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, 2006 ------------------ 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, 2006 Nuveen Investments Municipal Exchange-Traded Closed-End 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 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: 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 report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please read the Portfolio Managers' Comments, the Dividend and Share Price Information, and the Performance Overview sections of this report. Municipal bonds can be an important building block in a well balanced investment portfolio. In addition to providing attractive tax-free monthly income, a municipal bond investment like your Fund may help you achieve and benefit from greater portfolio diversification. Portfolio diversification is a recognized way to try to reduce some of the risk that comes with investing. I encourage you to contact your personal financial advisor who can help explain this important investment strategy. "PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK THAT COMES WITH INVESTING." Nuveen Investments is pleased to offer you choices when it comes to receiving your fund reports. As an alternative to mailed print copies, you can also sign up to receive future Fund reports and other Fund information by e-mail and the Internet. Not only will you receive the information faster, but this may also help lower your Fund's expenses. The inside front cover of this report contains information on how you can sign up. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board May 3, 2006 Nuveen Investments Select Tax-Free Income Portfolios (NXP, NXQ, NXR, NXC, NXN) Portfolio Managers' COMMENTS Portfolio managers Tom Spalding, Scott Romans, and Paul Brennan review the economic and municipal market environments, key investment strategies, and annual performance of the Nuveen Select Tax-Free Income Portfolios. With 31 years of investment experience, Tom has managed the three national Portfolios since 1999. Scott, who joined Nuveen in 2000, and Paul, who has 15 years of investment experience, have managed NXC and NXN, respectively, since 2003. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL REPORTING PERIOD ENDED MARCH 31, 2006? During this reporting period, we saw an increase in interest rates across the yield curve, although short-term rates rose at a much faster pace than longer-term rates. Between April 1, 2005 and March 31, 2006, the Federal Reserve announced eight increases of 0.25% each in the fed funds rate, raising this short-term target by 200 basis points (from 2.75% to 4.75%). In all, the Fed has implemented fifteen .25% hikes in the fed funds rate since June 2004. However, yields in the longer part of the curve proved to be more resistant to increases. The yield on the benchmark 10-year U.S. Treasury note ended March 2006 at 4.85%, up from 4.50% twelve months earlier, while the yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term municipal market rates, was 5.14% at the end of March 2006, an increase of just 11 basis points from the beginning of April 2005. As interest rates increased, bond valuations generally declined, and the yield curve flattened as shorter-term rates approached the levels of longer-term rates. Even with rising interest rates, increased energy prices, and a housing market that gave some indications of softening, the economy remained resilient, with a healthy pattern of growth. After expanding at a rate of 3.3% in the second quarter of 2005, the U.S. gross domestic product (GDP) grew by 4.1% in the third quarter before slowing to 1.7% in the fourth quarter (all GDP numbers are annualized). In the first quarter of 2006, the GDP rebounded to 4.8%, fueled by the return of consumer and federal spending and increased business investment in equipment. The overall employment picture remained positive, with national unemployment at 4.7% in March 2006, down from 5.1% in March 2005. Despite a slight increase in inflation expectations, the year-over-year increase in the Consumer Price Index as of March 2006 remained relatively benign, at 3.4%. However, for the first three months of 2006, inflation rose at the slightly faster pace of 4.3% annualized, compared with 3.4% for all of 2005. 4 Over the 12 months ended March 2006, municipal bond supply nationwide remained relatively strong, as $403.6 billion in new securities came to market, down 1.5% from the previous 12 months. However, following record levels of issuance in calendar year 2005, we saw a dramatic drop-off in supply during the first three months of 2006, when municipal issuance totaled $69.6 billion, a decrease of 29% from the same period in 2005. During the first quarter of 2006, the transportation and education sectors and general purpose bonds experienced the largest drops in issuance. A major factor in 2006's decline was the sharp reduction in pre-refunding volume, which was off 55% from last year's levels. Although interest rates remained favorable for refundings, most borrowers already had ample opportunities to come to the market during 2005. Overall, demand for municipal bonds remained strong and diversified during this period. HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA AND NEW YORK DURING THIS PERIOD? During this reporting period, California's economy experienced significant improvement in the employment sector. Gains in construction, natural resources, and tourism led the way, overshadowing small job losses in the information services sector. As of March 2006, California's unemployment rate was 4.8%, down from 5.5% in March 2005. Although the state continued to work toward the political consensus necessary to address the balanced budget issue and other fiscal problems of the past few years, Californiarecent economic expansion has led to strong growth in both personal and corporate income, which in turn has generated higher tax revenues. In July 2005, both Moody's and Fitch upgraded their ratings on California's general obligation debt--to A2 from A3 and to A from A-, respectively. Standard and Poor's maintained its California GO rating at A. In announcing the upgrades, the rating agencies cited the improvements in state revenues. For the 12 months ended March 31, 2006, municipal issuance in California totaled $56.9 billion, a decrease of 10% from the previous 12 months. During the first three months of 2006, supply in the state continued to decline, with $9.1 billion in new issuance, down 23% from January-March 2005. California continued to rank as the largest state issuer in the nation for both time periods. 5 New York also continued to recover economically, with employment growth in financial services, healthcare and education, and natural resources. However, the state's manufacturing sector continued to lose jobs. Although more diversified than it was a decade ago, the New York economy remained highly dependent on the financial services sector, making it more susceptible to economic cycles. In March 2006, unemployment in New York stood at 4.7%, down from 4.8% in March 2005. As of March 2006, New York State general obligation bonds were rated Aa3 by Moody's, AA by S&P, and AA- by Fitch; all three rating agencies maintained a stable outlook for the state. In February 2006, S&P upgraded the credit rating on New York personal income tax (PIT) bonds to AAA from AA. S&P's upgrade of the PIT credits, which are issued by public authorities such as New York Dormitory Authority, New York Urban Development Corporation, New York Housing Finance Authority, and New York Thruway Authority, affected billions of dollars of debt and served as an indication of the state's improving financial status. New York City's credit rating was upgraded by Moody's (A1 from A2) and S&P (A+ from A) in April and May 2005, respectively, representing the highest ratings ever given New York City by these agencies. During the reporting period ended March 31, 2006, municipal issuance in New York totaled $42.5 billion, a decrease of 3% from the previous 12 months. The first three months of 2006 saw state supply drop off more precipitously, with $6.1 billion in new issuance, down 38% from the first quarter of 2005. For the annual period, New York ranked second only to California in terms of municipal issuance. WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE 12 MONTHS ENDED MARCH 31, 2006? As interest rates rose and the yield curve flattened, one of our key strategies continued to be careful duration1 management. Our purchase activity during this period focused on the varying duration needs of the Portfolios. For the three national Portfolios, we sought to purchase attractively priced bonds with more than 15 years to maturity, and we looked for bonds that mature in 10 to 20 years for NXN. For NXC, we continued to see a substantial number of advance refundings2 in the California market. While these refundings benefited NXC's performance during this period, they also had a shortening effect on the Portfolio's duration. Our purchase activity in this Portfolio therefore emphasized longer bonds maturing in 20 to 30 years. 1 Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. 2 Advance refundings, also known as pre-refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers. 6 To help us maintain the Portfolios' durations within a preferred strategic range, we were also selectively selling holdings with shorter durations, including bonds priced to short call dates and, in NXN, bonds that were currently callable and short-dated pre-refunded bonds. Selling these shorter duration bonds and reinvesting further out on the yield curve also helped to improve the Portfolios' overall call protection profiles. In NXN, rising yields during this period also provided some opportunities to sell a few of our holdings that were purchased when yields were lower and replace them with similar, newer credits that yielded comparatively more. This process allowed us to maintain NXN's current portfolio characteristics while strengthening its income stream. It also enabled us to realize some capital losses that can be used to offset any capital gains realized in 2006 or carried forward to offset future realized gains. In looking for potential purchase candidates during this period, we kept an opportunistic eye toward all types of issuance that we believed could add value to the Portfolios. In general, portfolio activity was relatively light, due in part to the overall decline in municipal supply, especially during the last three months of this period. Much of the new supply was highly rated and/or insured, and the majority of our new purchases during this time were higher-rated credits. In the national Portfolios, we added some zero coupon bonds, purchased at times when we believed these credits were attractively priced. Zero coupon bonds feature very long durations and were helpful as part of our duration management strategies in extending the Portfolios' average maturities and durations. In addition, zeros' long durations helped to place them among the best performing sectors of the market during this period. In general, we looked to states with stronger issuance, including New York, Texas, Illinois, Massachusetts, and New Jersey, for opportunities to add value to our National Portfolios. Overall, the Portfolios remained well diversified geographically. We should also note that, during this period, we reached a settlement agreement with United Airlines, which emerged from bankruptcy in February 2006. 7 In NXN, we participated in one of the larger issues of the period, the $950 million Long Island Power Authority (LIPA) offering in March 2006. The LIPA bonds were issued in two series, the first of which refinanced bonds issued by LIPA in 1998 and the second of which will be used to reimburse LIPA's treasury for capital improvements. We purchased a significant amount of these insured bonds for NXN, both to replace the 1998 LIPA bonds that were advance refunded and to add to our position in these credits. While we continued to emphasize maintaining the Portfolios' weightings of bonds rated BBB or lower and nonrated bonds, tighter supply meant fewer opportunities to find additional lower-rated issues that we believed represented value for shareholders. One area where we did find opportunities to purchase lower-rated bonds was the tobacco sector. In NXN, we participated in the $1.4 billion issuance of BBB rated tobacco bonds by TSASC, Inc. New York in February 2006, and in NXC, we added BBB rated tobacco bonds issued by Sonoma County. Although the Sonoma County bonds had lower coupons and shorter maturities than we had strategically targeted for NXC during this period, we believed that this was offset by the attractive structures and return potential offered by these credits. In NXC, we also further diversified our exposure to the lower end of the credit spectrum by purchasing BBB+ bonds issued for Daughters of Charity Health System and A3 rated credits issued for Cedars-Sinai Medical Center. 8 HOW DID THE PORTFOLIOS PERFORM? Individual results for the Nuveen Select Portfolios, as well as for relevant indexes and peer groups, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 3/31/06 NATIONAL PORTFOLIOS 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NXP 4.74% 5.21% 5.63% -------------------------------------------------------------------------------- NXQ 5.12% 4.99% 5.46% -------------------------------------------------------------------------------- NXR 5.10% 5.00% 5.61% -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index3 3.81% 5.18% 5.87% -------------------------------------------------------------------------------- Lipper General and Insured Unleveraged Municipal Debt Funds Average4 5.08% 5.05% 5.47% -------------------------------------------------------------------------------- CALIFORNIA PORTFOLIO -------------------------------------------------------------------------------- NXC 5.17% 5.03% 5.56% -------------------------------------------------------------------------------- Lehman Brothers CA Tax-Exempt Bond Index3 4.37% 5.29% 6.02% -------------------------------------------------------------------------------- Lipper CA Municipal Debt Funds Average4 6.54% 6.62% 6.57% -------------------------------------------------------------------------------- NEW YORK PORTFOLIO -------------------------------------------------------------------------------- NXN 4.19% 4.79% 5.32% -------------------------------------------------------------------------------- Lehman Brothers NY Tax-Exempt Bond Index3 3.68% 5.06% 5.98% -------------------------------------------------------------------------------- Lipper NY Municipal Debt Funds Average4 5.81% 6.44% 6.28% -------------------------------------------------------------------------------- * Annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Portfolio distributions or upon the sale of Portfolio shares. For additional information, see the individual Performance Overview for your Portfolio in this report. 3 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national index containing a broad range of investment-grade municipal bonds. The Lehman Brothers Tax-Exempt Bond Indexes for California and New York are also unleveraged and unmanaged and comprise a broad range of municipal bonds issued in California and New York, respectively. Results for the Lehman indexes do not reflect any expenses. 4 Each of the Lipper Municipal Debt Funds averages shown in this report are calculated using the returns of all exchange-traded closed-end funds in their respective categories for each period as follows: Lipper General and Insured Unleveraged category, 1 year, 8; 5 years, 8; and 10 years, 8; Lipper California category, 1 year, 26; 5 years, 16; and 10 years, 13; and Lipper New York category, 1 year, 20; 5 years, 10; and 10 years, 7. Portfolio and Lipper returns assume reinvestment of dividends. 9 For the 12 months ended March 31, 2006, the total returns on net asset value (NAV) for all five Select Portfolios outperformed the returns on their respective Lehman Brothers benchmarks. NXQ and NXR performed in line with the Lipper General and Insured Unleveraged peer group for this period, while NXP trailed this average. Both NXC and NXN underperformed the average returns for their respective Lipper California and New York peer groups. The strong performances of the Lipper peer groups for California and New York are due in part to the fact that the majority of the funds that make up these groups are leveraged. This strategy provides opportunities for enhanced returns accompanied by additional risk exposure. NXC and NXN are not leveraged, which hurt their performance relative to their peer groups over this period. During this reporting period, positive contributors to the Portfolios' returns included yield curve and duration positioning, allocations to lower-rated credits, and pre-refunding activity. NXC's holdings of California general obligation debt were also positively impacted by Moody's and Fitch's upgrades of these bonds in July 2005. In addition, the credit quality and value of NXN was enhanced by Moody's and S&P's upgrades of New York City GO bonds in April and May 2005, respectively, as well as S&P's upgrade of New York personal income tax (PIT) bonds in February 2006. In addition, security-specific issues--including security selection, credit spreads, and the timing and amount of advance refundings--accounted for some of the Portfolios' performances during this period. As the yield curve continued to flatten over the course of this period, yield curve and duration positioning played important roles in the Portfolios' performances. On the whole, short and intermediate bonds were the most impacted by the changes in the yield curve during this period. As a result, these bonds generally underperformed longer bonds as well as the municipal market as a whole, with credits having the longest durations posting the best returns for this period. Our efforts to position the Portfolios more advantageously along the yield curve, or--more specifically--greater exposure to those parts of the yield curve that performed well and less exposure to the parts of the curve that underperformed, helped their performances during this period. With bonds rated BBB or lower and nonrated bonds generally outperforming other credit quality sectors during this period, all of these Portfolios benefited from their allocations of lower-quality credits. The performance of this sector was largely the result of investor demand for the higher yields typically associated with lower-quality bonds, which drove 10 up their value and kept credit spreads narrow. As of March 31, 2006, bonds rated BBB or lower and nonrated bonds accounted for 5% of NXR's portfolio, 6% of NXN, 10% of NXC, and 11% of NXP and NXQ. Among the lower-rated holdings making contributions to the Portfolios' total returns for this period were healthcare (including hospitals) and tobacco credits. At period end, the national Portfolios each held between 3% and 6% of their portfolios in unenhanced, uninsured tobacco bonds, while NXC and NXN had allocations of approximately 2% to these credits. We continued to see a number of advance refundings during this period, which benefited the Portfolios through price appreciation and enhanced credit quality. Both NXQ and NXR had positions ($4.5 million and $6.7 million, respectively) in tobacco credits issued by the Iowa Tobacco Settlement Authority that were pre-refunded. Approximately 7% of NXC was advance-refunded during this period, including a $2 million position in A2 rated power supply revenue bonds issued for the California Department of Water Resources. While advance refundings generally enhanced performance for this period, the rising interest rate environment--especially at the short end of the yield curve--meant that the Portfolios' holdings of older, previously pre-refunded bonds tended to underperform the general municipal market, due primarily to the shorter effective maturities of these bonds. This was especially true in NXP, which had the largest allocation of pre-refunded bonds among the three national Portfolios. HOW WERE THE PORTFOLIOS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF MARCH 31, 2006? We continued to believe that maintaining strong credit quality was an important requirement. As of March 31, 2006, these five Portfolios continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 69% in NXC to 74% in NXP, 78% in NXQ and NXR to 92% in NXN. As of March 31, 2006, potential call exposure for these Portfolios for the period April 2006 through the end of 2007 ranged from 3% in NXN to 6% in NXC, 8% in NXP, 9% in NXQ, and 12% in NXR. We continued to work to manage the call structure of all of these Portfolios. The number of actual bond calls will depend largely on future market interest rates. 11 Dividend and Share Price INFORMATION During the 12-month reporting period ended March 31, 2006, the Portfolios' income streams were impacted as proceeds from older, higher-yielding bonds that matured or were called or pre-refunded were reinvested into bonds generally offering lower yields. This resulted in one monthly dividend reduction in NXQ, NXR, NXC, and NXN during this period. The dividend of NXP remained stable throughout the reporting period. Due to capital gains generated by normal portfolio activity, shareholders of these Portfolios received capital gains and net ordinary income distributions at the end of December 2005, as follows: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NXP $0.0006 -- -------------------------------------------------------------------------------- NXQ $0.0148 -- -------------------------------------------------------------------------------- NXR $0.0029 -- -------------------------------------------------------------------------------- NXC $0.0528 $0.0079 -------------------------------------------------------------------------------- NXN $0.0655 -- -------------------------------------------------------------------------------- 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, 2006, each of the Funds in this report, with the exception of NXP, had a negative UNII balance for financial statement purposes and a positive UNIIbalance for tax purposes. As of March 31, 2006, NXPhad a positive UNIIbalance for both financial statement and tax purposes. 12 At the end of the reporting period on March 31, 2006, the share prices of the Nuveen Select Portfolios were trading at discounts to their NAVs as shown in the accompanying chart: 3/31/06 12-MONTH AVERAGE DISCOUNT DISCOUNT -------------------------------------------------------------------------------- NXP -2.80% -3.75% -------------------------------------------------------------------------------- NXQ -7.41% -7.71% -------------------------------------------------------------------------------- NXR -5.88% -7.85% -------------------------------------------------------------------------------- NXC -6.93% -5.87% -------------------------------------------------------------------------------- NXN -5.92% -5.76% -------------------------------------------------------------------------------- 13 Nuveen Select Tax-Free Income Portfolio NXP Performance OVERVIEW As of March 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total municipal bonds) AAA/U.S. Guaranteed 60% AA 14% A 15% BBB 10% BB or Lower 1% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.057 May 0.057 Jun 0.057 Jul 0.057 Aug 0.057 Sep 0.057 Oct 0.057 Nov 0.057 Dec 0.057 Jan 0.057 Feb 0.057 Mar 0.057 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/01/05 13.62 13.58 13.56 13.59 13.71 13.84 13.72 14 14.02 13.88 13.86 13.79 13.8 13.67 13.92 13.99 13.94 13.9 13.87 13.99 13.95 13.95 13.87 13.98 14.03 14.17 14.12 14.23 14.21 14.2 14.02 13.95 14.07 14.13 14.2 14.11 14.01 14.05 14.11 14.18 14.18 14.2 14.16 14.27 14.26 14.31 14.25 14.29 14.27 14.15 14.09 14.07 13.99 14 13.96 14.02 13.99 14.08 14.08 14.1 14 14.02 14.04 14.01 14.05 13.98 13.95 14.01 13.98 14.07 14.01 14.08 14.06 14.05 14.06 14.06 14.01 14.16 14.17 14.18 14.09 14 14.05 14.16 14.18 14.18 14.2 14.34 14.39 14.4 14.19 14.12 14.1 14.04 13.92 13.9 13.93 13.97 14.02 14.15 14.05 14.34 14.35 14.35 14.26 14.35 14.4 14.31 14.24 14.35 14.37 14.36 14.37 14.47 14.48 14.45 14.29 14.16 14.15 13.97 14.31 14.26 14.36 14.33 14.33 14.23 14.22 14.43 14.54 14.55 14.55 14.52 14.51 14.47 14.39 14.47 14.49 14.38 14.37 14.25 14.32 14.14 14.22 14.11 14.32 14.13 14.23 14.03 14.02 14 14.16 14.23 14.34 14.25 14.42 14.34 14.32 14.03 13.9 13.8 13.91 13.72 13.81 13.79 13.86 13.9 14.04 14.02 13.86 13.79 13.77 13.95 14.11 14.1 14.21 14.24 14.36 14.38 14.52 14.5 14.2 14.41 14.27 14.35 14.3 14.38 14.4 14.3 14.64 14.26 14.34 14.22 14.19 14.19 14.1 14.27 14.29 14.4 14.55 14.42 14.21 14.19 14.22 14.29 14.6 14.63 14.61 14.35 14.56 14.41 14.34 14.33 14.45 14.47 14.4 14.37 14.26 14.47 14.38 14.45 14.34 14.39 14.22 14.19 14.22 14.19 14.24 14.3 14.4 14.22 14.35 14.37 14.41 14.41 14.52 14.42 14.25 14.27 14.27 14.39 14.39 14.41 14.4 14.44 14.47 14.45 14.39 14.34 14.37 14.38 14.45 14.36 14.39 14.33 14.29 3/31/06 14.21 FUND SNAPSHOT ------------------------------------ Share Price 14.21 ------------------------------------ Net Asset Value 14.62 ------------------------------------ Premium/(Discount) to NAV -2.80% ------------------------------------ Market Yield 4.81% ------------------------------------ Taxable-Equivalent Yield1 6.68% ------------------------------------ Net Assets ($000) $239,406 ------------------------------------ Average Effective Maturity on Securities (Years) 14.72 ------------------------------------ Modified Duration 5.19 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/19/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 10.41% 4.74% ------------------------------------ 5-Year 5.71% 5.21% ------------------------------------ 10-Year 5.57% 5.63% ------------------------------------ STATES (as a % of total municipal bonds) ------------------------------------ Illinois 14.3% ------------------------------------ Colorado 13.4% ------------------------------------ Washington 9.5% ------------------------------------ Texas 8.8% ------------------------------------ Indiana 8.4% ------------------------------------ South Carolina 7.7% ------------------------------------ Nevada 6.8% ------------------------------------ California 4.7% ------------------------------------ Florida 4.6% ------------------------------------ New Jersey 2.7% ------------------------------------ Oklahoma 2.2% ------------------------------------ Michigan 1.7% ------------------------------------ New Mexico 1.7% ------------------------------------ Wisconsin 1.7% ------------------------------------ Mississippi 1.6% ------------------------------------ Other 10.2% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Health Care 22.2% ------------------------------------ U.S. Guaranteed 17.2% ------------------------------------ Transportation 14.6% ------------------------------------ Tax Obligation/Limited 11.9% ------------------------------------ Tax Obligation/General 11.9% ------------------------------------ Utilities 8.7% ------------------------------------ Consumer Staples 5.0% ------------------------------------ Other 8.5% ------------------------------------ 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%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a capital gains distribution in December 2005 of $0.0006 per share. 14 Nuveen Select Tax-Free Income Portfolio 2 NXQ Performance OVERVIEW As of March 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total municipal bonds) AAA/U.S. Guaranteed 61% AA 17% A 11% BBB 10% BB or Lower 1% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.055 May 0.055 Jun 0.055 Jul 0.055 Aug 0.055 Sep 0.055 Oct 0.055 Nov 0.055 Dec 0.053 Jan 0.053 Feb 0.053 Mar 0.053 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/01/05 13.16 13.15 13.1 13.12 13.06 13.06 13.04 13.11 13.1 13.05 13.13 13.08 13.12 13.12 13.09 13.04 13.1 13.1 13.1 13.17 13.16 13.16 13.27 13.2 13.23 13.17 13.18 13.27 13.17 13.26 13.21 13.2 13.28 13.25 13.28 13.33 13.26 13.27 13.34 13.34 13.4 13.4 13.44 13.51 13.48 13.56 13.49 13.51 13.57 13.56 13.56 13.45 13.5 13.52 13.47 13.51 13.52 13.53 13.53 13.56 13.51 13.5 13.5 13.53 13.55 13.54 13.52 13.53 13.51 13.61 13.53 13.6 13.57 13.55 13.55 13.48 13.56 13.6 13.5 13.49 13.51 13.52 13.55 13.58 13.59 13.59 13.63 13.61 13.69 13.62 13.5 13.51 13.5 13.6 13.52 13.47 13.5 13.62 13.66 13.64 13.57 13.6 13.55 13.56 13.6 13.6 13.62 13.61 13.76 13.77 13.78 13.81 13.8 13.79 13.82 13.74 13.62 13.54 13.53 13.58 13.58 13.48 13.5 13.44 13.45 13.47 13.46 13.52 13.55 13.56 13.58 13.53 13.53 13.45 13.6 13.53 13.49 13.34 13.29 13.29 13.33 13.31 13.33 13.29 13.42 13.49 13.44 13.2 13.34 13.26 13.47 13.38 13.34 13.32 13.34 13.33 13.42 13.42 13.42 13.4 13.37 13.3 13.37 13.37 13.36 13.43 13.35 13.42 13.35 13.4 13.34 13.37 13.34 13.32 13.32 13.26 13.32 13.34 13.34 13.31 13.14 13.14 13.22 13.27 13.26 13.26 13.21 13.2 13.31 13.29 13.33 13.27 13.33 13.33 13.33 13.38 13.38 13.38 13.39 13.37 13.27 13.25 13.31 13.32 13.32 13.27 13.28 13.28 13.37 13.34 13.31 13.32 13.37 13.41 13.31 13.32 13.34 13.41 13.38 13.41 13.35 13.41 13.39 13.31 13.32 13.32 13.4 13.47 13.44 13.4 13.43 13.37 13.4 13.42 13.38 13.34 13.24 13.22 13.23 13.29 13.3 13.32 13.32 13.27 13.38 13.34 13.37 13.44 13.5 13.46 13.5 13.49 13.49 13.5 13.5 3/31/06 13.37 FUND SNAPSHOT ------------------------------------ Share Price 13.37 ------------------------------------ Net Asset Value 14.44 ------------------------------------ Premium/(Discount) to NAV -7.41% ------------------------------------ Market Yield 4.76% ------------------------------------ Taxable-Equivalent Yield1 6.61% ------------------------------------ Net Assets ($000) $254,205 ------------------------------------ Average Effective Maturity on Securities (Years) 17.39 ------------------------------------ Modified Duration 5.11 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/21/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 7.39% 5.12% ------------------------------------ 5-Year 4.84% 4.99% ------------------------------------ 10-Year 4.95% 5.46% ------------------------------------ STATES (as a % of total municipal bonds) ------------------------------------ Illinois 14.2% ------------------------------------ Texas 12.4% ------------------------------------ Colorado 8.7% ------------------------------------ Nevada 7.7% ------------------------------------ California 7.5% ------------------------------------ New York 5.6% ------------------------------------ South Carolina 4.5% ------------------------------------ Washington 3.6% ------------------------------------ Massachusetts 3.2% ------------------------------------ Indiana 3.1% ------------------------------------ Vermont 2.7% ------------------------------------ Pennsylvania 2.7% ------------------------------------ New Mexico 2.5% ------------------------------------ Iowa 2.3% ------------------------------------ Louisiana 2.1% ------------------------------------ Rhode Island 2.1% ------------------------------------ Wisconsin 2.1% ------------------------------------ Michigan 2.0% ------------------------------------ Other 11.0% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Health Care 21.4% ------------------------------------ Transportation 15.7% ------------------------------------ Tax Obligation/Limited 12.4% ------------------------------------ Tax Obligation/General 10.8% ------------------------------------ U.S. Guaranteed 9.0% ------------------------------------ Utilities 7.6% ------------------------------------ Consumer Staples 5.5% ------------------------------------ Housing/Multifamily 4.1% ------------------------------------ Other 13.5% ------------------------------------ 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%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a capital gains distribution in December 2005 of $0.0148 per share. 15 Nuveen Select Tax-Free Income Portfolio 3 NXR Performance OVERVIEW As of March 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total municipal bonds) AAA/U.S. Guaranteed 51% AA 27% A 17% BBB 5% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.0545 May 0.0545 Jun 0.0535 Jul 0.0535 Aug 0.0535 Sep 0.0535 Oct 0.0535 Nov 0.0535 Dec 0.0535 Jan 0.0535 Feb 0.0535 Mar 0.0535 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/01/05 12.83 12.89 12.81 12.9 12.88 12.9 12.95 12.95 13.02 13.07 13.11 13.25 13.07 12.98 13 12.96 12.98 13.03 13.01 13.1 13.13 13.13 13.11 13.09 13.06 13.04 13.02 13 13.04 13.05 13.01 13.05 13.13 13.15 13.18 13.13 13.1 13.18 13.16 13.16 13.17 13.23 13.23 13.31 13.36 13.38 13.32 13.36 13.38 13.38 13.39 13.27 13.31 13.29 13.31 13.28 13.31 13.33 13.36 13.42 13.44 13.41 13.41 13.35 13.35 13.36 13.27 13.33 13.36 13.39 13.43 13.38 13.37 13.38 13.42 13.34 13.36 13.32 13.36 13.36 13.37 13.32 13.34 13.35 13.31 13.31 13.34 13.31 13.4 13.33 13.26 13.25 13.3 13.28 13.34 13.24 13.26 13.34 13.24 13.34 13.29 13.36 13.41 13.32 13.33 13.38 13.34 13.34 13.45 13.47 13.47 13.49 13.65 13.63 13.65 13.61 13.56 13.52 13.42 13.33 13.34 13.28 13.35 13.28 13.36 13.36 13.37 13.39 13.3 13.25 13.32 13.34 13.39 13.26 13.32 13.23 13.34 13.17 13.14 13.16 13.06 13.16 13.17 13.07 13.2 13.15 13.2 13.07 13.02 13.08 13.22 13.24 13.26 13.16 13.31 13.19 13.27 13.27 13.25 13.12 13.04 13.14 13.06 13.09 13.15 13.24 13.18 13.23 13.15 13.28 13.3 13.32 13.15 13.23 13.24 13.3 13.24 13.27 13.39 13.3 13.2 13.12 13.21 13.27 13.2 13.25 13.2 13.17 13.3 13.28 13.27 13.25 13.31 13.31 13.27 13.27 13.22 13.27 13.28 13.32 13.2 13.23 13.28 13.27 13.31 13.31 13.31 13.3 13.32 13.29 13.3 13.21 13.31 13.34 13.23 13.23 13.37 13.3 13.22 13.26 13.29 13.33 13.34 13.34 13.32 13.36 13.42 13.5 13.42 13.4 13.38 13.31 13.5 13.45 13.4 13.22 13.21 13.17 13.29 13.23 13.25 13.25 13.25 13.18 13.2 13.13 13.26 13.21 13.22 13.18 13.23 13.3 13.28 13.39 13.32 3/31/06 13.45 FUND SNAPSHOT ------------------------------------ Share Price 13.45 ------------------------------------ Net Asset Value 14.29 ------------------------------------ Premium/(Discount) to NAV -5.88% ------------------------------------ Market Yield 4.77% ------------------------------------ Taxable-Equivalent Yield1 6.63% ------------------------------------ Net Assets ($000) $185,233 ------------------------------------ Average Effective Maturity on Securities (Years) 15.51 ------------------------------------ Modified Duration 5.05 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 7/24/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 10.12% 5.10% ------------------------------------ 5-Year 5.37% 5.00% ------------------------------------ 10-Year 5.75% 5.61% ------------------------------------ STATES (as a % of total municipal bonds) ------------------------------------ Illinois 19.2% ------------------------------------ Texas 13.9% ------------------------------------ Indiana 6.7% ------------------------------------ Colorado 6.0% ------------------------------------ California 5.4% ------------------------------------ Michigan 5.3% ------------------------------------ Florida 5.2% ------------------------------------ Nevada 5.1% ------------------------------------ North Carolina 4.4% ------------------------------------ Iowa 4.0% ------------------------------------ New York 3.6% ------------------------------------ South Carolina 3.3% ------------------------------------ Pennsylvania 2.5% ------------------------------------ New Mexico 2.2% ------------------------------------ Nebraska 2.0% ------------------------------------ Other 11.2% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Health Care 22.2% ------------------------------------ Utilities 19.4% ------------------------------------ Tax Obligation/Limited 13.7% ------------------------------------ U.S. Guaranteed 11.9% ------------------------------------ Transportation 9.4% ------------------------------------ Tax Obligation/General 9.4% ------------------------------------ Education and Civic Organizations 6.5% ------------------------------------ Other 7.5% ------------------------------------ 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%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a capital gains distribution in December 2005 of $0.0029 per share. 16 Nuveen California Select Tax-Free Income Portfolio NXC Performance OVERVIEW As of March 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 66% AA 3% A 21% BBB 8% N/R 2% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.055 May 0.055 Jun 0.055 Jul 0.055 Aug 0.055 Sep 0.055 Oct 0.055 Nov 0.055 Dec 0.053 Jan 0.053 Feb 0.053 Mar 0.053 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/01/05 13.48 13.37 13.34 13.32 13.3 13.21 13.26 13.22 13.26 13.36 13.45 13.38 13.42 13.5 13.43 13.34 13.35 13.5 13.59 13.6 13.65 13.65 13.42 13.46 13.59 13.57 13.47 13.63 13.53 13.57 13.5 13.48 13.54 13.81 13.77 13.77 13.83 13.8 13.78 13.78 13.76 13.85 13.76 13.88 13.84 13.83 13.83 13.85 13.85 13.83 13.86 13.71 13.89 13.8 13.87 13.9 13.9 13.85 13.9 13.98 13.94 13.88 13.88 13.97 13.98 14 14.18 14.2 14.37 14.33 14.15 14.2 14.29 14.17 14.12 14.12 14.17 14.08 14.07 14.19 14.49 14.49 14.45 14.23 14.09 14.09 14.09 14.06 14.05 14.03 13.95 13.94 13.85 13.77 13.64 13.61 13.56 13.54 13.55 13.55 13.65 13.75 13.75 13.8 13.82 13.82 13.85 13.81 13.86 13.89 13.96 14 13.98 14 14.11 14.12 14.05 14.07 14.18 14.18 14.21 14.24 14.35 14.38 14.35 14.29 14.31 14.27 14.26 14.23 14.3 14.3 14.3 14.27 14.26 14.22 14.26 14.16 14.05 14.12 13.96 14.1 14 14.02 13.91 13.88 13.73 13.74 13.86 13.89 13.93 13.92 13.92 14.02 13.91 13.9 13.93 14.01 14.2 14.15 13.9 13.89 13.87 13.97 13.98 14 14.02 14.05 13.9 13.91 13.92 13.97 13.99 13.96 14 14 14.13 14.16 14.19 14.15 13.94 14.02 13.81 13.8 13.8 13.76 13.78 13.81 13.74 13.62 13.69 13.66 13.7 13.7 13.8 13.98 14.12 14.26 14.1 14.03 13.97 13.8 13.88 13.88 13.95 13.95 13.87 13.8 13.68 13.67 13.67 13.68 13.65 13.65 13.67 13.63 13.63 13.7 13.68 13.7 13.72 13.73 13.74 13.75 13.74 13.84 13.8 13.75 13.86 13.81 13.77 13.79 13.72 13.67 13.79 13.6 13.61 13.61 13.61 13.6 13.6 13.58 13.55 13.55 13.61 13.62 13.63 13.64 13.54 13.6 13.55 13.61 13.53 13.56 13.5 3/31/06 13.56 FUND SNAPSHOT ------------------------------------ Share Price 13.56 ------------------------------------ Net Asset Value 14.57 ------------------------------------ Premium/(Discount) to NAV -6.93% ------------------------------------ Market Yield 4.69% ------------------------------------ Taxable-Equivalent Yield1 7.16% ------------------------------------ Net Assets ($000) $91,152 ------------------------------------ Average Effective Maturity on Securities (Years) 14.48 ------------------------------------ Modified Duration 5.88 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 6.52% 5.17% ------------------------------------ 5-Year 5.03% 5.03% ------------------------------------ 10-Year 5.11% 5.56% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/General 23.6% ------------------------------------ Tax Obligation/Limited 16.7% ------------------------------------ Education and Civic Organizations 12.4% ------------------------------------ Transportation 11.5% ------------------------------------ U.S. Guaranteed 10.3% ------------------------------------ Health Care 9.3% ------------------------------------ Water and Sewer 7.8% ------------------------------------ Other 8.4% ------------------------------------ 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%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains and net ordinary income distributions in December 2005 of $0.0607 per share. 17 Nuveen New York Select Tax-Free Income Portfolio NXN Performance OVERVIEW As of March 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 80% AA 12% A 2% BBB 5% BB or Lower 1% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Apr 0.0535 May 0.0535 Jun 0.051 Jul 0.051 Aug 0.051 Sep 0.051 Oct 0.051 Nov 0.051 Dec 0.051 Jan 0.051 Feb 0.051 Mar 0.051 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 4/01/05 13.75 13.75 13.75 13.75 13.83 13.83 13.83 13.83 13.9 13.82 13.8 13.86 13.9 13.82 13.79 13.79 13.82 13.89 14.01 14.45 14.39 14.39 14.32 14.4 14.23 14.09 14 14.02 14 13.93 13.93 13.9 13.94 13.96 14.02 13.92 13.99 14.06 14.08 14.08 14.13 14.15 14.04 14.22 14.26 14.25 14.51 14.48 14.39 14.32 14.25 14.15 14 13.88 13.88 13.98 13.99 14.02 14.06 14.09 14.15 14.18 14.28 14.25 14.29 14.34 14.35 14.35 14.35 14.1 14.5 14.78 14.45 14.24 14.24 14.16 14.16 14.2 14.19 14.19 14.19 14.1 14.02 14.04 14.04 14.04 14 14.02 13.91 13.9 13.83 13.82 13.83 13.87 13.72 13.7 13.6 13.61 13.62 13.62 13.6 13.63 13.63 13.67 13.64 13.73 13.78 13.75 13.79 13.81 13.78 13.8 13.77 13.77 13.8 13.94 13.87 13.87 13.88 13.87 13.9 13.9 13.9 13.81 13.7 13.53 13.6 13.53 13.53 13.55 13.8 13.61 13.56 13.57 13.42 13.35 13.47 13.38 13.29 13.12 13.13 12.98 12.97 12.96 12.93 13.02 13.06 13 13.16 13.1 13 13.04 13.01 13.01 13.03 12.98 13 13.07 13.05 13.05 12.5 12.74 12.75 12.87 12.86 12.87 12.82 12.78 12.8 12.89 12.85 12.82 12.89 12.91 12.96 12.98 12.95 13.18 12.96 12.88 12.82 12.76 12.75 12.95 12.86 12.9 12.82 12.86 12.92 12.87 12.98 13.12 13.08 13.08 13.15 13.29 13.35 13.3 13.22 13.35 13.35 13.29 13.2 13.24 13.25 13.24 13.28 13.35 13.3 13.25 13.2 13.12 13.15 13.17 13.18 13.14 13.06 13.1 13.12 13.18 13.16 13.22 13.18 13.18 13.21 13.18 13.29 13.3 13.25 13.24 13.29 13.29 13.35 13.27 13.36 13.33 13.11 13.15 13.18 13.23 13.26 13.17 13.13 13.16 13.25 13.2 13.33 13.19 13.26 13.2 13.2 13.27 13.22 13.45 13.44 3/31/06 13.35 FUND SNAPSHOT ------------------------------------ Share Price 13.35 ------------------------------------ Net Asset Value 14.19 ------------------------------------ Premium/(Discount) to NAV -5.92% ------------------------------------ Market Yield 4.58% ------------------------------------ Taxable-Equivalent Yield1 6.84% ------------------------------------ Net Assets ($000) $55,473 ------------------------------------ Average Effective Maturity on Securities (Years) 16.14 ------------------------------------ Modified Duration 5.54 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 2.84% 4.19% ------------------------------------ 5-Year 4.45% 4.79% ------------------------------------ 10-Year 5.49% 5.32% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 14.0% ------------------------------------ Water and Sewer 12.5% ------------------------------------ Health Care 12.0% ------------------------------------ Long-Term Care 9.5% ------------------------------------ U.S. Guaranteed 9.5% ------------------------------------ Education and Civic Organizations 9.3% ------------------------------------ Housing/Single Family 8.4% ------------------------------------ Utilities 7.3% ------------------------------------ Tax Obligation/General 6.1% ------------------------------------ Housing/Multifamily 5.3% ------------------------------------ Other 6.1% ------------------------------------ 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 combined federal and state income tax rate of 33%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a capital gains distribution in December 2005 of $0.0655 per share. 18 Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF TRUSTEES AND SHAREHOLDERS NUVEEN SELECT TAX-FREE INCOME PORTFOLIO NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen California Select Tax-Free Income Portfolio, and Nuveen New York Select Tax-Free Income Portfolio, as of March 31, 2006, 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, 2006, 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 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, 2006, the results of their operations for the year then ended, changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois May 11, 2006 19 Nuveen Select Tax-Free Income Portfolio (NXP) Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM MUNICIPAL BONDS - 97.9% ALASKA - 1.1% $ 2,475 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA $ 2,649,215 Bonds, Series 2003E, 5.250%, 12/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 4.6% 2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,530,920 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 3,721,274 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 200 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 209,048 Refunding, Merrithew Memorial Hospital Replacement, Series 1997, 5.375%, 11/01/17 - MBIA Insured 3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,363,510 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 1,160,171 Waterworks Revenue Refunding Bonds, Series 2001A, 5.125%, 7/01/41 - FGIC Insured 365 Los Angeles, California, Parking System Revenue Bonds, 5/09 at 101.00 AAA 382,119 Series 1999A, 5.250%, 5/01/29 - AMBAC Insured 750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 757,740 Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45 ------------------------------------------------------------------------------------------------------------------------------------ 10,770 Total California 11,124,782 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 13.2% 1,300 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA 1,384,526 Health Initiatives, Series 2002A, 5.500%, 3/01/22 1,700 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (3) 1,836,544 Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM) 1,000 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 AAA 1,083,630 Small Water Resources Revenue Bonds, Series 2000A, 5.800%, 11/01/20 - FGIC Insured 10,750 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 12,173,404 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 652,928 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 234,646 Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured 5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,321,050 Refunding Bonds, Series 2001A, 5.625%, 11/15/17 - FGIC Insured (Alternative Minimum Tax) 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 1,038,960 3,000 5.000%, 12/01/23 - XLCA Insured 12/13 at 100.00 AAA 3,112,920 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,328,200 Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - MBIA Insured 3,160 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 3,435,268 Revenue Bonds, Senior Series 2001A, 5.500%, 6/15/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 32,780 Total Colorado 31,602,076 ------------------------------------------------------------------------------------------------------------------------------------ 20 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.5% $ 1,000 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA $ 1,027,550 Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 - MBIA Insured (ETM) 265 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA 281,555 America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,265 Total District of Columbia 1,309,105 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 4.6% 450 Escambia County, Florida, Pollution Control Revenue Bonds, 6/06 at 100.00 BBB 455,211 Champion International Corporation, Series 1993, 5.875%, 6/01/22 (Alternative Minimum Tax) 10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 10,456,700 Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 10,450 Total Florida 10,911,911 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.6% 1,330 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,378,545 Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.0% 1,965 Board of Trustees of Southern Illinois University, Housing No Opt. Call AAA 1,029,640 and Auxiliary Facilities System Revenue Bonds, Series 1999A, 0.000%, 4/01/20 - MBIA Insured Chicago Heights, Illinois, General Obligation Corporate Purpose Bonds, Series 1993: 3,820 5.650%, 12/01/15 - FGIC Insured 12/08 at 100.00 AAA 3,996,904 2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 AAA 2,719,600 195 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 208,892 Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 - FSA Insured 805 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 871,767 Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101.00 A 1,026,640 Midwestern University, Series 1998B, 5.500%, 5/15/18 - ACA Insured 600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa3 646,836 Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22 4,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 4,244,440 Memorial Hospital, Series 2004A, 5.500%, 8/15/43 1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,387,954 Memorial Hospital, Series 2001, 5.600%, 10/01/16 2,700 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 2,913,732 Forest Hospital, Series 2002A, 6.000%, 7/01/17 300 Illinois Health Facilities Authority, Revenue Bonds, 5/06 at 100.00 AAA 300,324 Rush-Presbyterian St. Luke's Medical Center Obligated Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured 2,275 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,507,823 Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17 1,075 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R (3) 1,107,669 Evangelical Hospitals Corporation, Series 1992B, 6.500%, 4/15/09 (ETM) 3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 1,907,344 Bonds, McCormick Place Expansion Project, Series 1992A, 0.000%, 6/15/17 - FGIC Insured 500 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 160,500 Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 6/15/30 - MBIA Insured 5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 5,224,050 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 1,382,199 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 1,023,840 1,000 5.000%, 12/15/20 - RAAI Insured 12/11 at 100.00 AA 1,021,820 ------------------------------------------------------------------------------------------------------------------------------------ 34,580 Total Illinois 33,681,974 ------------------------------------------------------------------------------------------------------------------------------------ 21 Nuveen Select Tax-Free Income Portfolio (NXP) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 8.3% $ 5,000 Duneland School Building Corporation, Indiana, First Mortgage 2/09 at 101.00 AAA $ 5,207,750 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 1,043,000 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 2,317,680 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 10,560,618 Waterworks Project, Series 2002A, 5.125%, 7/01/21 (Pre-refunded 7/01/12) - MBIA Insured 750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 783,848 Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,605 Total Indiana 19,912,896 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.3% 750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 796,425 Gas and Electric Compa ny, 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 1,136,344 Alliant Health System Inc., Series 1998, 5.125%, 10/01/18 - MBIA Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.4% 1,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,051,780 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.4% 500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 547,600 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 6.000%, 7/01/17 410 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 414,715 System Revenue Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 910 Total Massachusetts 962,315 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.7% 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 967,030 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.125%, 8/15/18 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,042,854 Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 ------------------------------------------------------------------------------------------------------------------------------------ 3,900 Total Michigan 4,009,884 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.2% 345 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 354,629 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 3,787,272 Bonds, Weyerhauser Company Project, Series 1992, 6.875%, 4/01/16 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.7% 5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 1,580,050 Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 6.7% 2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 2,607,850 Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) 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 $ 1,184,602 3,500 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,671,950 6,025 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 6,272,085 1,515 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 1,631,322 Series 2002, 5.500%, 6/01/21 - FGIC Insured 2,555 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 2,789,012 Series 2002, 5.500%, 6/01/21 (Pre-refunded 6/01/12) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,455 Total Nevada 16,156,821 ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.3% 510 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 514,136 Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.9% 2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,583,475 Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23 1,820 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,892,017 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 4,320 Total New Jersey 4,475,492 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.7% 4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,997,200 Revenue Bonds, Series 2004, 4.625%, 7/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 1.3% 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 1,035,870 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 1,723,408 Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%, 7/01/17 450 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 467,176 Revenue Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,050 Total New York 3,226,454 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.4% 500 Appalachian State University, North Carolina, Utilities System 5/08 at 102.00 AAA 519,635 Revenue Refunding Bonds, Series 1998, 5.000%, 5/15/24 - MBIA Insured 2,195 North Carolina Eastern Municipal Power Agency, Power System 7/06 at 100.00 BBB 2,202,178 Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/21 500 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 530,975 Revenue Bonds, Series 2001A, 5.250%, 11/01/17 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,195 Total North Carolina 3,252,788 ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.5% 300 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 323,415 Series 2001, 5.500%, 12/01/17 - AMBAC Insured 880 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 911,222 Securities Program Residential Mortgage Remarketed Revenue Bonds, Series 1997A-1, 6.050%, 9/01/17 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,180 Total Ohio 1,234,637 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.1% 1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 1,009,480 Revenue Bonds, Series 2005, 5.375%, 9/01/36 4,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 4,116,440 St. John Health System, Series 2004, 5.000%, 2/15/24 ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Oklahoma 5,125,920 ------------------------------------------------------------------------------------------------------------------------------------ 23 Nuveen Select Tax-Free Income Portfolio (NXP) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.8% $ 500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ $ 519,740 Bonds, Widener University, Series 2003, 5.250%, 7/15/24 700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 766,290 Series 2004A, 5.500%, 12/01/31 - AMBAC Insured 520 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AAA 545,787 5.000%, 9/15/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,720 Total Pennsylvania 1,831,817 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 7.6% 1,000 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 1,047,780 Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/20 10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (3) 11,175,100 Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19 (Pre-refunded 12/01/12) 1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,641,930 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- 2,620,725 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 1,804,555 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 ------------------------------------------------------------------------------------------------------------------------------------ 16,720 Total South Carolina 18,290,090 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 8.7% 5,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 5,473,400 Texas, Environmental Facilities Revenue Bonds, Dow Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33 (Mandatory put 5/15/17) (Alternative Minimum Tax) 6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,548,828 General Obligation Refunding Bonds, Series 2002, 5.250%, 2/15/20 360 Dallas-Fort Worth International Airport Public Facility 1/09 at 100.00 AAA 374,710 Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001, 5.500%, 1/15/20 - FSA Insured 2,300 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,354,004 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 3,582,915 General Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31 San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992: 95 6.000%, 5/15/16 (Pre-refunded 5/15/07) - MBIA Insured 5/07 at 100.00 AAA 97,550 465 6.000%, 5/15/16 (Pre-refunded 5/15/12) - MBIA Insured 5/12 at 100.00 AAA 519,447 1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,776,478 Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 19,620 Total Texas 20,727,332 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.4% 775 Utah State Building Ownership Authority, Lease Revenue Bonds, 11/11 at 100.00 AA+ 820,307 State Facilities Master Lease Program, Series 2001B, 5.250%, 5/15/24 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.4% 250 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 270,683 Bonds, Columbia Generating Station - Nuclear Project 2, Series 2002C, 5.500%, 7/01/17 - MBIA Insured 5,700 Snohomish County Public Utility District 1, Washington, No Opt. Call Aaa 6,246,516 Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12 (ETM) 3,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 3,089,400 Bonds, Catholic Health Initiatives, Series 1997A, 5.125%, 12/01/17 - MBIA Insured 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 9,750 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA $ 10,136,880 Bonds, Sisters of Providence Health System, Series 2001A, 5.125%, 10/01/17 - MBIA Insured 2,465 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,679,800 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 21,165 Total Washington 22,423,279 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.8% 1,885 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,008,222 Bonds, Series 1992, 6.500%, 5/15/10 (ETM) ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.6% 240 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 253,961 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,065,060 Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%, 8/15/17 2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,593,300 Series 2003-3, 5.000%, 11/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 3,740 Total Wisconsin 3,912,321 ------------------------------------------------------------------------------------------------------------------------------------ $ 234,195 Total Long-Term Municipal Bonds (cost $221,079,981) 234,246,019 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM MUNICIPAL BONDS - 0.8% 2,000 New Jersey Economic Development Authority, Dock Facility VMIG-1 2,000,000 Revenue Refunding Bonds, Bayonne/IMTT Project, Variable Rate Demand Obligations, Series 1993C, 3.140%, 12/01/27 (4) ------------------------------------------------------------------------------------------------------------------------------------ $ 2,000 Total Short-Term Municipal Bonds (cost $2,000,000) 2,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds (cost $223,079,981) 236,246,019 -------------------------------------------------------------------------------------------------------------------- SHARES DESCRIPTION VALUE ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 0.2% AIRLINES - 0.2% 10,660 UAL Corporation (5) (6) 425,654 ------------------------------------------------------------------------------------------------------------------------------------ Total Common Stocks (cost $437,087) 425,654 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $223,517,068) - 98.9% 236,671,673 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.1% 2,733,967 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 239,405,640 ====================================================================================================================
(1) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (2) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (3) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (4) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (5) Non-income producing. (6) On December 9, 2002, UAL Corporation ("UAL"), the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not remain current on their interest payment obligations with respect to the bonds previously held and thus the Fund had stopped accruing interest on its UAL bonds. On February 1, 2006, UAL emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement agreement established to meet UAL's unsecured bond obligations, the bondholders, including the Fund, received three distributions of UAL common stock over the subsequent months, and the bankruptcy court dismissed all unsecured claims of bondholders, including those of the Fund. Subsequent to fiscal year-end, the Fund liquidated its UAL common stock holdings. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 25 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM MUNICIPAL BONDS - 96.9% ARKANSAS - 1.6% $ 1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA $ 1,047,680 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 Baa2 1,014,670 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 2,059,820 Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,000 Total Arkansas 4,122,170 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 7.4% 1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 765,460 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 3,721,274 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 500 California State Public Works Board, Lease Revenue Refunding 12/08 at 101.00 A- 514,455 Bonds, Community Colleges Projects, Series 1998A, 5.250%, 12/01/16 2,000 California State Public Works Board, Lease Revenue Refunding No Opt. Call Aa2 2,171,720 Bonds, Various University of California Projects, Series 1993A, 5.500%, 6/01/14 190 California, General Obligation Bonds, Series 1997, 10/07 at 101.00 AAA 195,301 5.000%, 10/01/18 - AMBAC Insured California, General Obligation Bonds, Series 1997: 2,105 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 2,171,834 205 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 211,509 2,500 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A 2,581,825 500 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 522,620 Refunding, Merrithew Memorial Hospital Replacement, Series 1997, 5.375%, 11/01/17 - MBIA Insured 500 Contra Costa Water District, California, Water Revenue 10/07 at 100.00 AA 509,365 Refunding Bonds, Series 1997H, 5.000%, 10/01/17 3,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,587,744 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 1,750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,768,060 Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45 ------------------------------------------------------------------------------------------------------------------------------------ 17,775 Total California 18,721,167 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 8.6% 1,300 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA 1,384,526 Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 1,700 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (3) 1,836,544 Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM) 3,185 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,606,726 Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) 5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,321,049 Refunding Bonds, Series 2001A, 5.625%, 11/15/17 - FGIC Insured (Alternative Minimum Tax) 1,555 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 1,664,130 Refunding Bonds, Series 2001, 5.500%, 11/15/16 - FGIC Insured 3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,112,920 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/23 - XLCA Insured 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) $ 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA $ 2,109,950 Bonds, Series 2000B, 0.000%, 9/01/24 - MBIA Insured 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,328,200 Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - MBIA Insured 250 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 261,445 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 Baa1 1,139,721 Series 2001A, 5.600%, 11/15/31 ------------------------------------------------------------------------------------------------------------------------------------ 27,090 Total Colorado 21,765,211 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.4% 500 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 513,775 Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 - MBIA Insured (ETM) 500 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 518,005 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%, 10/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,000 Total District of Columbia 1,031,780 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.9% 1,500 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 1,564,350 Refunding and Improvement Bonds, Series 2002, 5.000%, 10/01/21 - FGIC Insured 2,500 JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 4/15 at 100.00 AAA 2,578,425 5.000%, 10/01/41 - FSA Insured 625 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 Aaa 649,313 Revenue Refunding Bonds, Series 2001, 5.125%, 7/01/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,625 Total Florida 4,792,088 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.4% 1,100 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,140,150 Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.0% 1,230 Chicago Metropolitan Housing Development Corporation, 7/06 at 100.00 AA 1,231,833 Illinois, FHA-Insured Section 8 Assisted Housing Development Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17 1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,724,024 O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 - FGIC Insured 250 Illinois Development Finance Authority, Economic Development 8/08 at 100.00 Baa2 (3) 257,815 Revenue Bonds, Latin School of Chicago, Series 1998, 5.200%, 8/01/11 (Pre-refunded 8/01/08) 600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa3 646,836 Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22 2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,225,991 Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured 2,255 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- 2,464,512 Lake Forest Hospital, Series 2002A, 6.250%, 7/01/22 1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 1,109,607 University Health System, Series 2001A, 6.125%, 7/01/31 3,000 Illinois Health Facilities Authority, Revenue Bonds, 5/06 at 100.00 AAA 3,003,240 Rush-Presbyterian St. Luke's Medical Center Obligated Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured 1,000 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 AAA 1,004,200 Series 2005E, 4.750%, 7/01/30 - FGIC Insured 5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,948,234 5.000%, 6/15/22 45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/06 at 100.00 A1 45,091 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 7,313,669 Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.000%, 6/15/21 - MBIA Insured 27 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA $ 5,153,619 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 595,169 1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 602,923 1,100 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,169,553 5.250%, 12/01/34 - FGIC Insured 1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,020,310 Series 2003, 5.000%, 12/15/21 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 35,325 Total Illinois 35,516,626 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.1% 1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,000 Marion County, Indiana, First Mortgage Revenue Bonds, Series 2004, 5.000%, 7/15/22 - FGIC Insured 1,110 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 1,141,924 Revenue Bonds, Series 2002C-2, 5.250%, 7/01/23 (Alternative Minimum Tax) 4,380 Indiana Municipal Power Agency, Power Supply System 1/12 at 100.00 AAA 4,603,030 Revenue Bonds, Series 2002A, 5.125%, 1/01/21 - AMBAC Insured 285 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/08 at 101.00 AAA 282,047 Memorial Health System, Series 1998A, 4.625%, 8/15/28 - MBIA Insured 750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA 783,848 Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,525 Total Indiana 7,853,849 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 2.3% 1,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 925,180 Revenue Bonds, Series 2005B, 0.000%, 6/01/34 Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: 1,000 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 1,065,920 3,500 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,811,675 ------------------------------------------------------------------------------------------------------------------------------------ 5,500 Total Iowa 5,802,775 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% 1,000 Salina, Kansas, Hospital Revenue Bonds, Salina Regional 4/13 at 100.00 A1 965,570 Medical Center, Series 2006, 4.500%, 10/01/26 (WI/DD, Settling 4/07/06) ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.1% 2,125 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 2,253,223 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 3,087,600 University, Series 2002A, 5.125%, 7/01/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,125 Total Louisiana 5,340,823 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.1% 3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,160,620 Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31 2,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 2,534,075 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured 2,090 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 2,257,576 Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,590 Total Massachusetts 7,952,271 ------------------------------------------------------------------------------------------------------------------------------------ 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.0% $ 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- $ 3,042,854 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 2,038,280 Washtenaw Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 4.750%, 5/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 4,900 Total Michigan 5,081,134 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 7.6% 1,500 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 1,591,350 Southern Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19 - FGIC Insured 500 Clark County, Nevada, Limited Tax General Obligation 7/06 at 101.00 AAA 507,180 Las Vegas Convention and Visitors Authority Bonds, Series 1996, 5.500%, 7/01/17 - MBIA 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 2,195,032 13,250 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,793,382 1,100 Nevada, General Obligation Refunding Bonds, Municipal Bond 5/08 at 100.00 AAA 1,125,267 Bank Projects 65 and R-6, Series 1998, 5.000%, 5/15/22 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 20,945 Total Nevada 19,212,211 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.9% 2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,583,475 Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 1,000 6.375%, 6/01/32 6/13 at 100.00 BBB 1,089,100 1,010 6.250%, 6/01/43 6/13 at 100.00 BBB 1,092,436 ------------------------------------------------------------------------------------------------------------------------------------ 4,510 Total New Jersey 4,765,011 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.5% 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 554,617 660 4.625%, 7/01/25 - FSA Insured 7/14 at 100.00 AAA 659,538 2,000 4.750%, 7/01/27 - FSA Insured 7/14 at 100.00 AAA 2,014,800 3,000 4.750%, 1/01/28 - FSA Insured 7/14 at 100.00 AAA 3,018,120 ------------------------------------------------------------------------------------------------------------------------------------ 6,215 Total New Mexico 6,247,075 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 4.6% 2,700 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 2,908,251 Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%, 7/01/17 2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,074,880 Water and Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/36 - FSA Insured 3,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 3,213,060 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16 3,150 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 3,382,155 Center Bonds, Series 1990E, 7.250%, 1/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 10,850 Total New York 11,578,346 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.6% 1,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,523,985 Healthcare System Revenue Bonds, Carolinas Healthcare System, Series 2001A, 5.000%, 1/15/31 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.3% 1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 1,009,480 Revenue Bonds, Series 2005, 5.375%, 9/01/36 ------------------------------------------------------------------------------------------------------------------------------------ 29 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.6% $ 1,020 Carlisle Area School District, Cumberland County, Pennsylvania, 9/09 at 100.00 Aaa $ 1,054,935 General Obligation Bonds, Series 2004A, 5.000%, 9/01/20 - FGIC Insured 545 Dauphin County General Authority, Pennsylvania, Health System 2/09 at 101.00 AAA 567,116 Revenue Bonds, Pinnacle Health System Project, Series 1999, 5.125%, 8/15/17 - MBIA Insured 455 Dauphin County General Authority, Pennsylvania, Health 2/09 at 101.00 AAA 476,781 System Revenue Bonds, Pinnacle Health System Project, Series 1999, 5.125%, 8/15/17 (Pre-refunded 2/15/09) - MBIA Insured 1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,065,730 Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) 3,250 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,539,640 Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,270 Total Pennsylvania 6,704,202 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 1.2% 3,000 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA 3,126,780 Revenue Bonds, Series 2003, 5.000%, 12/01/20 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.1% 5,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,291,050 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 4.4% 700 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 733,446 Installment Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/20 620 Florence, South Carolina, Water and Sewerage Revenue Bonds, 3/10 at 101.00 AAA 669,222 Series 2000, 5.750%, 3/01/20 - AMBAC Insured 4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (3) 4,470,040 Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19 (Pre-refunded 12/01/12) 2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,736,550 Hospital Revenue Refunding and Improvement Bonds, Series 2003, 6.000%, 11/01/18 2,435 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 2,597,853 FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,255 Total South Carolina 11,207,111 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 0.3% 1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,035,370 Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.250%, 11/01/34 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 12.2% 4,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 4,378,720 Texas, Environmental Facilities Revenue Bonds, Dow Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33 (Mandatory put 5/15/17) (Alternative Minimum Tax) 1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,530,255 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 1,270 Cleveland Housing Corporation, Texas, FHA-Insured 7/06 at 100.00 AAA 1,272,096 Section 8 Assisted Mortgage Revenue Refunding Bonds, Series 1992C, 7.375%, 7/01/24 - MBIA Insured 2,500 Harris County Health Facilities Development Corporation, Texas, No Opt. Call AAA 2,748,475 Hospital Revenue Bonds, Texas Children's Hospital, Series 1995, 5.500%, 10/01/16 - MBIA Insured (ETM) 3,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 3,070,440 Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - MBIA Insured 5,050 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 AAA 752,399 Revenue Bonds, Series 2001H, 0.000%, 11/15/41 - MBIA Insured 2,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 2,138,660 Bonds, Series 2002A, 5.625%, 7/01/20 - FSA Insured (Alternative Minimum Tax) 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 3,125 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA $ 3,195,781 Waller Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%, 2/15/32 1,400 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 1,414,014 Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005, 5.375%, 8/15/35 220 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 224,739 General Obligation Bonds, Series 1998, 5.000%, 2/15/14 780 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 799,640 General Obligation Bonds, Series 1998, 5.000%, 2/15/14 (Pre-refunded 2/15/08) 1,000 Lewisville Independent School District, Denton County, Texas, 8/11 at 100.00 AAA 1,037,480 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 5,032,435 System Revenue Refunding Bonds, Series 2002A, 5.500%, 10/01/17 - RAAI Insured 1,250 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 1,263,025 Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18 500 Texas Water Development Board, Senior Lien State Revolving 7/10 at 100.00 AAA 534,220 Fund Revenue Bonds, Series 2000A, 5.625%, 7/15/13 1,560 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,583,603 Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 33,905 Total Texas 30,975,982 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.6% 1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,500,508 Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 2.6% 3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA 3,101,100 Series 1999C, 5.800%, 8/15/16 - FSA Insured 3,600 Vermont Industrial Development Authority, Revenue Refunding 9/06 at 100.00 A 3,607,416 Bonds, Stanley Works Inc., Series 1992, 6.750%, 9/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 6,600 Total Vermont 6,708,516 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.5% 250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/07 at 100.00 AAA 255,413 5.750%, 11/01/13 - MBIA Insured 1,000 Virginia Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 1,024,240 Refunding Bonds, U.S. Route 58 Corridor Development Program, Series 1997C, 5.125%, 5/15/19 ------------------------------------------------------------------------------------------------------------------------------------ 1,250 Total Virginia 1,279,653 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 3.6% 2,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 2,059,600 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 6,981,450 Bonds, Sisters of Providence Health System, Series 2001A, 5.125%, 10/01/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,715 Total Washington 9,041,050 ------------------------------------------------------------------------------------------------------------------------------------ 31 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.0% $ 1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A $ 1,063,580 Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%, 8/15/18 4,000 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 4,108,880 Home Ownership Revenue Bonds, Series 2002G, 4.850%, 9/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Wisconsin 5,172,460 ------------------------------------------------------------------------------------------------------------------------------------ $ 250,005 Total Long-Term Municipal Bonds (cost $236,338,090) 246,464,404 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM MUNICIPAL BONDS - 1.4% 1,000 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ 1,000,000 Regional Medical Center, Variable Rate Demand Obligations, Series 2005, 3.150%, 7/01/35 - FSA Insured (4) 2,500 New York City, New York, General Obligation Bonds, Variable A-1+ 2,500,000 Rate Demand Obligations, Fiscal Series 2002A-7, 3.120%, 11/01/24 - AMBAC Insured (4) ------------------------------------------------------------------------------------------------------------------------------------ $ 3,500 Total Short-Term Municipal Bonds (cost $3,500,000) 3,500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds (cost $239,838,090) 249,964,404 -------------------------------------------------------------------------------------------------------------------- SHARES DESCRIPTION VALUE ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 0.2% AIRLINES - 0.2% 10,233 UAL Corporation (5) (6) 408,604 ------------------------------------------------------------------------------------------------------------------------------------ Total Common Stocks (cost $419,603) 408,604 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $240,257,693) - 98.5% 250,373,008 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 3,832,437 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 254,205,445 ====================================================================================================================
(1) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (2) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (3) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (4) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (5) Non-income producing. (6) On December 9, 2002, UAL Corporation ("UAL"), the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not remain current on their interest payment obligations with respect to the bonds previously held and thus the Fund had stopped accruing interest on its UAL bonds. On February 1, 2006, UAL emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement agreement established to meet UAL's unsecured bond obligations, the bondholders, including the Fund, received three distributions of UAL common stock over the subsequent months, and the bankruptcy court dismissed all unsecured claims of bondholders, including those of the Fund. Subsequent to fiscal year-end, the Fund liquidated its UAL common stock holdings. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 32 Nuveen Select Tax-Free Income Portfolio 3 (NXR) Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM MUNICIPAL BONDS - 96.5% ALABAMA - 0.3% $ 500 Marshall County Healthcare Authority, Alabama, Revenue 1/12 at 101.00 A- $ 544,415 Bonds, Series 2002A, 6.250%, 1/01/22 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.2% 2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,262,328 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 3,749,253 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,363,510 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 250 Santa Ana Unified School District, Orange County, California, 8/10 at 101.00 AAA 270,778 General Obligation Bonds, Series 2000, 5.700%, 8/01/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,705 Total California 9,645,869 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.8% 1,735 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA 1,847,810 Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 2,265 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 2,446,925 Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM) 2,700 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,057,507 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 3,112,920 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/24 - XLCA Insured 325 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA 332,134 Bonds, Series 1997A, 5.000%, 9/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,025 Total Colorado 10,797,296 ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.1% 250 Connecticut Health and Educational Facilities Authority, 7/06 at 100.00 AAA 251,785 Revenue Bonds, Bridgeport Hospital Issue, Series 1992A, 6.625%, 7/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.2% 15 District of Columbia, General Obligation Bonds, Series 1993E, 6/06 at 100.00 AAA 15,029 6.000%, 6/01/13 - MBIA Insured (ETM) 235 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 259,290 Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 250 Total District of Columbia 274,319 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.0% 5,020 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 5,244,243 Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/18 4,000 JEA, Florida, Subordinate Lien Electric System Revenue Bonds, 10/07 at 100.00 Aa3 4,005,720 Series 2002D, 4.625%, 10/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 9,020 Total Florida 9,249,963 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.5% 1,175 Atlanta, Georgia, Airport Facilities Revenue Bonds, No Opt. Call AAA 960,292 Series 1990, 0.000%, 1/01/10 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 33 Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 18.6% $ 290 Chicago Metropolitan Housing Development Corporation, Illinois, 7/06 at 100.00 AA $ 291,731 FHA-Insured Section 8 Assisted Housing Development Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22 1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 A- 2,045,260 Midwestern University, Series 2001B, 5.750%, 5/15/16 2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,225,991 Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured 4,460 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 4,820,145 University of Chicago Project, Series 1985A, 5.500%, 8/01/20 1,500 Illinois Health Facilities Authority, Revenue Bonds, Evangelical No Opt. Call N/R (3) 1,812,585 Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 (ETM) 4,000 Illinois Health Facilities Authority, Revenue Bonds, Franciscan 9/06 at 100.00 Aaa 4,049,800 Sisters Healthcare Corporation, Series 1992B, 6.625%, 9/01/13 (Pre-refunded 9/01/06) - MBIA Insured 2,225 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,452,706 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 5,948,235 5.000%, 6/15/22 2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 6/07 at 101.00 AAA 2,063,060 5.600%, 6/15/17 6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,268,857 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 1,382,199 5.250%, 12/01/34 - FGIC Insured 1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,018,800 Series 2003, 5.000%, 12/15/22 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 32,590 Total Illinois 34,379,369 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 6.4% 1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,043,000 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+ 3,601,430 Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22 2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,897,100 Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA Insured 2,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 2,156,980 Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded 7/01/12) - MBIA Insured 2,295 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AAA 2,219,609 Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,295 Total Indiana 11,918,119 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 3.9% Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: 3,850 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,103,792 2,850 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,103,793 ------------------------------------------------------------------------------------------------------------------------------------ 6,700 Total Iowa 7,207,585 ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.7% 1,200 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 1,289,196 Revenue Bonds, Series 1999B, 6.000%, 7/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.9% 1,000 Massachusetts Development Finance Agency, Resource 12/08 at 102.00 BBB 1,029,950 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- 547,600 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 6.000%, 7/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 1,500 Total Massachusetts 1,577,550 ------------------------------------------------------------------------------------------------------------------------------------ 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 5.1% $ 400 East Lansing School District, Ingham County, Michigan, 5/10 at 100.00 AA (3) $ 428,952 General Obligation Bonds, Series 2000, 5.625%, 5/01/30 (Pre-refunded 5/01/10) 4,000 Michigan Housing Development Authority, Single Family 6/06 at 102.00 AA+ 4,088,800 Mortgage Revenue Bonds, Series 1996C, 5.950%, 12/01/17 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,042,854 Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 235 Michigan State Hospital Finance Authority, Revenue Refunding 8/06 at 100.00 BB- 235,120 Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 1,600 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 1,630,624 Washtenaw Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 4.750%, 5/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 9,135 Total Michigan 9,426,350 ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.4% 725 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 729,575 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 3,607,870 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 4,164,040 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured 1,680 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 1,810,889 Series 2002, 5.500%, 6/01/22 - FGIC Insured 2,830 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 3,089,200 Series 2002, 5.500%, 6/01/22 (Pre-refunded 6/01/12) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,510 Total Nevada 9,064,129 ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.3% 625 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 630,069 Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.2% Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 1,000 6.750%, 6/01/39 6/13 at 100.00 BBB 1,119,880 1,000 6.250%, 6/01/43 6/13 at 100.00 BBB 1,081,620 ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total New Jersey 2,201,500 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.2% 4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,997,240 Revenue Bonds, Series 2004, 4.625%, 1/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 3.5% 1,835 Dormitory Authority of the State of New York, Second No Opt. Call A1 1,981,690 General Resolution Consolidated Revenue Bonds, City University System, Series 1990C, 7.500%, 7/01/10 2,335 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 2,477,622 General Revenue Bonds, Series 2001A, 5.375%, 9/01/21 35 New York City, New York, General Obligation Bonds, 8/06 at 100.00 A+ 35,092 Series 1991B, 7.000%, 2/01/18 1,850 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 1,962,350 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15 ------------------------------------------------------------------------------------------------------------------------------------ 6,055 Total New York 6,456,754 ------------------------------------------------------------------------------------------------------------------------------------ 35 Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.2% $ 5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA $ 5,328,150 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 2,489,100 Revenue Bonds, Series 2001A, 5.250%, 7/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,345 Total North Carolina 7,817,250 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.7% 3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 3,087,330 St. John Health System, Series 2004, 5.000%, 2/15/24 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.4% 2,435 Dauphin County Industrial Development Authority, No Opt. Call A- 2,897,918 Pennsylvania, Water Development Revenue Refunding Bonds, Dauphin Consolidated Water Supply Company, Series 1992B, 6.700%, 6/01/17 500 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 BBB+ 519,740 Revenue Bonds, Widener University, Series 2003, 5.250%, 7/15/24 1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,065,730 Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,935 Total Pennsylvania 4,483,388 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.2% 1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,641,930 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 1,601,400 FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 8/15/20 - MBIA Insured 2,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 2,620,725 Economic Development Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 ------------------------------------------------------------------------------------------------------------------------------------ 5,500 Total South Carolina 5,864,055 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.1% 1,010 South Dakota Health and Educational Facilities Authority, 7/12 at 101.00 AAA 1,049,400 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+ 1,035,370 Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.250%, 11/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 2,010 Total South Dakota 2,084,770 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.1% 2,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 2,124,940 Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 13.4% 1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,530,255 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,558,700 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 3,231,000 Bonds, Series 2002B, 5.500%, 7/01/18 - FSA Insured 3,125 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 3,195,781 Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%, 2/15/32 400 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 408,616 General Obligation Bonds, Series 1998, 5.000%, 2/15/14 1,425 Killeen Independent School District, Bell County, Texas, General 2/08 at 100.00 AAA 1,460,882 Obligation Bonds, Series 1998, 5.000%, 2/15/14 (Pre-refunded 2/15/08) 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 5,000 North Central Texas Health Facilities Development 5/06 at 102.00 AA- $ 5,078,450 Corporation, Hospital Revenue Refunding Bonds, Baylor Healthcare System, Series 1995, 5.250%, 5/15/16 4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,032,435 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 1,776,478 Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) 500 Victoria, Texas, General Obligation Bonds, Series 2001, 8/11 at 100.00 AAA 518,740 5.000%, 8/15/23 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,950 Total Texas 24,791,337 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.9% 1,710 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 A+ 1,733,461 Refunding Bonds, Series 1996D, 5.000%, 7/01/21 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.4% 2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,593,300 Series 2003-3, 5.000%, 11/01/26 ------------------------------------------------------------------------------------------------------------------------------------ $ 169,710 Total Long-Term Municipal Bonds (cost $171,396,391) 178,789,076 =============----------------------------------------------------------------------------------------------------------------------- SHARES DESCRIPTION VALUE ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 0.1% AIRLINES - 0.1% 2,984 UAL Corporation (4) (5) 119,151 ------------------------------------------------------------------------------------------------------------------------------------ Total Common Stocks (cost $122,370) 119,151 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $171,518,761) - 96.6% 178,908,227 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.4% 6,324,643 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 185,232,870 ====================================================================================================================
(1) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (2) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (3) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (4) Non-income producing. (5) On December 9, 2002, UAL Corporation ("UAL"), the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not remain current on their interest payment obligations with respect to the bonds previously held and thus the Fund had stopped accruing interest on its UAL bonds. On February 1, 2006, UAL emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement agreement established to meet UAL's unsecured bond obligations, the bondholders, including the Fund, received three distributions of UAL common stock over the subsequent months, and the bankruptcy court dismissed all unsecured claims of bondholders, including those of the Fund. Subsequent to fiscal year-end, the Fund liquidated its UAL common stock holdings. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 37 Nuveen California Select Tax-Free Income Portfolio (NXC) Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM MUNICIPAL BONDS - 98.4% CONSUMER STAPLES - 2.1% $ 235 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 227,701 Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21 1,675 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB 1,693,626 Settlement Asset-Backed Revenue Bonds, Fresno County Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 1,910 Total Consumer Staples 1,921,327 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.2% 1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,042,490 Stanford University, Series 1999P, 5.000%, 12/01/23 1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,065,090 University of San Diego, Series 2002A, 5.500%, 10/01/32 2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 2,698,488 University of the Pacific, Series 2002, 5.250%, 11/01/21 3,000 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 3,156,240 Revenue Bonds, J. David Gladstone Institutes, Series 2001, 5.500%, 10/01/19 2,000 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 2,074,640 University of California, UCLA Replacement Hospital Project, Series 2002A, 5.000%, 10/01/22 - FSA Insured 1,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 1,052,470 Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,600 Total Education and Civic Organizations 11,089,418 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 9.2% 335 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 339,968 Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34 2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,106,320 Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 1,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 1,596,990 Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 - FSA Insured 1,500 California Statewide Community Development Authority, 11/09 at 102.00 A 1,564,485 Insured Mortgage Hospital Revenue Bonds, Mission Community Hospital, Series 2001, 5.375%, 11/01/26 90 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 93,296 Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/24 1,880 California Statewide Community Development Authority, 6/07 at 101.00 AAA 1,936,532 Revenue Bonds, Los Angeles Orthopaedic Hospital Foundation, Series 2000, 5.500%, 6/01/17 - AMBAC Insured 790 Central California Joint Powers Health Finance Authority, 8/06 at 100.00 Baa2 789,984 Certificates of Participation, Community Hospitals of Central California, Series 1993, 5.000%, 2/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 8,095 Total Health Care 8,427,575 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.0% 750 California Statewide Community Development Authority, 8/12 at 100.00 A 784,785 Student Housing Revenue Bonds, EAH - Irvine East Campus Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 - ACA Insured ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.5% 1,250 California Pollution Control Financing Authority, Solid Waste 6/23 at 100.00 BBB+ 1,303,700 Disposal Revenue Bonds, Republic Services Inc., Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17) (Alternative Minimum Tax) 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.7% $ 1,500 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A $ 1,557,480 California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 23.3% California, General Obligation Bonds, Series 2003: 500 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 536,965 1,450 5.250%, 2/01/21 8/13 at 100.00 A 1,542,800 1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,066,790 California, General Obligation Bonds, Series 2004: 750 5.000%, 2/01/23 2/14 at 100.00 A 776,738 800 5.125%, 4/01/25 4/14 at 100.00 A 835,744 1,000 California, General Obligation Bonds, Series 2005, 5.000%, 8/01/28 8/15 at 100.00 A 1,035,000 2,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 2,093,540 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 2,974,140 1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 1,083,933 2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,438,086 2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,376,843 395 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 413,727 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 621,637 1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 626,864 Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: 130 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 135,758 135 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 140,875 1,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 1,632,600 California, General Obligation Bonds, Series 2003E, 5.250%, 7/01/24 - FSA Insured San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 100 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 104,857 150 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 157,049 2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,685,529 General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 25,690 Total Tax Obligation/General 21,279,475 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.1% 1,000 Bell Community Redevelopment Agency, California, 10/13 at 100.00 AA 1,072,920 Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33 - RAAI Insured 3,500 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 4,110,890 Department of Corrections, Calipatria State Prison, Series 1991A, 6.500%, 9/01/17 - MBIA Insured 1,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 1,087,230 Department of Mental Health, Coalinga State Hospital, Series 2004A, 5.500%, 6/01/23 660 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 705,230 5.000%, 7/01/15 1,000 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 1,035,180 Revenue Bonds, North Fontana Redevelopment Project, Series 2005A, 5.000%, 10/01/32 - AMBAC Insured 90 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 94,442 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 1,300 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,378,689 Facilities District 03-1 of Ladera Ranch, Series 2004A, 5.625%, 8/15/34 39 Nuveen California Select Tax-Free Income Portfolio (NXC) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 105 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA $ 108,298 Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 215 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 221,809 Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 605 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 669,172 Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - MBIA Insured 3,000 San Mateo County Transit District, California, Sales Tax Revenue 6/15 at 100.00 AAA 3,165,690 Bonds, Series 2005A, 5.000%, 6/01/21 - MBIA Insured 1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,032,470 of Participation, Series 2002, 5.000%, 4/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 13,475 Total Tax Obligation/Limited 14,682,020 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.4% 1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,113,292 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 5,315,998 Bonds, Series 2001B, 5.500%, 8/01/17 - AMBAC Insured (Alternative Minimum Tax) 2,915 Palm Springs Financing Authority, California, Palm Springs 7/06 at 100.00 AAA 2,919,868 Regional Airport Revenue Bonds, Series 1992, 6.000%, 1/01/12 - MBIA Insured (Alternative Minimum Tax) 1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,073,240 5.250%, 11/01/20 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,065 Total Transportation 10,422,398 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 10.2% (3) 400 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA (3) 428,448 California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/26 (Pre-refunded 8/01/12) California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 2,000 5.750%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,236,060 2,000 5.125%, 5/01/19 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,168,560 750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1 (3) 794,708 Pepperdine University, Series 2002A, 5.500%, 8/01/32 (Pre-refunded 8/01/09) 1,400 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,534,666 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B, 5.500%, 6/01/33 (Pre-refunded 6/01/13) 2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA 2,149,860 General Obligation Bonds, Series 2002A, 5.000%, 8/01/22 (Pre-refunded 8/01/12) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,550 Total U.S. Guaranteed 9,312,302 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.9% 200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 209,262 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 215 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 224,458 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured 1,225 Turlock Irrigation District, California, Revenue Refunding No Opt. Call Aaa 1,337,112 Bonds, Series 1992A, 6.250%, 1/01/12 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,640 Total Utilities 1,770,832 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.8% 2,160 California Statewide Community Development Authority, 10/11 at 101.00 AAA 2,287,289 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 2,914,240 Series 1998A, 5.000%, 6/01/23 - FGIC Insured 825 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 849,214 Revenue Certificates of Participation, Solar Photovoltaic Project, Series 2003, 5.375%, 4/01/24 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,000 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ $ 1,036,060 of Participation, Water Systems Project, Series 2003, 5.625%, 7/01/43 ------------------------------------------------------------------------------------------------------------------------------------ 6,785 Total Water and Sewer 7,086,803 ------------------------------------------------------------------------------------------------------------------------------------ $ 90,310 Total Long-Term Municipal Bonds (cost $85,598,756) 89,638,115 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM MUNICIPAL BONDS - 0.7% 150 California Department of Water Resources, Power Supply A-1+ 150,000 Revenue Bonds, Variable Rate Demand Obligations, Series 2002C-7, 3.170%, 5/01/22 - FSA Insured (4) 100 California Statewide Community Development Authority, VMIG-1 100,000 Revenue Bonds, Variable Rate Demand Obligations, Gemological Institute of America Inc., Series 2001, 3.170%, 5/01/25 - AMBAC Insured (4) 400 Irvine Assessment District No. 97-17, California, Limited VMIG-1 400,000 Obligation Improvement Bonds, Variable Rate Demand Obligations, Series 1998, 3.100%, 9/02/23 (4) ------------------------------------------------------------------------------------------------------------------------------------ $ 650 Total Short-Term Municipal Bonds (cost $650,000) 650,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $86,248,756) - 99.1% 90,288,115 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.9% 863,815 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 91,151,930 ====================================================================================================================
(1) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (2) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (3) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (4) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. N/R Not rated. See accompanying notes to financial statements. 41 Nuveen New York Select Tax-Free Income Portfolio (NXN) Portfolio of INVESTMENTS March 31, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM MUNICIPAL BONDS - 98.0% CONSUMER DISCRETIONARY - 0.3% $ 100 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 100,743 Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005, 5.000%, 9/01/35 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.0% TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006: 540 4.750%, 6/01/22 6/16 at 100.00 BBB 536,053 540 5.000%, 6/01/26 6/16 at 100.00 BBB 533,542 ------------------------------------------------------------------------------------------------------------------------------------ 1,080 Total Consumer Staples 1,069,595 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.1% 1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,777,333 Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 - AMBAC Insured 785 Dormitory Authority of the State of New York, Insured 7/12 at 100.00 AAA 810,222 Revenue Bonds, Iona College, Series 2002, 5.000%, 7/01/22 - XLCA Insured 1,000 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 101.00 AAA 1,029,750 Bonds, Rochester Institute of Technology, Series 1997, 5.250%, 7/01/22 - MBIA Insured 490 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 530,930 Resolution Consolidated Revenue Bonds, City University System, Series 1990C, 7.500%, 7/01/10 - FGIC Insured 100 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 102,316 Revenue Bonds, Adelphi University, Civic Facility Project, Series 2005, 5.000%, 10/01/35 100 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 101,858 Civic Facility Revenue Bonds, St. Francis College, Series 2004, 5.000%, 10/01/34 500 New York City Industrial Development Agency, New York, Civic 2/11 at 100.00 A- 516,865 Facility Revenue Bonds, YMCA of Greater New York, Series 2002, 5.250%, 8/01/21 200 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 204,800 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 4,875 Total Education and Civic Organizations 5,074,074 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 11.7% 250 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 259,660 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, Lenox Hill Hospital Obligated Group, Series 2001: 110 5.375%, 7/01/20 7/11 at 101.00 Ba2 109,773 100 5.500%, 7/01/30 7/11 at 101.00 Ba2 99,131 670 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 698,267 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 415 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 445,258 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 250 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 A3 263,985 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 1,792,258 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 1,274,850 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/17 - AMBAC Insured 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 $ 517,620 Winthrop-South Nassau University Hospital Association, Series 2003A, 5.500%, 7/01/32 750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 797,700 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 - AMBAC Insured 250 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 255,415 Civic Facility Revenue Bonds, Staten Island University Hospital, Series 2002C, 6.450%, 7/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 6,170 Total Health Care 6,513,917 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.1% 1,000 East Rochester Housing Authority, New York, Revenue Bonds, 12/12 at 103.00 AAA 1,074,720 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 1,064,450 FHA-Insured Mortgage Revenue Bonds, Sunset Woods Apartments II Project, Series 2002, 5.350%, 2/01/20 250 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 261,373 Multifamily Housing Revenue Bonds, Series 2004A, 5.250%, 11/01/30 160 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 160,851 Multifamily Housing Revenue Bonds, Series 2005F-1, 4.750%, 11/01/35 295 New York State Housing Finance Agency, FHA-Insured 8/06 at 100.00 AAA 295,448 Multifamily Housing Mortgage Revenue Bonds, Series 1992C, 6.450%, 8/15/14 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,705 Total Housing/Multifamily 2,856,842 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.3% 2,000 New York State Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,037,520 Revenue Bonds, Series 101, 5.000%, 10/01/18 (Alternative Minimum Tax) 2,500 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa 2,545,325 Thirty-First Series A, 5.300%, 10/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,500 Total Housing/Single Family 4,582,845 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 9.4% 2,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 2,069,920 Nursing Home Mortgage Revenue Bonds, Norwegian Christian Home and Health Center, Series 2001, 5.200%, 8/01/36 - MBIA Insured 50 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 A 50,718 Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured 2,000 East Rochester Housing Authority, New York, FHA-Insured 8/12 at 101.00 AAA 2,050,020 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+ 1,021,300 GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor House Inc., Series 2002A, 4.950%, 11/20/32 ------------------------------------------------------------------------------------------------------------------------------------ 5,050 Total Long-Term Care 5,191,958 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 6.0% Clarkstown, Rickland County, New York, Various Purposes Serial Bonds, Series 1992: 505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 542,183 525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 569,966 525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 578,539 300 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 320,280 Fiscal Series 2004C, 5.250%, 8/15/16 500 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 526,535 Series 2004E, 5.000%, 11/01/19 - FSA Insured 225 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 239,609 Series 2006C, 5.000%, 8/01/16 - FSA Insured 500 West Islip Union Free School District, Suffolk County, 10/15 at 100.00 Aaa 534,385 New York, General Obligation Bonds, Series 2005, 5.000%, 10/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,080 Total Tax Obligation/General 3,311,497 ------------------------------------------------------------------------------------------------------------------------------------ 43 Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued) Portfolio of INVESTMENTS March 31, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 13.7% $ 600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA $ 628,770 Series 2003A, 5.000%, 11/01/23 300 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 320,127 Mental Health Services Facilities Improvements, Series 2005D-1, 5.000%, 2/15/15 - FGIC Insured 175 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 186,345 Mental Health Services Facilities Improvements, Series 2005D, 5.000%, 2/15/14 - FGIC Insured 500 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 555,420 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 500 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 543,815 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 96,897 Tax Secured Revenue Bonds, Series 2001A-2, 5.125%, 11/15/21 - AMBAC 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 262,300 200 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 209,550 1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,281,705 670 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 696,472 Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23 250 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 262,345 Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/21 - MBIA Insured 570 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 648,158 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 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 1,065,300 250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 266,005 500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 539,355 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 60 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 64,422 Center Bonds, Series 1990E, 7.250%, 1/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 7,145 Total Tax Obligation/Limited 7,626,986 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.8% 400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 424,588 Series 2001A, 5.625%, 7/15/25 500 Metropolitan Transportation Authority, New York, No Opt. Call AAA 537,025 Transportation Revenue Bonds, Series 2003A, 5.000%, 11/15/15 - FGIC Insured 50 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 52,063 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured New York State Thruway Authority, General Revenue Bonds, Series 2005G: 100 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 104,397 600 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 625,452 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fortieth Series 2005: 250 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 266,485 105 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 109,703 ------------------------------------------------------------------------------------------------------------------------------------ 2,005 Total Transportation 2,119,713 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 9.3% (3) 1,305 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,556,982 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 (ETM) 750 New York State Thruway Authority, Highway and Bridge 4/13 at 100.00 AAA 813,652 Trust Fund Bonds, Second Generation, Series 2003A, 5.250%, 4/01/23 (Pre-refunded 4/01/13) - MBIA Insured 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (3) (continued) $ 1,000 New York State Urban Development Corporation, State 3/13 at 100.00 AAA $ 1,099,760 Personal Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded 3/15/13) - FGIC Insured 485 Suffolk County Water Authority, New York, Water Revenue No Opt. Call AAA 536,366 Bonds, Series 1986V, 6.750%, 6/01/12 (ETM) 1,080 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,163,182 Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12) ------------------------------------------------------------------------------------------------------------------------------------ 4,620 Total U.S. Guaranteed 5,169,942 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.1% 1,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 1,038,170 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 1,056,040 General Revenue Bonds, Series 2003C, 5.000%, 9/01/16 - CIFG Insured Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: 570 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 598,950 430 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 450,399 500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 497,140 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 Baa3 263,898 Solid Waste Disposal Facility Revenue Bonds, American Ref-Fuel Company of Niagara LP, Series 2001A, 5.450%, 11/15/26 (Mandatory put 11/15/12) (Alternative Minimum Tax) 60 Westchester County Industrial Development Agency, 7/07 at 101.00 BBB 61,351 Westchester County, New York, Resource Recovery Revenue Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,810 Total Utilities 3,965,948 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 12.2% 2,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 2,575,151 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 2,144,800 2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,067,160 ------------------------------------------------------------------------------------------------------------------------------------ 6,500 Total Water and Sewer 6,787,111 ------------------------------------------------------------------------------------------------------------------------------------ $ 51,640 Total Long-Term Municipal Bonds (cost $52,619,625) 54,371,171 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 1,101,887 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 55,473,058 ====================================================================================================================
(1) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (2) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (3) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 45 Statement of ASSETS AND LIABILITIES March 31, 2006
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 value (cost $223,517,068, $240,257,693, $171,518,761, $86,248,756 and $52,619,625, respectively) $236,671,673 $250,373,008 $178,908,227 $90,288,115 $54,371,171 Cash -- 1,163,418 -- -- 369,601 Receivables: Interest 3,740,184 3,740,858 2,729,759 1,231,841 755,406 Investments sold 495,628 -- 3,895,285 -- -- Other assets 71,201 75,101 56,330 31,828 22,715 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 240,978,686 255,352,385 185,589,601 91,551,784 55,518,893 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 1,411,446 -- 222,701 331,059 -- Payable for investments purchased -- 966,200 -- -- -- Accrued expenses: Management fees 47,470 61,102 44,955 22,484 13,677 Other 114,130 119,638 89,075 46,311 32,158 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,573,046 1,146,940 356,731 399,854 45,835 ------------------------------------------------------------------------------------------------------------------------------------ Net assets $239,405,640 $254,205,445 $185,232,870 $91,151,930 $55,473,058 ==================================================================================================================================== 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 $ 14.44 $ 14.29 $ 14.57 $ 14.19 ==================================================================================================================================== NET ASSETS CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Shares, $.01 par value per share $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,082 Paid-in surplus 227,634,455 245,689,700 178,371,732 87,121,715 53,622,239 Undistributed (Over-distribution of) net investment income 46,969 (343,250) (190,008) (112,468) (78,390) Accumulated net realized gain (loss) from investments (1,594,170) (1,432,391) (467,961) 40,753 138,581 Net unrealized appreciation (depreciation) of investments 13,154,605 10,115,315 7,389,466 4,039,359 1,751,546 ------------------------------------------------------------------------------------------------------------------------------------ Net assets $239,405,640 $254,205,445 $185,232,870 $91,151,930 $55,473,058 ==================================================================================================================================== Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 46 Statement of OPERATIONS Year Ended March 31, 2006
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 $12,164,634 $12,462,181 $9,091,003 $4,421,497 $2,636,788 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 565,075 724,347 533,204 266,984 163,008 Shareholders' servicing agent fees and expenses 36,982 34,787 27,381 9,941 7,595 Custodian's fees and expenses 60,723 66,157 43,755 24,303 19,789 Trustees' fees and expenses 4,495 4,471 3,214 1,728 1,101 Professional fees 17,918 17,365 13,394 8,834 7,949 Shareholders' reports - printing and mailing expenses 32,928 32,916 24,827 11,923 9,359 Stock exchange listing fees 10,245 10,245 10,245 10,075 10,251 Investor relations expense 28,924 30,393 22,749 12,047 8,371 Other expenses 7,746 10,192 7,673 5,391 4,715 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit 765,036 930,873 686,442 351,226 232,138 Custodian fee credit (25,840) (36,916) (26,737) (12,692) (5,825) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 739,196 893,957 659,705 338,534 226,313 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 11,425,438 11,568,224 8,431,298 4,082,963 2,410,475 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (1,593,512) (1,292,123) (459,059) 371,058 222,568 Change in net unrealized appreciation (depreciation) of investments 1,325,784 2,512,224 1,267,741 208,194 (309,880) ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (267,728) 1,220,101 808,682 579,252 (87,312) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations $11,157,710 $12,788,325 $9,239,980 $4,662,215 $2,323,163 ====================================================================================================================================
See accompanying notes to financial statements. 47 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 3/31/06 3/31/05 3/31/06 3/31/05 3/31/06 3/31/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 11,425,438 $ 11,460,333 $ 11,568,224 $ 11,857,079 $ 8,431,298 $ 8,597,048 Net realized gain (loss) from investments (1,593,512) 1,298,950 (1,292,123) 392,947 (459,059) 465,025 Change in net unrealized appreciation (depreciation) of investments 1,325,784 (3,258,427) 2,512,224 (2,835,579) 1,267,741 (1,854,352) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 11,157,710 9,500,856 12,788,325 9,414,447 9,239,980 7,207,721 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS From net investment income (11,202,617) (11,587,432) (11,479,810) (11,902,381) (8,348,899) (8,741,600) From accumulated net realized gains (9,827) (1,618,228) (260,585) (727,172) (37,596) (444,780) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (11,212,444) (13,205,660) (11,740,395) (12,629,553) (8,386,495) (9,186,380) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets (54,734) (3,704,804) 1,047,930 (3,215,106) 853,485 (1,978,659) Net assets at the beginning of year 239,460,374 243,165,178 253,157,515 256,372,621 184,379,385 186,358,044 ------------------------------------------------------------------------------------------------------------------------------------ Net assets at the end of year $239,405,640 $239,460,374 $254,205,445 $253,157,515 $185,232,870 $184,379,385 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 46,969 $ (175,666) $ (343,250) $ (431,664) $ (190,008) $ (272,407) ====================================================================================================================================
See accompanying notes to financial statements. 48
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN) -------------------------------- ------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/06 3/31/05 3/31/06 3/31/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,082,963 $ 4,140,965 $ 2,410,475 $ 2,508,691 Net realized gain (loss) from investments 371,058 49,639 222,568 246,834 Change in net unrealized appreciation (depreciation) of investments 208,194 (670,557) (309,880) (1,058,725) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 4,662,215 3,520,047 2,323,163 1,696,800 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS From net investment income (4,079,612) (4,142,182) (2,411,373) (2,587,119) From accumulated net realized gains (379,804) (292,831) (255,989) (250,126) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (4,459,416) (4,435,013) (2,667,362) (2,837,245) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets 202,799 (914,966) (344,199) (1,140,445) Net assets at the beginning of year 90,949,131 91,864,097 55,817,257 56,957,702 ------------------------------------------------------------------------------------------------------------------------------------ Net assets at the end of year $91,151,930 $90,949,131 $55,473,058 $55,817,257 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ (112,468) $ (115,819) $ (78,390) $ (77,492) ====================================================================================================================================
See accompanying notes to financial statements. 49 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 market price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular security, the Board of Trustees of the Funds, or its designee, may establish fair 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 obligorcredit characteristics considered relevant by the pricing service or the Board of Trustees' designee. Exchange-listed securities are generally valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on Nasdaq are valued at the Nasdaq Official Closing Price. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At March 31, 2006, Select Tax-Free 2 (NXQ) had an outstanding when-issued/delayed delivery purchase commitment of $966,200. There were no such outstanding purchase commitments in any of the other Funds. 50 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. Dividend income, if any, is recorded on the ex-dividend date. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all 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 applicable state income taxes, if any, 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, 2006, 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. 51 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, 2006, nor during the fiscal year ended March 31, 2005. 3. INVESTMENT TRANSACTIONS Purchases and sales of investments (excluding short-term investments) during the fiscal year ended March 31, 2006, 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 $10,327,559 $28,162,251 $10,100,926 $7,116,572 $7,107,673 Sales and maturities 8,330,051 31,133,645 12,180,330 7,728,237 7,716,748 =========================================================================================================
4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, timing differences in recognizing taxable market discount and timing differences in recognizing certain gains and losses on investment transactions. At March 31, 2006, 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 $223,151,460 $240,161,347 $171,459,559 $86,247,560 $52,614,855 ==============================================================================================================
52 Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2006, 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 $13,735,055 $10,533,444 $7,701,072 $4,082,475 $1,832,235 Depreciation (214,842) (321,783) (252,404) (41,920) (75,919) -------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $13,520,213 $10,211,661 $7,448,668 $4,040,555 $1,756,316 ==============================================================================================================
The tax components of undistributed net investment income and net realized gains at March 31, 2006, 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* $614,913 $493,578 $444,373 $217,959 $116,162 Undistributed net ordinary income** -- -- -- -- -- Undistributed net long-term capital gains -- -- -- 40,753 138,581 =============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on March 1, 2006, paid on April 3, 2006. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the tax years ended March 31, 2006 and March 31, 2005, 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 2006 (NXP) (NXQ) (NXR) (NXC) (NXN) ----------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $11,202,618 $11,515,026 $8,361,862 $4,092,125 $2,421,145 Distributions from net ordinary income** 126 -- -- 49,498 -- Distributions from net long-term capital gains*** 9,113 259,588 36,746 330,306 255,989 =============================================================================================================================
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 =============================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds designated as a long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax period ended March 31, 2006. The following Funds have elected to defer net realized losses from investments incurred from November 1, 2005 through March 31, 2006 ("post-October losses") in accordance with Federal income tax regulations. The following post-October losses are treated as having arisen on the first day of the following fiscal year: SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 (NXP) (NXQ) (NXR) -------------------------------------------------------------------------------- $1,594,170 $1,432,391 $467,961 ================================================================================ 53 Notes to FINANCIAL STATEMENTS (continued) 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets of each Fund as follows:
SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR) CALIFORNIA SELECT TAX-FREE (NXC) SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN) AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE FUND-LEVEL FEE RATE -------------------------------------------------------------------------------------- For the first $125 million .0500% .1000% For the next $125 million .0375 .0875 For the next $250 million .0250 .0750 For the next $500 million .0125 .0625 ======================================================================================
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of March 31, 2006, the complex-level fee rate was .1887%. COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion(2) .1400 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2) With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The 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. 54 6. SUBSEQUENT EVENT - DISTRIBUTIONS TO SHAREHOLDERS The Funds declared dividend distributions from their tax-exempt net investment income which were paid on May 1, 2006, to shareholders of record on April 15, 2006, 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 $.0530 $.0535 $.0530 $.0510 ================================================================================ 55 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: 2006 $14.62 $.70 $(.02) $ .68 $(.68) $ -- $(.68) $14.62 $14.21 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 SELECT TAX-FREE 2 (NXQ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2006 14.38 .66 .06 .72 (.65) (.01) (.66) 14.44 13.37 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 SELECT TAX-FREE 3 (NXR) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2006 14.22 .65 .06 .71 (.64) -- (.64) 14.29 13.45 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 CALIFORNIA SELECT TAX-FREE (NXC) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2006 14.54 .65 .09 .74 (.65) (.06) (.71) 14.57 13.56 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 NEW YORK SELECT TAX-FREE (NXN) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2006 14.28 .62 (.02) .60 (.62) (.07) (.69) 14.19 13.35 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 ==================================================================================================================================== 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: 2006 10.41% 4.74% $239,406 .32% 4.72% .31% 4.73% 4% 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 SELECT TAX-FREE 2 (NXQ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2006 7.39 5.12 254,205 .36 4.51 .35 4.52 11 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 SELECT TAX-FREE 3 (NXR) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2006 10.12 5.10 185,233 .37 4.51 .35 4.52 6 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 CALIFORNIA SELECT TAX-FREE (NXC) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2006 6.52 5.17 91,152 .38 4.42 .37 4.43 8 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 NEW YORK SELECT TAX-FREE (NXN) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2006 2.84 4.19 55,473 .41 4.28 .40 4.29 13 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 ====================================================================================================================================
* Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. 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. 56-57 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 Fund 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 (since 1996) and Director of Nuveen Investments, 161 3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and 333 W. Wacker Drive and Board Nuveen Institutional Advisory Corp.(3); Director (since 1996) Chicago, IL 60606 Member of Institutional Capital Corporation; Chairman and Director (since 1997) of Nuveen Asset Management; Chairman and Director of Rittenhouse Asset Management, Inc. (since 1999); Chairman of Nuveen Investments Advisers Inc. (since 2002). BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 161 8/22/40 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 161 7/29/34 Northern Trust Company; Director (since 2002) Community 333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United Chicago, IL 60606 Way of the North Shore. ------------------------------------------------------------------------------------------------------------------------------------ Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 161 10/22/48 corporation (since 1996); Director and Vice Chairman, United 333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member, Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee of Coe College and Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. ------------------------------------------------------------------------------------------------------------------------------------ William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 161 3/6/48 Business at the University of Connecticut (since 2002); 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 (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation; Director, SS&C Technologies, Inc. (May 2005 - October 2005). ------------------------------------------------------------------------------------------------------------------------------------ David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 159 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; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens. 58 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 of Miller-Valentine Partners Ltd., a real estate 161 9/24/44 investment company; formerly, Senior Partner and Chief 333 W. Wacker Drive Operating Officer (retired, December 2004) of Miller-Valentine Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty; Chair of the Finance Committee and member of the Audit Committee of Premier Health Partners, the not-for-profit company of Miami Valley Hospital; Vice President, Dayton Philharmonic Orchestra Association; Board Member, Regional Leaders Forum, which promotes cooperation on economic development issues; Director, Dayton Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. ------------------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 161 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, 161 1/22/50 Northwestern University (since 1997); Director (since 2003), 333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003), Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider of home and community-based services; Chairman (since 1997), Board of Directors, Rubicon, a pure captive insurance company owned by Northwestern University; Director (since 1997), Evanston Chamber of Commerce and Evanston Inventure, a business development organization. NUMBER OF PORTFOLIOS IN 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 FUND: ------------------------------------------------------------------------------------------------------------------------------------ Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 161 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 (2002-2004), General Counsel (1998-2004) and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Managing Director (since 2002) and Assistant Secretary and Associate General Counsel, formerly, Vice President (since 1997), of Nuveen Asset Management; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. 59 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), formerly Vice President 161 9/22/63 (since 2002); formerly, Assistant Vice President (since 2000) 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 161 2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC. 333 W. Wacker Drive Secretary Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); Vice 161 11/28/67 and Treasurer President and Treasurer (since 1999) of Nuveen Investments, 333 W. Wacker Drive Inc.; Vice President and Treasurer (1999-2004) of Nuveen Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(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. ------------------------------------------------------------------------------------------------------------------------------------ John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 161 8/24/61 Investments, LLC (since January 2005); formerly, Director, 333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004), Chicago, IL 60606 Director, Business Development and Transformation, Deutsche Trust Bank Japan (2002-2003); previously, Senior Vice President, Head of Investment Operations and Systems, Scudder Investments Japan, (2000-2002), Senior Vice President, Head of Plan Administration and Participant Services, Scudder Investments (1995-2002). ------------------------------------------------------------------------------------------------------------------------------------ Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 161 9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant 333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC; Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004) formerly, Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Vice President and Assistant Secretary (since 2005) of Nuveen Asset Management. ------------------------------------------------------------------------------------------------------------------------------------ Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 161 10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly, 333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director (since 2005) of Nuveen Asset Management. ------------------------------------------------------------------------------------------------------------------------------------ William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 161 3/2/64 Nuveen Investments; Managing Director (1997-2004) of 333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory Chicago, IL 60606 Corp.(3); Managing Director (since 2001) of Nuveen Asset Management; Vice President (since 2002) of Nuveen Investments Advisers Inc.; Chartered Financial Analyst. 60 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): ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 161 5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and 333 W. Wacker Drive Funds 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) 161 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 (1994-2004), The Northern Trust Company. ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 161 3/22/63 LLC; Certified Public Accountant. 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 161 8/27/61 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 161 7/27/51 and Assistant Counsel of Nuveen Investments, LLC; formerly, Vice President 333 W. Wacker Drive Secretary and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002).
(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. 61 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 EXCHANGE-TRADED CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the 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. 62 Other Useful INFORMATION 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, 2005, 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 Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the 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 Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. No 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. 63 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 $145 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under 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 o Fund details Learn more o Daily financial news about Nuveen Funds at o Investor education WWW.NUVEEN.COM/CEF o Interactive planning tools Logo: NUVEEN Investments EAN-B-0306D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/etf. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, Chairman of the Audit Committee, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen California Select Tax-Free Income Portfolio The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND ----------------------------------------------------------------------------------------------------------------------- March 31, 2006 $ 8,327 $ 0 $ 404 $ 0 ----------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------------------------- March 31, 2005 $ 7,814 $ 0 $ 407 $ 0 ----------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception -----------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon procedures required by the rating agencies to rate fund preferred shares. 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 tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS --------------------------------------------------------------------------------------------------------- March 31, 2006 $ 0 $ 275,000 $ 0 --------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception --------------------------------------------------------------------------------------------------------- March 31, 2005 (1) $ 0 $ 282,575 $ 0 --------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ---------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Nuveen Closed-End Funds tax return preparation. (1) "Tax Fees Billed to Adviser and Affiliated Fund Service Providers" for the year ended 3/31/05 have been revised and primarily reflect fees billed to the Adviser for Nuveen Closed-End Funds tax return preparation. 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, 2006 $ 404 $ 275,000 $ 0 $ 275,404 March 31, 2005 $ 407 $ 282,575 $ 0 $ 282,982
The above "Non-Audit Fees billed to Adviser" for both fiscal year ends include "Tax Fees" billed to Adviser in their respectable amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board of Directors or Trustees has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B. Evans, William J. Schneider and Eugene S. Sunshine. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board of Trustees on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board of Trustees or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board of Trustees and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the Registrant's investment strategies: NAME FUND Scott R. Romans Nuveen California Select Tax-Free Income Portfolio Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: TYPE OF ACCOUNT NUMBER OF PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS -------------------------------------------------------------------------------- Scott R. Romans Registered Investment Company 28 $6,144 million Other Pooled Investment Vehicles -0- $0 Other Accounts -0- $0 * Assets are as of March 31, 2006. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. The portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation, including these three elements, to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining the portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of May 31, 2006, the S&P/Investortools Municipal Bond index was comprised of 46,877 securities with an aggregate current market value of $879 billion. Base salary. The portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. The portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by the portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. The portfolio manager is eligible to receive bonus compensation in the form of equity-based awards issued in securities issued by Nuveen Investments, Inc. The amount of such compensation is dependent upon the same factors articulated for cash bonus awards but also factors in his long-term potential with the firm. Material Conflicts of Interest. The portfolio manager's simultaneous management of the Registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager. In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of the March 31, 2006, the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by NAM's municipal investment team.
-------------------------- ---------------------------------------------- ----------------- ---------------------- DOLLAR RANGE OF EQUITY SECURITIES DOLLAR RANGE OF BENEFICIALLY OWNED EQUITY IN THE REMAINDER OF SECURITIES NUVEEN FUNDS MANAGED BENEFICIALLY BY NAM'S MUNICIPAL NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM -------------------------- ---------------------------------------------- ----------------- ---------------------- Scott R. Romans Nuveen California Select Tax-Free Income $0 $10,001-$50,000 Portfolio -------------------------- ---------------------------------------------- ----------------- ----------------------
PORTFOLIO MANAGER BIO: Scott R. Romans, PhD joined Nuveen Investments in 2000 as a senior analyst in the education sector. In 2003, he was assigned management responsibility for several closed- and open-ended municipal bond funds most of which are state funds covering California and other western states. Currently, he manages investments for 29 Nuveen-sponsored investment companies. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. During this reporting period, the registrant's Board of Trustees implemented a change to the procedures by which shareholders may recommend nominees to the registrant's board of trustees by amending the registrant's by-laws to include a provision specifying the date by which shareholder nominations for election as trustee at a subsequent meeting must be submitted to the registrant. Shareholders must deliver or mail notice to the registrant not less than forty-five days nor more than sixty days prior to the first anniversary date of the date on which the registrant first mailed its proxy materials for the prior year's annual meeting; provided, however, if and only if the annual meeting is not scheduled to be held within a period that commences thirty days before the first anniversary date of the annual meeting for the preceding year and ends thirty days after such anniversary date (an annual meeting date outside such period being referred to as an "Other Annual Meeting Date" hereafter), the shareholder notice must be given no later than the close of business on the date forty-five days prior to such Other Annual Meeting Date or the tenth business day following the date such Other Annual Meeting Date is first publicly announced or disclosed. The shareholder's notice must be in writing and set forth the name, age, date of birth, business address, residence address and nationality of the person(s) being nominated and the class or series, number of all shares of the registrant owned of record or beneficially be each such person(s), any other information regarding such person required by Item 401 of Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities Exchange Act of 1934, as amended, any other information regarding the person(s) to be nominated that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitation of proxies for election of trustees, and whether such shareholder believes any nominee is or will be an "interested person" (as that term is defined in the Investment Company Act of 1940, as amended) of the registrant or sufficient information to enable the registrant to make that determination and the written and signed consent of the person(s) to be nominated. 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, 2006 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: June 8, 2006 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: June 8, 2006 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.