00 BBB 1,040,770 Bonds, Lafarge North America Inc., Series 2003A, 5.650%, 6/01/37 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 14.4% 1,500 Branson Reorganized School District R-4, Taney County, 3/15 at 100.00 AAA 1,610,625 Missouri, General Obligation Bonds, Series 2005, 5.000%, 3/01/25 (WI, settling 6/01/05) - FSA Insured 1,465 Camdenton Reorganized School District R3, Camden County, 3/12 at 100.00 AAA 1,603,120 Missouri, General Obligation Bonds, Series 2004, 5.250%, 3/01/24 - FSA Insured 1,500 Camdenton Reorganized School District R3, Camden County, No Opt. Call AAA 1,660,920 Missouri, General Obligation Bonds, Series 2005, 5.250%, 3/01/24 - FSA Insured 2,000 Cass County Reorganized School District R-II, Raymore and 3/12 at 100.00 AAA 2,176,080 Peculiar, Missouri, General Obligation Bonds, Series 2002, 5.250%, 3/01/20 - FSA Insured 540 Clay County Public School District 53, Liberty, Missouri, 3/12 at 100.00 AA+ 584,609 General Obligation Bonds, Series 2001C, 5.200%, 3/01/21 1,280 Clay County Public School District 53, Liberty, Missouri, 3/12 at 100.00 AAA 1,358,093 General Obligation Bonds, Series 2002B, 5.000%, 3/01/22 - FSA Insured
---- 40
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------------------------------------------- Tax Obligation/General (continued) $ 1,000 Greene County Reorganized School District R8, Missouri, 3/12 at 100.00 AAA $ 1,088,040 General Obligation Bonds, Series 2002, 5.250%, 3/01/20 - FSA Insured 2,500 Hickman Mills C-1 School District, Jackson County, 3/13 at 100.00 AAA 2,710,975 Missouri, General Obligation Bonds, Series 2003, 5.000%, 3/01/21 - FSA Insured 1,000 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA 1,099,610 General Obligation Refunding and Improvement Bonds, Series 2002, 5.250%, 3/01/18 - FSA Insured 1,450 Jackson County Reorganized School District R-7, Lees 3/14 at 100.00 Aaa 1,562,186 Summit, Missouri, General Obligation Bonds, Series 2004, 5.000%, 3/01/21 - MBIA Insured 1,000 Jefferson City School District, Missouri, General No Opt. Call Aa2 1,138,270 Obligation Bonds, Series 1991A, 6.700%, 3/01/11 3,000 Kansas City, Missouri, General Obligation Bonds, Series 2/14 at 100.00 AA 3,223,410 2004F, 5.000%, 2/01/24 1,000 Pevely, Missouri, General Obligation Bonds, Series 2004, 3/13 at 100.00 AA 1,064,360 5.250%, 3/01/24 - RAAI Insured 2,275 Platte County Reorganized School District R3, Missouri, 3/14 at 100.00 AAA 2,465,031 General Obligation Bonds, Series 2004, 5.000%, 3/01/20 - MBIA Insured 750 Polk County R-1 School District, Bolivar, Missouri, General 3/10 at 100.00 AA+ 824,340 Obligation Bonds, Missouri Direct Deposit Program, Series 2000, 5.700%, 3/01/20 1,345 St. Louis County Pattonville School District R3, Missouri, No Opt. Call AAA 1,644,276 General Obligation Bonds, Series 2000, 6.500%, 3/01/14 - FGIC Insured 1,900 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 2,102,597 General Obligation Bonds, Series 2004, 5.250%, 3/01/20 - FSA Insured 1,605 St. Louis Board of Education, Missouri, General Obligation 4/13 at 100.00 AAA 1,742,276 Refunding Bonds, Series 2003A, 5.000%, 4/01/20 - FSA Insured Springfield School District R12, Missouri, General Obligation Bonds, Series 2003: 2,875 5.125%, 3/01/20 - FGIC Insured 3/13 at 100.00 AAA 3,142,605 3,000 5.000%, 3/01/22 - FGIC Insured 3/13 at 100.00 AAA 3,245,400 1,500 5.000%, 3/01/23 - FGIC Insured 3/13 at 100.00 AAA 1,619,775 ------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 19.0% 830 Brentwood, Missouri, Tax Increment Refunding Bonds, 4/09 at 100.00 AA 853,149 Promenade Project, Series 2002, 4.700%, 4/01/19 - RAAI Insured 1,875 Christian County Public Building Corporation, Missouri, 6/10 at 100.00 AA 2,032,875 Leasehold Revenue Bonds, Justice Center Project, Series 2000, 5.450%, 6/01/15 - RAAI Insured 1,035 Dunklin County, Missouri, Certificates of Participation, 12/14 at 100.00 AAA 1,125,945 Series 2004, 5.000%, 12/01/19 - FGIC Insured 2,750 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R 2,843,115 Revenue Bonds, Gravois Bluffs Redevelopment Project, Series 2002, 6.125%, 10/01/21 3,000 Harrisonville, Missouri, Lease Participation Certificates, 12/13 at 100.00 AAA 3,195,450 Series 2003, 5.000%, 12/01/22 - XLCA Insured 3,490 Howard Bend Levee District, St. Louis County, Missouri, 3/09 at 101.00 N/R 3,684,498 Levee District Improvement Bonds, Series 1999, 5.850%, 3/01/19 1,200 Kansas City Land Clearance Redevelopment Authority, 12/05 at 102.00 AAA 1,240,944 Missouri, Lease Revenue Bonds, Municipal Auditorium and Muehlebach Hotel Redevelopment Projects, Series 1995A, 5.900%, 12/01/18 - FSA Insured Mehlville School District R-9, St. Louis County, Missouri, Certificates of Participation, Capital Improvement Projects, Series 2002: 1,275 5.500%, 9/01/17 - FSA Insured 9/12 at 100.00 AAA 1,428,727 1,000 5.500%, 9/01/18 - FSA Insured 9/12 at 100.00 AAA 1,119,220 3,885 Missouri Association of Rural Education, Pulaski County, 3/09 at 100.00 AAA 4,107,067 Certificates of Participation, Waynesville School District R-6, Series 2004, 5.100%, 3/01/24 - MBIA Insured 1,500 Missouri Development Finance Board, Kansas City, 4/10 at 100.00 AAA 1,655,820 Infrastructure Facilities Revenue Bonds, Midtown Redevelopment Project, Series 2000A, 5.750%, 4/01/22 - MBIA Insured 4,000 Missouri Development Finance Board, Independence, 4/11 at 100.00 A+ 4,169,880 Infrastructure Facilities Revenue Bonds, Santa Fe Redevelopment Project, Series 2001, 5.250%, 4/01/23
---- 41 Portfolio of Investments NUVEEN MISSOURI MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 2,000 Missouri Development Finance Board, Infrastructure 3/10 at 100.00 N/R $ 2,060,340 Facilities Revenue Bonds, Riverside-Quindaro Bend Levee District L-385, Series 2001, 5.800%, 3/01/20 450 Monarch-Chesterfield Levee District, St. Louis County, 3/10 at 101.00 AAA 501,404 Missouri, Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19 - MBIA Insured 1,705 O'Fallon, Missouri, Certificates of Participation, Series 2/12 at 100.00 Aaa 1,872,994 2002, 5.250%, 2/01/15 - MBIA Insured 900 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 A 1,006,020 Transportation Authority, Series 1996Y, 5.500%, 7/01/36 3,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call BBB 3,429,450 Government Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 1,170 Riverside, Missouri, Tax Increment Revenue Bonds, L-385 5/15 at 100.00 BBB 1,217,198 Levee Project, Series 2004, 5.250%, 5/01/20 600 St. Joseph Industrial Development Authority, Missouri, Tax 11/14 at 100.00 N/R 607,668 Increment Bonds, Shoppes at North Village Project, Series 2005A, 5.500%, 11/01/27 1,240 St. Louis Municipal Finance Corporation, Missouri, 2/12 at 100.00 Aaa 1,399,476 Leasehold Revenue Bonds, Carnahan Courthouse, Series 2002A, 5.750%, 2/15/17 - FGIC Insured 1,750 St. Louis Regional Convention and Sports Complex Authority, 8/07 at 100.00 AAA 1,822,258 Missouri, Lease Revenue Refunding Bonds, Series 1997C, 5.300%, 8/15/20 - AMBAC Insured 2,950 Springfield Public Building Corporation, Missouri, Lease 6/10 at 100.00 AAA 3,324,001 Revenue Bonds, Jordan Valley Park Projects, Series 2000A, 6.125%, 6/01/21 - AMBAC Insured 2,500 Springfield Public Building Corporation, Missouri, Lease 3/14 at 100.00 Aaa 2,666,725 Revenue Bonds, Series 2004, 5.000%, 3/01/24 - AMBAC Insured 1,945 Springfield Center City Development Corporation, Missouri, 6/12 at 100.00 Aaa 2,046,354 Lease Revenue Bonds, Jordan Valley Park Exposition Center, Series 2002A, 5.000%, 6/01/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------- Transportation - 7.0% 2,000 Kansas City, Missouri, Passenger Facility Charge Revenue 4/11 at 101.00 AAA 2,081,260 Bonds, Kansas City International Airport, Series 2001, 5.000%, 4/01/23 (Alternative Minimum Tax) - AMBAC Insured 5,000 St. Louis, Missouri, Airport Revenue Bonds, Airport 7/11 at 100.00 AAA 5,230,350 Development Program, Series 2001A, 5.000%, 7/01/26 - MBIA Insured St. Louis, Missouri, Airport Revenue Refunding Bonds, Series 2003A: 3,450 5.250%, 7/01/16 - FSA Insured 7/13 at 100.00 AAA 3,811,664 1,000 5.250%, 7/01/18 - FSA Insured 7/13 at 100.00 AAA 1,097,520 St. Louis Land Clearance Redevelopment Authority, Missouri, Revenue Refunding and Improvement Bonds, LCRA Parking Facilities, Series 1999C: 1,000 7.000%, 9/01/19 9/09 at 102.00 N/R 1,083,220 2,400 7.050%, 9/01/24 9/09 at 102.00 N/R 2,582,328 2,250 St. Louis, Missouri, Revenue Refunding Bonds, Parking 12/06 at 102.00 AAA 2,368,193 Facility, Series 1996, 5.375%, 12/15/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 3.8% 2,285 Branson Public Building Corporation, Missouri, Leasehold 11/06 at 101.00 N/R*** 2,410,561 Revenue Bonds, City Hall and Fire Station Improvement Projects, Series 1995, 6.250%, 11/01/12 (Pre-refunded to 11/01/06) 4,500 Cape Girardeau County, Missouri, Single Family Mortgage No Opt. Call Aaa 3,107,700 Revenue Bonds, Series 1983, 0.000%, 12/01/14 1,025 Excelsior Springs School District, Missouri, Leasehold No Opt. Call AAA 731,235 Revenue Bonds, Series 1994, 0.000%, 3/01/14 - FSA Insured 235 Greene County, Missouri, Single Family Mortgage Revenue No Opt. Call Aaa 151,751 Bonds, Series 1984, 0.000%, 3/01/16 1,895 Missouri Health and Educational Facilities Authority, No Opt. Call Aaa 2,356,679 Revenue Bonds, BJC Health System, Series 1994A, 6.750%, 5/15/14 950 Texas County, Missouri, Hospital Revenue Bonds, Texas 6/10 at 100.00 N/R*** 1,120,069 County Memorial Hospital, Series 2000, 7.250%, 6/15/25 (Pre-refunded to 6/15/10)
---- 42
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------------------------------------------- Utilities - 5.1% $ 2,710 Columbia, Missouri, Water and Electric Revenue Bonds, 10/12 at 100.00 AAA $ 2,860,351 Series 2002A, 5.000%, 10/01/26 - AMBAC Insured 1,195 Nixa, Missouri, Electric System Revenue Bonds, Series 2005, 4/13 at 100.00 AAA 1,256,148 5.000%, 4/01/25 - XLCA Insured 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,077,410 Series 2002II, 5.125%, 7/01/26 - FSA Insured 2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 2,343,640 Series 2003NN, 5.250%, 7/01/23 - MBIA Insured 2,000 Sikeston, Missouri, Electric System Revenue Bonds, Series No Opt. Call AAA 2,233,300 1992, 6.200%, 6/01/10 - MBIA Insured 3,030 Sikeston, Missouri, Electric System Revenue Refunding No Opt. Call AAA 3,612,578 Bonds, Series 1996, 6.000%, 6/01/14 - MBIA Insured ------------------------------------------------------------------------------------------------------------------- Water and Sewer - 5.4% 1,825 Kansas City, Missouri, Sewerage System Revenue Bonds, 1/12 at 100.00 AA 1,995,418 Series 2002D-1, 5.375%, 1/01/22 3,385 Metropolitan St. Louis Sewerage District, Missouri, Revenue 5/14 at 100.00 AAA 3,672,353 Bonds, Wastewater System, Series 2004A, 5.000%, 5/01/20 - MBIA Insured 1,635 Missouri Environmental Improvement and Energy Resources 4/09 at 100.00 AA 1,764,819 Authority, Water Facility Revenue Refunding Bonds, Tri-County Water Authority, Series 1999, 6.000%, 4/01/22 - RAAI Insured 1,600 Missouri Development Finance Board, Independence, 11/14 at 100.00 AAA 1,717,328 Infrastructure Facilities Revenue Bonds, Water System Improvement Projects, Series 2004, 5.000%, 11/01/24 - AMBAC Insured 1,000 Missouri Environmental Improvement and Energy Resources 7/15 at 100.00 Aaa 1,081,850 Authority, Water Pollution Control and Drinking Water Revenue Bonds, State Revolving Fund Program, Series 2005A, 5.000%, 7/01/25 435 Missouri Environmental Improvement and Energy Resources 10/05 at 100.00 Aaa 436,492 Authority, Water Pollution Control Revenue Bonds, State Revolving Fund Program - Springfield Project, Series 1990A, 7.000%, 10/01/10 365 Missouri Environmental Improvement and Energy Resources 7/05 at 100.00 Aaa 366,121 Authority, Water Pollution Control Revenue Bonds, State Revolving Fund Program - Multi-Participants, Series 1992A, 6.550%, 7/01/14 250 Missouri Environmental Improvement and Energy Resources 7/05 at 101.00 Aaa 252,763 Authority, Water Pollution Control Revenue Bonds, State Revolving Fund Program - Multi-Participants, Series 1994B, 7.200%, 7/01/16 St. Charles County Public Water Supply District 2, Missouri, Certificates of Participation, Series 2002A: 750 5.000%, 12/01/26 - MBIA Insured 12/11 at 100.00 Aaa 787,523 1,000 5.250%, 12/01/28 - MBIA Insured 12/11 at 100.00 Aaa 1,074,480 1,000 West Plains, Missouri, Sewerage System Revenue Bonds, 7/12 at 100.00 AAA 1,077,710 Series 2004, 5.125%, 7/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------- $253,626 Total Long-Term Investments (cost $243,884,069) - 99.4% 260,225,555 ------------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 0.6% 1,657,908 ----------------------------------------------------------------------------------------------------- Net Assets - 100% $ 261,883,463 -----------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (WI)Security purchased on a when-issued basis. See accompanying notes to financial statements. ---- 43 Portfolio of Investments NUVEEN OHIO MUNICIPAL BOND FUND May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Consumer Staples - 1.2% $ 6,885 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 6,967,207 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 -------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 7.0% 4,090 Cleveland State University, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 4,409,470 Series 2003A, 5.000%, 6/01/23 - FGIC Insured 1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,229,172 Bonds, University of Findlay, Series 1996, 6.125%, 9/01/16 5,000 Ohio Higher Educational Facilities Commission, Revenue 5/07 at 102.00 AAA 5,287,650 Bonds, Xavier University, Series 1997, 5.375%, 5/15/22 - MBIA Insured 1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,100,160 Bonds, University of Dayton, Series 2000, 5.500%, 12/01/30 - AMBAC Insured Ohio Higher Educational Facilities Commission, Revenue Bonds, Wittenberg University, Series 2001: 1,200 5.500%, 12/01/21 12/11 at 100.00 Baa1 1,288,284 2,000 5.000%, 12/01/26 12/11 at 100.00 Baa1 2,057,520 2,730 Ohio Higher Educational Facilities Commission, Revenue 11/14 at 100.00 AA 2,957,982 Bonds, Denison University, Series 2004, 5.000%, 11/01/20 1,315 Ohio Higher Educational Facilities Commission, Revenue 12/14 at 100.00 AAA 1,407,892 Bonds, University of Dayton, Series 2004, 5.000%, 12/01/25 - AMBAC Insured 910 Ohio Higher Education Facilities Commission, Revenue Bonds, No Opt. Call AA 1,143,379 Case Western Reserve University, Series 1990B, 6.500%, 10/01/20 3,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 AA 3,327,630 Case Western Reserve University, Series 2002B, 5.500%, 10/01/22 1,750 Ohio Higher Education Facilities Commission, General 10/13 at 100.00 AA 1,877,610 Revenue Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24 Ohio Higher Education Facilities Commission, Revenue Bonds, Wittenburg University, Series 2005: 1,000 5.000%, 12/01/24 12/15 at 100.00 Baa1 1,032,170 1,000 5.000%, 12/01/29 12/15 at 100.00 Baa1 1,020,480 Ohio University at Athens, Subordinate Lien General Receipts Bonds, Series 2004: 1,855 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 AAA 2,002,046 1,900 5.000%, 12/01/23 - MBIA Insured 6/14 at 100.00 AAA 2,041,683 2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA 2,181,480 Series 2001A, 5.250%, 6/01/24 - FGIC Insured 1,675 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,810,424 Series 2004A, 5.000%, 6/01/21 - AMBAC Insured University of Cincinnati, Ohio, General Receipts Bonds, Series 2004D: 1,325 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AAA 1,420,705 1,005 5.000%, 6/01/26 - AMBAC Insured 6/14 at 100.00 AAA 1,072,898 1,025 University of Cincinnati, Ohio, General Receipts Bonds, 12/14 at 100.00 AAA 1,109,983 Series 2004E, 5.000%, 6/01/21 - AMBAC Insured -------------------------------------------------------------------------------------------------------------------- Healthcare - 16.8% 7,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 7,197,750 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/24 1,065 Akron, Bath and Copley Joint Township Hospital District, 11/13 at 100.00 Aaa 1,155,717 Ohio, Hospital Revenue Bonds, Children's Hospital Medical Center, Series 2003, 5.250%, 11/15/25 - FSA Insured 11,900 Cuyahoga County, Ohio, Hospital Revenue and Improvement 2/09 at 101.00 A- 12,621,854 Bonds, MetroHealth System, Series 1999, 6.125%, 2/15/24 1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/07 at 102.00 AAA 1,058,400 Improvement Bonds, MetroHealth System, Series 1997, 5.625%, 2/15/17 - MBIA Insured 4,400 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa3 4,910,796 Clinic Health System, Series 2003A, 6.000%, 1/01/32
---- 44
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ----------------------------------------------------------------------------------------------------------------------- Healthcare (continued) $ 2,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A $ 2,647,900 Firelands Regional Medical Center, Series 2002A, 5.625%, 8/15/32 Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Children's Hospital Project, Series 1996A: 1,575 5.750%, 11/01/15 11/06 at 101.00 Aa2 1,628,928 5,275 5.875%, 11/01/25 11/06 at 101.00 Aa2 5,440,002 Franklin County, Ohio, Hospital Revenue Bonds, Holy Cross Health System Corporation, Series 1996: 965 5.800%, 6/01/16 6/06 at 102.00 AA- 1,005,704 2,000 5.875%, 6/01/21 6/06 at 102.00 AA- 2,087,040 5,690 Lorain County, Ohio, Hospital Facilities Revenue Refunding 11/05 at 102.00 AAA 5,852,108 Bonds, EMH Regional Medical Center, Series 1995, 5.375%, 11/01/21 - AMBAC Insured 2,000 Marion County, Ohio, Hospital Revenue Refunding and 5/06 at 102.00 BBB+ 2,087,560 Improvement Bonds, The Community Hospital, Series 1996, 6.375%, 5/15/11 2,000 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,078,480 and Improvement Bonds, Upper Valley Medical Center, Series 1996A, 6.250%, 5/15/16 4,205 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 4,377,657 and Improvement Bonds, Upper Valley Medical Center, Series 1996C, 6.250%, 5/15/13 4,000 Middleburg Heights, Ohio, Hospital Improvement Revenue 8/08 at 102.00 AAA 4,355,720 Refunding Bonds, Southwest General Hospital, Series 1995, 5.625%, 8/15/15 - FSA Insured Montgomery County, Ohio, Hospital Facilities Revenue Refunding and Improvement Bonds, Kettering Medical Center, Series 1996: 1,500 5.625%, 4/01/16 - MBIA Insured 4/06 at 102.00 AAA 1,560,030 7,000 6.250%, 4/01/20 - MBIA Insured No Opt. Call AAA 8,726,480 9,500 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A2 10,589,270 Kettering Medical Center, Series 1999, 6.750%, 4/01/22 7,390 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA 8,016,672 Initiatives, Series 2001, 5.375%, 9/01/21 2,520 Montgomery County, Ohio, Revenue Bonds, Catholic Health No Opt. Call AA 2,637,432 Initiatives, Series 2004A, 5.000%, 5/01/32 1,250 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 1,305,738 Hospital Revenue Refunding and Improvement Bonds, Series 1998, 5.350%, 11/01/18 2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,201,880 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/22 1,200 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 1,267,608 Union Hospital Project, Series 2001, 5.250%, 10/01/31 - RAAI Insured ----------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 4.2% 1,090 Clark County, Ohio, Multifamily Housing Revenue Bonds, 11/08 at 103.00 N/R 876,502 Church of God Retirement Home, Series 1998, 6.250%, 11/01/30 (Alternative Minimum Tax) 10,000 Franklin County, Ohio, GNMA Collateralized Mortgage Revenue 10/07 at 103.00 Aaa 10,391,000 Bonds, Columbus Properties Project, Series 1997, 5.600%, 4/20/39 (Alternative Minimum Tax) 3,045 Franklin County, Ohio, GNMA Collateralized Multifamily 9/11 at 102.00 Aaa 3,188,206 Housing Mortgage Revenue Bonds, Carriage House Apartments Project, Series 2002, 5.400%, 3/20/37 2,705 Henry County, Ohio, GNMA Collateralized Healthcare Facility 8/09 at 102.00 AAA 2,961,840 Revenue Bonds, Alpine Village Project, Series 1999, 6.375%, 2/20/41 6,315 Ohio Capital Corporation for Housing, FHA-Insured Section 8 2/09 at 102.00 Aa2 6,711,835 Assisted Mortgage Loan Revenue Refunding Bonds, Series 1999G, 5.950%, 2/01/23 ----------------------------------------------------------------------------------------------------------------------- Housing/Single Family - 2.5% 935 Ohio Housing Finance Agency, GNMA Mortgage-Backed 7/09 at 100.00 Aaa 940,479 Securities Program Residential Mortgage Revenue Bonds, Series 1999C, 5.750%, 9/01/30 (Alternative Minimum Tax) 2,420 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,513,364 Securities Program Residential Mortgage Revenue Bonds, Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
---- 45 Portfolio of Investments NUVEEN OHIO MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ----------------------------------------------------------------------------------------------------------------------- Housing/Single Family (continued) $ 2,655 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa $ 2,757,430 Securities Program Residential Mortgage Revenue Bonds, Series 1997C, 5.750%, 9/01/28 (Alternative Minimum Tax) 2,795 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 2,888,381 Securities Program Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum Tax) - FSA Insured 5,165 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 5,302,182 Securities Program Residential Mortgage Remarketed Revenue Bonds, Series 1997A-1, 6.150%, 3/01/29 (Alternative Minimum Tax) ----------------------------------------------------------------------------------------------------------------------- Industrials - 0.8% 2,400 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/08 at 102.00 N/R 2,456,976 Revenue Bonds, Jergens Inc., Series 1998A, 5.375%, 5/15/18 (Alternative Minimum Tax) Ohio, Economic Development Revenue Bonds, Enterprise Bond Fund Loan Pool, Series 2002-4: 500 5.000%, 6/01/15 (Alternative Minimum Tax) 6/12 at 102.00 AA- 519,725 675 5.450%, 6/01/22 (Alternative Minimum Tax) 6/12 at 102.00 AA- 714,244 1,020 Ohio, Economic Development Revenue Bonds, Enterprise Bond No Opt. Call AA- 1,093,542 Fund Loan Pool, Series 2002-7, 5.850%, 12/01/22 (Alternative Minimum Tax) ----------------------------------------------------------------------------------------------------------------------- Long-Term Care - 1.5% 3,120 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 11/05 at 102.00 Aa2 3,212,446 Heinzerling Foundation, Series 1995, 6.200%, 11/01/20 2,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/12 at 100.00 AA 2,103,500 Presbyterian Retirement Services, Series 2002A, 5.125%, 7/01/22 - RAAI Insured 475 Franklin County, Ohio, FHA-Insured Hospital Revenue 8/05 at 100.00 N/R 476,083 Refunding Mortgage Loan Bonds, Worthington Christian Village Nursing Home, Series 1992, 7.000%, 8/01/16 1,250 Hamilton, Ohio, Healthcare Facilities Revenue Bonds, Twin 10/08 at 101.00 BBB 1,264,913 Towers, Series 1998A, 5.125%, 10/01/23 1,625 Napoleon, Ohio, FHA-Insured Healthcare Facilities Mortgage 3/06 at 101.00 Aa2 1,661,595 Revenue Refunding Bonds, Lutheran Orphans and Old Folks Home Society, Series 1994, 6.875%, 8/01/23 ----------------------------------------------------------------------------------------------------------------------- Materials - 0.2% 1,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue 3/14 at 101.00 A+ 1,022,370 Bonds, Cargill Inc., Series 2004A, 4.800%, 3/01/22 ----------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 24.0% Adams County Valley School District, Adams and Highland Counties, Ohio, Unlimited Tax School Improvement General Obligation Bonds, Series 1995: 6,000 7.000%, 12/01/15 - MBIA Insured No Opt. Call AAA 7,474,860 9,500 5.250%, 12/01/21 - MBIA Insured 12/05 at 102.00 AAA 9,783,765 600 Anthony Wayne Local School District, Lucas, Wood and Fulton No Opt. Call AAA 433,272 Counties, Ohio, School Facilities Construction and Improvement Bonds, Series 1995, 0.000%, 12/01/13 - FGIC Insured 700 Buckeye Local School District, Medina County, Ohio, General 12/10 at 100.00 Aaa 768,026 Obligation Bonds, Series 2000, 5.500%, 12/01/25 - FGIC Insured 2,500 Buckeye Valley Local School District, Ohio, Unlimited Tax No Opt. Call AAA 3,009,925 General Obligation Bonds, Series 1995A, 6.850%, 12/01/15 - MBIA Insured 2,295 Central Ohio Solid Waste Authority, General Obligation 6/14 at 100.00 AAA 2,523,100 Bonds, Series 2004A, 5.000%, 12/01/15 - AMBAC Insured Chesapeake-Union Exempt Village School District, Ohio, General Obligation Bonds, Series 1986: 125 8.500%, 12/01/05 No Opt. Call N/R 128,271 125 8.500%, 12/01/06 No Opt. Call N/R 134,395 125 8.500%, 12/01/07 No Opt. Call N/R 140,194 125 8.500%, 12/01/08 No Opt. Call N/R 145,430 130 8.500%, 12/01/09 No Opt. Call N/R 156,098 Cincinnati City School District, Hamilton County, Ohio, General Obligation Bonds, Series 2001: 2,000 5.375%, 12/01/15 - MBIA Insured 12/11 at 100.00 AAA 2,218,540 6,745 5.375%, 12/01/16 - MBIA Insured 12/11 at 100.00 AAA 7,482,026 1,255 5.375%, 12/01/17 - MBIA Insured 12/11 at 100.00 AAA 1,390,590
---- 46
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Tax Obligation/General (continued) $ 2,620 Cleveland Municipal School District, Cuyahoga County, Ohio, 6/14 at 100.00 AAA $ 2,833,897 General Obligation Bonds, Series 2004, 5.000%, 12/01/20 - FSA Insured Columbus, Franklin County, Ohio, General Obligation Bonds, Series 1985: 590 9.375%, 4/15/06 No Opt. Call AAA 622,415 500 9.375%, 4/15/07 No Opt. Call AAA 557,765 1,000 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,130,900 Various Purpose Refunding Bonds, Series 1993B, 5.250%, 10/01/13 1,345 Cuyahoga County, Ohio, Limited Tax General Obligation No Opt. Call AA+ 1,589,360 Bonds, Series 1993, 5.650%, 5/15/18 2,675 Cuyahoga County, Ohio, General Obligation Bonds, Series 12/14 at 100.00 AA+ 2,896,784 2004, 5.000%, 12/01/22 Cuyahoga Falls, Ohio, General Obligation Bonds, Series 2004: 1,245 5.000%, 12/01/18 - MBIA Insured 6/14 at 100.00 Aaa 1,359,465 1,440 5.000%, 12/01/21 - MBIA Insured 6/14 at 100.00 Aaa 1,556,424 1,170 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,314,226 5.250%, 12/01/15 - AMBAC Insured 750 Defiance, Ohio, Waterworks System Improvement Bonds, Series 6/05 at 102.00 AAA 767,085 1994, 6.200%, 12/01/20 - MBIA Insured Delaware City School District, Delaware County, Ohio, Unlimited Tax General Obligation School Facilities Construction and Improvement Bonds, Series 1995: 1,000 0.000%, 12/01/10 - FGIC Insured No Opt. Call AAA 829,720 1,000 0.000%, 12/01/11 - FGIC Insured No Opt. Call AAA 793,360 1,000 Evergreen Local School District, Ohio, Unlimited Tax 12/09 at 101.00 Aaa 1,102,030 General Obligation School Improvement Bonds, Series 1999, 5.625%, 12/01/24 - FGIC Insured 1,005 Findlay, Ohio, General Obligation Bonds, Series 2004, 7/14 at 100.00 AAA 1,131,228 5.250%, 7/01/15 - MBIA Insured 4,040 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 4,381,420 Refunding Bonds, Series 1993, 5.375%, 12/01/20 1,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 1,114,550 Ohio, General Obligation School Improvement Bonds, Series 2001, 5.500%, 12/15/18 - MBIA Insured 420 Geauga County, Ohio, Limited Tax General Obligation, Sewer 12/05 at 102.00 Aa2 436,703 District Improvement Bonds, Bainbridge Water Project, Series 1995, 6.850%, 12/01/10 1,000 Grandview Heights City School District, Franklin County, 12/05 at 101.00 AA 1,025,790 Ohio, Unlimited Tax General Obligation School Facilities Construction and Improvement Bonds, Series 1995, 6.100%, 12/01/19 3,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa2 3,293,100 Obligation Bonds, Series 2001, 5.500%, 12/01/28 3,810 Greater Cleveland Regional Transit Authority, Ohio, General 12/14 at 100.00 Aaa 4,186,085 Obligation Bonds, Series 2004, 5.000%, 12/01/17 - MBIA Insured 1,200 Heath City School District, Licking County, Ohio, Unlimited 12/10 at 100.00 Aaa 1,310,352 Tax General Obligation School Improvement Bonds, Series 2000A, 5.500%, 12/01/27 - FGIC Insured 1,270 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,370,927 Obligation Bonds, Series 2003, 5.000%, 12/01/23 - MBIA Insured 1,400 Kent City School District, Portage County, Ohio, General 12/14 at 100.00 AAA 1,523,018 Obligation Library Improvement Bonds, Series 2004, 5.000%, 12/01/20 - FGIC Insured 1,070 Kettering, Ohio, Limited Tax General Obligation Bonds, 6/05 at 100.00 Aa3 1,073,371 Series 1991, 6.650%, 12/01/12 555 Lake County, Ohio, Limited Tax Sewer District Improvement No Opt. Call Aa2 650,854 Bonds, Series 2000, 5.600%, 12/01/20 1,440 Lakewood, Ohio, General Obligation Bonds, Series 1995B, 12/05 at 102.00 Aa3 1,488,355 5.750%, 12/01/15 3,385 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 3,572,868 Unlimited Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured Logan County, Ohio, General Obligation Bonds, Series 1986: 155 7.750%, 12/01/05 No Opt. Call A+ 158,722 155 7.750%, 12/01/06 No Opt. Call A+ 165,839 285 Lucas County, Ohio, General Obligation Bonds, Various No Opt. Call A1 290,079 Improvements, Series 1992, 6.650%, 12/01/12 1,265 Monroe Local School District, Butler County, Ohio, General No Opt. Call Aaa 1,539,442 Obligation Bonds, Series 2002, 5.750%, 12/01/20 - AMBAC Insured
---- 47 Portfolio of Investments NUVEEN OHIO MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Tax Obligation/General (continued) $ 1,000 Ohio, Full Faith and Credit General Obligation No Opt. Call AA+ $ 1,135,370 Infrastructure Improvement Bonds, Series 1994, 6.000%, 8/01/10 8,140 Ohio, General Obligation Higher Education Capital 2/11 at 100.00 AA+ 8,633,365 Facilities Bonds, Series 2001A, 5.000%, 2/01/20 730 Ohio, General Obligation Bonds, Common Schools, Series 3/14 at 100.00 AA+ 787,816 2004B, 5.000%, 3/15/21 3,315 Ohio, General Obligation Bonds, Conservation Projects, 3/14 at 100.00 AA+ 3,659,992 Series 2004A, 5.000%, 3/01/15 6,055 Ohio, General Obligation Bonds, Infrastructure 2/13 at 100.00 AA+ 6,533,587 Improvements, Series 2003F, 5.000%, 2/01/22 4,035 Olentangy Local School District, Delaware and Franklin 12/09 at 101.00 AA 4,197,086 Counties, Ohio, Various Purpose Bonds, Series 1999, 5.000%, 12/01/27 Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A: 400 5.250%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 442,096 3,055 5.250%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 3,366,732 1,495 Otsego Local School District, Wood, Henry and Lucas 12/14 at 100.00 Aaa 1,673,069 Counties, Ohio, General Obligation Bonds, Series 2004, 5.375%, 12/01/22 - FSA Insured 3,315 South Point Local School District, Lawrence County, Ohio, 12/14 at 100.00 AAA 3,570,785 General Obligation Bonds, Series 2004, 5.000%, 12/01/24 - FSA Insured 3,500 Springfield City School District, Clark County, Ohio, 12/11 at 102.00 Aaa 3,865,435 General Obligation Bonds, Series 2001, 5.200%, 12/01/23 - FGIC Insured 30 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 31,895 Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21 1,185 Sugarcreek Local School District, Athens County, Ohio, 12/13 at 100.00 Aaa 1,313,359 General Obligation Bonds, Series 2003, 5.250%, 12/01/24 - MBIA Insured 1,315 Summit County, Ohio, General Obligation Refunding Bonds, No Opt. Call AAA 1,564,811 Series 2002R, 5.500%, 12/01/21 - FGIC Insured 2,290 Tipp City Exempted Village School District, Ohio, School 6/11 at 100.00 Aaa 2,436,194 Facilities Construction and Improvement Bonds, Series 2001, 5.000%, 12/01/24 - FGIC Insured 3,755 Toledo City School District, Lucas County, General 12/13 at 100.00 Aaa 4,062,422 Obligation Bonds, Series 2003B, 5.000%, 12/01/22 - FGIC Insured 1,500 Upper Arlington City School District, Ohio, General 6/15 at 100.00 AAA 1,637,505 Obligation Bonds, Series 2005, 5.000%, 12/01/20 - FSA Insured West Chester Township, Butler County, Ohio, General Obligation Bonds, Series 2003: 1,365 5.250%, 12/01/19 - MBIA Insured 12/13 at 100.00 Aaa 1,512,857 1,515 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 Aaa 1,679,105 2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,091,100 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 - MBIA Insured -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 11.4% 1,850 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/14 at 100.00 AA 1,967,457 Revenue Bonds, R.I.T.A. Project, Series 2004, 5.000%, 11/15/19 - RAAI Insured 6,300 Cleveland, Ohio, Certificates of Participation, Cleveland 11/07 at 102.00 AAA 6,670,692 Stadium Project, Series 1997, 5.250%, 11/15/27 - AMBAC Insured 1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,467,878 Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured 1,210 Groveport, Ohio, Special Obligation Income Tax Receipts 12/12 at 100.00 Aaa 1,290,973 Bonds, Series 2002, 5.000%, 12/01/22 - MBIA Insured Hamilton County Convention Facilities Authority, Ohio, First Lien Revenue Bonds, Series 2004: 2,300 5.000%, 12/01/20 - FGIC Insured 6/14 at 100.00 AAA 2,487,772 1,000 5.000%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 1,077,700 2,535 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 2,724,035 3,300 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series No Opt. Call Aaa 1,120,383 2000B, 0.000%, 12/01/28 - AMBAC Insured
---- 48
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 1,000 Butler County, Hamilton, Ohio, Limited Tax General 11/11 at 101.00 Aaa $ 1,115,020 Obligation Bonds, One Renaissance Center Acquisition, Series 2001, 5.375%, 11/01/17 - AMBAC Insured 1,485 New Albany Community Authority, Ohio, Community Facilities 4/12 at 100.00 AAA 1,660,690 Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/16 - AMBAC Insured 1,000 Ohio, State Appropriation Lease Bonds, Parks and Recreation 2/15 at 100.00 AAA 1,110,780 Capital Facilities, Series 2005A-II, 5.250%, 2/01/19 - FSA Insured 1,000 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,104,050 Capital Facilities, Series 2004A-II, 5.000%, 12/01/15 1,490 Ohio, State Appropriation Lease Bonds, Mental Health 6/13 at 100.00 AA 1,628,466 Capital Facilities, Series 2003B-II, 5.000%, 6/01/16 1,050 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,114,764 Administrative Building Fund Projects, Series 2002A, 5.000%, 4/01/22 - FSA Insured 2,000 Ohio State Building Authority, State Facilities Bonds, No Opt. Call AAA 2,184,540 Worker's Compensation Facilities Project, Series 2003A, 5.000%, 4/01/11 - FGIC Insured 1,900 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 2,041,113 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured Ohio State Building Authority, State Facilities Bonds, Adult Correctional Building Fund Project, Series 2005A: 3,135 5.000%, 4/01/23 (WI, settling 6/01/05) - FSA Insured 4/15 at 100.00 AAA 3,386,333 5,390 5.000%, 4/01/24 (WI, settling 6/01/05) - FSA Insured 4/15 at 100.00 AAA 5,808,480 870 Ohio Department of Transportation, Certificates of 10/05 at 100.00 AAA 872,627 Participation, Panhandle Rail Line, Series 1992A, 6.500%, 4/15/12 - FSA Insured 11,700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 15,092,181 Transportation Authority, Reset Option Long Certificates II-R-66, Series 1996Y, 7.953%, 1/01/13 - MBIA Insured (IF) 6,550 Puerto Rico Public Buildings Authority, Guaranteed Revenue No Opt. Call AAA 9,132,207 Bonds, Reset Option Long Trust Certificates II-R56, Series 1993L, 7.953%, 7/01/18 (IF) -------------------------------------------------------------------------------------------------------------------- Transportation - 4.3% 1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 1,049,250 International Airport, Series 2003C, 5.250%, 12/01/27 (Alternative Minimum Tax) - RAAI Insured 6,300 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 AAA 6,735,015 Emery Air Freight Corporation and Emery Worldwide Airlines Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18 5,000 Ohio Turnpike Commission, Revenue Refunding Bonds, ROL No Opt. Call AA- 6,910,350 Series II-R51, Series 1998A, 7.933%, 2/15/24 (IF) 7,500 Ohio Turnpike Commission, Revenue Bonds, ROL II-R75, No Opt. Call Aaa 9,802,950 7.933%, 2/15/12 (IF) -------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** - 12.4% 730 Athens, Ohio, Sanitary Sewer System Mortgage Revenue Bonds, 12/09 at 100.00 N/R*** 829,083 Series 1989, 7.300%, 12/01/14 (Pre-refunded to 12/01/09) 1,000 Aurora City School District, Ohio, Unlimited Tax General 12/05 at 102.00 AAA 1,034,740 Obligation School Improvement Bonds, Series 1995, 5.800%, 12/01/16 (Pre-refunded to 12/01/05) - FGIC Insured 3,000 Butler County, Ohio, Sewer System Revenue Bonds, Series 12/06 at 101.00 AAA 3,132,300 1996, 5.250%, 12/01/21 (Pre-refunded to 12/01/06) - AMBAC Insured 3,805 Cleveland, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,289,567 5.250%, 12/01/22 (Pre-refunded to 12/01/12) - MBIA Insured 7,045 Columbus, Ohio, General Obligation Bonds, Series 2000, 11/10 at 101.00 AAA 7,857,429 5.250%, 11/15/17 (Pre-refunded to 11/15/10) 5,830 Cuyahoga County, Ohio, Limited Tax General Obligation 12/10 at 100.00 AA+*** 6,597,869 Capital Improvement Bonds, Series 2000, 5.750%, 12/01/16 (Pre-refunded to 12/01/10) Cuyahoga County, Ohio, Hospital Revenue Bonds, Cleveland Clinic Foundation - Meridia Health System, Series 1995: 250 6.250%, 8/15/14 (Pre-refunded to 8/15/05) 8/05 at 102.00 AAA 256,725 3,000 6.250%, 8/15/24 (Pre-refunded to 8/15/05) 8/05 at 102.00 AAA 3,080,700
---- 49 Portfolio of Investments NUVEEN OHIO MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed *** (continued) $ 1,600 Greene County, Ohio, Water System Revenue Bonds, Series 12/07 at 102.00 AAA $ 1,753,968 1996, 6.125%, 12/01/21 (Pre-refunded to 12/01/07) - FGIC Insured 1,000 Huron County, Ohio, Limited Tax General Obligation 12/07 at 102.00 AAA 1,089,640 Correctional Facility Bonds, Series 1996, 5.850%, 12/01/16 (Pre-refunded to 12/01/07) - MBIA Insured 1,000 Kettering City School District, Montgomery County, Ohio, 12/05 at 101.00 AAA 1,022,150 General Obligation Bonds, Series 1994, 5.250%, 12/01/22 (Pre-refunded to 12/01/05) - FGIC Insured 1,190 Lorain, Ohio, Hospital Revenue Refunding Bonds, Lakeland 11/05 at 100.00 A1*** 1,210,658 Community Hospital Inc., Series 1992, 6.500%, 11/15/12 1,750 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,912,138 Tax General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 (Pre-refunded to 12/01/09) - FGIC Insured 2,000 Montgomery County, Ohio, Health System Revenue Bonds, 1/08 at 102.00 Baa2*** 2,172,900 Franciscan Medical Center - Dayton Campus, Series 1997, 5.500%, 7/01/18 (Pre-refunded to 1/01/08) 5,610 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA*** 6,200,172 Initiatives, Series 2001, 5.375%, 9/01/21 (Pre-refunded to 9/01/11) North Royalton City School District, Ohio, School Improvement Bonds, Series 1994: 2,200 6.000%, 12/01/14 (Pre-refunded to 12/01/09) - MBIA Insured 12/09 at 102.00 AAA 2,511,168 2,400 6.100%, 12/01/19 (Pre-refunded to 12/01/09) - MBIA Insured 12/09 at 102.00 AAA 2,749,488 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 1985B: 5,700 0.000%, 1/15/15 (Pre-refunded to 7/15/11) - FGIC Insured 7/11 at 70.48 AAA 3,238,056 6,460 0.000%, 1/15/15 (Pre-refunded to 1/15/11) - FGIC Insured 1/11 at 67.04 AAA 3,557,005 5,065 Ohio Water Development Authority, Pure Water Loan Revenue No Opt. Call AAA 5,886,796 Bonds, Series 1990I, 6.000%, 12/01/16 - AMBAC Insured 2,000 Ohio Water Development Authority, Revenue Bonds, Fresh 6/08 at 101.00 AAA 2,144,240 Water Development, Series 1998, 5.125%, 12/01/23 (Pre-refunded to 6/01/08) - FSA Insured 500 Pickerington Local School District, Fairfield County, Ohio, No Opt. Call AAA 397,950 General Obligation Bonds, Series 1993, 0.000%, 12/01/11 - AMBAC Insured 2,340 Stow, Ohio, General Obligation Construction Bonds, Safety 12/05 at 102.00 Aa3*** 2,426,159 Center, Series 1995, 6.200%, 12/01/20 (Pre-refunded to 12/01/05) University of Cincinnati, Ohio, General Receipts Bonds, Series 2001A: 1,500 5.750%, 6/01/18 (Pre-refunded to 6/01/11) - FGIC Insured 6/11 at 101.00 AAA 1,719,540 1,520 5.750%, 6/01/19 (Pre-refunded to 6/01/11) - FGIC Insured 6/11 at 101.00 AAA 1,742,467 1,910 Vandalia, Ohio, General Obligation Bonds, Series 1996, 12/06 at 101.00 Aa3*** 2,010,944 5.850%, 12/01/21 (Pre-refunded to 12/01/06) -------------------------------------------------------------------------------------------------------------------- Utilities - 7.6% 1,535 Cleveland Public Power System, Ohio, First Mortgage Revenue No Opt. Call AAA 1,112,384 Bonds, Series 1994A, 0.000%, 11/15/13 - MBIA Insured 2,500 Cleveland Public Power System, Ohio, First Mortgage Revenue 11/06 at 102.00 AAA 2,608,275 Refunding Bonds, Series 1996-1, 5.000%, 11/15/24 - MBIA Insured 565 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 629,992 Series 2001, 5.500%, 12/01/17 - AMBAC Insured Ohio Municipal Electric Generation Agency, Beneficial Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004: 1,000 5.000%, 2/15/20 - AMBAC Insured 2/14 at 100.00 AAA 1,077,040 3,775 5.000%, 2/15/21 - AMBAC Insured 2/14 at 100.00 AAA 4,051,443 1,465 5.000%, 2/15/22 - AMBAC Insured 2/14 at 100.00 AAA 1,567,828 3,295 5.000%, 2/15/23 - AMBAC Insured 2/14 at 100.00 AAA 3,521,268 8,250 Ohio Air Quality Development Authority, Revenue Refunding 9/05 at 102.00 Baa3 8,433,480 Bonds, Dayton Power and Light Company Project, Series 1995, 6.100%, 9/01/30 5,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG 4/07 at 102.00 AAA 5,279,300 Funding Limited Partnership Project, Series 1997, 5.625%, 1/01/23 (Alternative Minimum Tax) - AMBAC Insured 500 Ohio Water Development Authority, Collateralized Water 8/05 at 100.00 Baa2 510,750 Revenue Refunding Bonds, Dayton Power and Light Company, Series 1992A, 6.400%, 8/15/27
---- 50
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value -------------------------------------------------------------------------------------------------------------------- Utilities (continued) $ 8,550 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R $ 8,628,489 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 1,545 Puerto Rico Electric Power Authority, Power Revenue No Opt. Call A- 950,608 Refunding Bonds, Series 1989O, 0.000%, 7/01/17 4,460 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 4,851,142 Environmental Control Facilities Financing Authority, Co-Generation Facility Revenue Bonds, Series 2000A, 6.625%, 6/01/26 (Alternative Minimum Tax) -------------------------------------------------------------------------------------------------------------------- Water and Sewer - 4.9% 2,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ 2,127,680 5.000%, 12/01/23 Cincinnati, Ohio, Water System Revenue Bonds, ROLS RR-II-R212: 1,300 8.791%, 12/01/11 (IF) 6/11 at 100.00 AAA 1,670,019 1,640 8.795%, 12/01/12 (IF) 6/11 at 100.00 AAA 2,072,911 550 8.817%, 12/01/13 (IF) 6/11 at 100.00 AAA 702,686 10,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 11,758,500 Refunding and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - MBIA Insured 1,160 Hebron, Ohio, Mortgage Revenue Bonds, Waterworks System 6/14 at 100.00 N/R 1,210,286 Improvements, Series 2004, 5.875%, 12/01/25 1,260 Lancaster, Ohio, Wastewater System Improvement Revenue 12/14 at 100.00 AAA 1,351,048 Bonds, Series 2004, 5.000%, 12/01/25 - AMBAC Insured 4,260 Ohio Water Development Authority, Community Assistance 12/07 at 102.00 AAA 4,547,891 Bonds, Series 1997, 5.375%, 12/01/24 - AMBAC Insured 1,255 Ohio Water Development Authority, Revenue Bonds, Fresh 6/14 at 100.00 AAA 1,408,672 Water Development, Series 2004, 5.250%, 12/01/15 620 Toledo, Ohio, Sewerage System Mortgage Revenue Bonds, 11/06 at 100.00 AAA 634,100 Series 1994, 6.350%, 11/15/17 - AMBAC Insured 390 Toledo, Ohio, Water System Mortgage Revenue Bonds, Series 11/06 at 100.00 AAA 398,932 1994, 6.450%, 11/15/24 - AMBAC Insured -------------------------------------------------------------------------------------------------------------------- $523,525 Total Long-Term Investments (cost $518,685,257) - 98.8% 562,146,653 -------------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - 1.2% 6,811,621 ------------------------------------------------------------------------------------------------------ Net Assets - 100% $ 568,958,274 ------------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. (WI)Security purchased on a when-issued basis. (IF)Inverse floating rate security. See accompanying notes to financial statements. ---- 51 Portfolio of Investments NUVEEN WISCONSIN MUNICIPAL BOND FUND May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 5.8% $ 475 Ashland Housing Authority, Wisconsin, Student Housing 4/08 at 100.00 Aaa $ 485,811 Revenue Bonds, Northland College Project, Series 1998, 5.100%, 4/01/18 500 Madison Community Development Authority, Wisconsin, Revenue 11/06 at 102.00 AA- 521,060 Bonds, Fluno Center Project, Series 1998A, 5.000%, 11/01/20 370 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 381,670 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/29 200 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 207,362 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, Series 2001, 5.250%, 9/01/21 1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 1,068,530 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.500%, 12/01/31 ---------------------------------------------------------------------------------------------------------------- Healthcare - 2.1% 500 Puerto Rico Industrial, Tourist, Educational, Medical and 7/05 at 102.00 AAA 507,390 Environmental Control Facilities Financing Authority, Hospital Revenue Bonds, Auxilio Mutuo Hospital, Series 1995A, 6.250%, 7/01/24 - MBIA Insured 450 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101.50 AAA 458,806 Environmental Control Facilities Financing Authority, FHA-Insured Mortgage Hospital Revenue Bonds, Doctor Pila Hospital, Series 1995A, 5.875%, 8/01/12 ---------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 9.8% 675 Kenosha Housing Authority, Wisconsin, GNMA Collateralized 5/08 at 102.00 N/R 707,494 Multifamily Housing Revenue Bonds, Villa Ciera Inc., Series 2000A, 5.900%, 11/20/30 570 Lake Delton Community Development Agency, Wisconsin, GNMA 1/12 at 102.00 N/R 591,215 Collateralized Multifamily Housing Revenue Bonds, Woodland Park Project, Series 2001, 5.300%, 2/20/31 (Alternative Minimum Tax) 1,000 Madison Community Development Authority, Wisconsin, GNMA 9/06 at 102.00 AAA 1,021,530 Multifamily Housing Revenue Refunding Bonds, Greentree Glen Apartments, Series 1999A, 5.500%, 9/20/29 (Alternative Minimum Tax) 200 Milwaukee Redevelopment Authority, Wisconsin, FHA-Insured 8/07 at 102.00 N/R 208,624 Multifamily Housing Revenue Bonds, City Hall Square Apartments, Series 1993, 6.000%, 8/01/22 (Alternative Minimum Tax) 500 Sheboygan Housing Authority, Wisconsin, GNMA Multifamily 5/06 at 102.00 AAA 508,080 Revenue Refunding Bonds, Lake Shore Apartments, Series 1998A, 5.100%, 11/20/26 300 Walworth County Housing Authority, Wisconsin, FHA-Insured 9/05 at 102.00 N/R 306,582 Housing Revenue Bonds, Kiwanis Heritage Inc. Senior Apartments, Series 1997, 5.550%, 9/01/22 Waukesha Housing Authority, Wisconsin, GNMA Collateralized Mortgage Loan Multifamily Housing Revenue Refunding Bonds, Westgrove Woods Project, Series 1996A: 350 5.800%, 12/01/18 (Alternative Minimum Tax) 12/06 at 102.00 AAA 361,620 750 6.000%, 12/01/31 (Alternative Minimum Tax) 12/06 at 102.00 AAA 773,693 ---------------------------------------------------------------------------------------------------------------- Housing/Single Family - 0.5% 190 Puerto Rico Housing Bank and Finance Agency, Affordable 10/05 at 102.00 AAA 194,963 Housing Mortgage Subsidy Program Single Family Mortgage Revenue Bonds, Series 1995I, 6.250%, 4/01/29 (Alternative Minimum Tax) 50 Virgin Islands Housing Finance Corporation, Single Family 9/05 at 102.00 AAA 50,965 Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed Securities Program, Series 1995A, 6.450%, 3/01/16 (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------- Long-Term Care - 2.4% 1,120 Waukesha County Housing Authority, Wisconsin, Housing 6/05 at 101.00 N/R 1,121,534 Revenue Bonds, Arboretum Project, Series 1998, 5.250%, 12/01/21 (Alternative Minimum Tax) (Mandatory put 12/01/12) ---------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 0.5% 250 Guam, General Obligation Bonds, Series 1993A, 5.400%, 11/05 at 100.00 B 250,145 11/15/18
---- 52
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 64.5% $ 1,500 Ashwaubenon Community Development Authority, Wisconsin, 6/12 at 100.00 Aa2 $ 1,596,315 Lease Revenue Refunding Bonds, Arena Project, Series 2002, 5.150%, 6/01/29 1,000 De Forest Redevelopment Authority, Wisconsin, Redevelopment 2/08 at 100.00 N/R 1,022,800 Lease Revenue Bonds, Series 1999B, 5.100%, 2/01/18 100 Glendale Community Development Authority, Wisconsin, 10/11 at 100.00 A3 108,067 Community Development Lease Revenue Refunding Bonds, Tax Increment District 6, Series 2001, 5.000%, 10/01/19 2,000 Glendale Community Development Authority, Wisconsin, 10/14 at 100.00 A3 2,139,120 Community Development Lease Revenue Bonds, Bayshore Public Parking Project, Series 2004A, 5.000%, 10/01/24 350 Green Bay Brown County Professional Football Stadium 2/11 at 100.00 AAA 376,051 District, Wisconsin, Sales Tax Revenue Bonds, Lambeau Field Renovation Project, Series 2001A, 5.000%, 2/01/19 - AMBAC Insured Green Bay Redevelopment Authority, Wisconsin, Lease Revenue Bonds, Convention Center Project, Series 1999A: 1,300 5.250%, 6/01/24 6/09 at 100.00 Aa2 1,383,239 1,650 5.100%, 6/01/29 6/09 at 100.00 Aa2 1,743,951 500 Jackson Community Development Authority, Wisconsin, Revenue 12/09 at 100.00 N/R 510,445 Refunding Bonds, Series 1999, 5.100%, 12/01/17 960 Madison Community Development Authority, Wisconsin, Lease 3/12 at 100.00 Aa2 972,835 Revenue Refunding Bonds, Monona Terrace, Series 2002, 4.375%, 3/01/20 Milwaukee Redevelopment Authority, Wisconsin, Revenue Bonds, Summerfest Project, Series 2001: 400 4.850%, 8/01/17 8/11 at 100.00 A 419,468 1,000 4.950%, 8/01/20 8/11 at 100.00 A 1,050,130 2,000 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/12 at 100.00 AAA 2,098,460 Bonds, Neighborhood Public Schools Initiative, Series 2002A, 4.875%, 8/01/21 - AMBAC Insured 2,500 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/13 at 100.00 AAA 2,695,425 Bonds, Public Schools, Series 2003A, 5.125%, 8/01/21 - AMBAC Insured 1,500 Neenah Community Development Authority, Wisconsin, Lease 12/14 at 100.00 A1 1,598,655 Revenue Bonds, Series 2004A, 5.000%, 12/01/26 1,000 Onalaska Community Development Authority, Wisconsin, 10/13 at 100.00 A3 1,036,240 Community Development Lease Revenue Bonds, Series 2003, 4.875%, 10/01/27 Southeast Wisconsin Professional Baseball Park District, Sales Tax Revenue Refunding Bonds, Series 1998A: 850 5.500%, 12/15/18 - MBIA Insured No Opt. Call AAA 995,418 400 5.500%, 12/15/19 - MBIA Insured No Opt. Call AAA 469,284 2,195 5.500%, 12/15/20 - MBIA Insured No Opt. Call AAA 2,591,483 500 5.500%, 12/15/26 - MBIA Insured No Opt. Call AAA 594,775 375 Sturgeon Bay Waterfront Redevelopment Authority, Wisconsin, 10/08 at 100.00 N/R 387,934 Lease Revenue Bonds, Series 1998A, 5.200%, 10/01/21 600 Virgin Islands Public Finance Authority, Senior Lien 10/08 at 101.00 BBB 629,328 Revenue Refunding Bonds, Matching Fund Loan Note, Series 1998A, 5.625%, 10/01/25 500 Wauwatosa Redevelopment Authority, Milwaukee County, 12/07 at 100.00 AAA 531,250 Wisconsin, Lease Revenue Bonds, Series 1997, 5.650%, 12/01/16 - MBIA Insured 1,000 Weston Community Development Authority, Wisconsin, Lease 10/14 at 100.00 N/R 1,101,840 Revenue Bonds, Series 2004A, 5.250%, 10/01/21 1,000 Weston Community Development Authority, Wisconsin, Lease 10/15 at 100.00 N/R 1,054,010 Revenue Bonds, Series 2005A, 5.000%, 10/01/21 Wisconsin Center District, Junior Dedicated Tax Revenue Refunding Bonds, Series 1999: 1,000 5.250%, 12/15/23 - FSA Insured No Opt. Call AAA 1,156,090 500 5.250%, 12/15/27 - FSA Insured No Opt. Call AAA 571,175 2,000 Wisconsin Center District, Senior Dedicated Tax Revenue No Opt. Call AAA 666,680 Refunding Bonds, Series 2003A, 0.000%, 12/15/28 - FSA Insured
---- 53 Portfolio of Investments NUVEEN WISCONSIN MUNICIPAL BOND FUND (continued) May 31, 2005
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------------------------------------------ U.S. Guaranteed *** - 12.4% Ashwaubenon Community Development Authority, Wisconsin, Lease Revenue Bonds, Arena Project, Series 1999A: $ 2,000 5.700%, 6/01/24 (Pre-refunded to 6/01/09) 6/09 at 100.00 Aa2*** $ 2,202,280 700 5.800%, 6/01/29 (Pre-refunded to 6/01/09) 6/09 at 100.00 Aa2*** 773,416 1,500 Cudahy Community Development Authority, Wisconsin, 6/06 at 100.00 N/R*** 1,546,230 Redevelopment Lease Revenue Bonds, Series 1995, 6.000%, 6/01/11 (Pre-refunded to 6/01/06) 600 Southeast Wisconsin Professional Baseball Park District, 3/07 at 101.00 AAA 635,862 Sales Tax Revenue Bonds, Series 1996, 5.800%, 12/15/26 (Pre-refunded to 3/13/07) - MBIA Insured 475 Wisconsin Center District, Junior Dedicated Tax Revenue 12/06 at 101.00 AAA 499,538 Bonds, Series 1996B, 5.700%, 12/15/20 (Pre-refunded to 12/15/06) ------------------------------------------------------------------------------------------------------------------ $43,405 Total Long-Term Investments (cost $42,469,261) - 98.0% 44,884,868 ------------------------------------------------------------------------------------------------------------------ ------------ Other Assets Less Liabilities - 2.0% 899,380 ---------------------------------------------------------------------------------------------------- Net Assets - 100% $ 45,784,248 ----------------------------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. ***Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/RInvestment is not rated. See accompanying notes to financial statements. ---- 54 Statement of Assets and Liabilities May 31, 2005
Kansas Kentucky Michigan Missouri Ohio Wisconsin ----------------------------------------------------------------------------------------------------------------- Assets Investments, at market value (cost $121,375,388, $460,357,650, $229,991,818, $243,884,069, $518,685,257 and $42,469,261, respectively) $130,157,983 $491,119,956 $249,246,508 $260,225,555 $562,146,653 $44,884,868 Cash 335,426 1,662,964 271,958 728,059 368,948 262,478 Receivables: Interest 1,612,417 6,003,171 2,479,450 3,746,747 9,540,693 789,549 Investments sold 590,000 1,428,000 1,769,199 40,626 7,401,072 -- Shares sold 80,714 224,280 51,234 23,481 1,457,386 47,482 Other assets 271 30,414 18,521 4,858 38,553 100 ----------------------------------------------------------------------------------------------------------------- Total assets 132,776,811 500,468,785 253,836,870 264,769,326 580,953,305 45,984,477 ----------------------------------------------------------------------------------------------------------------- Liabilities Payables: Investments purchased -- 2,136,740 -- 1,585,245 9,143,676 -- Shares redeemed 42,223 150,880 406,071 131,989 305,451 -- Accrued expenses: Management fees 60,591 220,470 114,213 118,495 251,522 20,922 12b-1 distribution and service fees 39,396 118,501 62,229 59,383 110,125 12,902 Other 43,908 147,382 91,316 70,824 193,001 22,184 Dividends payable 414,809 1,632,191 862,563 919,927 1,991,256 144,221 ----------------------------------------------------------------------------------------------------------------- Total liabilities 600,927 4,406,164 1,536,392 2,885,863 11,995,031 200,229 ----------------------------------------------------------------------------------------------------------------- Net assets $132,175,884 $496,062,621 $252,300,478 $261,883,463 $568,958,274 $45,784,248 ----------------------------------------------------------------------------------------------------------------- Class A Shares Net assets $ 97,860,721 $427,105,791 $181,302,034 $232,170,757 $358,528,925 $36,324,601 Shares outstanding 9,180,134 37,789,025 15,246,434 20,642,033 30,766,473 3,444,893 Net asset value per share $ 10.66 $ 11.30 $ 11.89 $ 11.25 $ 11.65 $ 10.54 Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering price) $ 11.13 $ 11.80 $ 12.41 $ 11.74 $ 12.16 $ 11.00 ----------------------------------------------------------------------------------------------------------------- Class B Shares Net assets $ 10,030,568 $ 21,215,968 $ 8,937,548 $ 9,197,306 $ 25,621,218 $ 4,599,736 Shares outstanding 948,336 1,876,377 750,053 817,165 2,201,417 435,366 Net asset value and offering price per share $ 10.58 $ 11.31 $ 11.92 $ 11.26 $ 11.64 $ 10.57 ----------------------------------------------------------------------------------------------------------------- Class C Shares Net assets $ 22,835,549 $ 46,159,803 $ 38,386,253 $ 19,954,554 $ 45,791,476 $ 4,797,112 Shares outstanding 2,140,411 4,087,374 3,231,180 1,775,333 3,937,693 453,903 Net asset value and offering price per share $ 10.67 $ 11.29 $ 11.88 $ 11.24 $ 11.63 $ 10.57 ----------------------------------------------------------------------------------------------------------------- Class R Shares Net assets $ 1,449,046 $ 1,581,059 $ 23,674,643 $ 560,846 $139,016,655 $ 62,799 Shares outstanding 135,333 140,023 1,990,633 49,807 11,942,697 5,930 Net asset value and offering price per share $ 10.71 $ 11.29 $ 11.89 $ 11.26 $ 11.64 $ 10.59 ----------------------------------------------------------------------------------------------------------------- Net Assets Consist of: ----------------------------------------------------------------------------------------------------------------- Capital paid-in $125,674,041 $465,012,342 $231,057,570 $246,537,044 $525,360,914 $43,274,419 Undistributed (Over-distribution of) net investment income (172,364) (392,659) (282,649) (117,110) (130,879) (25,375) Accumulated net realized gain (loss) from investments (2,108,388) 680,632 2,270,867 (877,957) 266,843 119,597 Net unrealized appreciation of investments 8,782,595 30,762,306 19,254,690 16,341,486 43,461,396 2,415,607 ----------------------------------------------------------------------------------------------------------------- Net assets $132,175,884 $496,062,621 $252,300,478 $261,883,463 $568,958,274 $45,784,248 -----------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 55 Statement of Operations Year Ended May 31, 2005
Kansas Kentucky Michigan Missouri Ohio Wisconsin ----------------------------------------------------------------------------------------------------------- Investment Income $ 6,536,413 $25,207,928 $13,091,395 $13,516,173 $29,679,190 $2,309,492 ----------------------------------------------------------------------------------------------------------- Expenses Management fees 703,756 2,573,891 1,357,696 1,399,467 2,960,238 256,035 12b-1 service fees - Class A 189,607 838,178 363,021 461,146 704,926 75,090 12b-1 distribution and service fees - Class B 104,634 200,270 90,524 88,370 248,330 45,358 12b-1 distribution and service fees - Class C 168,299 339,852 283,290 151,943 336,802 34,744 Shareholders' servicing agent fees and expenses 76,574 238,617 147,938 120,706 341,139 27,909 Custodian's fees and expenses 51,863 125,150 86,088 78,949 147,311 27,613 Trustees' fees and expenses 2,911 11,298 5,249 5,809 12,137 1,027 Professional fees 16,420 30,839 18,852 17,867 33,771 8,184 Shareholders' reports - printing and mailing expenses 16,309 53,205 34,635 25,707 68,676 6,576 Federal and state registration fees 9,259 9,747 11,801 9,501 9,380 8,099 Other expenses 5,210 16,079 9,361 9,263 18,422 2,728 ----------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 1,344,842 4,437,126 2,408,455 2,368,728 4,881,132 493,363 Custodian fee credit (16,576) (36,805) (14,293) (16,192) (19,064) (6,307) ----------------------------------------------------------------------------------------------------------- Net expenses 1,328,266 4,400,321 2,394,162 2,352,536 4,862,068 487,056 ----------------------------------------------------------------------------------------------------------- Net investment income 5,208,147 20,807,607 10,697,233 11,163,637 24,817,122 1,822,436 ----------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain Net realized gain from investments 648,814 2,819,853 2,844,854 305,056 2,017,144 618,419 Net change in unrealized appreciation (depreciation) of investments 5,016,120 15,787,210 6,924,697 10,714,383 21,508,002 1,176,131 ----------------------------------------------------------------------------------------------------------- Net realized and unrealized gain 5,664,934 18,607,063 9,769,551 11,019,439 23,525,146 1,794,550 ----------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $10,873,081 $39,414,670 $20,466,784 $22,183,076 $48,342,268 $3,616,986 -----------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 56 Statement of Changes in Net Assets
Kansas Kentucky -------------------------- -------------------------- Year Ended Year Ended Year Ended Year Ended 5/31/05 5/31/04 5/31/05 5/31/04 ------------------------------------------------------------------------------------------------ Operations Net investment income $ 5,208,147 $ 5,778,679 $ 20,807,607 $ 22,222,767 Net realized gain (loss) from investments 648,814 (1,665,829) 2,819,853 (1,975,667) Net change in unrealized appreciation (depreciation) of investments 5,016,120 (5,728,328) 15,787,210 (16,569,142) ------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 10,873,081 (1,615,478) 39,414,670 3,677,958 ------------------------------------------------------------------------------------------------ Distributions to Shareholders From net investment income: Class A (3,962,833) (4,349,593) (18,216,210) (19,890,380) Class B (381,736) (440,052) (756,793) (841,490) Class C (820,547) (1,002,336) (1,711,635) (2,003,684) Class R (53,886) (54,894) (65,978) (58,747) From accumulated net realized gains from investments: Class A -- -- (215,689) (1,451,394) Class B -- -- (10,824) (73,792) Class C -- -- (23,312) (163,017) Class R -- -- (808) (4,045) ------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (5,219,002) (5,846,875) (21,001,249) (24,486,549) ------------------------------------------------------------------------------------------------ Fund Share Transactions Proceeds from sale of shares 13,008,347 14,588,942 36,364,254 41,174,702 Proceeds from shares issued to shareholders due to reinvestment of distributions 2,503,435 2,860,449 10,446,197 12,028,415 ------------------------------------------------------------------------------------------------ 15,511,782 17,449,391 46,810,451 53,203,117 Cost of shares redeemed (16,594,442) (24,476,334) (46,733,307) (54,176,868) ------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from Fund share transactions (1,082,660) (7,026,943) 77,144 (973,751) ------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets 4,571,419 (14,489,296) 18,490,565 (21,782,342) Net assets at the beginning of year 127,604,465 142,093,761 477,572,056 499,354,398 ------------------------------------------------------------------------------------------------ Net assets at the end of year $132,175,884 $127,604,465 $496,062,621 $477,572,056 ------------------------------------------------------------------------------------------------ Undistributed (Over-distribution of) net investment income at the end of year $ (172,364) $ (157,348) $ (392,659) $ (371,032) ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 57 Statement of Changes in Net Assets (continued)
Michigan Missouri -------------------------- -------------------------- Year Ended Year Ended Year Ended Year Ended 5/31/05 5/31/04 5/31/05 5/31/04 ----------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 10,697,233 $ 12,067,974 $ 11,163,637 $ 11,707,553 Net realized gain (loss) from investments 2,844,854 (381,658) 305,056 443,606 Net change in unrealized appreciation (depreciation) of investments 6,924,697 (12,892,193) 10,714,383 (12,919,701) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 20,466,784 (1,205,877) 22,183,076 (768,542) ----------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders From net investment income: Class A (7,893,894) (8,999,938) (10,019,105) (10,177,283) Class B (340,481) (426,071) (333,110) (410,400) Class C (1,429,875) (1,693,924) (770,457) (888,249) Class R (1,081,592) (1,182,789) (22,605) (23,566) From accumulated net realized gains from investments: Class A (79,663) (2,004,173) -- -- Class B (4,292) (114,034) -- -- Class C (16,800) (422,817) -- -- Class R (10,474) (251,531) -- -- ----------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (10,857,071) (15,095,277) (11,145,277) (11,499,498) ----------------------------------------------------------------------------------------------------------------------------- Fund Share Transactions Proceeds from sale of shares 18,075,991 19,888,293 18,867,537 24,186,720 Proceeds from shares issued to shareholders due to reinvestment of distributions 4,094,961 5,922,909 5,028,242 5,132,188 ----------------------------------------------------------------------------------------------------------------------------- 22,170,952 25,811,202 23,895,779 29,318,908 Cost of shares redeemed (30,077,327) (43,387,219) (26,422,230) (33,456,713) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions (7,906,375) (17,576,017) (2,526,451) (4,137,805) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 1,703,338 (33,877,171) 8,511,348 (16,405,845) Net assets at the beginning of year 250,597,140 284,474,311 253,372,115 269,777,960 ----------------------------------------------------------------------------------------------------------------------------- Net assets at the end of year $252,300,478 $250,597,140 $261,883,463 $253,372,115 ----------------------------------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of year $ (282,649) $ (206,743) $ (117,110) $ (134,854) -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 58
Ohio Wisconsin -------------------------- -------------------------- Year Ended Year Ended Year Ended Year Ended 5/31/05 5/31/04 5/31/05 5/31/04 ------------------------------------------------------------------------------------------------ Operations Net investment income $ 24,817,122 $ 27,168,316 $ 1,822,436 $ 1,992,279 Net realized gain (loss) from investments 2,017,144 1,763,995 618,419 389,437 Net change in unrealized appreciation (depreciation) of investments 21,508,002 (33,135,955) 1,176,131 (2,742,604) ------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 48,342,268 (4,203,644) 3,616,986 (360,888) ------------------------------------------------------------------------------------------------ Distributions to Shareholders From net investment income: Class A (15,605,959) (17,203,763) (1,501,243) (1,678,781) Class B (967,497) (1,085,124) (155,227) (174,560) Class C (1,757,417) (1,982,379) (159,807) (173,583) Class R (6,476,706) (7,215,607) (4,591) (7,838) From accumulated net realized gains from investments: Class A -- -- -- -- Class B -- -- -- -- Class C -- -- -- -- Class R -- -- -- -- ------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (24,807,579) (27,486,873) (1,820,868) (2,034,762) ------------------------------------------------------------------------------------------------ Fund Share Transactions Proceeds from sale of shares 35,431,676 37,222,137 5,456,300 6,672,641 Proceeds from shares issued to shareholders due to reinvestment of distributions 12,146,363 13,107,814 983,002 1,197,776 ------------------------------------------------------------------------------------------------ 47,578,039 50,329,951 6,439,302 7,870,417 Cost of shares redeemed (60,281,341) (79,991,538) (10,861,710) (10,096,228) ------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from Fund share transactions (12,703,302) (29,661,587) (4,422,408) (2,225,811) ------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets 10,831,387 (61,352,104) (2,626,290) (4,621,461) Net assets at the beginning of year 558,126,887 619,478,991 48,410,538 53,031,999 ------------------------------------------------------------------------------------------------ Net assets at the end of year $568,958,274 $558,126,887 $ 45,784,248 $ 48,410,538 ------------------------------------------------------------------------------------------------ Undistributed (Over-distribution of) net investment income at the end of year $ (130,879) $ (99,771) $ (25,375) $ (21,572) ------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ---- 59 Notes to Financial Statements 1. General Information and Significant Accounting Policies The Nuveen Multistate Trust IV (the "Trust") is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of the Nuveen Kansas Municipal Bond Fund ("Kansas"), Nuveen Kentucky Municipal Bond Fund ("Kentucky"), Nuveen Michigan Municipal Bond Fund ("Michigan"), Nuveen Missouri Municipal Bond Fund ("Missouri"), Nuveen Ohio Municipal Bond Fund ("Ohio") and Nuveen Wisconsin Municipal Bond Fund ("Wisconsin") (collectively, the "Funds"). The Trust was organized as a Massachusetts business trust on July 1, 1996. The Funds were each organized as a series of predecessor trusts or corporations prior to that date. The Funds seek to provide high tax-free income and preservation of capital through investments in diversified portfolios of quality municipal bonds. Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the Adviser to all funds previously advised by either NAC or NIAC. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Trustees. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular security, the Board of Trustees of the Funds, or its designee, may establish fair market value using a wide variety of market data including yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from securities dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant by the pricing service or the Board of Trustees' designee. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Securities purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At May 31, 2005, Kentucky, Missouri, and Ohio had outstanding when-issued purchase commitments of $2,136,740, $1,585,245 and $9,143,676, respectively. There were no such outstanding purchase commitments in Kansas, Michigan, or Wisconsin. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend. Generally, payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. All monthly tax-exempt income dividends paid during the fiscal year ended May 31, 2005, have been designated Exempt Interest Dividends. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. Flexible Sales Charge Program Each Fund offers Class A, B, C and R Shares. Class A Shares are generally sold with an up-front sales charge and incur a .20% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge ("CDSC") if redeemed within 18 months of purchase. Class B Shares are sold without ---- 60 an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. An investor purchasing Class B Shares agrees to pay a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares convert to Class A Shares eight years after purchase. Class C Shares are sold without an up-front sales charge but incur a .55% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. An investor purchasing Class C Shares agrees to pay a CDSC of 1% if Class C Shares are redeemed within one year of purchase. Class R Shares are not subject to any sales charge or 12b-1 distribution or service fees. Class R Shares are available only under limited circumstances. Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics including inverse floating rate securities. During the fiscal year ended May 31, 2005, Kentucky, Michigan and Ohio invested in inverse floating rate securities for the purpose of enhancing portfolio yield. Inverse floating rate securities are identified in the Portfolio of Investments and are valued daily. The interest rate of an inverse floating rate security has an inverse relationship to the interest rate of a short-term floating rate security. Consequently, as the interest rate of the floating rate security rises, the interest rate on the inverse floating rate security declines. Conversely, as the interest rate of the floating rate security declines, the interest rate on the inverse floating rate security rises. The price of an inverse floating rate security will be more volatile than that of an otherwise comparable fixed rate security since the interest rate is dependent on an underlying fixed coupon rate or the general level of long-term interest rates as well as the short-term interest paid on the floating rate security, and because the inverse floating rate security typically bears the risk of loss of a greater face value of an underlying bond. Kansas, Missouri and Wisconsin did not invest in any such instruments during the fiscal year ended May 31, 2005. Expense Allocation Expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution and service fees, are recorded to the specific class. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Trust's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. ---- 61 Notes to Financial Statements (continued) 2. Fund Shares Transactions in Fund shares were as follows:
Kansas -------------------------------------------------- Year Ended Year Ended 5/31/05 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount -------------------------------------------------------------------------------------------- Shares sold: Class A 860,345 $ 9,059,917 793,968 $ 8,303,025 Class A - automatic conversion of Class B shares 16,697 175,515 -- -- Class B 50,553 525,883 59,064 615,299 Class C 286,374 3,012,008 526,585 5,524,723 Class R 22,111 235,024 13,736 145,895 Shares issued to shareholders due to reinvestment of distributions: Class A 178,604 1,868,759 200,112 2,092,048 Class B 16,620 172,552 19,035 197,536 Class C 43,366 453,981 53,905 564,187 Class R 775 8,143 636 6,678 -------------------------------------------------------------------------------------------- 1,475,445 15,511,782 1,667,041 17,449,391 -------------------------------------------------------------------------------------------- Shares redeemed: Class A (872,910) (9,130,553) (1,557,318) (16,264,216) Class B (189,055) (1,973,960) (188,261) (1,938,824) Class B - automatic conversion to Class A shares (16,834) (175,515) -- -- Class C (506,754) (5,261,246) (586,380) (6,086,120) Class R (5,092) (53,168) (17,937) (187,174) -------------------------------------------------------------------------------------------- (1,590,645) (16,594,442) (2,349,896) (24,476,334) -------------------------------------------------------------------------------------------- Net increase (decrease) (115,200) $ (1,082,660) (682,855) $ (7,026,943) -------------------------------------------------------------------------------------------- Kentucky -------------------------------------------------- Year Ended Year Ended 5/31/05 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount -------------------------------------------------------------------------------------------- Shares sold: Class A 2,723,044 $ 30,401,710 2,858,255 $ 31,892,416 Class A - automatic conversion of Class B shares 8,847 98,597 -- -- Class B 124,020 1,384,507 249,021 2,763,418 Class C 376,990 4,202,352 572,512 6,394,052 Class R 24,848 277,088 11,133 124,816 Shares issued to shareholders due to reinvestment of distributions: Class A 816,581 9,066,627 932,474 10,375,268 Class B 38,395 426,521 45,210 503,135 Class C 81,054 898,778 98,888 1,099,196 Class R 4,891 54,271 4,573 50,816 -------------------------------------------------------------------------------------------- 4,198,670 46,810,451 4,772,066 53,203,117 -------------------------------------------------------------------------------------------- Shares redeemed: Class A (3,450,812) (38,405,653) (3,709,929) (41,162,021) Class B (195,043) (2,166,368) (244,740) (2,709,713) Class B - automatic conversion to Class A shares (8,845) (98,597) -- -- Class C (538,433) (5,973,276) (930,718) (10,295,377) Class R (7,976) (89,413) (899) (9,757) -------------------------------------------------------------------------------------------- (4,201,109) (46,733,307) (4,886,286) (54,176,868) -------------------------------------------------------------------------------------------- Net increase (decrease) (2,439) $ 77,144 (114,220) $ (973,751) --------------------------------------------------------------------------------------------
---- 62
Michigan -------------------------------------------------- Year Ended Year Ended 5/31/05 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount ------------------------------------------------------------------------------------------------------- Shares sold: Class A 1,128,179 $ 13,206,864 1,173,770 $ 13,773,949 Class A - automatic conversion of Class B shares 7,126 84,229 -- -- Class B 50,547 593,221 103,810 1,221,861 Class C 329,227 3,867,933 344,503 4,053,427 Class R 27,710 323,744 71,099 839,056 Shares issued to shareholders due to reinvestment of distributions: Class A 234,783 2,744,586 341,045 4,005,239 Class B 10,815 126,702 17,765 208,791 Class C 42,194 492,748 60,648 711,144 Class R 62,508 730,925 84,936 997,735 ------------------------------------------------------------------------------------------------------- 1,893,089 22,170,952 2,197,576 25,811,202 ------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (1,847,113) (21,589,536) (2,625,909) (30,776,396) Class B (186,090) (2,178,934) (157,814) (1,844,648) Class B - automatic conversion to Class A shares (7,114) (84,229) -- -- Class C (368,694) (4,319,715) (774,769) (9,064,066) Class R (162,717) (1,904,913) (144,833) (1,702,109) ------------------------------------------------------------------------------------------------------- (2,571,728) (30,077,327) (3,703,325) (43,387,219) ------------------------------------------------------------------------------------------------------- Net increase (decrease) (678,639) $ (7,906,375) (1,505,749) $(17,576,017) ------------------------------------------------------------------------------------------------------- Missouri -------------------------------------------------- Year Ended Year Ended 5/31/05 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount ------------------------------------------------------------------------------------------------------- Shares sold: Class A 1,445,635 $ 15,863,183 1,896,429 $ 20,766,655 Class A - automatic conversion of Class B shares 1,348 15,131 -- -- Class B 55,120 613,519 106,461 1,175,381 Class C 204,601 2,273,655 204,008 2,244,513 Class R 9,178 102,049 15 171 Shares issued to shareholders due to reinvestment of distributions: Class A 416,123 4,592,030 418,334 4,614,441 Class B 16,069 177,389 18,993 209,608 Class C 23,149 255,193 27,661 305,073 Class R 328 3,630 278 3,066 ------------------------------------------------------------------------------------------------------- 2,171,551 23,895,779 2,672,179 29,318,908 ------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (1,809,311) (20,035,159) (2,434,553) (26,768,972) Class B (136,397) (1,506,122) (295,500) (3,248,762) Class B - automatic conversion to Class A shares (1,347) (15,131) -- -- Class C (438,686) (4,815,752) (311,727) (3,408,979) Class R (4,471) (50,066) (2,688) (30,000) ------------------------------------------------------------------------------------------------------- (2,390,212) (26,422,230) (3,044,468) (33,456,713) ------------------------------------------------------------------------------------------------------- Net increase (decrease) (218,661) $ (2,526,451) (372,289) $ (4,137,805) -------------------------------------------------------------------------------------------------------
---- 63 Notes to Financial Statements (continued)
Ohio -------------------------------------------------- Year Ended Year Ended 5/31/05 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount ------------------------------------------------------------------------------------------------------- Shares sold: Class A 2,421,794 $ 27,855,344 2,304,454 $ 26,549,245 Class A - automatic conversion of Class B shares 21,765 251,838 -- -- Class B 97,298 1,117,174 267,211 3,083,903 Class C 433,897 4,997,158 489,022 5,609,952 Class R 106,356 1,210,162 171,767 1,979,037 Shares issued to shareholders due to reinvestment of distributions: Class A 574,748 6,582,720 599,545 6,881,391 Class B 30,755 351,735 34,215 392,111 Class C 59,538 680,583 66,384 760,754 Class R 396,161 4,531,325 442,465 5,073,558 ------------------------------------------------------------------------------------------------------- 4,142,312 47,578,039 4,375,063 50,329,951 ------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (3,375,812) (38,603,590) (4,517,200) (51,533,122) Class B (240,240) (2,754,861) (352,580) (4,031,327) Class B - automatic conversion to Class A shares (21,798) (251,838) -- -- Class C (553,070) (6,309,352) (894,505) (10,208,729) Class R (1,081,810) (12,361,700) (1,243,807) (14,218,360) ------------------------------------------------------------------------------------------------------- (5,272,730) (60,281,341) (7,008,092) (79,991,538) ------------------------------------------------------------------------------------------------------- Net increase (decrease) (1,130,418) $(12,703,302) (2,633,029) $(29,661,587) ------------------------------------------------------------------------------------------------------- Wisconsin -------------------------------------------------- Year Ended Year Ended 5/31/05 5/31/04 ------------------------ ------------------------ Shares Amount Shares Amount ------------------------------------------------------------------------------------------------------- Shares sold: Class A 384,826 $ 4,015,568 464,905 $ 4,873,006 Class A - automatic conversion of Class B shares 2,773 28,862 -- -- Class B 32,963 337,963 38,553 404,420 Class C 102,831 1,073,682 132,785 1,393,067 Class R 22 225 197 2,148 Shares issued to shareholders due to reinvestment of distributions: Class A 76,575 795,272 94,737 985,477 Class B 7,840 81,577 9,370 97,772 Class C 9,739 101,361 10,299 107,357 Class R 461 4,792 687 7,170 ------------------------------------------------------------------------------------------------------- 618,030 6,439,302 751,533 7,870,417 ------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (861,604) (8,991,707) (704,255) (7,287,114) Class B (51,401) (534,937) (158,637) (1,626,947) Class B - automatic conversion to Class A shares (2,767) (28,862) -- -- Class C (113,481) (1,182,323) (114,245) (1,182,167) Class R (11,929) (123,881) -- -- ------------------------------------------------------------------------------------------------------- (1,041,182) (10,861,710) (977,137) (10,096,228) ------------------------------------------------------------------------------------------------------- Net increase (decrease) (423,152) $ (4,422,408) (225,604) $ (2,225,811) -------------------------------------------------------------------------------------------------------
---- 64 3. Securities Transactions Purchases and sales (including maturities) of investments in long-term municipal securities for the fiscal year ended May 31, 2005, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ----------------------------------------------------------------------------------- Purchases $27,402,512 $72,382,705 $39,780,872 $42,574,515 $62,354,023 $ 7,089,624 Sales and maturities 30,152,046 70,233,418 43,054,102 41,452,529 71,634,865 11,586,495 -----------------------------------------------------------------------------------
4. Income Tax Information The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses on investments, timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At May 31, 2005, the cost of investments was as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------------------------------------------ Cost of investments $121,361,688 $460,265,975 $230,076,021 $243,833,505 $518,251,548 $42,460,330 ------------------------------------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 2005, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin --------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $8,889,507 $31,238,718 $19,489,993 $16,712,936 $44,170,788 $2,424,538 Depreciation (93,212) (384,737) (319,506) (320,886) (275,683) -- --------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $8,796,295 $30,853,981 $19,170,487 $16,392,050 $43,895,105 $2,424,538 ---------------------------------------------------------------------------------------------------------------------
The tax components of undistributed net investment income and net realized gains at May 31, 2005, were as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------------------------------------------------ Undistributed net tax-exempt income* $228,746 $1,115,012 $ 451,304 $752,256 $1,398,403 $106,215 Undistributed net ordinary income** -- 3 9,969 -- 28,265 3,699 Undistributed net long-term capital gains -- 713,500 2,473,706 -- 266,844 119,596 ------------------------------------------------------------------------------------------------------
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 9, 2005, paid on June 1, 2005. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal years ended May 31, 2005 and May 31, 2004, was designated for purposes of the dividends paid deduction as follows:
2005 Kansas Kentucky Michigan Missouri Ohio Wisconsin -------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $5,262,204 $20,944,156 $10,809,668 $11,148,920 $24,974,764 $1,838,398 Distributions from net ordinary income** -- 20,309 16,192 -- -- -- Distributions from net long-term capital gains -- 250,633 111,229 -- -- -- --------------------------------------------------------------------------------------------------------------------
2004 Kansas Kentucky Michigan Missouri Ohio Wisconsin -------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $5,889,048 $22,797,140 $12,369,021 $11,548,175 $27,679,862 $2,048,961 Distributions from net ordinary income** -- 66,682 78,164 -- 9,397 1,079 Distributions from net long-term capital gains -- 1,687,946 2,769,039 -- -- -- --------------------------------------------------------------------------------------------------------------------
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At May 31, 2005, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
Kansas Missouri ------------------------------------ Expiration year: 2008 $ -- $ -- 2009 414,885 673,391 2010 -- 204,566 2011 -- -- 2012 1,614,137 -- ------------------------------------ $2,029,022 $877,957 ------------------------------------
---- 65 Notes to Financial Statements (continued) At May 31, 2005, Kansas elected to defer $79,367 of net realized losses from investments incurred from November 1, 2004 through May 31, 2005 ("post-October losses") in accordance with Federal income tax regulations. The post-October losses were treated as having arisen on the first day of the following fiscal year. 5. Management Fee and Other Transactions with Affiliates As approved by the Board of Trustees, effective August 1, 2004, a complex-wide management fee structure was adopted for all funds sponsored by the Adviser, or its predecessor and its affiliates. This fee structure separates each fund's management fee into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. Under no circumstances will this pricing structure result in a fund paying management fees at a rate higher than would otherwise have been applicable had the complex-wide management fee structure not been implemented. As of June 30, 2005, the complex-level fee rate was .1900%; that is the funds' effective management fees were reduced by approximately .0010%. Effective August 1, 2004, the annual fund-level fee, payable monthly, for each of the Funds is based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Fund-Level Fee Rate --------------------------------------------------- For the first $125 million .3500% For the next $125 million .3375 For the next $250 million .3250 For the next $500 million .3125 For the next $1 billion .3000 For the next $3 billion .2750 For net assets over $5 billion .2500 ---------------------------------------------------
Effective August 1, 2004, the annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as follows:
Complex-Level Assets /(1)/ Complex-Level Fee Rate ----------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion /(2)/ .1400 -----------------------------------------------------------------
(1)The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2)With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. Each Fund paid through July 31, 2004, an annual management fee, payable monthly, at the rates set forth below, which were based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Management Fee Rate --------------------------------------------------- For the first $125 million .5500% For the next $125 million .5375 For the next $250 million .5250 For the next $500 million .5125 For the next $1 billion .5000 For the next $3 billion .4750 For net assets over $5 billion .4500 ---------------------------------------------------
---- 66 The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Trust pays no compensation directly to those of its Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised Funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised Funds. The Adviser has agreed to waive part of its management fees or reimburse certain expenses of Ohio in order to limit total expenses (excluding 12b-1 distribution and service fees and extraordinary expenses) from exceeding .75% of the average daily net assets. The Adviser may also voluntarily reimburse additional expenses in any of the Funds. Voluntary reimbursements may be terminated at any time at the Adviser's discretion. During the fiscal year ended May 31, 2005, Nuveen Investments, LLC (the "Distributor"), a wholly owned subsidiary of Nuveen collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to authorized dealers as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin --------------------------------------------------------------------------------------------- Sales charges collected (unaudited) $181,225 $748,425 $173,590 $242,010 $433,692 $98,297 Paid to authorized dealers (unaudited) 157,894 651,028 150,464 211,129 377,610 84,807 ---------------------------------------------------------------------------------------------
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate authorized dealers for providing services to shareholders relating to their investments. During the fiscal year ended May 31, 2005, the Distributor compensated authorized dealers directly with commission advances at the time of purchase as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------------------------------- Commission advances (unaudited) $61,604 $167,478 $72,991 $76,572 $132,713 $28,458 -------------------------------------------------------------------------------------
To compensate for commissions advanced to authorized dealers, all 12b-1 service fees collected on Class B Shares during the first year following a purchase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the fiscal year ended May 31, 2005, the Distributor retained such 12b-1 fees as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin -------------------------------------------------------------------------------------- 12b-1 fees retained (unaudited) $106,859 $189,239 $109,692 $84,355 $236,877 $45,670 --------------------------------------------------------------------------------------
The remaining 12b-1 fees charged to the Funds were paid to compensate authorized dealers for providing services to shareholders relating to their investments. The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended May 31, 2005, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------------------------ CDSC retained (unaudited) $33,390 $36,516 $34,617 $17,649 $40,286 $9,125 ------------------------------------------------------------------------------
6. Announcement Regarding Parent Company of Adviser In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an additional $400 million of its Nuveen shares on a "forward" basis with payment for and settlement of these shares delayed for several months, and (D) entered into agreements with two unaffiliated investment banking firms to sell an amount equal to most or all of its remaining Nuveen shares for current payment but for future settlement. The settlement of transactions (C) and (D) above would likely be deemed an "assignment" (as defined in the 1940 Act) of the investment management agreements between the Funds and the Adviser, which would result in the automatic termination of each agreement under the 1940 Act. The Board of Trustees will consider approval of new ongoing investment management agreements for each Fund and the submission of those agreements for approval by each respective Fund's shareholders. Those agreements, if approved by a Fund's shareholders, would take effect upon such approval. There can be no assurance that these approvals will be obtained. ---- 67 Notes to Financial Statements (continued) 7. Subsequent Event - Distributions to Shareholders The Funds declared dividend distributions from their tax-exempt net investment income which were paid on July 1, 2005, to shareholders of record on June 9, 2005, as follows:
Kansas Kentucky Michigan Missouri Ohio Wisconsin ------------------------------------------------------------- Dividend per share: Class A $.0345 $.0380 $.0415 $.0400 $.0410 $.0345 Class B .0280 .0310 .0340 .0330 .0340 .0280 Class C .0300 .0325 .0360 .0350 .0360 .0300 Class R .0365 .0395 .0435 .0420 .0430 .0365 -------------------------------------------------------------
---- 68 Financial Highlights Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ---------------------- -------- KANSAS Net Beginning Net Realized/ Net Ending Ending Net Invest- Unrealized Invest- Net Net Year Ended Asset ment Gain ment Capital Asset Total Assets May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) ----------------------------------------------------------------------------------------------------- Class A (1/92) 2005 $10.20 $.44 $ .46 $ .90 $(.44) $-- $(.44) $10.66 8.95% $ 97,861 2004 10.77 .46 (.57) (.11) (.46) -- (.46) 10.20 (1.02) 91,744 2003 10.25 .48 .52 1.00 (.48) -- (.48) 10.77 10.03 102,938 2002 10.16 .50 .10 .60 (.51) -- (.51) 10.25 6.06 96,411 2001 9.54 .51 .62 1.13 (.51) -- (.51) 10.16 12.02 91,062 Class B (2/97) 2005 10.12 .36 .46 .82 (.36) -- (.36) 10.58 8.21 10,031 2004 10.69 .38 (.57) (.19) (.38) -- (.38) 10.12 (1.77) 11,001 2003 10.18 .40 .52 .92 (.41) -- (.41) 10.69 9.18 12,797 2002 10.09 .42 .11 .53 (.44) -- (.44) 10.18 5.30 10,210 2001 9.48 .44 .61 1.05 (.44) -- (.44) 10.09 11.17 6,851 Class C (2/97) 2005 10.21 .38 .46 .84 (.38) -- (.38) 10.67 8.39 22,836 2004 10.78 .40 (.56) (.16) (.41) -- (.41) 10.21 (1.53) 23,656 2003 10.27 .42 .52 .94 (.43) -- (.43) 10.78 9.35 25,049 2002 10.17 .44 .12 .56 (.46) -- (.46) 10.27 5.60 16,943 2001 9.56 .46 .61 1.07 (.46) -- (.46) 10.17 11.29 6,359 Class R (2/97) 2005 10.24 .46 .47 .93 (.46) -- (.46) 10.71 9.26 1,449 2004 10.82 .48 (.58) (.10) (.48) -- (.48) 10.24 (.89) 1,204 2003 10.30 .50 .53 1.03 (.51) -- (.51) 10.82 10.23 1,310 2002 10.20 .53 .11 .64 (.54) -- (.54) 10.30 6.38 1,475 2001 9.59 .54 .60 1.14 (.53) -- (.53) 10.20 12.12 1,967 -----------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) KANSAS ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Year Ended Net Net Net Net Net Net Turnover May 31, Assets Assets Assets Assets Assets Assets Rate ------------------------------------------------------------------------------ Class A (1/92) 2005 .88% 4.17% .88% 4.17% .87% 4.18% 21% 2004 .90 4.36 .90 4.36 .89 4.37 11 2003 .88 4.57 .88 4.57 .87 4.58 12 2002 .90 4.90 .90 4.90 .89 4.91 17 2001 .90 5.13 .90 5.13 .89 5.14 18 Class B (2/97) 2005 1.63 3.42 1.63 3.42 1.61 3.43 21 2004 1.64 3.61 1.64 3.61 1.64 3.62 11 2003 1.63 3.81 1.63 3.81 1.62 3.82 12 2002 1.65 4.13 1.65 4.13 1.64 4.15 17 2001 1.65 4.38 1.65 4.38 1.64 4.39 18 Class C (2/97) 2005 1.43 3.62 1.43 3.62 1.42 3.63 21 2004 1.45 3.81 1.45 3.81 1.44 3.82 11 2003 1.43 4.01 1.43 4.01 1.42 4.02 12 2002 1.44 4.31 1.44 4.31 1.43 4.32 17 2001 1.45 4.58 1.45 4.58 1.44 4.59 18 Class R (2/97) 2005 .68 4.37 .68 4.37 .67 4.38 21 2004 .70 4.56 .70 4.56 .69 4.57 11 2003 .68 4.77 .68 4.77 .67 4.78 12 2002 .70 5.12 .70 5.12 .69 5.13 17 2001 .69 5.33 .69 5.33 .68 5.34 18 ------------------------------------------------------------------------------
(a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. ---- 69 Financial Highlights (continued) Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ----------------------- -------- KENTUCKY Net Beginning Net Realized/ Net Ending Ending Net Invest- Unrealized Invest- Net Net Year Ended Asset ment Gain ment Capital Asset Total Assets May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) ----------------------------------------------------------------------------------------------------- Class A (5/87) 2005 $10.88 $.48 $ .43 $ .91 $(.48) $(.01) $(.49) $11.30 8.51% $427,106 2004 11.35 .51 (.42) .09 (.52) (.04) (.56) 10.88 .90 410,109 2003 10.92 .53 .44 .97 (.53) (.01) (.54) 11.35 9.03 426,782 2002 10.80 .54 .12 .66 (.54) -- (.54) 10.92 6.22 407,706 2001 10.30 .55 .50 1.05 (.55) -- (.55) 10.80 10.40 403,793 Class B (2/97) 2005 10.88 .40 .44 .84 (.40) (.01) (.41) 11.31 7.80 21,216 2004 11.35 .43 (.42) .01 (.44) (.04) (.48) 10.88 .14 20,874 2003 10.92 .45 .44 .89 (.45) (.01) (.46) 11.35 8.21 21,206 2002 10.80 .46 .12 .58 (.46) -- (.46) 10.92 5.42 16,808 2001 10.30 .47 .51 .98 (.48) -- (.48) 10.80 9.60 12,977 Class C (10/93) 2005 10.87 .42 .43 .85 (.42) (.01) (.43) 11.29 7.91 46,160 2004 11.34 .45 (.42) .03 (.46) (.04) (.50) 10.87 .35 45,303 2003 10.91 .47 .44 .91 (.47) (.01) (.48) 11.34 8.45 50,194 2002 10.79 .48 .12 .60 (.48) -- (.48) 10.91 5.64 40,746 2001 10.29 .49 .50 .99 (.49) -- (.49) 10.79 9.80 35,770 Class R (2/97) 2005 10.87 .51 .42 .93 (.50) (.01) (.51) 11.29 8.70 1,581 2004 11.33 .53 (.41) .12 (.54) (.04) (.58) 10.87 1.15 1,285 2003 10.90 .55 .44 .99 (.55) (.01) (.56) 11.33 9.23 1,172 2002 10.78 .57 .11 .68 (.56) -- (.56) 10.90 6.40 983 2001 10.27 .57 .51 1.08 (.57) -- (.57) 10.78 10.72 889 -----------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) KENTUCKY ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Year Ended Net Net Net Net Net Net Turnover May 31, Assets Assets Assets Assets Assets Assets Rate ------------------------------------------------------------------------------ Class A (5/87) 2005 .83% 4.35% .83% 4.35% .82% 4.36% 15% 2004 .84 4.58 .84 4.58 .83 4.58 16 2003 .84 4.79 .84 4.79 .83 4.79 14 2002 .85 4.99 .85 4.99 .84 5.00 14 2001 .87 5.11 .87 5.11 .85 5.13 14 Class B (2/97) 2005 1.57 3.60 1.57 3.60 1.57 3.61 15 2004 1.59 3.83 1.59 3.83 1.58 3.83 16 2003 1.59 4.04 1.59 4.04 1.58 4.04 14 2002 1.59 4.24 1.59 4.24 1.58 4.25 14 2001 1.62 4.36 1.62 4.36 1.60 4.38 14 Class C (10/93) 2005 1.37 3.80 1.37 3.80 1.37 3.81 15 2004 1.39 4.03 1.39 4.03 1.38 4.03 16 2003 1.39 4.24 1.39 4.24 1.38 4.24 14 2002 1.40 4.44 1.40 4.44 1.39 4.45 14 2001 1.42 4.56 1.42 4.56 1.40 4.58 14 Class R (2/97) 2005 .63 4.54 .63 4.54 .62 4.55 15 2004 .64 4.78 .64 4.78 .63 4.78 16 2003 .64 4.99 .64 4.99 .63 4.99 14 2002 .65 5.19 .65 5.19 .64 5.20 14 2001 .67 5.31 .67 5.31 .65 5.33 14 ------------------------------------------------------------------------------
(a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. ---- 70 Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ----------------------- -------- MICHIGAN Net Beginning Net Realized/ Net Ending Ending Net Invest- Unrealized Invest- Net Net Year Ended Asset ment Gain ment Capital Asset Total Assets May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) ------------------------------------------------------------------------------------------------------ Class A (6/85) 2005 $11.45 $.51 $ .45 $ .96 $(.51) $(.01) $(.52) $11.89 8.48% $181,302 2004 12.16 .54 (.58) (.04) (.55) (.12) (.67) 11.45 (.27) 179,956 2003 11.55 .55 .63 1.18 (.56) (.01) (.57) 12.16 10.40 204,652 2002 11.39 .56 .20 .76 (.57) (.03) (.60) 11.55 6.70 205,808 2001 10.75 .58 .63 1.21 (.57) -- (.57) 11.39 11.45 211,992 Class B (2/97) 2005 11.47 .42 .46 .88 (.42) (.01) (.43) 11.92 7.73 8,938 2004 12.18 .45 (.58) (.13) (.46) (.12) (.58) 11.47 (1.03) 10,112 2003 11.57 .46 .63 1.09 (.47) (.01) (.48) 12.18 9.56 11,179 2002 11.41 .48 .19 .67 (.48) (.03) (.51) 11.57 5.88 9,214 2001 10.77 .50 .63 1.13 (.49) -- (.49) 11.41 10.61 8,642 Class C (6/93) 2005 11.43 .44 .46 .90 (.44) (.01) (.45) 11.88 7.98 38,386 2004 12.14 .48 (.58) (.10) (.49) (.12) (.61) 11.43 (.83) 36,912 2003 11.54 .49 .61 1.10 (.49) (.01) (.50) 12.14 9.71 43,693 2002 11.38 .50 .19 .69 (.50) (.03) (.53) 11.54 6.11 38,763 2001 10.74 .52 .63 1.15 (.51) -- (.51) 11.38 10.84 36,123 Class R (2/97) 2005 11.45 .53 .45 .98 (.53) (.01) (.54) 11.89 8.70 23,675 2004 12.16 .57 (.58) (.01) (.58) (.12) (.70) 11.45 (.07) 23,618 2003 11.56 .58 .61 1.19 (.58) (.01) (.59) 12.16 10.53 24,951 2002 11.39 .59 .20 .79 (.59) (.03) (.62) 11.56 6.99 23,643 2001 10.75 .60 .63 1.23 (.59) -- (.59) 11.39 11.63 22,799 ------------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) MICHIGAN ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Year Ended Net Net Net Net Net Net Turnover May 31, Assets Assets Assets Assets Assets Assets Rate ------------------------------------------------------------------------------ Class A (6/85) 2005 .86% 4.32% .86% 4.32% .86% 4.33% 16% 2004 .87 4.61 .87 4.61 .86 4.61 9 2003 .86 4.67 .86 4.67 .86 4.67 10 2002 .87 4.86 .87 4.86 .87 4.86 19 2001 .87 5.15 .87 5.15 .86 5.16 11 Class B (2/97) 2005 1.61 3.57 1.61 3.57 1.60 3.58 16 2004 1.62 3.86 1.62 3.86 1.61 3.86 9 2003 1.61 3.91 1.61 3.91 1.61 3.92 10 2002 1.62 4.11 1.62 4.11 1.62 4.11 19 2001 1.62 4.40 1.62 4.40 1.61 4.41 11 Class C (6/93) 2005 1.41 3.77 1.41 3.77 1.40 3.78 16 2004 1.42 4.06 1.42 4.06 1.41 4.06 9 2003 1.41 4.12 1.41 4.12 1.41 4.12 10 2002 1.42 4.31 1.42 4.31 1.42 4.31 19 2001 1.42 4.60 1.42 4.60 1.41 4.61 11 Class R (2/97) 2005 .66 4.52 .66 4.52 .66 4.53 16 2004 .67 4.81 .67 4.81 .66 4.81 9 2003 .66 4.87 .66 4.87 .66 4.87 10 2002 .67 5.06 .67 5.06 .67 5.06 19 2001 .67 5.35 .67 5.35 .66 5.36 11 ------------------------------------------------------------------------------
(a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. ---- 71 Financial Highlights (continued) Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ---------------------- -------- MISSOURI Net Beginning Net Realized/ Net Ending Ending Net Invest- Unrealized Invest- Net Net Year Ended Asset ment Gain ment Capital Asset Total Assets May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) ----------------------------------------------------------------------------------------------------- Class A (8/87) 2005 $10.78 $.48 $ .47 $ .95 $(.48) $ -- $(.48) $11.25 8.97% $232,171 2004 11.30 .50 (.53) (.03) (.49) -- (.49) 10.78 (.28) 221,955 2003 10.81 .51 .51 1.02 (.53) -- (.53) 11.30 9.63 233,996 2002 10.71 .54 .11 .65 (.55) -- (.55) 10.81 6.20 207,890 2001 10.18 .56 .53 1.09 (.56) -- (.56) 10.71 10.93 202,698 Class B (2/97) 2005 10.79 .40 .47 .87 (.40) -- (.40) 11.26 8.15 9,197 2004 11.30 .41 (.52) (.11) (.40) -- (.40) 10.79 (.95) 9,532 2003 10.81 .43 .50 .93 (.44) -- (.44) 11.30 8.80 11,912 2002 10.71 .46 .11 .57 (.47) -- (.47) 10.81 5.38 9,091 2001 10.18 .48 .53 1.01 (.48) -- (.48) 10.71 10.10 6,991 Class C (2/94) 2005 10.77 .42 .47 .89 (.42) -- (.42) 11.24 8.39 19,955 2004 11.29 .44 (.53) (.09) (.43) -- (.43) 10.77 (.84) 21,402 2003 10.81 .45 .49 .94 (.46) -- (.46) 11.29 8.93 23,336 2002 10.70 .48 .12 .60 (.49) -- (.49) 10.81 5.72 20,076 2001 10.17 .50 .53 1.03 (.50) -- (.50) 10.70 10.31 12,589 Class R (2/97) 2005 10.79 .50 .47 .97 (.50) -- (.50) 11.26 9.20 561 2004 11.31 .52 (.53) (.01) (.51) -- (.51) 10.79 (.10) 483 2003 10.82 .53 .50 1.03 (.54) -- (.54) 11.31 9.80 534 2002 10.71 .57 .11 .68 (.57) -- (.57) 10.82 6.47 507 2001 10.18 .58 .53 1.11 (.58) -- (.58) 10.71 11.11 470 -----------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) MISSOURI ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Year Ended Net Net Net Net Net Net Turnover May 31, Assets Assets Assets Assets Assets Assets Rate ------------------------------------------------------------------------------ Class A (8/87) 2005 .84% 4.35% .84% 4.35% .83% 4.35% 16% 2004 .85 4.50 .85 4.50 .85 4.51 13 2003 .86 4.65 .86 4.65 .85 4.66 14 2002 .87 5.02 .87 5.02 .86 5.03 13 2001 .87 5.31 .87 5.31 .87 5.31 13 Class B (2/97) 2005 1.58 3.60 1.58 3.60 1.58 3.60 16 2004 1.60 3.75 1.60 3.75 1.60 3.75 13 2003 1.61 3.90 1.61 3.90 1.60 3.91 14 2002 1.62 4.27 1.62 4.27 1.61 4.27 13 2001 1.62 4.55 1.62 4.55 1.61 4.56 13 Class C (2/94) 2005 1.39 3.80 1.39 3.80 1.38 3.81 16 2004 1.40 3.95 1.40 3.95 1.40 3.95 13 2003 1.41 4.10 1.41 4.10 1.40 4.11 14 2002 1.41 4.46 1.41 4.46 1.41 4.47 13 2001 1.42 4.76 1.42 4.76 1.42 4.76 13 Class R (2/97) 2005 .64 4.54 .64 4.54 .64 4.55 16 2004 .65 4.70 .65 4.70 .65 4.71 13 2003 .66 4.86 .66 4.86 .65 4.86 14 2002 .67 5.22 .67 5.22 .66 5.23 13 2001 .67 5.51 .67 5.51 .67 5.51 13 ------------------------------------------------------------------------------
(a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. ---- 72 Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ---------------------- -------- OHIO Net Beginning Net Realized/ Net Ending Ending Net Invest- Unrealized Invest- Net Net Year Ended Asset ment Gain ment Capital Asset Total Assets May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) ----------------------------------------------------------------------------------------------------- Class A (6/85) 2005 $11.17 $.51 $ .48 $ .99 $(.51) $ -- $(.51) $11.65 9.00% $358,529 2004 11.78 .53 (.60) (.07) (.54) -- (.54) 11.17 (.62) 347,733 2003 11.16 .54 .62 1.16 (.54) -- (.54) 11.78 10.65 385,619 2002 11.10 .55 .06 .61 (.55) -- (.55) 11.16 5.57 379,342 2001 10.62 .57 .48 1.05 (.57) -- (.57) 11.10 10.05 385,226 Class B (2/97) 2005 11.16 .42 .48 .90 (.42) -- (.42) 11.64 8.22 25,621 2004 11.77 .45 (.61) (.16) (.45) -- (.45) 11.16 (1.34) 26,057 2003 11.15 .45 .63 1.08 (.46) -- (.46) 11.77 9.85 28,080 2002 11.09 .47 .05 .52 (.46) -- (.46) 11.15 4.79 22,433 2001 10.62 .48 .48 .96 (.49) -- (.49) 11.09 9.16 19,846 Class C (8/93) 2005 11.15 .45 .48 .93 (.45) -- (.45) 11.63 8.45 45,791 2004 11.76 .47 (.60) (.13) (.48) -- (.48) 11.15 (1.14) 44,575 2003 11.15 .47 .62 1.09 (.48) -- (.48) 11.76 9.99 50,999 2002 11.09 .49 .06 .55 (.49) -- (.49) 11.15 5.01 44,984 2001 10.61 .51 .48 .99 (.51) -- (.51) 11.09 9.46 41,396 Class R (2/97) 2005 11.16 .53 .48 1.01 (.53) -- (.53) 11.64 9.24 139,017 2004 11.77 .56 (.61) (.05) (.56) -- (.56) 11.16 (.41) 139,762 2003 11.15 .56 .62 1.18 (.56) -- (.56) 11.77 10.89 154,781 2002 11.09 .57 .06 .63 (.57) -- (.57) 11.15 5.80 148,302 2001 10.62 .59 .48 1.07 (.60) -- (.60) 11.09 10.19 146,678 -----------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) OHIO ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Year Ended Net Net Net Net Net Net Turnover May 31, Assets Assets Assets Assets Assets Assets Rate ------------------------------------------------------------------------------ Class A (6/85) 2005 .84% 4.43% .84% 4.43% .83% 4.44% 11% 2004 .85 4.65 .85 4.65 .85 4.65 12 2003 .87 4.69 .87 4.69 .87 4.69 12 2002 .86 4.93 .86 4.93 .86 4.93 21 2001 .86 5.13 .86 5.13 .85 5.13 12 Class B (2/97) 2005 1.58 3.69 1.58 3.69 1.58 3.69 11 2004 1.60 3.90 1.60 3.90 1.60 3.90 12 2003 1.62 3.94 1.62 3.94 1.61 3.94 12 2002 1.61 4.17 1.61 4.17 1.61 4.18 21 2001 1.61 4.37 1.61 4.37 1.60 4.37 12 Class C (8/93) 2005 1.38 3.88 1.38 3.88 1.38 3.89 11 2004 1.40 4.10 1.40 4.10 1.40 4.10 12 2003 1.42 4.14 1.42 4.14 1.41 4.14 12 2002 1.41 4.37 1.41 4.37 1.41 4.38 21 2001 1.41 4.57 1.41 4.57 1.40 4.58 12 Class R (2/97) 2005 .64 4.64 .64 4.64 .64 4.64 11 2004 .65 4.85 .65 4.85 .65 4.85 12 2003 .67 4.89 .67 4.89 .67 4.89 12 2002 .66 5.12 .66 5.12 .66 5.13 21 2001 .66 5.32 .66 5.32 .65 5.33 12 ------------------------------------------------------------------------------
(a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. ---- 73 Financial Highlights (continued) Selected data for a share outstanding throughout each period:
Class (Commencement Date) Investment Operations Less Distributions --------------------------- ---------------------- ------- WISCONSIN Net Beginning Net Realized/ Net Ending Ending Net Invest- Unrealized Invest- Net Net Year Ended Asset ment Gain ment Capital Asset Total Assets May 31, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) ---------------------------------------------------------------------------------------------------- Class A (6/94) 2005 $10.16 $.42 $ .37 $ .79 $(.41) $ -- $(.41) $10.54 7.94% $36,325 2004 10.62 .43 (.45) (.02) (.44) -- (.44) 10.16 (.33) 39,033 2003 10.14 .43 .49 .92 (.44) -- (.44) 10.62 9.41 42,360 2002 9.97 .44 .17 .61 (.44) -- (.44) 10.14 6.26 40,199 2001 9.24 .45 .72 1.17 (.44) -- (.44) 9.97 12.84 30,944 Class B (2/97) 2005 10.18 .34 .39 .73 (.34) -- (.34) 10.57 7.25 4,600 2004 10.65 .35 (.46) (.11) (.36) -- (.36) 10.18 (1.01) 4,568 2003 10.17 .36 .49 .85 (.37) -- (.37) 10.65 8.53 5,960 2002 10.00 .37 .17 .54 (.37) -- (.37) 10.17 5.49 5,224 2001 9.27 .38 .72 1.10 (.37) -- (.37) 10.00 11.98 4,401 Class C (2/97) 2005 10.18 .36 .39 .75 (.36) -- (.36) 10.57 7.47 4,797 2004 10.65 .37 (.46) (.09) (.38) -- (.38) 10.18 (.84) 4,632 2003 10.16 .38 .50 .88 (.39) -- (.39) 10.65 8.83 4,536 2002 10.00 .39 .16 .55 (.39) -- (.39) 10.16 5.58 3,282 2001 9.26 .40 .73 1.13 (.39) -- (.39) 10.00 12.31 5,408 Class R (2/97) 2005 10.20 .44 .39 .83 (.44) -- (.44) 10.59 8.25 63 2004 10.67 .45 (.46) (.01) (.46) -- (.46) 10.20 (.10) 177 2003 10.18 .46 .50 .96 (.47) -- (.47) 10.67 9.62 176 2002 10.02 .47 .16 .63 (.47) -- (.47) 10.18 6.36 97 2001 9.28 .47 .73 1.20 (.46) -- (.46) 10.02 13.10 51 ----------------------------------------------------------------------------------------------------
Class (Commencement Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) WISCONSIN ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Year Ended Net Net Net Net Net Net Turnover May 31, Assets Assets Assets Assets Assets Assets Rate ------------------------------------------------------------------------------ Class A (6/94) 2005 .92% 3.99% .92% 3.99% .90% 4.00% 15% 2004 .92 4.12 .92 4.12 .91 4.13 21 2003 .93 4.19 .93 4.19 .91 4.20 8 2002 .93 4.39 .93 4.39 .92 4.40 19 2001 .97 4.59 .97 4.59 .95 4.61 16 Class B (2/97) 2005 1.67 3.24 1.67 3.24 1.66 3.25 15 2004 1.67 3.37 1.67 3.37 1.66 3.38 21 2003 1.67 3.44 1.67 3.44 1.66 3.45 8 2002 1.68 3.65 1.68 3.65 1.67 3.66 19 2001 1.72 3.84 1.72 3.84 1.70 3.86 16 Class C (2/97) 2005 1.47 3.44 1.47 3.44 1.45 3.45 15 2004 1.47 3.57 1.47 3.57 1.46 3.58 21 2003 1.47 3.64 1.47 3.64 1.45 3.65 8 2002 1.51 3.85 1.51 3.85 1.49 3.86 19 2001 1.52 4.04 1.52 4.04 1.50 4.05 16 Class R (2/97) 2005 .72 4.21 .72 4.21 .71 4.22 15 2004 .72 4.32 .72 4.32 .71 4.33 21 2003 .72 4.39 .72 4.39 .70 4.41 8 2002 .73 4.60 .73 4.60 .72 4.62 19 2001 .77 4.79 .77 4.79 .75 4.80 16 ------------------------------------------------------------------------------
(a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. ---- 74 Report of Independent Registered Public Accounting Firm To the Board of Trustees and Shareholders of Nuveen Multistate Trust IV: In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Kansas Municipal Bond Fund, Nuveen Kentucky Municipal Bond Fund, Nuveen Michigan Municipal Bond Fund, Nuveen Missouri Municipal Bond Fund, Nuveen Ohio Municipal Bond Fund and Nuveen Wisconsin Municipal Bond Fund (constituting the Nuveen Multistate Trust IV, hereafter referred to as the "Funds") at May 31, 2005, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at May 31, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights of the Funds for the year ended May 31, 2001 were audited by other independent auditors who have ceased operations. Those independent auditors expressed an unqualified opinion in the report dated July 11, 2001. PricewaterhouseCoopers LLP Chicago, IL July 28, 2005 ---- 75 ANNUAL Investment Management Agreement Approval Process At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds, including the independent trustees, unanimously approved the Investment Management Agreement between each Fund and NAM (the "Adviser"). The Approval Process To assist the Board in its evaluation of an advisory contract with the Adviser, the independent trustees received a report in adequate time in advance of their meeting which outlined, among other things, the services provided by the Adviser; the organization of the Adviser, including the responsibilities of various departments and key personnel; the respective Fund's past performance as well as the Fund's performance compared to funds of similar investment objectives compiled by an independent third party (a "Peer Group") as described below and if available, with recognized or, in certain cases, customized benchmarks; the profitability of the Adviser and certain industry profitability analyses for advisers to unaffiliated investment companies; the expenses of the Adviser in providing the various services; the advisory fees of the Adviser, including comparisons of such fees with the management fees of comparable funds in its Peer Group as well as comparisons of the Adviser's management fees with the fees the Adviser assesses to other types of investment products or accounts, if any; the soft dollar practices of the Adviser; and the expenses of each Fund, including comparisons of the Fund's expense ratios (after any fee waivers) with the expense ratios of its Peer Group. This information supplements that received by the Board throughout the year regarding Fund performance, expense ratios, portfolio composition, trade execution and sales activity. In addition to the foregoing materials, independent legal counsel to the independent trustees provided, in advance of the meeting, a legal memorandum outlining, among other things, the duties of the trustees under the 1940 Act as well as the general principles of relevant state law in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; an adviser's fiduciary duty with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and factors to be considered by the board in voting on advisory agreements. At the Board meeting, the Adviser made a presentation to and responded to questions from the Board. After the presentations and after reviewing the written materials, the independent trustees met privately with their legal counsel to review the Board's duties in reviewing advisory contracts and consider the renewal of the advisory contracts. It is with this background that the trustees considered the advisory contracts with the Adviser. The independent trustees, in consultation with independent counsel, reviewed the factors set out in judicial decisions and SEC directives relating to the renewal of advisory contracts. As outlined in more detail below, the trustees considered all factors they believed relevant with respect to each Fund, including the following: (a) the nature, extent and quality of the services to be provided by the Adviser; (b) the investment performance of the Fund and the Adviser; (c) the costs of the services to be provided and profits to be realized by the Adviser and its affiliates from the relationship with the Fund; (d) the extent to which economies of scale would be realized as the Fund grows; and (e) whether fee levels reflect these economies of scale for the benefit of Fund investors. A. Nature, Extent and Quality of Services In evaluating the nature, extent and quality of the Adviser's services, the trustees reviewed information concerning the types of services that the Adviser or its affiliates provide and are expected to provide to the Funds; narrative and statistical information concerning the respective Fund's performance record and how such performance compares to the Fund's Peer Group and, if available, recognized benchmarks or, in certain cases, customized benchmarks (as described in further detail in Section B below); information describing the Adviser's organization and its various departments, the experience and responsibilities of key personnel, and available resources. In the discussion of key personnel, the trustees received materials regarding the changes or additions in personnel of the Adviser. The trustees further noted the willingness of the personnel of the Adviser to engage in open, candid discussions with the Board. The trustees further considered the quality of the Adviser's investment process in making portfolio management decisions, including any refinements or improvements to the portfolio management processes, enhancements to technology and systems that are available to portfolio managers, and any additions of new personnel which may strengthen or expand the research and investment capabilities of the Adviser. In their review of advisory contracts for the fixed income funds, the trustees also noted that Nuveen won the Lipper Award for Best Fund Family: Fixed Income-Large Asset Class, for 2004. Given the trustees' experience with the Funds, other Nuveen funds and the Adviser, the trustees noted that they were familiar with and continue to have a good understanding of the organization, operations and personnel of the Adviser. In addition to advisory services, the independent trustees considered the quality of the administrative or non-advisory services provided. In this regard, the Adviser provides the Fund with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Funds) and officers and other personnel as are necessary for the operations of the respective Fund. In addition to investment management services, the Adviser and its affiliates provide each Fund with a wide range of services, including: preparing shareholder reports; providing daily accounting; providing quarterly financial statements; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal support (such as helping to prepare registration statements, amendments thereto and proxy statements and responding to regulatory inquiries); and performing other Fund administrative tasks necessary for the operation of the Fund (such as tax reporting and fulfilling regulatory filing requirements). In addition, in evaluating the administrative services, the trustees considered, in particular, the Adviser's policies and procedures for assuring compliance with applicable laws and ---- 76 regulations in light of the new SEC regulations governing compliance. The trustees noted the Adviser's focus on compliance and its compliance systems. In their review, the trustees considered, among other things, the additions of experienced personnel to the Adviser's compliance group and modifications and other enhancements to the Adviser's computer systems. In addition to the foregoing, the trustees also noted that the Adviser outsources certain services that cannot be replicated without significant costs or at the same level of expertise. Such outsourcing has been a beneficial and efficient use of resources by keeping expenses low while obtaining quality services. With respect to services provided to the Funds, the trustees also noted, among other things, the enhancements the Adviser has implemented to its municipal portfolio management processes (e.g., the increased use of benchmarks to guide and assess the performance of its portfolio managers); the implementation of a risk management program; and the various initiatives being undertaken to enhance or modify the Adviser's computer systems as necessary to support the innovations of the municipal investment team (such as, the ability to assess certain historical data in order to create customized benchmarks, perform attribution analysis and facilitate the use of derivatives as hedging instruments). Based on their review, the trustees found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Investment Management Agreements were of a high level and were quite satisfactory. B. The Investment Performance of the Fund and the Adviser As previously noted, the Board received a myriad of performance information regarding each Fund and its Peer Group, if available. Among other things, the Board received materials reflecting a Fund's historic performance, the Fund's performance compared to its Peer Group if available and its performance compared to recognized and, in certain cases, customized benchmarks (as applicable). Further, in evaluating the performance information, in certain limited instances, the Trustees noted that the closest Peer Group for a Fund still would not adequately reflect such Fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such Fund's performance with that of the Peer Group. The trustees evaluated, among other things, a Fund's one, three and five year total returns (as available) for the periods ending December 31, 2004 relative to the unaffiliated funds in its respective Peer Group (including the returns of individual peers as well as the Peer Group average) as well as additional performance information with respect to all funds in the Peer Group subject to the following. Certain state municipal funds do not have a corresponding Peer Group in which case their performance is measured against a state-specific municipal index compiled by an independent third party. Such indices measure bond performance rather than fund performance. The two open-end Funds that utilize such indices are the Nuveen New Mexico Municipal Bond Fund and the Nuveen Wisconsin Municipal Bond Fund. Based on their review, the trustees determined that each Fund's absolute and relative investment performance over time had been satisfactory. C. Fees, Expenses and Profitability 1. Fees and Expenses In evaluating the management fees and expenses that a Fund is expected to bear, the trustees considered the respective Fund's current management fee structure and the Fund's expected expense ratios in absolute terms as well as compared with the fees and respective expense ratios of the unaffiliated funds in its Peer Group. The trustees reviewed the financial information of the Adviser, including its respective revenues, expenses and profitability. In reviewing fees, the trustees, among other things, reviewed comparisons of the Fund's gross management fees (fees after fund-level and complex-wide level breakpoints but before reimbursement and fee waivers), net management fees (after breakpoints and reimbursements and fee waivers) and total expense ratios (before and after waivers) with those of the unaffiliated funds in its Peer Group and peer averages. In this regard, the trustees noted that the relative ranking of the Nuveen Funds on fees and expenses was aided by the significant level of fee reductions provided by the fund-level and complex-wide breakpoint schedules, and the fee waivers and reimbursements provided by Nuveen for certain Funds launched since 1999. The complex-wide breakpoint schedule was instituted in 2004 and is described in further detail below in Section D entitled "Economies of Scale." In addition to the foregoing, in their review of the fee and expense information provided for the municipal funds, including, in particular, the expense ratios of the unaffiliated funds in the Peer Group, the trustees determined that such Funds' net total expense ratios were within an acceptable range compared to such peers. 2. Comparisons with the Fees of Other Clients The trustees further compared the fees of the Adviser to the fees the Adviser or an affiliate thereof assessed for other types of clients. Such other clients included clients investing in municipal funds, such as municipal managed accounts. With respect to municipal managed accounts, the advisory fees for such accounts are generally lower than those charged to the comparable Fund. The trustees noted, however, the additional services that are provided and the costs incurred by Nuveen in managing and operating registered investment companies, such as the Funds, compared to individually managed separate accounts. For instance, as described above, the Adviser and its affiliates provide numerous services to the Funds including, but not limited to, preparing shareholder reports; providing daily accounting; preparing quarterly financial statements; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal support; and administering all other aspects of the Fund's operations. Further, the trustees noted the increased compliance requirements for funds in light of new SEC regulations and other legislation. These services are generally not required to ---- 77 the same extent, if at all, for separate accounts. In addition to the differences in services, the trustees also considered, among other things, the differences in product distribution, investor profiles and account sizes. Accordingly, the trustees believe that the nature and number of services provided to operate a Fund merit the higher fees than those to separate managed accounts. 3. Profitability of the Adviser In conjunction with its review of fees, the trustees also considered the profitability of the Adviser. The trustees reviewed the Adviser's revenues, expenses and profitability margins (on both a pre-tax and after-tax basis). In reviewing profitability, the trustees recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. Accordingly, the trustees reviewed the Adviser's assumptions and methodology of allocating expenses. In this regard, the methods of allocation used appeared reasonable but the Board noted the inherent limitations in allocating costs among various advisory products. The trustees also recognized that individual fund or product line profitability of other advisers is generally not publicly available. Further, profitability may be affected by numerous factors including the types of funds managed, expense allocations, business mix, etc., and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the trustees considered the Adviser's profit margin compared to the profitability of various publicly-traded investment management companies and/or investment management companies that publicly disclose some or all of their financial results compiled by three independent third-party service providers. The trustees also reviewed the revenues, expenses and profit margins of various unaffiliated advisory firms with similar amounts of assets under management for the last year prepared by the Adviser. Based on their review, the trustees were satisfied that the Adviser's level of profitability from its relationship with each Fund was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Trustees also considered any other revenues paid to the Adviser as well as any indirect benefits (such as soft dollar arrangements, if any) the Adviser and its affiliates are expected to receive that are directly attributable to their management of the Funds, if any. See Section E below for additional information. Based on their review of the overall fee arrangements of the applicable Fund, the trustees determined that the advisory fees and expenses of the respective Fund were reasonable. D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale In reviewing the compensation, the trustees have long understood the benefits of economies of scale as the assets of a fund grows and have sought to ensure that shareholders share in these benefits. One method for shareholders to share in economies of scale is to include breakpoints in the advisory fee schedules that reduce fees as fund assets grow. Accordingly, the trustees received and reviewed the schedules of advisory fees for each Fund, including fund-level breakpoints thereto. In addition, after lengthy negotiations with management, the Board in May, 2004 approved a complex-wide fee arrangement pursuant to which fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement was introduced on August 1, 2004 and the trustees reviewed data regarding the reductions of fees for the Funds for the period of August 1, 2004 to December 31, 2004. In evaluating the complex-wide fee arrangement, the trustees considered, among other things, the historic and expected fee savings to shareholders as assets grow, the amount of fee reductions at various asset levels, and that the arrangement would extend to all Funds in the Nuveen complex. The trustees also considered the impact, if any, the complex-wide fee arrangement may have on the level of services provided. Based on their review, the trustees concluded that the breakpoint schedule and complex-wide fee arrangement currently was acceptable and desirable in providing benefits from economies of scale to shareholders. E. Indirect Benefits In evaluating fees, the trustees also considered any indirect benefits or profits the Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the trustees considered any benefits from soft dollar arrangements. The trustees noted that although the Adviser manages a large amount of assets, it has very little, if any, brokerage to allocate. This is due to the fact that the Adviser typically manages the portfolios of the municipal funds in the Nuveen complex and municipal bonds generally trade on a principal basis. Accordingly, the Adviser does not currently have any soft dollar arrangements and does not pay excess brokerage commissions (or spreads on principal transactions) in order to receive research services. In addition to soft dollar arrangements, the trustees also considered any other revenues, if any, received by the Adviser or its affiliates. In this regard, for Funds with 12b-1 plans, the trustees received and considered the amount 12b-1 fees retained by Nuveen during the last calendar year. The trustees noted that the vast majority of the 12b-1 fees received by Nuveen are ultimately paid to other financial advisers. F. Other Considerations Nuveen, until recently, was a majority owned subsidiary of St. Paul Travelers. As noted, St. Paul earlier this year announced its intention to divest its equity stake in Nuveen. Nuveen is the parent of the Adviser. Pursuant to a series of transactions, St. Paul has begun to reduce its interest in Nuveen which will ultimately result in a change of control of Nuveen and therefore the Adviser. As mandated by the 1940 Act, such a change in control would result in an assignment of the advisory agreement with the Adviser and the automatic termination of such agreement. Accordingly, the Board also considered the approval of a New Investment ---- 78 Management Agreement with each Fund in light of, and which would take effect upon, the anticipated change of control. More specifically, the Board considered for each Fund a New Investment Management Agreement on substantially identical terms to the existing Investment Management Agreement, to take effect after the change of control has occurred and the contract has been approved by Fund shareholders. In its review, the Board considered whether the various transactions necessary to divest St. Paul's interest will have an impact on the various factors they considered in approving the Adviser, such as the scope and quality of services to be provided following the change of control. In reviewing the St. Paul transactions, the Board considered, among other things, the impact, if any, on the operations and organizational structure of the Adviser; the possible benefits and costs of the transactions to the respective Fund; the potential implications of any arrangements used by the Adviser to finance certain of the transactions; the ability of the Adviser to perform its duties after the transactions; whether a Fund's fee structure or expense ratio would change; any changes to the current practices of the respective Fund; any changes to the terms of the advisory agreement; and any anticipated changes to the operations of the Adviser. Based on its review, the Board determined that St. Paul's divestiture would not affect the nature and quality of services provided by the Adviser, the terms of the Investment Management Agreements, including the fees thereunder, and would not materially affect the organization or operations of the Adviser. Accordingly, the Board determined that their analysis of the various factors regarding their approval of the Adviser would continue to apply after the change of control. G. Approval The trustees did not identify any single factor discussed previously as all-important or controlling. The trustees, including a majority of independent trustees, concluded that the terms of the Investment Management Agreements were fair and reasonable, that the Adviser's fees are reasonable in light of the services provided to each Fund, that the renewal of the Investment Management Agreements should be approved, and that the new, post-change of control Investment Management Agreements be approved and recommended to shareholders. ---- 79 Notes -------------------------------------------------------------------------------- 80 Trustees and Officers ================================================================================ The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at nine. None of the trustees who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below. The Funds' Statement of Additional Information ("SAI") includes more information about the Trustees. To request a free copy, call Nuveen Investments at (800) 257-8787.
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed /(2)/ During Past 5 Years Trustee ------------------------------------------------------------------------------------------------------------------------- Trustee who is an interested person of the Funds: ------------------------------------------------------------------------------------------------------------------------- Timothy R. Schwertfeger /(1)/ Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 155 3/28/49 Board and Investments, Inc. and Nuveen Investments, 333 W. Wacker Drive Trustee LLC; Director (since 1992) and Chairman Chicago, IL 60606 (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp./4/; Chairman and Director (since 1997) of Nuveen Asset Management; Director (since 1996) of Institutional Capital Corporation; Chairman and Director (since 1999) of Rittenhouse Asset Management, Inc.; Chairman of Nuveen Investments Advisers Inc. (since 2002). Trustees who are not interested persons of the Funds: ------------------------------------------------------------------------------------------------------------------------- Robert P. Bremner Trustee 1997 Private Investor and Management Consultant. 155 8/22/40 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------- Lawrence H. Brown Trustee 1993 Retired (1989) as Senior Vice President of 155 7/29/34 The Northern Trust Company; Director, 333 W. Wacker Drive Community Advisory Board for Highland Park Chicago, IL 60606 and Highwood, United Way of the North Shore (since 2002). ------------------------------------------------------------------------------------------------------------------------- Jack B. Evans Trustee 1999 President, The Hall-Perrine Foundation, a 155 10/22/48 private philanthropic corporation (since 333 W. Wacker Drive 1996); Director and Vice Chairman, United Chicago, IL 60606 Fire Group, a publicly held company; Adjunct Faculty Member, University of Iowa; Director, Gazette Companies; Life Trustee of Coe College; Director, Iowa College Foundation; formerly, Director, Alliant Energy; formerly Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. ------------------------------------------------------------------------------------------------------------------------- William C. Hunter Trustee 2004 Dean and Distinguished Professor of Finance, 155 3/16/48 School of Business at the University of 333 W. Wacker Drive Connecticut (since 2003); previously, Senior Chicago, IL 60606 Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director (since 1997), Credit Research Center at Georgetown University; Director of Xerox Corporation (since 2004). ------------------------------------------------------------------------------------------------------------------------- David J. Kundert Trustee 2005 Retired (2004) as Chairman, JPMorgan Fleming 153 10/28/42 Asset Management, President and CEO, Banc 333 W. Wacker Drive One Investment Advisors Corporation, and Chicago, IL 60606 President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Board of Regents, Luther College; currently a member of the American and Wisconsin Bar Associations.
---- 81 Trustees and Officers (continued) ================================================================================
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed /(2)/ During Past 5 Years Trustee --------------------------------------------------------------------------------------------------------------- William J. Schneider Trustee 1997 Chairman, formerly, Senior Partner and Chief 155 9/24/44 Operating Officer, (retired, 2004); 333 W. Wacker Drive Miller-Valentine Partners Ltd., a real Chicago, IL 60606 estate investment company; formerly, Vice President, Miller-Valentine Realty, a construction company; Board Member and Chair of the Finance Committee, member of the Audit Committee of Premier Health Partners, the not-for-profit company of Miami Valley Hospital; Board Member, formerly Chair, Dayton Development Coalition; President, Dayton Philharmonic Orchestra Association; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. --------------------------------------------------------------------------------------------------------------- Judith M. Stockdale Trustee 1997 Executive Director, Gaylord and Dorothy 155 12/29/47 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (from 1990 to 1994). --------------------------------------------------------------------------------------------------------------- Eugene S. Sunshine Trustee 2005 Senior Vice President for Business and 155 1/22/50 Finance (since 1997), Northwestern 333 W. Wacker Drive University; Director (since 2003), Chicago Chicago, IL 60606 Board of Options Exchange; Director (since 2003), National Mentor Holdings, a privately-held, national provider of home and community-based services; Chairman (since 1997), Board of Directors, Rubicon, an insurance company owned by Northwestern University; Director (since 1997), Evanston Chamber of Commerce and Evanston Inventure, a business development organization. Number of Portfolios in Name, Position(s) Year First Fund Complex Birthdate Held with Elected or Principal Occupation(s) Overseen by and Address the Funds Appointed /(3)/ During Past 5 Years Officer --------------------------------------------------------------------------------------------------------------- Officers of the Funds: --------------------------------------------------------------------------------------------------------------- Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant 155 9/9/56 Administrative Secretary and Associate General Counsel, 333 W. Wacker Drive Officer formerly, Vice President and Assistant Chicago, IL 60606 General Counsel of Nuveen Investments, LLC; Managing Director (since 2002), General Counsel and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp./4/; Managing Director (since 2002), Assistant Secretary and Associate General Counsel, formerly, Vice President (since 2000), of Nuveen Asset Management, Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Assistant Secretary of NWQ Investment Management Company, LLC (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. --------------------------------------------------------------------------------------------------------------- Julia L. Antonatos Vice President 2004 Managing Director (since 2005), previously, 155 9/22/63 Vice President (since 2002), formerly, 333 W. Wacker Drive Assistant Vice President (since 1999) of Chicago, IL 60606 Nuveen Investments, LLC; Chartered Financial Analyst. --------------------------------------------------------------------------------------------------------------- Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 155 2/3/66 and Assistant Assistant Vice President (since 2000) of 333 W. Wacker Drive Secretary Nuveen Investments, LLC. Chicago, IL 60606
---- 82
Number of Portfolios in Name, Position(s) Year First Fund Complex Birthdate Held with Elected or Principal Occupation(s) Overseen by and Address the Funds Appointed /(3)/ During Past 5 Years Officer ---------------------------------------------------------------------------------------------------------------- Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC 155 11/28/67 and Treasurer (since 1999); Vice President and Treasurer 333 W. Wacker Drive of Nuveen Investments, Inc. (since 1999); Chicago, IL 60606 Vice President and Treasurer of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp./4/ (since 1999); Vice President and Treasurer of Nuveen Asset Management (since 2002) and of Nuveen Investments Advisers Inc.; Assistant Treasurer of NWQ Investment Management Company, LLC (since 2002); Vice President and Treasurer of Nuveen Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. ---------------------------------------------------------------------------------------------------------------- Jessica R. Droeger Vice President 1998 Vice President (since 2002) and Assistant 155 9/24/64 and Secretary General Counsel (since 1998); formerly, 333 W. Wacker Drive Assistant Vice President (since 1998) of Chicago, IL 60606 Nuveen Investments, LLC; Vice President (since 2002) and Assistant Secretary (since 1998), formerly, Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp./4/; and (since 2005) Nuveen Asset Management. ---------------------------------------------------------------------------------------------------------------- Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, 155 10/24/45 Vice President of Nuveen Investments, LLC; 333 W. Wacker Drive Managing Director (since 2004) formerly, Chicago, IL 60606 Vice President (since 1998) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp./4/; Managing Director (since 2005) of Nuveen Asset Management. ---------------------------------------------------------------------------------------------------------------- William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen 155 3/2/64 Investments, LLC; Managing Director (since 333 W. Wacker Drive 2001), formerly, Vice President (since 1995) Chicago, IL 60606 of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp./4/; Managing Director (since 2001) of Nuveen Asset Management; Vice President (since 2002) of Nuveen Investment Advisers Inc.; Chartered Financial Analyst. ---------------------------------------------------------------------------------------------------------------- Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 155 5/31/54 and Controller Controller (since 1998) of Nuveen 333 W. Wacker Drive Investments, LLC; formerly, Vice President Chicago, IL 60606 and Funds Controller (1998-2004) of Nuveen Investments, Inc.; Certified Public Accountant. ---------------------------------------------------------------------------------------------------------------- James D. Grassi Vice President 2004 Vice President and Deputy Director of 155 4/13/56 and Chief Compliance (since 2004) of Nuveen 333 W. Wacker Drive Compliance Investments, LLC, Nuveen Investments Chicago, IL 60606 Officer Advisers Inc., Nuveen Asset Management and Rittenhouse Asset Management, Inc.; previously, Vice President and Deputy Director of Compliance (2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp./4/; formerly, Senior Attorney (1994 to 2004), The Northern Trust Company. ---------------------------------------------------------------------------------------------------------------- David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 155 3/22/63 Investments, LLC; Certified Public 333 W. Wacker Drive Accountant. Chicago, IL 60606 ---------------------------------------------------------------------------------------------------------------- Tina M. Lazar Vice President 2002 Vice President (since 1999) of Nuveen 155 8/27/61 Investments, LLC. 333 W. Wacker Drive Chicago, IL 60606
---- 83 Trustees and Officers (continued) ================================================================================
Number of Portfolios in Name, Position(s) Year First Fund Complex Birthdate Held with Elected or Principal Occupation(s) Overseen by and Address the Funds Appointed /(3)/ During Past 5 Years Officer -------------------------------------------------------------------------------------------------------------- Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and 155 7/27/51 and Assistant Assistant General Counsel of Nuveen 333 W. Wacker Drive Secretary Investments, LLC; Vice President and Chicago, IL 60606 Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp./4/; Vice President (since 2005), Assistant Secretary of Nuveen Investments, Inc. and of Nuveen Asset Management; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002).
(1)Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and trustee of the Adviser. (2)Trustees serve an indefinite term until his/her successor is elected. The year first elected or appointed represents the year in which the Trustee was first elected or appointed to any fund in the Nuveen Complex. (3)Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. (4)Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. ---- 84 -------------------------------------------------------------------------------- Fund Information ================================================================================ Fund Manager Legal Counsel Transfer Agent and Nuveen Asset Management* Chapman and Cutler LLP Shareholder Services 333 West Wacker Drive Chicago, IL Boston Financial Chicago, IL 60606 Data Services, Inc. Independent Registered Nuveen Investor Services Public Accounting Firm P.O. Box 8530 PricewaterhouseCoopers LLP Boston, MA 02266-8530 Chicago, IL (800) 257-8787 Custodian State Street Bank & Trust Boston, MA ================================================================================ Glossary of Terms Used in this Report Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered. Average Effective Maturity: The average of all the maturities of the bonds in a Fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. Average Duration: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's (or bond fund's) value to changes when market interest rates change. Generally, the longer a bond or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Dividend Yield (also known as Market Yield or Current Yield): An investment's current annualized dividend divided by its current offering price. Net Asset Value (NAV): A Fund's NAV is the dollar value of one share in the Fund. It is calculated by subtracting the liabilities of the Fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. SEC 30-Day Yield: A standardized measure of a Fund's yield that accounts for the future amortization of premiums or discounts of bonds held in the fund's portfolio. Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis at a specified assumed tax rate, the yield of a municipal bond investment. *NAC and NIAC Merge into NAM--Effective Jan. 1, 2005, the asset management services and operations of Nuveen Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part of Nuveen Asset Management (NAM). This internal consolidation is intended to simplify the delivery of services to the investment management clients of Nuveen investments. It does not affect the investment objectives or portfolio management of any Fund. ================================================================================ Quarterly Portfolio of Investments and Proxy Voting information: Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2004, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section at 450 Fifth Street NW, Washington, D.C. 20549. ================================================================================ NASD Regulation, Inc. provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of NASD members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an investor brochure that includes information describing the Public Disclosure Program. ---- 85 [PHOTO] Learn more about Nuveen Funds at www.nuveen.com/mf Nuveen Investments: SERVING Investors For GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing approximately $124 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. Find out how we can help you reach your financial goals. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. . Share prices . Fund details . Daily financial news . Investor education [LOGO] Nuveen Investments MAN-MS6-0505D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/mf. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's board of directors determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, Chairman of the Audit Committee, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Office of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Trust's auditor, billed to the Trust during the Trust's last two full fiscal years. For engagements with PricewaterhouseCoopers LLP entered into on or after May 6, 2003, the Audit Committee approved in advance all audit services and non-audit services that PricewaterhouseCoopers LLP provided to the Trust, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Trust waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Trust during the fiscal year in which the services are provided; (B) the Trust did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE TRUST
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees May 31, 2005 to Funds Billed to Funds Billed to Funds Billed to Funds ------------------------------------------------------------------------------------------------------------ Name of Series -------------- Kansas Municipal Bond Fund 8,785 0 905 0 Kentucky Municipal Bond Fund 17,066 0 3,347 0 Michigan Municipal Bond Fund 11,545 0 1,758 0 Missouri Municipal Bond Fund 11,758 0 1,796 0 Ohio Municipal Bond Fund 18,763 0 3,890 0 Wisconsin Municipal Bond Fund 6,803 0 320 0 -------------------------------------------------------------------------- Total $ 74,720 $ 0 $ 12,016 $ 0
Percentage Approved Pursuant to Pre-approval Exception -------------------------------------------------------------------------- Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees to Funds Billed to Funds Billed to Funds Billed to Funds ------------------------------------------------------------------------------------------------------------ Name of Series -------------- Kansas Municipal Bond Fund 0 0 0 0 Kentucky Municipal Bond Fund 0 0 0 0 Michigan Municipal Bond Fund 0 0 0 0 Missouri Municipal Bond Fund 0 0 0 0 Ohio Municipal Bond Fund 0 0 0 0 Wisconsin Municipal Bond Fund 0 0 0 0
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees May 31, 2004 to Funds Billed to Funds Billed to Funds Billed to Funds ------------------------------------------------------------------------------------------------------------ Name of Series -------------- Kansas Municipal Bond Fund 9,172 0 174 0 Kentucky Municipal Bond Fund 18,269 0 612 0 Michigan Municipal Bond Fund 12,367 0 334 0 Missouri Municipal Bond Fund 12,440 0 328 0 Ohio Municipal Bond Fund 20,545 0 724 0 Wisconsin Municipal Bond Fund 6,989 0 60 0 -------------------------------------------------------------------------- Total $ 79,782 $ 0 $ 2,232 $ 0
Percentage Approved Pursuant to Pre-approval Exception -------------------------------------------------------------------------- Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees to Funds Billed to Funds Billed to Funds Billed to Funds ------------------------------------------------------------------------------------------------------------ Name of Series -------------- Kansas Municipal Bond Fund N/A N/A N/A N/A Kentucky Municipal Bond Fund N/A N/A N/A N/A Michigan Municipal Bond Fund N/A N/A N/A N/A Missouri Municipal Bond Fund N/A N/A N/A N/A Ohio Municipal Bond Fund N/A N/A N/A N/A Wisconsin Municipal Bond Fund N/A N/A N/A N/A
The above "Tax Fees" were billed for professional services for tax advice, tax compliance, and tax planning. SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by PricewaterhouseCoopers LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM ("Control Affiliate") that provides ongoing services to the Trust ("Affiliated Fund Service Provider"), for engagements directly related to the Trust's operations and financial reporting, during the Trust's last two full fiscal years.
Audit-Related Fees Tax Fees Billed to All Other Fees Billed to Adviser and Adviser and Billed to Adviser Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund May 31, 2005 Service Providers Service Providers Service Providers -------------------------------------------------------------------------------------------------- Nuveen Multistate Trust IV $ 0 $ 49,500 $ 0
Percentage Approved Pursuant to Pre-approval Exception ---------------------------------------------------------------- Audit-Related Fees Tax Fees Billed to All Other Fees Billed to Adviser and Adviser and Billed to Adviser Affiliated Fund Affiliated Fund and Affiliated Fund Service Providers Service Providers Service Providers ---------------------------------------------------------------- 0% 0% 0%
The above "Tax Fees" are fees billed to the Adviser for Fund tax return preparation.
Audit-Related Fees Tax Fees Billed to All Other Fees Billed to Adviser and Adviser and Billed to Adviser Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund May 31, 2004 Service Providers Service Providers Service Providers -------------------------------------------------------------------------------------------------- Nuveen Multistate Trust IV $ 0 $ 0 $ 0
Percentage Approved Pursuant to Pre-approval Exception ---------------------------------------------------------------- Audit-Related Fees Tax Fees Billed to All Other Fees Billed to Adviser and Adviser and Billed to Adviser Affiliated Fund Affiliated Fund and Affiliated Fund Service Providers Service Providers Service Providers ---------------------------------------------------------------- 0% 0% 0%
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to PricewaterhouseCoopers LLP by the Trust, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Trust did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Trust's audit is completed. NON-AUDIT SERVICES The following tables show the amount of fees that PricewaterhouseCoopers LLP billed during the Trust's last two full fiscal years for non-audit services. For engagements entered into on or after May 6, 2003, the Audit Committee is required to pre-approve non-audit services that PricewaterhouseCoopers LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement relates directly to the Trust's operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from PricewaterhouseCoopers LLP about any non-audit services that PricewaterhouseCoopers LLP rendered during the Trust's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PricewaterhouseCoopers LLP's independence.
Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Total Non-Audit Fees Providers (engagements billed to Adviser and related directly to the Affiliated Fund Service Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other May 31, 2005 Billed to Trust reporting of the Trust) engagements) Total ------------------------------------------------------------------------------------------------------------------------- Name of Series -------------- Kansas Municipal Bond Fund 905 49,500 0 50,405 Kentucky Municipal Bond Fund 3,347 49,500 0 52,847 Michigan Municipal Bond Fund 1,758 49,500 0 51,258 Missouri Municipal Bond Fund 1,796 49,500 0 51,296 Ohio Municipal Bond Fund 3,890 49,500 0 53,390 Wisconsin Municipal Bond Fund 320 49,500 0 49,820 --------------------------------------------------------------------------------------- Total $ 12,016 $ 0
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax Fees" billed to Adviser in the amount of $49,500 from previous table.
Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Total Non-Audit Fees Providers (engagements billed to Adviser and related directly to the Affiliated Fund Service Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other May 31, 2004 Billed to Trust reporting of the Trust) engagements) Total ------------------------------------------------------------------------------------------------------------------------- Name of Series -------------- Kansas Municipal Bond Fund 174 0 0 174 Kentucky Municipal Bond Fund 612 0 0 612 Michigan Municipal Bond Fund 334 0 0 334 Missouri Municipal Bond Fund 328 0 0 328 Ohio Municipal Bond Fund 724 0 0 724 Wisconsin Municipal Bond Fund 60 0 0 60 --------------------------------------------------------------------------------------- Total $ 2,232 $ 0 $ 0 $ 2,232
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Trust by the Trust's independent accountants and (ii) all audit and non-audit services to be performed by the Trust's independent accountants for the Affiliated Fund Service Providers with respect to the operations and financial reporting of the Trust. Regarding tax and research projects conducted by the independent accountants for the Trust and Affiliated Fund Service Providers (with respect to operations and financial reports of the Trust) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee Chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable to this registrant. ITEM 6. SCHEDULE OF INVESTMENTS See Portfolio of Investments in Item 1 ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS Not applicable to this registrant. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/mf and there were no amendments during the period covered by this report. (To view the code, click on the Investors Resources drop down menu box, click on Fund governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: EX-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference. EX-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Multistate Trust IV -------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ------------------------------------------- Jessica R. Droeger Vice President and Secretary Date August 8, 2005 ---------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date August 8, 2005 ---------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date August 8, 2005 ---------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.