-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Njbbjfrsj0+016Q5fGwtJ8asQDrZTNNs16E3kHONqkzp7E/SwtxNJkGmr2hyrjTr JSFk9kiTTm6qD7Y7lkueBg== 0000891804-05-001690.txt : 20050611 0000891804-05-001690.hdr.sgml : 20050611 20050608110920 ACCESSION NUMBER: 0000891804-05-001690 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050331 FILED AS OF DATE: 20050608 DATE AS OF CHANGE: 20050608 EFFECTIVENESS DATE: 20050608 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN CALIFORNIA SELECT TAX FREE INCOME PORTFOLIO CENTRAL INDEX KEY: 0000885732 IRS NUMBER: 363828111 STATE OF INCORPORATION: MA FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06623 FILM NUMBER: 05884268 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 FORMER COMPANY: FORMER CONFORMED NAME: NUVEEN INSURED CALIFORNIA SELECT TAX FREE INCOME PORTFOLIO DATE OF NAME CHANGE: 19920929 FORMER COMPANY: FORMER CONFORMED NAME: NUVEEN CALIFORNIA SELECT TAX FREE INCOME PORTFOLIO DATE OF NAME CHANGE: 19600201 N-CSR 1 file001.txt NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-6623 --------------------- Nuveen California Select Tax-Free Income Portfolio ------------------------------------------------------------------------------ (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: March 31 ------------------ Date of reporting period: March 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 policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. ANNUAL REPORT March 31, 2005 Nuveen Investments Municipal Closed-End Exchange-Traded Funds NUVEEN SELECT TAX-FREE INCOME PORTFOLIO NXP NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 NXQ NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 NXR NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO NXC NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO NXN Photo of: Man, woman and child at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN 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 you wish. ------------------ DELIVERY DIRECT TO YOUR E-MAIL INBOX ------------------ IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS Once again, I am pleased to report that over the twelve-month period covered by this annual report your Fund continued to provide you with monthly tax-free income. For more details about the management strategy and performance of your Fund, please see the Portfolio Managers' Comments and Performance Overview sections of this report. As I noted in my last letter to you, our conversations with financial advisors and investors suggest that many of you may be wondering whether longer-term interest rates will soon begin to rise substantially, mirroring the rise that has taken place in shorter-term rates. If longer-term rates do begin to rise significantly, some of you also may be wondering if that makes this a good time to adjust your holdings of fixed-income investments. We can't answer these questions for you - no one knows what the future will bring. "IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL INVESTMENT RISK." From our experience, we do know that a well-balanced portfolio, structured and carefully monitored with the help of a trusted investment professional, can be an important component in helping you achieve your long-term financial goals. In fact, a well-diversified portfolio may actually help to reduce your overall investment risk. That is one reason why we believe that a municipal bond investment like your Nuveen Fund can be an important building block in a comprehensive investment program designed to perform well in a variety of market conditions. As in past reports, I urge you to consider receiving future Fund reports and other Fund information by e-mail and the Internet. Not only will you be able to receive the information faster, but this also may help lower your Fund's expenses. Sign up is quick and easy - see the inside front cover of this report for instructions. Some of you may have heard that in April, 2005, The St. Paul Travelers Companies, Inc., which had 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 soon will be asked to formally approve the continuation of your Fund's management contract with Nuveen. We will be sending you more information about this process in the coming weeks. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board May 16, 2005 Nuveen Municipal Closed-End Exchange-Traded Funds (NXP, NXQ, NXR, NXC, NXN) Portfolio Managers' COMMENTS Portfolio managers Tom Spalding, Scott Romans and Paul Brennan review the market environment, key investment strategies and the annual performance of these Nuveen Select Portfolios. With 30 years of investment experience, Tom has managed the three national Portfolios since 1999. Scott, who joined Nuveen in 2000, and Paul, who has 14 years of investment experience, have managed NXC and NXN, respectively, since 2003. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH REPORTING PERIOD ENDED MARCH 31, 2005? During this 12-month period, the Federal Reserve implemented seven quarter-point increases in the fed funds rate, beginning on June 30, 2004, and continuing through March 22, 2005. These increases, which were intended to control economic growth and head off significant growth in the rate of inflation, raised the short-term target to 2.75% from 1.00%. (On May 3, 2005, after the close of this reporting period, the fed funds rate was raised to 3.00%.) Ironically, while short-term rates rose over the period, yields on the Bond Buyer 25 index, a widely followed measure of long-term municipal bond interest rates, fell by more than 30 basis points. As a result, we saw a flattening of the municipal yield curve over the course of the 12 months. After growing at an annualized rate of 3.3% in the second quarter of 2004, the gross domestic product (GDP) expanded by 4.0% (annualized) in the third quarter of 2004 and 3.8% (annualized) in the fourth quarter of 2004. However, expectations for higher interest rates and higher energy prices acted to restrain both consumer spending and business investment in the first three months of 2005. GDP growth for the first quarter moderated to 3.1% (annualized), its slowest pace in two years. Rising energy costs also served to reignite concerns about the potential for inflation, as the Consumer Price Index (CPI) rose at a rate of 4.3% (annualized) over the first three months of 2005. In addition to the CPI, the municipal market also continued to closely monitor the national employment picture. While the unemployment rate dropped to 5.2% in March 2005, from 5.7% in March 2004, job growth in 2005 lagged that of 2004. Over the 12-month period, municipal supply nationwide remained strong, as $369.7 billion in new bonds came to market. New issue supply for the first quarter of 2005 was $96.6 billion, a new record for the first three months on any calendar year. First quarter 2005 refundings increased 25% over the first quarter 2004 as issuers sought to take advantage of the prevalent interest rates. 4 HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA AND NEW YORK DURING THIS PERIOD? California continued its steady economic recovery, outperforming a number of national averages over the 12-month period. Leading areas of job growth within the state included professional and business services, construction and trade, transportation, and utilities. California also benefited from expanding international trade, particularly with Asia. The jobless rate dropped to 5.4% in March 2005, compared with 6.4% in March 2004. This 5.4% rate is the lowest level since July 2001. During this period, California made significant progress toward resolving cash flow problems and improving balance sheet liquidity following the March 2004 passage of Proposition 57, which enabled the state to issue a total of $11 billion in economic recovery bonds (ERBs). The combination of economic and budgetary improvements led all three major credit rating agencies to upgrade the state's outstanding general obligation debt. In May 2004, Moody's revised its rating of California general obligation bonds (GOs) to A3 from Baa1, followed by Standard & Poor's upgrade to A from BBB in August. In September, Fitch moved its rating for California GOs to A- from BBB. During this reporting period, California issuers offered $56.9 billion in new municipal bonds, up 9% from the previous 12-month period. In July 2004, California enacted a $105 billion fiscal 2005 budget, closing a $14 billion gap without tax increases. In New York, the economy continued to be led by financial services, healthcare and education. Although well diversified, the recovery of the state economy has proceeded more slowly than many national averages. However, employment growth was an exception, as New York's jobless rate dropped to 4.6% in March 2005 from 6.1% in March 2004. This is the lowest state unemployment rate since June 2001. As of March 31, 2005, the state was forecast to have a fiscal 2005 ending surplus of $1.2 billion, driven primarily by higher revenues from personal income taxes. During this 12-month reporting period, New York issuers brought $39.6 billion in new municipal bonds to market, down 9% from the prior 12 months. In November 2004, Moody's upgraded the credit rating on New York State GOs to A1 from A2, based on the state's improving economic outlook. That rating was reconfirmed in February 2005, as was S&P's AA rating. On April 4, 2005, following the end of this reporting period, 5 Moody's upgraded its rating of New York City GOs to A1 from A2, the highest rating ever given to the city by Moody's. WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE 12 MONTHS ENDED MARCH 31, 2005? With the market anticipating increases in interest rates throughout the period, our focus centered on finding bonds that, in our judgment, could add immediate value to the Portfolios and that also had the potential to perform well under a variety of future market scenarios. We believed the national Portfolios--NXP, NXQ and NXR--were generally well positioned coming into this reporting period, and as a result turnover was relatively light during these 12 months. When we needed to reinvest proceeds from called bonds, we tended to look for insured or AA or A rated bonds in the 25-year part of the yield curve. We also looked for opportunities to add to our healthcare holdings, based on this sector's continued strong performance and potential for additional yield. While we continued to keep the Portfolios well diversified geographically, we often looked to the states with greater issuance--such as California, Texas, New York, Florida and Illinois--to find these opportunities. In both NXC and NXN, we actively sought lower-rated investment-grade bonds as we continued to transition these two Portfolios from their previous status as 100% insured Portfolios. This helped the performance of these Portfolios during this reporting period, as BBB rated bonds were among the best performers during this period. In general, additions to the Portfolios during this time were financed with the proceeds from called bonds and the sale of pre-refunded bonds and bonds with shorter maturities, which tended to underperform in the interest rate environment of the 12-month period. In NXC, another goal during this period was to improve overall call exposure. We sought to do this by focusing most of our purchases and reinvestment activity in the 20-year part of the yield curve. During the period for NXN, we began to place greater emphasis on bonds further out on the yield curve, specifically those with 20 years or more to maturity. In our opinion, these bonds generally offered more attractive opportunities and better value. While we 6 continued to diversify the credit quality of NXN, issuance in New York was dominated by high-quality and insured issues and did not provide many opportunities to add lower-rated investment-grade bonds to this Portfolio. HOW DID THE PORTFOLIOS PERFORM? Individual results for the Nuveen Select Portfolios, as well as for comparative indexes and peer groups, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE For periods ended 3/31/05 NATIONAL PORTFOLIOS 1-YEAR 5-YEAR 10-YEAR - -------------------------------------------------------------------------------- NXP 4.00% 5.73% 6.05% - -------------------------------------------------------------------------------- NXQ 3.82% 5.37% 5.82% - -------------------------------------------------------------------------------- NXR 4.01% 5.45% 5.95% - -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index1 2.67% 6.58% 6.33% - -------------------------------------------------------------------------------- Lipper General and Insured Unleveraged Municipal Debt Funds Average2 4.27% 5.52% 5.78% - -------------------------------------------------------------------------------- CALIFORNIA PORTFOLIO - -------------------------------------------------------------------------------- NXC 3.99% 5.44% 5.81% - -------------------------------------------------------------------------------- Lehman Brothers CA Tax-Exempt Bond Index1 3.54% 6.55% 6.45% - -------------------------------------------------------------------------------- Lipper CA Municipal Debt Funds Average2 5.56% 8.04% 7.07% - -------------------------------------------------------------------------------- NEW YORK PORTFOLIO - -------------------------------------------------------------------------------- NXN 3.10% 5.36% 5.62% - -------------------------------------------------------------------------------- Lehman Brothers NY Tax-Exempt Bond Index1 2.54% 6.52% 6.48% - -------------------------------------------------------------------------------- Lipper NY Municipal Debt Funds Average2 3.67% 8.08% 6.76% - -------------------------------------------------------------------------------- All returns are annualized. Past performance is not predictive of future results. Returns do not reflect the deduction of taxes that shareholders may have to pay on Portfolio distributions or upon the sale of Portfolio shares. Current performance may be higher or lower than the data shown. For additional information, see the individual Performance Overview for your Portfolio in this report. 1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national index containing a broad range of investment-grade municipal bonds. The Lehman Tax-Exempt Bond Indexes for California and New York are also unleveraged and unmanaged and comprise a broad range of municipal bonds issued in California and New York, respectively. Results for the Lehman indexes do not reflect any expenses. 2 Each of the Lipper Municipal Debt Funds averages shown in this report are calculated using the returns of all closed-end exchange-traded funds in their respective categories for each period as follows: Lipper General and Insured Unleveraged category, 1 year, 8 funds; 5 years, 8 funds; and 10 years, 8 funds; Lipper California category, 1 year, 29 funds; 5 years, 18 funds; and 10 years, 16 funds; and Lipper New York category, 1 year, 22 funds; 5 years, 11 funds; and 10 years, 9 funds. Portfolio and Lipper returns assume reinvestment of dividends. 7 For the 12 months ended March 31, 2005, the total returns on net asset value (NAV) for all five Select Portfolios outperformed the returns on the respective Lehman Brothers indexes. All five Portfolios underperformed their Lipper fund group averages for this period. The strong performance of the CA and NY state peer groups is at least partly explained by the fact that the vast majority of funds in these peer groups were leveraged, which tended to significantly boost those funds' performance due to historically low short-term interest rates they paid over this period on their leveraging instruments. As the municipal yield curve flattened during this reporting period, the prices of bonds with longer maturities, which are more sensitive to interest rate movements, generally tended to perform better than those of securities with shorter maturities. Our trading activity over the past 12 months, which emphasized investments in the intermediate and long intermediate parts of the yield curve as bonds with shorter maturities were called or sold from the Portfolios, helped the performances of all five Portfolios for the period relative to the Lehman indexes. All of the Portfolios also benefited from their allocations of lower investment-grade quality bonds during this period, with bonds rated BBB ranking among the best performing credit quality sectors as the demand for these bonds increased. Among the lower-rated holdings making positive contributions to the Portfolios' annual returns were hospital bonds. This sector ranked among the top Lehman Brothers index municipal revenue sectors in terms of performance for the 12-month period. Bonds backed by the 1998 master tobacco settlement agreement also produced solid performance during this period, as the litigation environment improved and the supply/demand situation drove tobacco bond prices higher. As of March 31, 2005, the three national Portfolios maintained exposures between 4% and 5% to tobacco bonds that were uninsured or not backed by others sources of revenue, while NXC and NXN each held approximately 2% of these types of securities. NXC's holdings of California general obligation bonds and other securities benefited from the upgrade in the state's credit rating, as the prices on these bonds rose relative to national AAA credits with similar maturities. NXC also continued to hold some older, high-coupon bonds that performed very strongly during this period. 8 The performance of NXN was boosted by several advance refundings of its holdings during this period, which resulted in price appreciation as well as enhanced credit quality for this Portfolio. At the same time, holdings of older pre-refunded bonds in all of the Portfolios tended to underperform the general municipal market during this period, due primarily to the shorter effective maturities of these bonds. HOW WERE THE PORTFOLIOS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF MARCH 31, 2005? We continued to believe that, given the current geopolitical and economic climate, maintaining strong credit quality was an important requirement. As of March 31, 2005, these five Portfolios continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 64% in NXC to 73% in NXR, 76% in NXP, 81% in NXQ and 91% in NXN. As of March 31, 2005, potential call exposure for these Portfolios for the period April 2005 through the end of 2006 ranged from 2% in NXN to 8% in NXP, 10% in NXC, 12% in NXR and 17% in NXQ. The number of actual bond calls in all of these Portfolios depends largely on future market interest rates. 9 Dividend and Share Price INFORMATION As short-term interest rates remained relatively low throughout this reporting period, proceeds from calls or maturing higher-yielding bonds had to be reinvested in the current lower interest rate environment. This led to one dividend cut in NXC and NXN and two reductions in NXP, NXQ and NXR during the 12-month period. Due to capital gains generated by normal portfolio activity, shareholders of the following Portfolios received capital gains and/or net ordinary income distributions at the end of December 2004 as indicated: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) - -------------------------------------------------------------------------------- NXP $0.0979 $ 0.0044 - -------------------------------------------------------------------------------- NXQ $0.0413 $ -- - -------------------------------------------------------------------------------- NXR $0.0343 $ 0.0023 - -------------------------------------------------------------------------------- NXC $0.0468 $ -- - -------------------------------------------------------------------------------- NXN $0.0640 $ -- - -------------------------------------------------------------------------------- All of these Portfolios seek to pay stable dividends at rates that reflect each Portfolio's past results and projected future performance. During certain periods, each Portfolio may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Portfolio during the period. If a Portfolio has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Portfolio's NAV. Conversely, if a Portfolio has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Portfolio's NAV. Each Portfolio will, over time, pay all of its net investment income as dividends to shareholders. As of March 31, 2005, all of the Select Portfolios had negative UNII balances for financial statement purposes and positive UNII balances for tax purposes. 10 As of March 31, 2005, the share prices of the Select Portfolios were trading at discounts to their NAVs as shown in the accompanying chart: 3/31/05 12-MONTH AVERAGE DISCOUNT DISCOUNT - -------------------------------------------------------------------------------- NXP -7.66% -7.53% - -------------------------------------------------------------------------------- NXQ -9.04% -9.11% - -------------------------------------------------------------------------------- NXR -9.85% -8.95% - -------------------------------------------------------------------------------- NXC -7.84% -8.53% - -------------------------------------------------------------------------------- NXN -4.41% -6.53% - -------------------------------------------------------------------------------- 11 Nuveen Select Tax-Free Income Portfolio NXP Performance OVERVIEW As of March 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 60% AA 16% A 15% BBB 8% BB or Lower 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.061 May 0.061 Jun 0.059 Jul 0.059 Aug 0.059 Sep 0.059 Oct 0.059 Nov 0.059 Dec 0.057 Jan 0.057 Feb 0.057 Mar 0.057 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/1/04 14.32 14.17 13.84 13.8 13.8 13.82 13.78 13.5 13.63 13.56 13.51 13.48 13.38 13.4 13.2 13.2 13.13 13.1 13.05 13.1 13.26 13.07 13.05 12.95 13.06 12.95 12.77 12.71 12.63 12.65 12.8 12.89 12.86 12.86 12.85 12.83 12.94 12.98 13.02 13.17 13.28 13.28 13.2 13.17 13.25 13.06 13.1 13.05 13.04 13.07 12.87 12.91 12.96 13.01 12.96 12.95 13.1 13.15 13.18 13.28 13.28 13.27 13.34 13.38 13.42 13.48 13.45 13.44 13.46 13.56 13.38 13.53 13.56 13.52 13.52 13.57 13.37 13.39 13.38 13.41 13.4 13.46 13.42 13.49 13.49 13.57 13.53 13.51 13.52 13.63 13.64 13.61 13.57 13.57 13.54 13.53 13.63 13.66 13.71 13.69 13.68 13.69 13.83 13.83 13.81 13.79 13.85 13.85 13.83 13.68 13.7 13.77 13.78 13.77 13.79 13.74 13.68 13.8 13.75 13.69 13.72 13.75 13.8 13.83 13.87 13.89 13.85 13.77 13.73 13.78 13.82 13.69 13.74 13.9 13.85 13.9 13.85 13.8 13.8 13.76 13.85 13.91 13.91 13.94 14 13.87 13.83 13.79 13.89 13.78 13.8 13.84 13.88 13.66 13.45 13.63 13.66 13.82 13.78 13.69 13.65 13.64 13.61 13.55 13.56 13.61 13.6 13.63 13.51 13.54 13.48 13.48 13.75 13.64 13.61 13.63 13.65 13.6 13.42 13.42 13.47 13.35 13.31 13.37 13.38 13.49 13.43 13.36 13.34 13.37 13.36 13.34 13.53 13.59 13.7 13.55 13.56 13.53 13.53 13.47 13.44 13.51 13.71 13.59 13.65 13.7 13.74 13.68 13.7 13.81 13.73 13.7 13.77 13.89 13.94 13.92 13.85 14 14.03 14.05 14.2 14.11 14.06 14.13 14 13.82 13.8 13.84 13.94 14.05 13.942 13.98 13.96 14 13.98 13.93 14.03 14 13.95 13.96 13.87 13.87 13.87 13.8 13.84 13.74 13.65 13.54 13.45 13.48 13.5 13.6 3/31/05 13.5 FUND SNAPSHOT - ------------------------------------ Share Price $13.50 - ------------------------------------ Common Share Net Asset Value $14.62 - ------------------------------------ Premium/(Discount) to NAV -7.66% - ------------------------------------ Market Yield 5.07% - ------------------------------------ Taxable-Equivalent Yield1 7.04% - ------------------------------------ Net Assets ($000) $239,460 - ------------------------------------ Average Effective Maturity on Securities (Years) 15.89 - ------------------------------------ Modified Duration 5.48 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/19/92) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 0.17% 4.00% - ------------------------------------ 5-Year 6.13% 5.73% - ------------------------------------ 10-Year 5.44% 6.05% - ------------------------------------ STATES (as a % of total investments) - ------------------------------------ Illinois 14.4% - ------------------------------------ Colorado 13.8% - ------------------------------------ Washington 9.8% - ------------------------------------ Texas 8.9% - ------------------------------------ Indiana 8.6% - ------------------------------------ South Carolina 7.4% - ------------------------------------ Florida 7.4% - ------------------------------------ Nevada 6.8% - ------------------------------------ California 4.2% - ------------------------------------ Other 18.7% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Healthcare 22.1% - ------------------------------------ Transportation 14.8% - ------------------------------------ Tax Obligation/Limited 12.9% - ------------------------------------ U.S. Guaranteed 12.2% - ------------------------------------ Utilities 11.4% - ------------------------------------ Tax Obligation/General 11.1% - ------------------------------------ Water and Sewer 5.4% - ------------------------------------ Other 10.1% - ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a income tax rate of 28%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.1023 per share. 12 Nuveen Select Tax-Free Income Portfolio 2 NXQ Performance OVERVIEW As of March 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 61% AA 20% A 10% BBB 8% BB or Lower 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.0585 May 0.0585 Jun 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0565 Oct 0.0565 Nov 0.0565 Dec 0.055 Jan 0.055 Feb 0.055 Mar 0.055 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/1/04 13.8 13.6 13.5 13.3 13.48 13.48 13.4 13.15 13.06 12.98 13.17 13.12 13.04 12.93 12.83 12.84 12.72 12.63 12.67 12.55 12.7 12.71 12.66 12.59 12.58 12.5 12.61 12.6 12.64 12.36 12.45 12.4 12.5 12.53 12.59 12.67 12.78 12.82 12.8 12.92 12.94 12.94 12.76 12.77 12.85 12.75 12.7 12.68 12.61 12.52 12.54 12.66 12.57 12.56 12.56 12.68 12.8 12.65 12.75 12.84 12.78 12.74 12.78 12.94 13.05 12.9 12.95 12.99 12.99 13.01 12.89 12.87 12.92 12.99 12.95 12.89 12.83 12.83 12.84 12.85 12.77 12.85 12.89 12.96 12.96 12.96 12.99 12.93 12.96 13.12 13.03 12.95 12.95 12.91 12.97 12.94 12.96 12.918 12.9 12.94 12.9 12.88 12.9 12.93 12.99 13 13.08 13.04 13.07 13.01 13.05 13.12 13.15 13.156 13.16 13.25 13.14 13.26 13.16 13.19 13.2 13.21 13.19 13.34 13.3 13.38 13.3 13.17 13.15 13.12 13.09 13.15 13.11 13.17 13.2 13.24 13.17 13.24 13.2 13.23 13.22 13.22 13.2 13.25 13.3 13.27 13.3 13.38 13.35 13.24 13.27 13.28 13.33 13.12 13 13.2 13.1 13.1 13.15 13.13 13.12 13.16 13.18 13.22 13.15 13.12 13.11 13.14 13.09 13.14 13.1 13.03 13.1 13.14 13.06 13.15 13.2 13.14 13.1 13.06 13.06 13 13.02 12.95 12.96 12.98 12.96 12.94 12.94 12.95 12.99 13.01 13.1 13.04 13.14 13.05 13.1 13.12 13.1 13.23 13.1 13.25 13.25 13.16 13.16 13.2 13.15 13.01 13.09 13.1 13.16 13.35 13.3 13.29 13.21 13.3 13.32 13.37 13.42 13.34 13.31 13.36 13.4 13.34 13.31 13.2 13.32 13.3 13.42 13.44 13.45 13.41 13.5 13.38 13.31 13.34 13.38 13.32 13.27 13.15 13.04 13.06 13.05 13.04 12.99 13.01 13.02 13 13 13.15 13 13 3/31/05 13.08 FUND SNAPSHOT - ------------------------------------ Share Price $13.08 - ------------------------------------ Common Share Net Asset Value $14.38 - ------------------------------------ Premium/(Discount) to NAV -9.04% - ------------------------------------ Market Yield 5.05% - ------------------------------------ Taxable-Equivalent Yield1 7.01% - ------------------------------------ Net Assets ($000) $253,158 - ------------------------------------ Average Effective Maturity on Securities (Years) 17.61 - ------------------------------------ Modified Duration 5.25 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/21/92) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 0.11% 3.82% - ------------------------------------ 5-Year 5.80% 5.37% - ------------------------------------ 10-Year 5.49% 5.82% - ------------------------------------ STATES (as a % of total investments) - ------------------------------------ Texas 15.1% - ------------------------------------ Illinois 14.5% - ------------------------------------ Colorado 8.7% - ------------------------------------ Nevada 7.1% - ------------------------------------ South Carolina 6.4% - ------------------------------------ California 5.6% - ------------------------------------ New York 5.4% - ------------------------------------ Washington 3.7% - ------------------------------------ Indiana 3.2% - ------------------------------------ Pennsylvania 2.7% - ------------------------------------ Vermont 2.7% - ------------------------------------ New Mexico 2.5% - ------------------------------------ Florida 2.5% - ------------------------------------ Other 19.9% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Healthcare 18.6% - ------------------------------------ Transportation 17.5% - ------------------------------------ Utilities 12.6% - ------------------------------------ Tax Obligation/Limited 12.5% - ------------------------------------ Tax Obligation/General 8.6% - ------------------------------------ U.S. Guaranteed 8.3% - ------------------------------------ Consumer Staples 5.0% - ------------------------------------ Education and Civic Organizations 4.4% - ------------------------------------ Other 12.5% - ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a income tax rate of 28%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.0413 per share. 13 Nuveen Select Tax-Free Income Portfolio 3 NXR Performance OVERVIEW As of March 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 44% AA 29% A 20% BBB or Lower 7% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.0575 May 0.0575 Jun 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0565 Oct 0.0565 Nov 0.0565 Dec 0.0545 Jan 0.0545 Feb 0.0545 Mar 0.0545 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/1/04 13.62 13.48 13.2 13.09 13.25 13.24 13.15 12.81 12.96 13.05 12.93 12.86 12.8 12.91 12.67 12.76 12.53 12.55 12.67 12.65 12.85 12.6 12.52 12.57 12.58 12.42 12.4 12.34 12.37 12.22 12.33 12.64 12.49 12.48 12.68 12.54 12.63 12.78 12.7 12.9 13 13 12.96 12.87 12.86 12.79 12.69 12.75 12.57 12.53 12.6 12.55 12.69 12.72 12.65 12.68 12.65 12.67 12.59 12.7 12.66 12.65 12.67 12.69 12.76 12.73 12.79 12.8 12.84 12.83 12.79 12.72 12.77 12.8 12.84 12.74 12.6 12.63 12.68 12.73 12.68 12.76 12.76 12.9 12.9 12.78 12.93 12.9 12.86 12.93 12.86 12.79 12.82 12.8 12.87 12.87 12.86 12.86 12.79 12.79 12.74 12.78 12.75 12.86 12.89 12.85 12.88 12.98 12.95 12.95 12.95 12.94 13.03 13.13 13.09 13.01 12.99 13.04 13.08 13.06 13.04 13.11 13.06 13.14 13.2 13.31 13.16 13.17 13.19 13.11 13.17 13.22 13.15 13.11 13.16 13.18 13.17 13.19 13.15 13.21 13.3 13.26 13.21 13.17 13.18 13.19 13.16 13.23 13.22 13.31 13.27 13.25 13.24 13 12.88 13 12.92 12.94 13.03 13.18 13.1 13.07 13.11 13.06 13.05 12.99 12.98 13.03 12.93 12.85 12.89 12.78 12.87 12.87 13 12.96 13.05 13.1 12.98 12.9 12.92 12.83 12.75 12.75 12.81 12.76 12.79 12.87 12.85 12.82 12.91 12.92 12.96 13.05 12.99 13.01 12.95 12.96 13 13.03 13.11 13.01 13.12 13.05 12.97 12.98 12.95 12.95 12.93 12.96 13.02 13.16 13.15 13.12 13.11 13.18 13.18 13.21 13.3 13.28 13.23 13.16 13.22 13.25 13.17 13.16 13.06 13.18 13.19 13.17 13.14 13.2 13.18 13.17 13.16 13.19 13.18 13.12 13.14 12.97 12.96 12.96 12.91 12.91 12.84 12.86 12.75 12.79 12.79 12.9 12.83 12.8 3/31/05 12.82 FUND SNAPSHOT - ------------------------------------ Share Price $12.82 - ------------------------------------ Common Share Net Asset Value $14.22 - ------------------------------------ Premium/(Discount) to NAV -9.85% - ------------------------------------ Market Yield 5.10% - ------------------------------------ Taxable-Equivalent Yield1 7.08% - ------------------------------------ Net Assets ($000) $184,379 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.72 - ------------------------------------ Modified Duration 5.63 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 7/24/92) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year -0.17% 4.01% - ------------------------------------ 5-Year 5.91% 5.45% - ------------------------------------ 10-Year 5.88% 5.95% - ------------------------------------ STATES (as a % of total investments) - ------------------------------------ Illinois 19.3% - ------------------------------------ Texas 15.3% - ------------------------------------ California 6.1% - ------------------------------------ Colorado 5.8% - ------------------------------------ New York 5.6% - ------------------------------------ Michigan 5.1% - ------------------------------------ Florida 5.0% - ------------------------------------ Nevada 4.9% - ------------------------------------ North Carolina 4.3% - ------------------------------------ Indiana 3.7% - ------------------------------------ Iowa 3.4% - ------------------------------------ South Carolina 3.2% - ------------------------------------ Other 18.3% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Healthcare 21.2% - ------------------------------------ Utilities 19.0% - ------------------------------------ Tax Obligation/Limited 15.3% - ------------------------------------ Tax Obligation/General 12.7% - ------------------------------------ Transportation 9.2% - ------------------------------------ Education and Civic Organizations 6.5% - ------------------------------------ Consumer Staples 5.1% - ------------------------------------ Other 11.0% - ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a income tax rate of 28%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.0366 per share. 14 Nuveen California Select Tax-Free Income Portfolio NXC Performance OVERVIEW As of March 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 59% AA 5% A 27% BBB 8% NR 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.056 May 0.056 Jun 0.055 Jul 0.055 Aug 0.055 Sep 0.055 Oct 0.055 Nov 0.055 Dec 0.055 Jan 0.055 Feb 0.055 Mar 0.055 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/1/04 13.99 13.8 13.74 13.45 13.43 13.39 13.35 13.3 13.25 13.28 13.25 13.23 13.25 13.06 12.99 12.97 12.75 12.85 12.7 12.83 12.88 12.87 12.87 12.94 12.86 12.61 12.52 12.6 12.74 12.71 12.73 12.72 12.82 12.87 13 13.05 13.04 12.98 13.02 13.14 13.18 13.18 13.15 13.13 13.14 13.16 13.12 13.07 13.05 13.04 12.89 12.86 12.71 12.72 12.8 12.8 12.75 12.72 12.77 12.72 12.79 12.8 12.85 12.94 12.99 13.01 13.1 13.11 13.06 13.08 13.03 13.08 13.09 13.09 13.08 13.12 12.95 12.97 13 13.13 12.99 13.09 13.11 13.11 13.11 13.19 13.15 13.13 13.15 13.35 13.25 13.29 13.25 13.24 13.27 13.32 13.34 13.29 13.32 13.32 13.49 13.35 13.42 13.36 13.46 13.4 13.45 13.44 13.53 13.38 13.39 13.38 13.46 13.41 13.38 13.38 13.36 13.39 13.48 13.4 13.46 13.52 13.6 13.7 13.56 13.48 13.52 13.51 13.66 13.65 13.56 13.59 13.63 13.69 13.69 13.63 13.67 13.67 13.69 13.62 13.52 13.49 13.48 13.52 13.475 13.53 13.53 13.48 13.46 13.4 13.46 13.47 13.45 13.38 13.19 13.2 13.12 13.2 13.19 13.29 13.33 13.35 13.41 13.27 13.27 13.36 13.4 13.4 13.34 13.2 13.33 13.3 13.26 13.29 13.36 13.38 13.28 13.3 13.23 13.23 13.34 13.21 13.12 13 13.01 12.97 13.05 13 13.12 13.13 13.03 13.09 13.09 13.18 13.19 13.22 13.29 13.36 13.21 13.29 13.31 13.28 13.13 13.19 13.22 13.19 13.3 13.31 13.37 13.33 13.43 13.59 13.6 13.57 13.62 13.7 13.59 13.64 13.6 13.73 13.58 13.66 13.58 13.6 13.58 13.57 13.57 13.69 13.62 13.68 13.6 13.59 13.67 13.73 13.75 13.88 13.83 13.73 13.56 13.53 13.51 13.48 13.4 13.37 13.35 13.38 13.64 13.63 13.35 13.22 13.23 13.33 3/31/05 13.4 FUND SNAPSHOT - ------------------------------------ Share Price $13.40 - ------------------------------------ Common Share Net Asset Value $14.54 - ------------------------------------ Premium/(Discount) to NAV -7.84% - ------------------------------------ Market Yield 4.93% - ------------------------------------ Taxable-Equivalent Yield1 7.53% - ------------------------------------ Net Assets ($000) $90,949 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.23 - ------------------------------------ Modified Duration 6.23 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/92) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 0.50% 3.99% - ------------------------------------ 5-Year 5.17% 5.44% - ------------------------------------ 10-Year 5.43% 5.81% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/General 22.0% - ------------------------------------ Tax Obligation/Limited 14.9% - ------------------------------------ Education and Civic Organizations 14.2% - ------------------------------------ Transportation 12.1% - ------------------------------------ Healthcare 11.8% - ------------------------------------ Utilities 9.5% - ------------------------------------ Water and Sewer 7.9% - ------------------------------------ Other 7.6% - ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.0468 per share. 15 Nuveen New York Select Tax-Free Income Portfolio NXN Performance OVERVIEW As of March 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 80% AA 11% A 3% BBB or Lower 6% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.056 May 0.056 Jun 0.056 Jul 0.056 Aug 0.056 Sep 0.056 Oct 0.056 Nov 0.056 Dec 0.0535 Jan 0.0535 Feb 0.0535 Mar 0.0535 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/1/04 14.8 14.55 14.3 13.7 13.7 13.86 13.75 13.45 13.45 13.4 13.4 13.4 13.41 13.12 13.13 13.2 13.2 13.2 13.17 13 13.15 13.1 13.05 13.03 13.1 13.03 12.95 12.99 12.95 12.8 12.94 12.95 12.88 12.75 12.76 12.8 12.8 12.8 12.98 13 13.12 13.12 13.03 13.04 12.97 13 13.07 12.94 12.96 12.96 12.64 12.71 12.7 12.77 12.74 12.69 12.73 12.66 12.75 12.8 12.9 12.91 12.88 12.85 12.95 12.89 12.85 12.95 13.04 13 13 13 13.02 13.2 13.09 13.02 13 13.2 13.01 12.96 12.87 12.92 12.98 13.04 13.04 13.08 13.12 13.17 13.19 13.31 13.31 13.5 13.35 13.21 13.32 13.5 13.51 13.43 13.39 13.31 13.38 13.38 13.35 13.44 13.47 13.52 13.56 13.61 13.7 13.65 13.65 13.7 13.52 13.52 13.68 13.64 13.56 13.61 13.68 13.65 13.61 13.66 13.53 13.54 13.5 13.62 13.58 13.55 13.61 13.49 13.49 13.66 13.66 13.61 13.72 13.82 13.75 13.82 13.82 13.68 13.74 13.86 13.9 13.86 13.86 13.99 14 13.88 13.9 13.89 13.81 13.89 13.84 13.67 13.64 13.46 13.4 13.41 13.45 13.37 13.44 13.4 13.51 13.46 13.4 13.55 13.48 13.76 13.66 13.65 13.61 13.56 13.7 13.84 13.83 13.83 14.23 14.05 13.66 13.45 13.67 13.67 13.59 13.65 13.57 13.45 13.49 13.42 13.28 13.26 13.26 13.19 13.19 13.16 13.19 13.27 13.26 13.22 13.26 13.21 13.21 13.22 13.27 13.28 13.29 13.33 13.39 13.44 13.44 13.46 13.49 13.51 13.52 13.5 13.5 13.67 13.56 13.48 13.45 13.46 13.54 13.67 13.56 13.6 13.6 13.59 13.6 13.6 13.63 13.7 13.62 13.64 13.64 13.71 13.65 13.74 13.85 13.65 13.62 13.51 13.43 13.49 13.51 13.51 13.51 13.63 13.48 13.5 13.5 13.5 13.6 13.66 3/31/05 13.65 FUND SNAPSHOT - ------------------------------------ Share Price $13.65 - ------------------------------------ Common Share Net Asset Value $14.28 - ------------------------------------ Premium/(Discount) to NAV -4.41% - ------------------------------------ Market Yield 4.70% - ------------------------------------ Taxable-Equivalent Yield1 7.01% - ------------------------------------ Net Assets ($000) $55,817 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.42 - ------------------------------------ Modified Duration 5.71 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/92) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 0.05% 3.10% - ------------------------------------ 5-Year 7.24% 5.36% - ------------------------------------ 10-Year 6.10% 5.62% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 15.3% - ------------------------------------ Water and Sewer 12.3% - ------------------------------------ Healthcare 11.4% - ------------------------------------ U.S. Guaranteed 10.8% - ------------------------------------ Education and Civic Organizations 10.0% - ------------------------------------ Long-Term Care 9.3% - ------------------------------------ Housing Single Family 8.3% - ------------------------------------ Utilities 7.2% - ------------------------------------ Tax Obligation/General 6.2% - ------------------------------------ Housing/Multifamily 5.3% - ------------------------------------ Other 3.9% - ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.0640 per share. 16 Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF NUVEEN SELECT TAX-FREE INCOME PORTFOLIO NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO We have audited the accompanying statements of assets and liabilities of Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen California Select Tax-Free Income Portfolio, and Nuveen New York Select Tax-Free Income Portfolio (the Funds), including the portfolios of investments, as of March 31, 2005, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2005, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of the Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen California Select Tax-Free Income Portfolio, and Nuveen New York Select Tax-Free Income Portfolio at March 31, 2005, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois May 13, 2005 17 Nuveen Select Tax-Free Income Portfolio (NXP) Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.1% $ 2,475 Alaska Municipal Bond Bank Authority, General Obligation Bonds, 12/13 at 100.00 AAA $ 2,652,903 Series 2003E, 5.250%, 12/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 4.1% 2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,419,660 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured 3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,786,876 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 200 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 214,346 Refunding, Merrithew Memorial Hospital Replacement Project, Series 1997, 5.375%, 11/01/17 - MBIA Insured 3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,166,050 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 1,130 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 1,152,657 Waterworks Revenue Refunding Bonds, Series 2001A, 5.125%, 7/01/41 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 13.5% Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series 2002A: 1,700 5.500%, 3/01/22 3/12 at 100.00 AA*** 1,877,684 1,300 5.500%, 3/01/22 3/12 at 100.00 AA 1,386,268 1,000 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 AAA 1,106,080 Small Water Resources Revenue Bonds, Series 2000A, 5.800%, 11/01/20 - FGIC Insured 5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,404,000 Refunding Bonds, Series 2001A, 5.625%, 11/15/17 (Alternative Minimum Tax) - FGIC Insured 10,750 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 12,656,513 Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) 640 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 667,590 Bonds, Series 1996A, 5.500%, 11/15/25 - MBIA Insured 230 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 239,915 Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds, Convention Center Hotel, Series 2003A: 1,000 5.000%, 12/01/22 - XLCA Insured 12/13 at 100.00 AAA 1,035,130 3,000 5.000%, 12/01/23 - XLCA Insured 12/13 at 100.00 AAA 3,101,040 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,289,850 Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded to 9/01/10) - MBIA Insured 3,160 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 3,461,211 Revenue Bonds, Senior Series 2001A, 5.500%, 6/15/20 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.6% 1,000 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 1,061,160 Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 - MBIA Insured 265 District of Columbia, Revenue Bonds, Catholic University 10/09 at 101.00 AAA 287,642 of America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 7.2% 450 Escambia County, Florida, Pollution Control Revenue Bonds, 6/05 at 101.00 BBB 453,519 Champion International Corporation, Series 1993, 5.875%, 6/01/22 (Alternative Minimum Tax) 18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 $ 10,498,500 Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17 6,100 JEA St. John's River Power Park System, Florida, Revenue 4/05 at 100.00 Aa2 6,198,149 Refunding Bonds, Issue Two, Series Nine, 5.250%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.6% 1,330 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,396,354 Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.1% Chicago Heights, Illinois, General Obligation Corporate Purpose Bonds, Series 1993: 3,820 5.650%, 12/01/15 - FGIC Insured 12/08 at 100.00 AAA 4,113,070 2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 AAA 2,797,626 2,500 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 425,000 O'Hare International Airport, United Air Lines Inc. Project, Series 2001C, 6.300%, 5/01/16# 1,000 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 1,077,820 Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 - FSA Insured 1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101.00 A 1,034,080 Midwestern University, Series 1998B, 5.500%, 5/15/18 - ACA Insured 4,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 4,225,480 Memorial Hospital, Series 2004A, 5.500%, 8/15/43 1,530 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R*** 1,615,925 Evangelical Hospitals Corporation, Series 1992B, 6.500%, 4/15/09 300 Illinois Health Facilities Authority, Revenue Bonds, 5/05 at 101.00 AAA 303,489 Rush-Presbyterian St. Luke's Medical Center Obligated Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured 1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,388,746 Memorial Hospital, Series 2001, 5.600%, 10/01/16 2,700 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 2,951,451 Forest Hospital, Series 2002A, 6.000%, 7/01/17 2,275 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,513,306 Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17 600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa2 638,034 Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22 3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 1,759,906 Bonds, McCormick Place Expansion Project, Series 1992A, 0.000%, 6/15/17 - FGIC Insured 5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 5,232,500 Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.000%, 6/15/21 - MBIA Insured 1,300 Schaumburg, Illinois, General Obligation Bonds, 12/14 at 100.00 AAA 1,375,140 Series 2004B, 5.250%, 12/01/34 - FGIC Insured Yorkville, Illinois, General Obligation Debt Certificates, Series 2003: 1,000 5.000%, 12/15/19 - RAAI Insured 12/11 at 100.00 AA 1,022,210 1,000 5.000%, 12/15/20 - RAAI Insured 12/11 at 100.00 AA 1,019,900 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 8.3% 5,000 Duneland School Building Corporation, Indiana, First 2/09 at 101.00 AAA 5,294,350 Mortgage Refunding Bonds, Series 1999, 5.125%, 2/01/18 - MBIA Insured 1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,340 Marion County, Indiana, First Mortgage Revenue Bonds, Series 2004, 5.000%, 7/15/22 - FGIC Insured 2,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,400,880 Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA Insured 9,855 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 10,396,335 Waterworks Project, Series 2002A, 5.125%, 7/01/21 - MBIA Insured 750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 783,915 Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 (WI, settling 4/06/05) - MBIA Insured 19 Nuveen Select Tax-Free Income Portfolio (NXP) (continued) Portfolio of INVESTMENTS March 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.3% $ 750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA $ 793,748 Gas and Electric Company, Series 2004, 5.300%, 6/01/31 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.5% 1,100 Jefferson County, Kentucky, Health System Revenue Bonds, 10/08 at 101.00 AAA 1,144,682 Alliant Health System Inc., Series 1998, 5.125%, 10/01/18 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.4% 1,000 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 BBB 989,740 Tobacco Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.2% 500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 555,460 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 6.000%, 7/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.9% 665 Detroit, Michigan, Second Lien Water Supply System Revenue 7/05 at 101.00 AAA 676,824 Bonds, Series 1995A, 5.500%, 7/01/25 (Pre-refunded to 7/01/05) - MBIA Insured 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,012,288 Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 904,020 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.125%, 8/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.2% 430 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 447,355 Revenue Bonds, Series 1995A, 5.200%, 1/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.6% 3,600 Calhoun County, Mississippi, Solid Waste Disposal Revenue 4/07 at 103.00 BBB 3,846,240 Bonds, Weyerhauser Company Project, Series 1992, 6.875%, 4/01/16 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 6.6% 2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 2,604,425 Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 2,360 0.000%, 1/01/21 - AMBAC Insured No Opt. Call AAA 1,079,204 3,500 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,510,565 6,025 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 6,227,982 4,070 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 4,433,695 Series 2002, 5.500%, 6/01/21 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.3% 705 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 709,117 Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.2% 2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,504,700 Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23 250 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 249,125 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.6% 4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,940,280 Revenue Bonds, Series 2004, 4.625%, 7/01/25 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 1.3% 450 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 474,363 General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA $ 1,035,300 Mortgage Revenue Bonds, Kaleida Health, Series 2004, 5.050%, 2/15/25 1,600 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 1,671,456 Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%, 7/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.1% 2,195 North Carolina Eastern Municipal Power Agency, Power 7/05 at 100.00 BBB 2,197,019 System Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/21 500 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 535,405 Revenue Bonds, Series 2001A, 5.250%, 11/01/17 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.5% 1,125 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 1,178,921 Securities Program Residential Mortgage Remarketed Revenue Bonds, Series 1997A-1, 6.050%, 9/01/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.7% 4,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 4,067,160 St. John Health System, Series 2004, 5.000%, 2/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.5% 500 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 BBB+ 514,340 Revenue Bonds, Widner University, Series 2003, 5.250%, 7/15/24 700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 2/14 at 100.00 AAA 764,379 Series 2004A, 5.500%, 12/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 7.3% 10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA-*** 11,509,500 Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19 (Pre-refunded to 12/01/12) 1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,647,135 Hospital Revenue Refunding and Improvement Bonds, Series 2003, 6.000%, 11/01/18 2,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 2,562,200 Economic Development Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 1,720 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 1,736,202 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 8.6% 5,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 5,435,250 Texas, Environmental Facilities Revenue Bonds, Dow Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33 (Alternative Minimum Tax) (Mandatory put 5/15/17) 360 Dallas-Fort Worth International Airport Public Facility 1/09 at 100.00 AAA 381,384 Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001, 5.500%, 1/15/20 - FSA Insured 6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,563,834 General Obligation Refunding Bonds, Series 2002, 5.250%, 2/15/20 2,300 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,351,612 Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - MBIA Insured 3,500 Irving Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 3,563,945 General Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31 San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992: 465 6.000%, 5/15/16 - MBIA Insured No Opt. Call AAA 523,790 95 6.000%, 5/15/16 (Pre-refunded to 5/15/07) - MBIA Insured 5/07 at 100.00 AAA 101,076 1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,771,053 Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.5% 250 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 273,630 Bonds, Columbia Generating Station, Nuclear Project 2, Series 2002C, 5.500%, 7/01/17 - MBIA Insured 21 Nuveen Select Tax-Free Income Portfolio (NXP) (continued) Portfolio of INVESTMENTS March 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 5,700 Snohomish County Public Utility District 1, Washington, 7/05 at 100.00 Aaa $ 6,473,718 Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12 2,535 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,641,343 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 3,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 3,150,990 Bonds, Catholic Health Initiatives, Series 1997A, 5.125%, 12/01/17 - MBIA Insured 9,750 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 10,213,223 Bonds, Sisters of Providence Health System, Series 2001A, 5.125%, 10/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.9% 1,885 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,088,882 Bonds, Series 1992, 6.500%, 5/15/10 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.6% 250 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 254,027 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,585,400 Series 2003-3, 5.000%, 11/01/26 1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,063,970 Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%, 8/15/17 - ------------------------------------------------------------------------------------------------------------------------------------ $ 229,865 Total Long-Term Investments (cost $221,056,736) - 97.3% 232,885,557 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.7% 6,574,817 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 239,460,374 ====================================================================================================================
* 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. # On December 9, 2002, UALCorporation, the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely United would not remain current on their interest payment obligations with respect to these bonds and thus has stopped accruing interest. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 22 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.6% $ 1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA $ 1,048,860 and Construction Bonds, Series 2002A, 5.000%, 10/01/19 - FSA Insured 1,000 Sebastian County Health Facilities Board, Arkansas, Hospital 11/11 at 101.00 Baa1 994,260 Revenue Improvement Bonds, Sparks Regional Medical Center, Series 2001A, 5.250%, 11/01/21 2,000 University of Arkansas, Fayetteville, Various Facilities Revenue 12/12 at 100.00 Aaa 2,049,120 Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.6% 1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 709,830 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured 2,500 California, General Obligation Bonds, Series 1997, 10/07 at 101.00 AAA 2,616,675 5.000%, 10/01/18 - AMBAC Insured 3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,786,876 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 2,000 California State Public Works Board, Lease Revenue Refunding No Opt. Call Aa2 2,211,720 Bonds, Various University of California Projects, Series 1993A, 5.500%, 6/01/14 500 California State Public Works Board, Lease Revenue Refunding 12/08 at 101.00 A- 518,390 Bonds, Community Colleges Projects, Series 1998A, 5.250%, 12/01/16 500 Contra Costa Water District, California, Water Revenue 10/07 at 100.00 AA 519,470 Refunding Bonds, Series 1997H, 5.000%, 10/01/17 500 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 535,865 Refunding, Merrithew Memorial Hospital Replacement Project, Series 1997, 5.375%, 11/01/17 - MBIA Insured 3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,166,050 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 8.6% Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series 2002A: 1,700 5.500%, 3/01/22 3/12 at 100.00 AA*** 1,877,684 1,300 5.500%, 3/01/22 3/12 at 100.00 AA 1,386,268 1,555 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 1,703,176 Refunding Bonds, Series 2001, 5.500%, 11/15/16 - FGIC Insured 5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,404,000 Refunding Bonds, Series 2001A, 5.625%, 11/15/17 (Alternative Minimum Tax) - FGIC Insured 3,185 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,749,860 Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) 3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,101,040 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/23 - XLCA Insured E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: 5,000 0.000%, 9/01/28 (Pre-refunded to 9/01/10) - MBIA Insured 9/10 at 31.42 AAA 1,289,850 5,000 0.000%, 9/01/24 - MBIA Insured No Opt. Call AAA 1,864,300 250 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 260,725 Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 - FSA Insured 1,100 University of Colorado Hospital Authority, Revenue Bonds, 11/11 at 100.00 A3 1,128,710 Series 2001A, 5.600%, 11/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.2% 500 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 530,580 Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 - MBIA Insured 23 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued) Portfolio of INVESTMENTS March 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.4% $ 6,060 JEA St. John's River Power Park System, Florida, Revenue 4/05 at 100.00 Aa2 $ 6,157,505 Refunding Bonds, Issue Two, Series Nine, 5.250%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.5% 1,100 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,154,879 Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.3% 4,425 Chicago Metropolitan Housing Development Corporation, 7/05 at 100.00 AA 4,432,080 Illinois, FHA-Insured Section 8 Assisted Housing Development Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17 2,400 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 408,000 O'Hare International Airport, United Air Lines Inc. Project, Series 2001C, 6.300%, 5/01/16# 250 Illinois Development Finance Authority, Economic Development 8/08 at 100.00 Baa2 258,568 Revenue Bonds, Latin School of Chicago Project, Series 1998, 5.200%, 8/01/11 2,185 Illinois Finance Authority, Revenue Bonds, YMCA of 9/15 at 100.00 AA 2,172,218 Southwest Illinois, Series 2005, 5.000%, 9/01/31 (WI, settling 4/12/05) - RAAI Insured 3,000 Illinois Health Facilities Authority, Revenue Bonds, 5/05 at 101.00 AAA 3,034,890 Rush-Presbyterian St. Luke's Medical Center Obligated Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured 1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 1,085,162 University Health System, Series 2001A, 6.125%, 7/01/31 2,255 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 2,471,796 Hospital, Series 2002A, 6.250%, 7/01/22 600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa2 638,034 Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22 5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,953,023 5.000%, 6/15/22 45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/05 at 100.00 A1 45,219 Bonds, McCormick Place Expansion Project, Series 1992A, 6.500%, 6/15/22 7,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 7,325,500 Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.000%, 6/15/21 - MBIA Insured 5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA 5,131,421 Source Bonds, Tax Increment, Series 2002A, 5.000%, 6/01/22 - RAAI Insured Sauk Village, Illinois, General Obligation Alternate Revenue Source Bonds, Tax Increment, Series 2002B: 1,060 0.000%, 12/01/17 - RAAI Insured No Opt. Call AA 555,281 1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 561,984 1,100 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,163,580 5.250%, 12/01/34 - FGIC Insured 1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,017,590 Series 2003, 5.000%, 12/15/21 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.1% 1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,340 Marion County, Indiana, First Mortgage Revenue Bonds, Series 2004, 5.000%, 7/15/22 - FGIC Insured 4,380 Indiana Municipal Power Agency, Power Supply System 1/12 at 100.00 AAA 4,615,425 Revenue Bonds, Series 2002A, 5.125%, 1/01/21 - AMBAC Insured 1,440 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 1,484,323 Revenue Bonds, Series 2002C-2, 5.250%, 7/01/23 (Alternative Minimum Tax) 750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 783,915 Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 (WI, settling 4/06/05) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.7% Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: 1,000 5.300%, 6/01/25 6/11 at 101.00 BBB 936,970 3,500 5.600%, 6/01/35 6/11 at 101.00 BBB 3,312,540 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.1% $ 2,125 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA $ 2,244,361 Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured 3,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 3,119,970 University, Series 2002A, 5.125%, 7/01/27 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.1% 3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,125,160 Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31 2,090 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 2,295,677 Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.0% 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,012,288 Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 2,000 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 2,040,440 Washtenaw Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 4.750%, 5/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 7.0% 500 Clark County, Nevada, Limited Tax General Obligation 7/06 at 101.00 AAA 519,985 Las Vegas Convention and Visitors Authority Bonds, Series 1996, 5.500%, 7/01/17 - MBIA Insured 1,500 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 1,617,960 Southern Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19 - FGIC Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 4,595 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,983,156 13,250 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,696,393 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.0% 2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,504,700 Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.4% University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds, Series 2004: 555 4.625%, 1/01/25 - FSA Insured 7/14 at 100.00 AAA 546,836 660 4.625%, 7/01/25 - FSA Insured 7/14 at 100.00 AAA 650,146 2,000 4.750%, 7/01/27 - FSA Insured 7/14 at 100.00 AAA 1,997,140 3,000 4.750%, 1/01/28 - FSA Insured 7/14 at 100.00 AAA 2,987,400 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 4.9% 2,000 New York City Municipal Water Finance Authority, 12/14 at 100.00 AAA 2,061,600 New York, Water and Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/36 - FSA Insured 2,700 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Ba1 2,820,582 Bonds, Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%, 7/01/17 3,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 3,271,830 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16 3,810 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 4,224,223 Center Bonds, Series 1990E, 7.250%, 1/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.6% 1,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,517,970 Healthcare System Revenue Bonds, Carolinas Healthcare System, Series 2001A, 5.000%, 1/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.1% 2,800 Cuyahoga County, Ohio, Hospital Revenue Bonds, Cleveland 8/05 at 102.00 AAA 2,896,068 Clinic Foundation - Meridia Health System, Series 1995, 6.250%, 8/15/14 (Pre-refunded to 8/15/05) 25 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued) Portfolio of INVESTMENTS March 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.7% $ 1,020 Carlisle Area School District, Cumberland County, Pennsylvania, 9/09 at 100.00 Aaa $ 1,066,645 General Obligation Bonds, Series 2004A, 5.000%, 9/01/20 - FGIC Insured 1,000 Dauphin County General Authority, Pennsylvania, Health 2/09 at 101.00 AAA 1,047,090 System Revenue Bonds, Pinnacle Health System Project, Series 1999, 5.125%, 8/15/17 - MBIA Insured 1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,075,200 Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 (Alternative Minimum Tax) - FGIC Insured 3,250 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,612,213 Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded to 2/01/12) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 1.2% 3,000 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA*** 3,131,670 Revenue Bonds, Series 2003, 5.000%, 12/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.0% 5,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,029,550 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 6.3% 4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA-*** 4,603,800 Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19 (Pre-refunded to 12/01/12) 2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,745,225 Hospital Revenue Refunding and Improvement Bonds, Series 2003, 6.000%, 11/01/18 8,350 South Carolina Public Service Authority, Revenue Refunding 1/06 at 102.00 AAA 8,691,515 Bonds, Santee Cooper Electric System, Series 1996A, 5.750%, 1/01/22 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 0.4% 1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,015,530 Revenue Bonds, Sioux Valley Hospital and Health System, Series 2004A, 5.250%, 11/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 15.0% 4,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 4,348,200 Texas, Environmental Facilities Revenue Bonds, Dow Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33 (Alternative Minimum Tax) (Mandatory put 5/15/17) 1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,518,945 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 1,330 Cleveland Housing Corporation, Texas, FHA-Insured 7/05 at 100.00 AAA 1,332,115 Section 8 Assisted Mortgage Revenue Refunding Bonds, Series 1992C, 7.375%, 7/01/24 - MBIA Insured 4,550 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 AAA 579,443 Revenue Bonds, Series 2001H, 0.000%, 11/15/41 - MBIA Insured 2,500 Harris County Health Facilities Development Corporation, 10/05 at 102.00 AAA 2,769,475 Texas, Hospital Revenue Bonds, Texas Children's Hospital, Series 1995, 5.500%, 10/01/16 - MBIA Insured 3,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 3,067,320 Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - MBIA Insured 2,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 2,150,780 Bonds, Series 2002A, 5.625%, 7/01/20 (Alternative Minimum Tax) - FSA Insured 3,125 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 3,180,250 Waller Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%, 2/15/32 1,000 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 1,044,930 General Obligation Bonds, Series 1998, 5.000%, 2/15/14 1,000 Lewisville Independent School District, Denton County, 8/11 at 100.00 AAA 1,032,980 Texas, General Obligation Bonds, Series 2004, 5.000%, 8/15/23 4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,074,473 System Revenue Refunding Bonds, Series 2002A, 5.500%, 10/01/17 - RAAI Insured 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 1,000 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 $ 1,012,030 Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) 8,900 Texas Turnpike Authority, Dallas North Tollway System 1/06 at 102.00 AAA 9,217,641 Revenue Bonds, President George Bush Turnpike, Series 1995, 5.250%, 1/01/23 - FGIC Insured 1,250 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 1,288,038 Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.6% 1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,505,875 Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 2.7% 3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA 3,137,640 Series 1999C, 5.800%, 8/15/16 - FSA Insured 3,600 Vermont Industrial Development Authority, Industrial 9/05 at 100.00 A 3,605,792 Development Revenue Refunding Bonds, Stanley Works Inc. Project, Series 1992, 6.750%, 9/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.5% 250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/05 at 102.00 AAA 259,480 5.750%, 11/01/13 - MBIA Insured 1,000 Virginia Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 1,045,500 Refunding Bonds, U.S. Route 58 Corridor Development Program, Series 1997C, 5.125%, 5/15/19 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 3.6% 2,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 2,100,660 Bonds, Catholic Health Initiatives, Series 1997A, 5.125%, 12/01/17 - MBIA Insured 6,715 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 7,034,030 Bonds, Sisters of Providence Health System, Series 2001A, 5.125%, 10/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.1% 4,000 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 4,157,960 Home Ownership Revenue Bonds, Series 2002G, 4.850%, 9/01/17 1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,058,970 Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%, 8/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ $ 254,910 Total Long-Term Investments (cost $241,268,311) - 98.3% 248,871,402 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.4% 1,000 New York City, New York, General Obligation Bonds, Variable A-1+ 1,000,000 Rate Demand Obligations, Fiscal Series 2002A-7, 2.260%, 11/01/24 - AMBAC Insured + - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $242,268,311) - 98.7% 249,871,402 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 3,286,113 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 253,157,515 ====================================================================================================================
* 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. # On December 9, 2002, UALCorporation, the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely United would not remain current on their interest payment obligations with respect to these bonds and thus has stopped accruing interest. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 27 Nuveen Select Tax-Free Income Portfolio 3 (NXR) Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.3% $ 500 Marshall County Healthcare Authority, Alabama, Revenue 1/12 at 101.00 A- $ 542,710 Bonds, Series 2002A, 6.250%, 1/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.4% 700 Tucson, Arizona, Junior Lien Street and Highway User Revenue 7/11 at 100.00 AAA 738,332 Bonds, Series 2001, 5.000%, 7/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.1% 2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,277,210 General Obligation Bonds, Series 2002, 5.375%, 7/01/21 - FSA Insured 3,350 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,815,349 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,166,050 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 2,000 Golden State Tobacco Securitization Corporation, California, 6/05 at 100.00 A- 2,007,920 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B, 5.250%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.8% Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series 2002A: 2,265 5.500%, 3/01/22 3/12 at 100.00 AA*** 2,501,738 1,735 5.500%, 3/01/22 3/12 at 100.00 AA 1,850,135 2,700 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,178,845 Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) 3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,092,370 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/24 - XLCA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.1% 250 Connecticut Health and Educational Facilities Authority, 7/05 at 100.00 AAA 250,738 Revenue Bonds, Bridgeport Hospital Issue, Series 1992A, 6.625%, 7/01/18 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.2% 235 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 268,198 Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured 15 District of Columbia, General Obligation Bonds, Series 1993E, 6/05 at 100.00 AAA 15,083 6.000%, 6/01/13 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.0% 4,000 JEA, Florida, Subordinate Lien Electric System Revenue Bonds, 10/07 at 100.00 Aa3 4,000,000 Series 2002D, 4.625%, 10/01/22 5,020 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 5,253,380 Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.6% 1,325 Atlanta, Georgia, Airport Facilities Revenue Bonds, No Opt. Call AAA 1,030,148 Series 1990, 0.000%, 1/01/10 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 19.3% 1,175 Chicago Metropolitan Housing Development Corporation, 7/05 at 100.00 AA 1,184,142 Illinois, FHA-Insured Section 8 Assisted Housing Development Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22 700 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 119,000 O'Hare International Airport, United Air Lines Inc. Project, Series 2001C, 6.300%, 5/01/16# 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 A- $ 2,062,282 Midwestern University, Series 2001B, 5.750%, 5/15/16 2,185 Illinois Finance Authority, Revenue Bonds, YMCA of 9/15 at 100.00 AA 2,172,218 Southwest Illinois, Series 2005, 5.000%, 9/01/31 (WI, settling 4/12/05) - RAAI Insured 1,500 Illinois Health Facilities Authority, Revenue Bonds, No Opt. Call N/R*** 1,797,045 Evangelical Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 4,000 Illinois Health Facilities Authority, Revenue Bonds, Franciscan 9/06 at 100.00 AAA 4,216,560 Sisters Healthcare Corporation, Series 1992B, 6.625%, 9/01/13 (Pre-refunded to 9/01/06) - MBIA Insured 4,465 Illinois Health Facilities Authority, Remarketed Revenue 8/11 at 103.00 Aa1 4,844,391 Bonds, University of Chicago Project, Series 1985A, 5.500%, 8/01/20 2,225 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,458,069 Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17 5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,953,023 5.000%, 6/15/22 2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 6/07 at 101.00 AAA 2,120,060 5.600%, 6/15/17 6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,279,000 Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.000%, 6/15/21 - MBIA Insured 1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,375,140 5.250%, 12/01/34 - FGIC Insured 1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,015,290 Series 2003, 5.000%, 12/15/22 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.7% 1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,340 Marion County, Indiana, First Mortgage Revenue Bonds, Series 2004, 5.000%, 7/15/22 - FGIC Insured 3,500 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A+ 3,603,635 Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22 2,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 2,102,500 Waterworks Project, Series 2002A, 5.250%, 7/01/33 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 3.4% Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: 3,850 5.300%, 6/01/25 6/11 at 101.00 BBB 3,607,335 2,850 5.600%, 6/01/35 6/11 at 101.00 BBB 2,697,354 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.8% 1,000 Massachusetts Development Finance Agency, Resource 12/08 at 102.00 BBB 1,005,280 Recovery Revenue Bonds, Ogden Haverhill Associates, Series 1998B, 5.200%, 12/01/13 (Alternative Minimum Tax) 500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 555,460 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 6.000%, 7/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 5.1% 400 East Lansing School District, Ingham County, Michigan, 5/10 at 100.00 AA*** 441,452 General Obligation Bonds, Series 2000, 5.625%, 5/01/30 (Pre-refunded to 5/01/10) 4,000 Michigan Housing Development Authority, Single Family 6/06 at 102.00 AA+ 4,148,880 Mortgage Revenue Bonds, Series 1996C, 5.950%, 12/01/17 235 Michigan State Hospital Finance Authority, Revenue Refunding 8/05 at 100.00 Ba3 235,221 Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,012,288 Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 1,600 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 1,632,352 Washtenaw Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 4.750%, 5/01/18 29 Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued) Portfolio of INVESTMENTS March 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.4% $ 725 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R $ 736,129 Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.9% 3,500 Nebraska Public Power District, General Revenue Bonds, 1/13 at 100.00 AAA 3,593,590 Series 2002B, 5.000%, 1/01/33 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.9% 4,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 4,134,760 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured 4,510 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 4,913,014 Series 2002, 5.500%, 6/01/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.5% 865 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 870,052 Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.1% 4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,941,160 Revenue Bonds, Series 2004, 4.625%, 1/01/25 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 3.7% 2,335 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 2,470,477 General Revenue Bonds, Series 2001A, 5.375%, 9/01/21 35 New York City, New York, General Obligation Bonds, 8/05 at 100.00 A1 35,107 Series 1991B, 7.000%, 2/01/18 2,130 Dormitory Authority of the State of New York, Second No Opt. Call A2 2,369,774 General Resolution Consolidated Revenue Bonds, City University System, Series 1990C, 7.500%, 7/01/10 1,850 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 1,995,725 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.3% 5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,392,600 Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured 2,345 Piedmont Triad Airport Authority, North Carolina, Airport 7/11 at 101.00 AAA 2,514,966 Revenue Bonds, Series 2001A, 5.250%, 7/01/16 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.7% 3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 3,050,370 St. John Health System, Series 2004, 5.000%, 2/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.5% 2,435 Dauphin County Industrial Development Authority, No Opt. Call A- 2,949,613 Pennsylvania, Water Development Revenue Refunding Bonds, Dauphin Consolidated Water Supply Company, Series 1992B, 6.700%, 6/01/17 500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 514,340 Bonds, Widner University, Series 2003, 5.250%, 7/15/24 1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,075,200 Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 (Alternative Minimum Tax) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.2% 1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,647,135 Hospital Revenue Refunding and Improvement Bonds, Series 2003, 6.000%, 11/01/18 1,500 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 1,601,730 FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 8/15/20 - MBIA Insured 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA (continued) $ 2,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- $ 2,562,200 Economic Development Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.1% 1,010 South Dakota Health and Educational Facilities Authority, 7/12 at 101.00 AAA 1,050,834 Revenue Bonds, Avera Health, Series 2002, 5.125%, 7/01/27 - AMBAC Insured 1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,015,530 Revenue Bonds, Sioux Valley Hospital and Health System, Series 2004A, 5.250%, 11/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.1% 2,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 2,055,560 Board, Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 15.3% 1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,518,945 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 3,755 Grand Prairie Industrial Development Authority, Texas, No Opt. Call A- 3,766,603 Industrial Development Revenue Refunding Bonds, Baxter International Inc. Project, Series 1992, 6.550%, 12/01/12 2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,556,100 Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - MBIA Insured 3,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 3,275,670 Bonds, Series 2002B, 5.500%, 7/01/18 - FSA Insured 3,125 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 3,180,250 Waller Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%, 2/15/32 1,825 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 1,906,997 General Obligation Bonds, Series 1998, 5.000%, 2/15/14 5,000 North Central Texas Health Facilities Development 5/06 at 102.00 AA- 5,116,600 Corporation, Hospital Revenue Refunding Bonds, Baylor Healthcare System, Series 1995, 5.250%, 5/15/16 4,750 Sam Rayburn Municipal Power Agency, Texas, Power 10/12 at 100.00 AA 5,074,473 Supply System Revenue Refunding Bonds, Series 2002A, 5.500%, 10/01/17 - RAAI Insured 1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,771,053 Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.9% 1,710 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 A+ 1,742,199 Refunding Bonds, Series 1996D, 5.000%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 2.1% 3,880 Washington, General Obligation Bonds, Series 1993A, 4/05 at 100.00 Aa1 3,880,111 4.500%, 10/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.4% 2,500 Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 11/13 at 100.00 AA- 2,585,400 5.000%, 11/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ $ 173,250 Total Long-Term Investments (cost $174,412,065) - 97.9% 180,533,790 =============----------------------------------------------------------------------------------------------------------------------- 31 Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued) Portfolio of INVESTMENTS March 31, 2005 PRINCIPAL MARKET AMOUNT (000) DESCRIPTION RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 1.9% $ 3,500 New York City, New York, General Obligation Bonds, A-1+ $ 3,500,000 Variable Rate Demand Obligations, Fiscal Series 2002A-7, 2.260%, 11/01/24 - AMBAC Insured + - ------------------------------------------------------------------------------------------------------------------------------------ $ 3,500 Total Short-Term Investments (cost $3,500,000) 3,500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $177,912,065) - 99.8% 184,033,790 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.2% 345,595 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 184,379,385 ====================================================================================================================
* 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. # On December 9, 2002, UALCorporation, the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely United would not remain current on their interest payment obligations with respect to these bonds and thus has stopped accruing interest. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 32 Nuveen California Select Tax-Free Income Portfolio (NXC) Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.0% $ 1,885 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB $ 1,858,912 Settlement Asset-Backed Revenue Bonds, Fresno County Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 13.9% 1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,035,260 Stanford University, Series 1999P, 5.000%, 12/01/23 750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1 779,453 Pepperdine University, Series 2002A, 5.500%, 8/01/32 2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 2,697,188 University of the Pacific, Series 2002, 5.250%, 11/01/21 1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,051,240 University of San Diego, Series 2002A, 5.500%, 10/01/32 3,000 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,190,170 Bonds, J. David Gladstone Institutes, Series 2001, 5.500%, 10/01/19 2,000 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 2,074,020 University of California System, Series 2002A, 5.000%, 10/01/22 - FSA Insured 750 California Statewide Community Development Authority, 8/12 at 100.00 A 780,195 Student Housing Revenue Bonds, EAH - Irvine East Campus Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 - ACA Insured 1,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 1,048,020 Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 11.6% 2,500 California Health Facilities Financing Authority, Insured Hospital 4/05 at 100.00 AAA 2,545,950 Revenue Bonds, Scripps Memorial Hospital, Series 1992A, 6.400%, 10/01/12 - MBIA Insured 2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A 2,100,760 Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 1,880 California Statewide Community Development Authority, 6/07 at 101.00 AAA 1,986,220 Revenue Bonds, Los Angeles Orthopaedic Hospital Foundation, Series 2000, 5.500%, 6/01/17 - AMBAC Insured 1,500 California Statewide Community Development Authority, 11/09 at 102.00 A 1,562,730 Insured Mortgage Hospital Revenue Bonds, Mission Community Hospital, Series 2001, 5.375%, 11/01/26 1,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 1,601,970 Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 - FSA Insured 790 Central California Joint Powers Health Finance Authority, 8/05 at 100.00 Baa2 764,941 Certificates of Participation, Community Hospitals of Central California, Series 1993, 5.000%, 2/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.4% 1,250 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 1,278,388 Disposal Revenue Bonds, Republic Services Inc., Series 2002C, 5.250%, 6/01/23 (Alternative Minimum Tax) (Mandatory put 12/01/17) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.7% 1,500 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,554,990 California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 21.7% 500 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA 515,595 California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/26 33 Nuveen California Select Tax-Free Income Portfolio (NXC) (continued) Portfolio of INVESTMENTS March 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) California, General Obligation Bonds, Series 2003: $ 500 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA $ 533,035 1,450 5.250%, 2/01/21 8/13 at 100.00 A 1,533,665 1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,060,490 California, General Obligation Bonds, Series 2004: 750 5.000%, 2/01/23 2/14 at 100.00 A 775,102 800 5.125%, 4/01/25 4/14 at 100.00 A 830,968 2,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 2,094,220 General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 - FGIC Insured Golden West Schools Financing Authority, California, General Obligation Revenue Refunding Bonds, School District Program, Series 1999A: 4,650 0.000%, 8/01/16 - MBIA Insured No Opt. Call AAA 2,775,632 1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 1,009,348 2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,338,336 2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,276,595 395 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 412,649 California, General Obligation Bonds, Series 2005A, 5.000%, 6/01/26 - FSA Insured Mountain View-Los Altos Union High School District, Santa Clara County, California, General Obligation Capital Appreciation Bonds, Series 1995C: 1,015 0.000%, 5/01/17 - MBIA Insured No Opt. Call AAA 578,652 1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 581,008 1,500 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 1,653,060 General Obligation Bonds, Series 2003E, 5.250%, 7/01/24 - FSA Insured 2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,680,399 General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 - FSA Insured (DD, settling 4/01/05) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 14.7% 1,000 Bell Community Redevelopment Agency, California, 10/13 at 100.00 AA 1,064,930 Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33 - RAAI Insured California, Economic Recovery Revenue Bonds, Series 2004A: 1,250 5.000%, 7/01/15 7/14 at 100.00 AA- 1,344,275 1,000 5.000%, 7/01/16 7/11 at 100.00 AA- 1,057,760 1,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 1,080,220 Department of Mental Health, Coalinga State Hospital, Series 2004A, 5.500%, 6/01/23 3,500 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 4,236,575 Department of Corrections, Calipatria State Prison, Series 1991A, 6.500%, 9/01/17 - MBIA Insured 1,400 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A- 1,490,272 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B, 5.500%, 6/01/33 1,300 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,332,149 Facilities District 03-1 of Ladera Ranch, Series 2004A, 5.625%, 8/15/34 605 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 673,419 Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - MBIA Insured 1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,032,940 of Participation, Series 2002, 5.000%, 4/01/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.9% 1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,046,650 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 5,000 Los Angeles Harbors Department, California, Revenue Refunding 8/11 at 100.00 AAA 5,382,900 Bonds, Series 2001B, 5.500%, 8/01/17 (Alternative Minimum Tax) - AMBAC Insured 3,305 Palm Springs Financing Authority, California, Palm Springs 7/05 at 100.00 AAA 3,313,659 Regional Airport Revenue Bonds, Series 1992, 6.000%, 1/01/12 (Alternative Minimum Tax) - MBIA Insured 1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,070,770 5.250%, 11/01/20 - FGIC Insured 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 2.4% $ 2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA $ 2,210,020 General Obligation Bonds, Series 2002A, 5.000%, 8/01/22 (Pre-refunded to 8/01/12) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.3% California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 2,000 5.750%, 5/01/17 5/12 at 101.00 A2 2,212,780 2,000 5.125%, 5/01/19 5/12 at 101.00 A2 2,103,920 200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 210,292 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 2,550 M-S-R Public Power Agency, California, Revenue Bonds, 7/05 at 100.00 AAA 2,588,760 San Juan Project, Series 1991E, 6.000%, 7/01/22 - MBIA Insured 1,225 Turlock Irrigation District, California, Revenue Refunding No Opt. Call AAA 1,380,379 Bonds, Series 1992A, 6.250%, 1/01/12 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.7% 2,160 California Statewide Community Development Authority, 10/11 at 101.00 AAA 2,279,448 Water and Wastewater Revenue Bonds, Pooled Financing Program, Series 2001B, 5.125%, 10/01/22 - FSA Insured 2,800 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 2,896,404 Series 1998A, 5.000%, 6/01/23 - FGIC Insured 825 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 823,050 Revenue Certificates of Participation, Solar Photovoltaic Project, Series 2003, 5.375%, 4/01/24 1,000 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 1,036,200 Participation, Water Systems Project, Series 2003, 5.625%, 7/01/43 - ------------------------------------------------------------------------------------------------------------------------------------ $ 90,850 Total Long-Term Investments (cost $85,595,768) - 98.3% 89,426,933 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 1,522,198 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 90,949,131 ====================================================================================================================
* 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. (DD) Security purchased on delayed delivery basis. N/R Investment is not rated. See accompanying notes to financial statements. 35 Nuveen New York Select Tax-Free Income Portfolio (NXN) Portfolio of INVESTMENTS March 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.1% $ 1,120 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 BBB $ 1,146,555 Series 2002-1, 5.500%, 7/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.9% 1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,775,242 Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 - AMBAC Insured 100 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 101,245 Civic Facility Revenue Bonds, St. Francis College, Series 2004, 5.000%, 10/01/34 500 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 513,725 Civic Facility Revenue Bonds, YMCA of Greater New York, Series 2002, 5.250%, 8/01/21 570 Dormitory Authority of the State of New York, Second No Opt. Call AAA 638,765 General Resolution Consolidated Revenue Bonds, City University System, Series 1990C, 7.500%, 7/01/10 - FGIC Insured 1,425 Dormitory Authority of the State of New York, Insured 7/07 at 101.00 AAA 1,493,186 Revenue Bonds, Rochester Institute of Technology, Series 1997, 5.250%, 7/01/22 - MBIA Insured 785 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 812,679 Bonds, Iona College, Series 2002, 5.000%, 7/01/22 - XLCA Insured 200 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 206,986 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 11.3% 750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 800,265 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 - AMBAC Insured 250 New York City Industrial Development Agency, New York, 7/12 at 101.00 Ba3 246,498 Civic Facility Revenue Bonds, Staten Island University Hospital, Series 2002C, 6.450%, 7/01/32 250 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 258,925 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 415 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 451,910 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 514,645 Winthrop-South Nassau University Hospital Association, Series 2003A, 5.500%, 7/01/32 670 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 703,714 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 250 Dormitory Authority of the State of New York, Revenue 5/13 at 100.00 A3 259,780 Bonds, North Shore Long Island Jewish Group, Series 2003, 5.375%, 5/01/23 1,680 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,795,046 Winthrop-South Nassau University Health System Obligated Group, Series 2001A, 5.250%, 7/01/17 - AMBAC Insured 1,195 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,276,834 Winthrop-South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.2% 1,000 East Rochester Housing Authority, New York, Revenue Bonds, 12/12 at 103.00 AAA 1,064,060 GNMA/FHA Secured Revenue Bonds, St. Mary's Residence Project, Series 2002A, 5.375%, 12/20/22 1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA 1,063,030 FHA-Insured Mortgage Revenue Bonds, Sunset Woods Apartments II Project, Series 2002, 5.350%, 2/01/20 775 New York State Housing Finance Agency, FHA-Insured 8/05 at 100.00 AAA 776,155 Mortgage Multifamily Housing Revenue Bonds, Series 1992C, 6.450%, 8/15/14 - MBIA Insured 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.2% $ 2,500 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa $ 2,515,175 Thirty-First Series A, 5.300%, 10/01/31 (Alternative Minimum Tax) 2,000 New York State Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,054,120 Revenue Bonds, Series 101, 5.000%, 10/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 9.2% 2,000 East Rochester Housing Authority, New York, FHA-Insured 8/12 at 101.00 AAA 2,055,060 Mortgage Revenue Refunding Bonds, Jewish Home of Rochester, Series 2002, 4.625%, 2/15/17 1,000 New York City Industrial Development Agency, New York, 11/12 at 101.00 AA+ 1,002,980 GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor House Inc. Project, Series 2002A, 4.950%, 11/20/32 2,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 2,078,580 Nursing Home Mortgage Revenue Bonds, Norwegian Christian Home and Health Center, Series 2001, 5.200%, 8/01/36 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 6.1% Clarkstown, Rickland County, New York, Various Purposes Serial Bonds, Series 1992: 505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 558,050 525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 584,750 525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 592,121 750 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AAA 798,578 Series 2004I, 5.000%, 8/01/17 - MBIA Insured 225 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A1 241,724 Series 2004B, 5.250%, 8/01/15 300 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A1 321,180 Series 2004C, 5.250%, 8/15/16 285 West Islip Union Free School District, Suffolk County, No Opt. Call Aaa 309,806 New York, General Obligation Bonds, Series 2005, 5.000%, 10/01/14 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.1% 600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 625,920 Series 2003A, 5.000%, 11/01/23 500 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 561,015 School Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 500 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 547,095 Service Contract Refunding Bonds, Series 2002A, 5.500%, 1/01/20 - MBIA Insured 95 Nassau County Interim Finance Authority, New York, Sales 11/06 at 101.00 AAA 99,044 Tax Secured Revenue Bonds, Series 2001A-2, 5.125%, 11/15/21 - AMBAC Insured 670 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 696,579 Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23 Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D: 175 5.000%, 2/15/14 - FGIC Insured No Opt. Call AAA 189,040 320 5.000%, 8/15/14 - FGIC Insured No Opt. Call AAA 346,352 50 New York State Thruway Authority, Highway and Bridge 4/05 at 102.00 AAA 51,088 Trust Fund Bonds, Series 1995A, 5.125%, 4/01/15 - MBIA Insured 750 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 803,618 Fund Bonds, Second General, Series 2003A, 5.250%, 4/01/23 - MBIA Insured 250 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 263,423 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/21 - MBIA Insured New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 250 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 262,075 200 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 209,342 1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,275,433 37 Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued) Portfolio of INVESTMENTS March 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: $ 1,000 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA $ 1,070,830 250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 266,640 500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 542,175 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 75 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 83,154 Center Bonds, Series 1990E, 7.250%, 1/01/10 500 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB- 543,215 Bonds, Community Development Properties - Yonkers Inc. Project, Series 2001A, 6.250%, 2/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.7% 400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 421,948 Series 2001A, 5.625%, 7/15/25 500 Metropolitan Transportation Authority, New York, No Opt. Call AAA 543,715 Transportation Revenue Bonds, Series 2003A, 5.000%, 11/15/15 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 10.7% 1,365 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 1,642,668 Facilities Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 1,430 Dormitory Authority of the State of New York, Revenue 7/11 at 101.00 AA-*** 1,556,298 Bonds, Upstate Community Colleges, Series 2002A, 5.000%, 7/01/23 (Pre-refunded to 7/01/11) 1,000 New York State Urban Development Corporation, State 3/13 at 100.00 AAA 1,119,320 Personal Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded to 3/15/13) - FGIC Insured 485 Suffolk County Water Authority, New York, Water Revenue No Opt. Call AAA 556,232 Bonds, Series 1986V, 6.750%, 6/01/12 1,000 West Islip Union Free School District, Suffolk County, 10/10 at 100.00 Aaa 1,084,610 New York, General Obligation Bonds, Series 2001, 5.000%, 10/01/17 (Pre-refunded to 10/01/10) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.2% 2,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 2,108,280 General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured 1,000 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 1,062,390 General Revenue Bonds, Series 2003C, 5.000%, 9/01/16 - CIFG Insured 500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 497,770 Pollution Control Revenue Bonds, New York State Electric and Gas Corporation, Series 2005A, 4.100%, 3/15/15 - MBIA Insured 250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa1 268,363 Solid Waste Disposal Facility Revenue Bonds, American Ref-Fuel Company of Niagara LP, Series 2001A, 5.450%, 11/15/26 (Alternative Minimum Tax) (Mandatory put 11/15/12) 60 Westchester County Industrial Development Agency, 7/07 at 101.00 BBB 62,305 Westchester County, New York, Resource Recovery Revenue Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09 (Alternative Minimum Tax) 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 12.2% $ 2,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ $ 2,575,675 Water and Sewerage System Revenue Bonds, Fiscal Series 2001C, 5.125%, 6/15/33 New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds, New York City Municipal Water Finance Authority Loan, Series 2002B: 2,000 5.250%, 6/15/19 6/12 at 100.00 AAA 2,167,420 2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,065,180 - ------------------------------------------------------------------------------------------------------------------------------------ $ 52,150 Total Long-Term Investments (cost $53,118,155) - 98.9% 55,179,581 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.1% 637,676 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 55,817,257 ====================================================================================================================
* 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. See accompanying notes to financial statements. 39 Statement of ASSETS AND LIABILITIES March 31, 2005
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $221,056,736, $242,268,311, $177,912,065 $85,595,768 and $53,118,155, respectively) $232,885,557 $249,871,402 $184,033,790 $89,426,933 $55,179,581 Cash -- 636,993 -- -- -- Receivables: Interest 3,798,537 3,807,935 2,776,217 1,334,998 753,967 Investments sold 4,260,868 1,918,050 625,890 3,060,000 -- Other assets 65,882 69,342 52,349 29,907 21,808 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 241,010,844 256,303,722 187,488,246 93,851,838 55,955,356 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 597,825 -- 796,219 143,785 90,567 Payable for investments purchased 783,563 2,955,928 2,172,366 2,688,374 -- Accrued expenses: Management fees 48,147 61,541 45,272 22,644 13,904 Other 120,935 128,738 95,004 47,904 33,628 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,550,470 3,146,207 3,108,861 2,902,707 138,099 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets $239,460,374 $253,157,515 $184,379,385 $90,949,131 $55,817,257 ==================================================================================================================================== Shares outstanding 16,378,096 17,607,068 12,964,124 6,257,070 3,908,223 ==================================================================================================================================== Net asset value per share outstanding (net assets divided by shares outstanding) $ 14.62 $ 14.38 $ 14.22 $ 14.54 $ 14.28 ==================================================================================================================================== NET ASSETS CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Shares, $.01 par value per share $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,082 Paid-in surplus 227,635,043 245,690,697 178,372,582 87,121,715 53,622,239 Undistributed (Over-distribution of) net investment income (175,666) (431,664) (272,407) (115,819) (77,492) Accumulated net realized gain from investments 8,395 119,320 27,844 49,499 172,002 Net unrealized appreciation of investments 11,828,821 7,603,091 6,121,725 3,831,165 2,061,426 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets $239,460,374 $253,157,515 $184,379,385 $90,949,131 $55,817,257 ==================================================================================================================================== Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 40 Statement of OPERATIONS Year Ended March 31, 2005
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $12,232,747 $12,773,356 $ 9,275,222 $4,490,761 $ 2,736,085 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 575,022 729,898 536,276 268,217 165,342 Shareholders' servicing agent fees and expenses 41,837 38,741 30,325 10,819 8,118 Custodian's fees and expenses 53,621 55,385 43,221 26,955 17,158 Trustees' fees and expenses 2,204 3,499 3,823 1,305 701 Professional fees 37,185 38,571 20,292 9,846 7,629 Shareholders' reports - printing and mailing expenses 36,659 39,979 29,054 12,864 9,069 Stock exchange listing fees 9,634 9,634 9,634 10,905 10,737 Investor relations expense 27,741 21,601 21,928 10,443 6,709 Other expenses 8,920 9,220 7,675 5,397 4,666 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit 792,823 946,528 702,228 356,751 230,129 Custodian fee credit (20,409) (30,251) (24,054) (6,955) (2,735) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 772,414 916,277 678,174 349,796 227,394 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 11,460,333 11,857,079 8,597,048 4,140,965 2,508,691 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain from investments 1,298,950 392,947 465,025 49,639 246,834 Change in net unrealized appreciation (depreciation) of investments (3,258,427) (2,835,579) (1,854,352) (670,557) (1,058,725) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (1,959,477) (2,442,632) (1,389,327) (620,918) (811,891) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets from operations $ 9,500,856 $ 9,414,447 $ 7,207,721 $3,520,047 $ 1,696,800 ====================================================================================================================================
See accompanying notes to financial statements. 41 Statement of CHANGES IN NET ASSETS
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR) ---------------------------- ------------------------------ ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/05 3/31/04 3/31/05 3/31/04 3/31/05 3/31/04 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 11,460,333 $ 11,905,808 $ 11,857,079 $ 12,376,091 $ 8,597,048 $ 8,972,377 Net realized gain from investments 1,298,950 1,631,548 392,947 1,107,932 465,025 388,100 Change in net unrealized appreciation (depreciation) of investments (3,258,427) 764,039 (2,835,579) 2,207,042 (1,854,352) 1,738,203 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets from operations 9,500,856 14,301,395 9,414,447 15,691,065 7,207,721 11,098,680 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS From net investment income (11,587,432) (12,405,127) (11,902,381) (12,700,072) (8,741,600) (9,009,179) From accumulated net realized gains from investments (1,618,228) (1,399,973) (727,172) (973,580) (444,780) (868,194) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (13,205,660) (13,805,100) (12,629,553) (13,673,652) (9,186,380) (9,877,373) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets (3,704,804) 496,295 (3,215,106) 2,017,413 (1,978,659) 1,221,307 Net assets at the beginning of year 243,165,178 242,668,883 256,372,621 254,355,208 186,358,044 185,136,737 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets at the end of year $239,460,374 $243,165,178 $253,157,515 $256,372,621 $184,379,385 $186,358,044 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ (175,666) $ (46,057) $ (431,664) $ (373,447) $ (272,407) $ (125,424) ====================================================================================================================================
See accompanying notes to financial statements. 42
CALIFORNIA NEW YORK SELECT TAX-FREE (NXC) SELECT TAX-FREE (NXN) ----------------------------- ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/05 3/31/04 3/31/05 3/31/04 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,140,965 $ 4,230,020 $ 2,508,691 $ 2,640,505 Net realized gain from investments 49,639 528,424 246,834 314,601 Change in net unrealized appreciation (depreciation) of investments (670,557) 704,451 (1,058,725) 294,010 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets from operations 3,520,047 5,462,895 1,696,800 3,249,116 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS From net investment income (4,142,182) (4,262,921) (2,587,119) (2,668,659) From accumulated net realized gains from investments (292,831) (310,999) (250,126) (322,333) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (4,435,013) (4,573,920) (2,837,245) (2,990,992) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- 16,500 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets (914,966) 888,975 (1,140,445) 274,624 Net assets at the beginning of year 91,864,097 90,975,122 56,957,702 56,683,078 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets at the end of year $90,949,131 $91,864,097 $55,817,257 $56,957,702 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ (115,819) $ (114,580) $ (77,492) $ 2,359 ====================================================================================================================================
See accompanying notes to financial statements. 43 Notes to FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds (the "Funds") covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Select Tax-Free Income Portfolio (NXP), Nuveen Select Tax-Free Income Portfolio 2 (NXQ), Nuveen Select Tax-Free Income Portfolio 3 (NXR), Nuveen California Select Tax-Free Income Portfolio (NXC) and Nuveen New York Select Tax-Free Income Portfolio (NXN). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, diversified management investment companies. Each Fund seeks to provide stable dividends consistent with the preservation of capital, exempt from regular federal and designated state income taxes, where applicable, by investing primarily in a diversified portfolio of municipal obligations. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Trustees. When 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 March 31, 2005, Select Tax-Free (NXP), Select Tax-Free 2 (NXQ), Select Tax-Free 3 (NXR) and California Select Tax-Free (NXC) had outstanding when-issued and delayed delivery purchase commitments of $783,563, $2,955,928, $2,172,366 and $2,688,374, respectively. There were no such outstanding purchase commitments in New York Select Tax-Free (NXN). 44 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. 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, where applicable, 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 March 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. Dividends and Distributions to Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Derivative Financial Instruments The Funds are not authorized to invest in derivative financial instruments. 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 Funds' organizational documents, their Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. 45 Notes to FINANCIAL STATEMENTS (continued) 2. FUND SHARES None of the Funds engaged in transactions in their own shares during the fiscal year ended March 31, 2005, nor during the fiscal year ended March 31, 2004, with the exception of New York Select-Tax Free (NXN) which issued 1,154 shares to shareholders due to reinvestment of distributions during the fiscal year ended March 31, 2004. 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities during the fiscal year ended March 31, 2005, were as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) - --------------------------------------------------------------------------------------------------------- Purchases $26,796,412 $32,045,842 $28,492,260 $11,577,856 $7,388,638 Sales and maturities 28,932,100 31,945,500 29,794,950 12,382,963 7,948,160 =========================================================================================================
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 March 31, 2005, the cost of investments was as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) - --------------------------------------------------------------------------------------------------------- Cost of investments $220,744,301 $242,187,050 $177,867,707 $85,595,121 $53,114,143 =========================================================================================================
46 Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2005, were as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) - --------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $14,393,193 $9,916,787 $6,919,717 $3,942,473 $2,152,176 Depreciation (2,251,937) (2,232,435) (753,634) (110,661) (86,738) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $12,141,256 $7,684,352 $6,166,083 $3,831,812 $2,065,438 =========================================================================================================
The tax components of undistributed net investment income and net realized gains at March 31, 2005, were as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income* $445,452 $455,464 $389,781 $227,670 $127,589 Undistributed net ordinary income** -- -- -- 49,498 -- Undistributed net long-term capital gains 8,396 119,320 27,844 -- 172,003 =========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on March 1, 2005, paid on April 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 March 31, 2005 and March 31, 2004, was designated for purposes of the dividends paid deduction as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE 2005 (NXP) (NXQ) (NXR) (NXC) (NXN) - ----------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $11,595,693 $11,964,006 $8,750,786 $4,148,439 $2,596,891 Distributions from net ordinary income** 71,645 -- 29,707 -- -- Distributions from net long-term capital gains 1,603,834 727,172 444,780 292,832 250,126 ======================================================================================================================= CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE 2004 (NXP) (NXQ) (NXR) (NXC) (NXN) - ----------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $12,087,037 $12,571,449 $8,945,252 $4,242,294 $2,672,502 Distributions from net ordinary income** 334,467 163,837 63,927 27,740 -- Distributions from net long-term capital gains 1,399,973 973,580 868,194 310,142 322,333 =======================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 47 Notes to FINANCIAL STATEMENTS (continued) 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Effective January 1, 2005, Nuveen Institutional Advisory Corp. ("NIAC"), the Funds' previous Adviser, and its affiliate, Nuveen Advisory Corp. ("NAC"), 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 NIAC or NAC. 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 April 30, 2005, the complex-level fee rate was .1915%; that is, the funds' effective management fees were reduced by approximately .0085%. 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:
SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR) CALIFORNIA SELECT TAX-FREE (NXC) SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN) AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE FUND-LEVEL FEE RATE - ---------------------------------------------------------------------------------------------- For the first $125 million .0500% .1000% For the next $125 million .0375 .0875 For the next $250 million .0250 .0750 For the next $500 million .0125 .0625 ==============================================================================================
48 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:
SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR) CALIFORNIA SELECT TAX-FREE (NXC) AVERAGE DAILY NET ASSETS SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN) - ------------------------------------------------------------------------------------------------ For the first $125 million .2500% .3000% For the next $125 million .2375 .2875 For the next $250 million .2250 .2750 For the next $500 million .2125 .2625 For the next $1 billion .2000 .2500 For net assets over $2 billion .1875 .2375 ================================================================================================
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised Funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised Funds. 49 Notes to FINANCIAL STATEMENTS (continued) 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 NAM, 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. 7. SUBSEQUENT EVENT Distributions to Shareholders The Funds declared dividend distributions from their tax-exempt net investment income which were paid on May 2, 2005, to shareholders of record on April 15, 2005, as follows: CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) - -------------------------------------------------------------------------------- Dividend per share $.0570 $.0550 $.0545 $.0550 $.0535 ================================================================================ 50 Financial HIGHLIGHTS 51 Financial HIGHLIGHTS Selected data for a share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------- -------------------------------- Net Ending Beginning Net Realized/ Net Net Ending Net Asset Investment Unrealized Investment Capital Asset Market Value Income Gain (Loss) Total Income Gains Total Value Value ==================================================================================================================================== SELECT TAX-FREE (NXP) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 $14.85 $.70 $(.12) $ .58 $(.71) $(.10) $(.81) $14.62 $13.50 2004 14.82 .73 .15 .88 (.76) (.09) (.85) 14.85 14.30 2003 14.67 .77 .37 1.14 (.82) (.17) (.99) 14.82 14.15 2002 15.05 .88 (.38) .50 (.86) (.02) (.88) 14.67 13.85 2001 14.89 .91 .15 1.06 (.90) -- (.90) 15.05 14.50 SELECT TAX-FREE 2 (NXQ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 14.56 .67 (.13) .54 (.68) (.04) (.72) 14.38 13.08 2004 14.45 .70 .19 .89 (.72) (.06) (.78) 14.56 13.80 2003 14.53 .76 .14 .90 (.80) (.18) (.98) 14.45 13.49 2002 14.89 .86 (.36) .50 (.84) (.02) (.86) 14.53 13.66 2001 14.75 .87 .14 1.01 (.87) -- (.87) 14.89 14.15 SELECT TAX-FREE 3 (NXR) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 14.37 .66 (.11) .55 (.67) (.03) (.70) 14.22 12.82 2004 14.28 .69 .16 .85 (.69) (.07) (.76) 14.37 13.56 2003 14.26 .73 .12 .85 (.76) (.07) (.83) 14.28 13.06 2002 14.53 .81 (.28) .53 (.80) -- (.80) 14.26 13.42 2001 14.32 .81 .21 1.02 (.81) -- (.81) 14.53 13.70 CALIFORNIA SELECT TAX-FREE (NXC) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 14.68 .66 (.09) .57 (.66) (.05) (.71) 14.54 13.40 2004 14.54 .68 .19 .87 (.68) (.05) (.73) 14.68 14.06 2003 14.44 .71 .26 .97 (.73) (.14) (.87) 14.54 13.59 2002 14.79 .78 (.34) .44 (.77) (.02) (.79) 14.44 14.25 2001 14.57 .79 .23 1.02 (.79) (.01) (.80) 14.79 13.94 NEW YORK SELECT TAX-FREE (NXN) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 14.57 .64 (.21) .43 (.66) (.06) (.72) 14.28 13.65 2004 14.51 .68 .14 .82 (.68) (.08) (.76) 14.57 14.40 2003 14.17 .70 .43 1.13 (.70) (.09) (.79) 14.51 13.60 2002 14.51 .73 (.33) .40 (.74) -- (.74) 14.17 13.76 2001 14.31 .78 .20 .98 (.78) -- (.78) 14.51 14.05 ==================================================================================================================================== Ratios/Supplemental Data -------------------------------------------------------------------------------- Total Returns Before Credit After Credit** ---------------------- ---------------------------- --------------------------- Ratio of Net Ratio of Net Based on Ending Ratio of Investment Ratio of Investment Based on Net Net Expenses to Income to Expenses to Income to Portfolio Market Asset Assets Average Average Average Average Turnover Value* Value* (000) Net Assets Net Assets Net Assets Net Assets Rate ==================================================================================================================================== SELECT TAX-FREE (NXP) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 .17% 4.00% $239,460 .33% 4.76% .32% 4.77% 11% 2004 7.34 6.13 243,165 .34 4.90 .33 4.91 16 2003 9.51 7.84 242,669 .37 5.20 .36 5.21 35 2002 1.54 3.41 240,275 .38 5.89 .37 5.89 26 2001 12.63 7.32 246,475 .35 6.06 .35 6.07 2 SELECT TAX-FREE 2 (NXQ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 .11 3.82 253,158 .37 4.68 .36 4.69 13 2004 8.35 6.31 256,373 .39 4.86 .38 4.86 10 2003 6.01 6.33 254,355 .42 5.20 .41 5.21 46 2002 2.57 3.41 255,887 .43 5.79 .42 5.80 21 2001 12.46 7.04 262,144 .41 5.89 .40 5.90 2 SELECT TAX-FREE 3 (NXR) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 (.17) 4.01 184,379 .38 4.66 .37 4.67 16 2004 9.96 6.13 186,358 .38 4.84 .38 4.85 6 2003 3.51 6.09 185,137 .42 5.09 .41 5.10 51 2002 3.84 3.70 184,837 .44 5.59 .42 5.60 9 2001 12.97 7.36 188,344 .47 5.66 .46 5.67 2 CALIFORNIA SELECT TAX-FREE (NXC) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2005 .50 3.99 90,949 .39 4.55 .39 4.56 13 2004 9.14 6.16 91,864 .40 4.64 .39 4.65 30 2003 1.34 6.86 90,975 .43 4.84 .42 4.85 42 2002 7.95 3.03 90,346 .44 5.27 .43 5.28 12 2001 7.23 7.21 92,517 .43 5.38 .42 5.39 2 NEW YORK SELECT TAX-FREE (NXN) - ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 3/31: 2005 .05 3.10 55,817 .41 4.48 .41 4.48 13 2004 11.81 5.84 56,958 .43 4.65 .42 4.65 16 2003 4.73 8.17 56,683 .46 4.85 .45 4.86 35 2002 3.17 2.75 55,362 .49 5.04 .48 5.05 28 2001 17.36 7.02 56,679 .48 5.39 .47 5.40 3 ===================================================================================================================================
* Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Net Asset Value is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. ** After custodian fee credit, where applicable. See accompanying notes to financial statements. 52-53 SPREAD Board Members 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 Members of the Funds. The number of board members of the Funds is currently set at nine. None of the board members who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER - ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 154 3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and 333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp. (3); 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). BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 154 8/22/40 333 W. Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 154 7/29/34 Trust Company; Director, Community Advisory Board for 333 W. Wacker Drive Highland Park and Highwood, United Way of the North Chicago, IL 60606 Shore (since 2002). - ------------------------------------------------------------------------------------------------------------------------------------ Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 154 10/22/48 corporation (since 1996); Director and Vice Chairman, United 333 W. Wacker Drive Fire & Casualty Company; formerly, Director, Federal Reserve Chicago, IL 60606 Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. - ------------------------------------------------------------------------------------------------------------------------------------ William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 154 3/6/48 Business at the University of Connecticut (since 2003); 333 W. Wacker Drive previously Senior Vice President and Director of Research Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director, Credit Research Center at Georgetown University; Director of Xerox Corporation (since 2004). - ------------------------------------------------------------------------------------------------------------------------------------ David J. Kundert Board member 2005 Retired (2004) as Chairman, JPMorgan Fleming Asset 153 10/28/42 Management, President and CEO, Banc One Investment 333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual Chicago, IL 60606 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. 54 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER - ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ William J. Schneider Board member 1997 Chairman, formerly, Senior Partner and Chief Operating 154 9/24/44 Officer, Miller-Valentine Partners Ltd., a real estate 333 W. Wacker Drive investment company; formerly, Vice President, Miller-Valentine Chicago, IL 60606 Realty, a construction company; Chair, Premier Health Partners, the not-for-profit company of Miami Valley Hospital; Board Member, formerly Chair, Dayton Development Coalition; President, Philharmonic Orchestra; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. - ------------------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 154 12/29/47 Foundation (since 1994); prior thereto, Executive Director, 333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994). Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance (since 1997), 154 1/22/50 Northwestern University; Director (since 2003), Chicago 333 W. Wacker Drive Board of Options Exchange; Director (since 2003), National Chicago, IL 60606 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 of Commerce and Evanston Inventure, a business development organization. - ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 154 9/9/56 Administrative Associate General Counsel, formerly, Vice President and 333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC; Chicago, IL 60606 Managing Director (since 2002), General Counsel and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. (3); 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. 55 Board Members AND OFFICERS (CONTINUED) NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ Julia L. Antonatos Vice President 2004 Managing Director (since 2005), previously, Vice President 154 9/22/63 (since 2002), formerly, Assistant Vice President (since 1999) 333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst. Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 154 2/3/66 and Assistant President (since 2000), previously, Associate of Nuveen 333 W. Wacker Drive Secretary Investments, LLC. Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 154 11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice 333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since Chicago, IL 60606 1999); Vice President and Treasurer of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp (since 1999) (3); Vice President and Treasurer of Nuveen Asset Management (since 2002) and of Nuveen Investments Advisers Inc. (since 2002); Assistant Treasurer of NWQ Investment Management Company, LLC (since 2002); Vice President and Treasurer of Nuveen Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------------------------------ Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 154 9/24/64 and Secretary (since 1998), formerly, Assistant Vice President (since 1998) 333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002) Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. (3); and Nuveen Asset Management. - ------------------------------------------------------------------------------------------------------------------------------------ Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 154 10/24/45 Nuveen Investments, LLC; Managing Director (since 2004) 333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory Corp. Chicago, IL 60606 and Nuveen Institutional Advisory Corp. (3); Managing Director of Nuveen Asset Management. - ------------------------------------------------------------------------------------------------------------------------------------ William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 154 3/2/64 LLC; Managing Director (since 2001), formerly Vice President 333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory Chicago, IL 60606 Corp. (since 1995) (3); Managing Director of Nuveen Asset Management (since 2001); Vice President of Nuveen Investment Advisers Inc. (since 2002); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 154 5/31/54 and Controller of Nuveen Investments, LLC and Vice President and Funds 333 W. Wacker Drive Controller (1998-2004) of Nuveen Investments, Inc.; Chicago, IL 60606 Certified Public Accountant. - ------------------------------------------------------------------------------------------------------------------------------------ James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 154 4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc., 333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management, Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance (2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. (3); formerly, Senior Attorney (1994 to 2004), The Northern Trust Company. 56 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 154 3/22/63 LLC, previously Assistant Vice President (since 1999); 333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC; Chicago, IL 60606 Certified Public Accountant. - ------------------------------------------------------------------------------------------------------------------------------------ Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 154 8/27/61 President (since 1993) of Nuveen Investments, LLC. 333 W. Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 154 7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and 333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp. (3); Assistant Secretary of Nuveen Investments, Inc. and (since 1997) 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 board member of the Adviser. (2) Board members serve an indefinite term until his/her successor is elected. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 57 Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 58 Other Useful INFORMATION 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 toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 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 References Section at 450 Fifth Street NW, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE The Funds' Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each of the Funds has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. 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 market 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. MODIFIED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. BOARD OF TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Eugene S. Sunshine FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 59 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. 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 more than $115 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in fixed-income 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, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices Learn more o Fund details about Nuveen Funds at o Daily financial news WWW.NUVEEN.COM/ETF o Investor education o Interactive planning tools Logo: NUVEEN Investments EAN-B-0305D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/etf. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, Chairman of the Audit Committee, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen California Select Tax-Free Income Portfolio The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP entered into on or after May 6, 2003, the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND - ------------------------------------------------------------------------------------------------------------------------------------ March 31, 2005 $ 7,814 $ 0 $ 407 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved N/A 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ March 31, 2004 $ 7,419 $ 0 $ 364 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved N/A 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax compliance and tax planning. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM ("Control Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The table also shows the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS - --------------------------------------------------------------------------------------------------------------------- March 31, 2005 $ 0 $ 0 $ 0 - --------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception - --------------------------------------------------------------------------------------------------------------------- March 31, 2004 $ 0 $ 0 $ 0 - --------------------------------------------------------------------------------------------------------------------- Percentage approved N/A N/A N/A pursuant to pre-approval exception - ---------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. For engagements entered into on or after May 6, 2003, the Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ March 31, 2005 $ 407 $ 0 $ 0 $ 407 March 31, 2004 $ 364 $ 0 $ 0 $ 364
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the audit committee if they are expected to be for amounts greater than $10,000; (ii) reported to the audit committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the audit committee at the next audit committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board of Directors or Trustees has a separately designated audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B. Evans and William J. Schneider. ITEM 6. SCHEDULE OF INVESTMENTS. See Schedule I in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. In the rare event that a municipal issuer held by the Fund were to issue a proxy or that the Fund were to receive a proxy issued by a cash management security, the Adviser would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the Fund's Board of Directors or Trustees or its representative. In the case of a conflict of interest, the proxy would be submitted to the applicable Fund's Board to determine how the proxy should be voted. A member of the Adviser's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17 CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the results were provided to the Board of Directors or Trustees and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable at this time. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the 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. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/etf and there were no amendments during the period covered by this report. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen California Select Tax-Free Income Portfolio ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: June 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: June 8, 2005 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: June 8, 2005 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 file002.txt CERTIFICATIONS CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen California Select Tax-Free Income Portfolio; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: June 8, 2005 /s/ Gifford R. Zimmerman ------------------------- -------------------------------- Chief Administrative Officer (principal executive officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen California Select Tax-Free Income Portfolio; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: June 8, 2005 /s/ Stephen D. Foy ------------------------- -------------------------------- Vice President and Controller (principal financial officer) EX-99.906CERT 3 file003.txt CERTIFICATIONS Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen California Select Tax-Free Income Portfolio (the "Fund"), certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended March 31, 2005 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: June 8, 2005 ----------------------- /s/ Gifford R. Zimmerman --------------------- Chief Administrative Officer (principal executive officer) /s/ Stephen D. Foy --------------------- Vice President, Controller (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----