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) Kevin J. McCarthy 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, 2007 ------------------ 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, 2007 Nuveen Investments Municipal 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 Photo of: Woman and man at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Woman Photo of: Man and child 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. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS Once again, I am pleased to report that over the twelve-month period covered by this 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. For some time, I've used these letters to remind you that 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. For more information about this important investment strategy, I encourage you to contact your personal financial advisor. "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." We also are pleased to be able to offer you a choice concerning how you receive your shareholder reports and other Fund information. As an alternative to mailed copies, you can sign up to receive future Fund reports and other Fund information by e-mail and the internet. The inside front cover of this report contains information on how you can sign up. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board May 15, 2007 Nuveen Investments Municipal Closed-End Funds (NXP, NXQ, NXR, NXC, NXN) Portfolio Managers' COMMENTS Portfolio managers Tom Spalding, Scott Romans and Cathryn Steeves review economic and municipal market conditions, key investment strategies and the annual performance of the Nuveen Select Portfolios. With 31 years of investment experience, Tom has managed the three national Portfolios since 1999. Scott, who joined Nuveen in 2000, has managed NXC since 2003, while Cathryn, who has been with Nuveen since 1996, assumed portfolio management responsibility for NXN in July 2006. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH REPORTING PERIOD ENDED MARCH 31, 2007? Between April 1, 2006, and March 31, 2007, we saw interest rates at the short end of the yield curve rise modestly, while longer-term rates generally declined. In May and June 2006, the Federal Reserve announced two additional increases of 0.25% each in the Fed funds rate, bringing this short-term target to 5.25%. Then, in the first pause in rate increases in more than two years, the Fed left monetary policy unchanged during the remaining nine months of this reporting period while it kept close tabs on inflationary pressures and the pace of economic growth. Over the same 12-month period, the yield on the benchmark 10-year U.S. Treasury note fell 20 basis points to end March 2007 at 4.65%. In the municipal market, the yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term municipal market rates, fell to 4.48% at the end of March 2007, a decline of 66 basis points from the end of March 2006. As shorter-term municipal bond interest rates approached the levels of longer-term rates, the municipal bond yield curve continued to flatten, with longer duration1 bonds generally outperforming those with shorter durations during this period. Although many market observers had expected to see the Fed funds rate begin to ease in early 2007, slowing economic growth, higher energy prices, and a slumping housing market kept the Fed on the sidelines. After posting an annualized gain of 5.6% in the first quarter of 2006, the U.S. gross domestic product, a closely watched measure, expanded 2.6% in the second quarter, 2.0% in the third quarter, and 2.5% in the fourth quarter (all GDP numbers annualized). In the first quarter of 2007, the rate of GDP growth slowed even further to an annualized 1.3%, the weakest rate in four 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. 4 Over the 12 months ended March 2007, municipal bond issuance nationwide totaled $417.8 billion, up 11% from the previous 12 months. This total reflected record supply during the first three months of 2007, when $104 billion in new securities came to market, an increase of 49% from the same period in 2006. A major factor in the first quarter 2007 volume was an 88% increase in advance refundings2, driven by attractive borrowing rates for issuers. Strong demand for municipal bonds was more than adequate to absorb the surge in issuance, as retail investors, institutional investors such as hedge funds and arbitragers, and overseas investors all participated in the market. HOW WERE ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA AND NEW YORK DURING THIS PERIOD? During this reporting period, California's economy remained diverse, with international trade, technology, tourism, finance, defense, and construction serving as the key drivers. The state's economy continued to expand at a moderate pace, slowed somewhat by a softening housing market, but buoyed by gains in manufacturing. As of March 2007, California's unemployment rate was 4.8%, still above the national rate of 4.4%. In May 2006, both Moody's and Standard & Poor's upgraded their ratings on California's general obligation (GO) debt to A1 from A2 and to A+ from A, respectively. Fitch also upgraded its rating to A1 from A2 in June 2006. In announcing the upgrades, the rating agencies cited strong economic and tax revenue trends. For the 12 months ended March 31, 2007, municipal issuance in California totaled $59.9 billion, a increase of 10% from the previous 12 months. During the first three months of 2007, supply of new issuance in the state hit $20.5 billion, up 122% from January-March 2006, due largely to two major deals: $4.5 billion in Golden State Tobacco Securitization bonds and $4.1 billion in a California general obligation (GO) bonds refunding issue. California continued to rank as the largest state issuer in the nation for both time periods. 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. 5 New York's economy continued to be led by financial services, health care, education, and professional and business services. Although more diversified than it was a decade ago, the state's economy remained highly dependent on the financial services sector, making it susceptible to economic cycles. Most of the state's recent economic growth has been centered around New York City and its suburbs, as the upstate area continued to experience losses in the manufacturing sector. In March 2007, unemployment in New York stood at 4.0%, down from 4.7% in March 2006, the lowest point in almost 19 years and well below the national average at 4.4%. Following 20 years of late budgets, the enactment of the fiscal 2008 budget marked the third year in a row that New York met the legally required April 1, 2007 deadline. As of March 2007, New York State general obligation bonds were rated Aa3 by Moody's, AA by S&P, and AA- by Fitch. During the reporting period ended March 31, 2007, municipal issuance in New York totaled $33.9 billion, a decrease of 16% from the previous 12 months. The first three months of 2007, however, saw an increase in state supply, with $7.4 billion in new issuance, up 13% from the first quarter of 2006. For both periods, New York ranked third in the nation, following California and Texas, in terms of municipal issuance. WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THIS REPORTING PERIOD? In the municipal bond interest rate environment of the past 12 months, where the flattening yield curve remained a dominant market factor, we continued to emphasize a disciplined approach to duration management and yield curve positioning. As part of this approach, our purchases for the Portfolios focused mainly on attractively priced bonds maturing in 20 years and longer in the national Portfolios, 20 to 25 years in NXC, and at least 25 years in NXN. Overall, we believe that the bonds we purchased during this period offered strong performance potential, superior value, and reward opportunities commensurate with their risk levels. 6 Our duration management strategies during this period also included adding inverse floating rate trusts3, a type of derivative financial instrument, to NXQ, NXR, NXC, and NXN roughly mid-way through the reporting period. The inverse floaters had the dual benefit of increasing the Portfolios' distributable income and bringing their durations closer to our preferred strategic target. To help us maintain NXC's and NXN's durations within that strategic range and to fund new purchases, we also selectively sold holdings with shorter durations and, in NXC, insured credits where we believed the income component was not as robust. In NXC, we also found opportunities when rates were higher during the first four months of the period (April-July 2006) to sell some of our holdings that were purchased when yields were lower and replace them with similar, newer credits that yielded incrementally more. These transactions were carried out only when new purchases offered strong and compelling income (e.g., lower-rated hospital and tobacco bonds). This process allowed us to maintain NXC's current characteristics while strengthening its income stream. In the national Portfolios, new purchases were generally funded with proceeds from called bonds rather than proceeds realized through active selling. During this period, a number of large municipal deals were brought to market, which provided us with more bonds from which to choose in implementing the strategies we had planned for these Portfolios. In the national Portfolios, these strategies included keeping them fully invested, purchasing bonds with good cashflows to support their dividends, and adding zero coupon bonds to maintain or lengthen durations. The majority of our purchases during this period were essential services revenue bonds issued in Texas, Washington, Colorado and South Carolina, which helped to keep the Portfolios well-diversified geographically. One notable exception to the overall high quality of our purchases was the recent addition of newly issued California tobacco bonds (Golden State Tobacco Securitization) to NXQ and NXR. 3 A financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen funds, that index is typically The Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA.) Inverse floaters, including those inverse floating rate securities the Funds invested in during the 12 month period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in This Report sections of this shareholder report. 7 Despite the continued tightening of credit spreads over this period, the California and New York municipal markets both offered some attractively structured lower-rated credit opportunities in the primary as well as the secondary markets. In NXC, we purchased the new bonds issued as part of the Golden State Tobacco Securitization refunding as well as some lower-rated health care credits, including A+ rated bonds issued for the Kaiser Permanente System. We also continued to diversify the Portfolio by buying zero coupon bonds and insured single-family housing bonds. In NXN, we continued to find value in lower-rated health care credits. 8 HOW DID THE PORTFOLIOS PERFORM? Individual results for the Nuveen Select Portfolios, as well as relevant index and peer group information, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE For periods ended 3/31/07 ANNUALIZED ---------------------------------------------- NATIONAL PORTFOLIOS 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NXP 5.48% 5.63% 5.50% -------------------------------------------------------------------------------- NXQ 5.62% 5.44% 5.39% -------------------------------------------------------------------------------- NXR 5.51% 5.37% 5.48% -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index4 5.43% 5.50% 5.87% -------------------------------------------------------------------------------- Lipper General and Insured Unleveraged Municipal Debt Funds Average5 6.11% 5.54% 5.40% -------------------------------------------------------------------------------- CALIFORNIA PORTFOLIO -------------------------------------------------------------------------------- NXC 5.72% 5.58% 5.48% -------------------------------------------------------------------------------- Lehman Brothers CA Tax-Exempt Bond Index4 5.62% 5.73% 6.03% -------------------------------------------------------------------------------- Lipper CA Municipal Debt Funds Average5 6.63% 7.53% 6.53% -------------------------------------------------------------------------------- NEW YORK PORTFOLIO -------------------------------------------------------------------------------- NXN 5.30% 5.31% 5.28% -------------------------------------------------------------------------------- Lehman Brothers NY Tax-Exempt Bond Index4 5.26% 5.35% 5.92% -------------------------------------------------------------------------------- Lipper NY Municipal Debt Funds Average5 6.41% 7.29% 6.28% -------------------------------------------------------------------------------- Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Portfolio in this report. 4 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 Brothers indexes do not reflect any expenses. 5 Each of the Lipper Municipal Debt Funds averages shown in this report are calculated using the returns of all closed-end funds in their respective categories for each period as follows: Lipper General and Insured Unleveraged category, 1 year, 9; 5 years, 8; and 10 years, 8; Lipper California category, 1 year, 25; 5 years, 21; and 10 years, 13; and Lipper New York category, 1 year, 18; 5 years, 14; and 10 years, 7. Portfolio and Lipper returns assume reinvestment of dividends. 9 For the 12 months ended March 31, 2007, the total returns on net asset value (NAV) for NXQ and NXR outperformed the return on the Lehman Brothers Municipal Bond Index, while NXP performed inline with the Index. NXC and NXN exceeded the returns on the Lehman Brothers Tax-Exempt Bond Indexes for California and New York, respectively. Factors that influenced the Portfolios' returns during this period included duration and yield curve positioning, exposure to lower-rated credits sector and security selection, and advance refunding activity. As previously mentioned, shorter-term rates rose while longer-term rates declined over the course of this period, and as a result, bonds with longer durations generally outperformed shorter duration bonds. However, the durations of the national PortfoliosNXQ, and NXR--continued to be a little short of their target range and this factor was a slight negative for performance. In NXC and NXN, duration and yield curve positioning were positive contributors to performance. Although NXN continued to be underexposed to bonds in the longest part of the yield curve, this was offset by heavy weightings in the intermediate part of the curve and only a small position in shorter bonds. With bonds rated BBB or lower and non-rated bonds generally outperforming other credit quality sectors during this period, all of the Portfolios benefited from their exposure to lower-quality credits. The performance of these credit sectors was largely the result of investor demand for the higher yields typically associated with lower-rated bonds, which drove up their value. Overall, NXC, had relatively heavier exposure to lower-rated credits than the other Portfolios, which meant that this Portfolio benefited to a greater extent from the outperformance of these credits. 10 Among the lower-rated holdings making contributions to the Portfolios' returns were health care (including hospitals) credits and industrial development and resource recovery bonds, which ranked among the top performing revenue sectors in the national Lehman Brothers Municipal Bond Index for this period. Lower-rated bonds backed by the 1998 master tobacco settlement agreement also performed well during this period. As of March 31, 2007, the national Portfolios held between 2% and 4% of their portfolios in tobacco bonds, while NXC and NXN had allocated approximately 5% and 2%, respectively, to these credits. In addition, NXP, NXQ, NXR and NXC all had good exposure to zero coupon bonds, which were among the best performing credits during this period due to their very long durations. In NXC, for example, zero coupon bonds represented the top six performing holdings for this 12-month period. We also continued to see positive contributions from advance refunding activity, which benefited each of these Portfolios through price appreciation and enhanced credit quality. Identifying purchase candidates that have the potential to appreciate in value through advance refundings or credit improvement is one way our credit research capabilities help to add value to these Portfolios. Among the national Portfolios' holdings that were pre-refunded during this period were BBB rated Golden State Tobacco Securitization credits, while NXC's advance-refunded credits included A2 rated bonds issued for the University of the Pacific and uninsured A+ rated California state general obligation (GO) bonds. At the same time, the Portfolios' holdings of older, previously pre-refunded bonds tended to underperform the general municipal market during this period, due primarily to their shorter effective maturities. Among the three national Portfolios, NXP had the heaviest allocation of pre-refunded bonds going into this period. 11 Dividend and Share Price INFORMATION During the 12-month reporting period ended March 31, 2007, the dividends of all five of the Select Portfolios remained stable. Due to normal portfolio activity, common shareholders of the following Portfolios received capital gains distributions at the end of December 2006, as follows: LONG-TERM CAPITAL GAINS (PER SHARE) -------------------------------------------------------------------------------- NXC $0.0224 -------------------------------------------------------------------------------- NXN $0.0364 -------------------------------------------------------------------------------- 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, 2007, NXP had positive UNII balances for both financial statement and tax purposes. NXQ, NXR, NXC and NXN had positive UNII balances for tax purposes and negative UNII balances for financial statement purposes. 12 As of March 31, 2007, the share prices of the Select Portfolios were trading at premiums or discounts to their NAVs as shown in the accompanying chart: 3/31/07 12-MONTH AVERAGE PREMIUM/DISCOUNT DISCOUNT -------------------------------------------------------------------------------- NXP +0.88% -2.71% -------------------------------------------------------------------------------- NXQ -3.63% -6.08% -------------------------------------------------------------------------------- NXR -2.84% -5.46% -------------------------------------------------------------------------------- NXC -3.46% -5.10% -------------------------------------------------------------------------------- NXN -0.91% -4.95% -------------------------------------------------------------------------------- 13 Nuveen Select Tax-Free Income Portfolio NXP Performance OVERVIEW As of March 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 65% AA 12% A 15% BBB 6% BB or Lower 2% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE ($) Apr 0.057 May 0.057 Jun 0.057 Jul 0.057 Aug 0.057 Sep 0.057 Oct 0.057 Nov 0.057 Dec 0.057 Jan 0.057 Feb 0.057 Mar 0.057 Line Chart: SHARE PRICE PERFORMANCE ($) Weekly Closing Price Past performance is not predictive of future results. 4/01/06 14.26 14.03 13.68 13.82 13.63 13.67 13.55 13.61 13.67 13.89 13.92 13.82 13.65 13.66 13.66 13.71 13.99 14.02 14.12 14 14.12 14.45 14.36 14.23 14.15 14.2 14.28 14.29 14.27 14.45 14.52 14.51 14.3999 14.48 14.39 14.63 14.89 14.86 14.55 14.619 14.63 14.6 14.74 14.85 14.71 14.66 14.5501 14.6199 14.62 14.8 14.67 14.9 14.79 14.83 14.95 14.85 3/31/07 14.85 FUND SNAPSHOT ------------------------------------ Share Price 14.85 ------------------------------------ Net Asset Value 14.72 ------------------------------------ Premium/(Discount) to NAV 0.88% ------------------------------------ Market Yield 4.61% ------------------------------------ Taxable-Equivalent Yield1 6.40% ------------------------------------ Net Assets ($000) $241,074 ------------------------------------ Average Effective Maturity on Securities (Years) 12.75 ------------------------------------ Modified Duration 4.66 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/19/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 9.59% 5.48% ------------------------------------ 5-Year 7.33% 5.63% ------------------------------------ 10-Year 6.06% 5.50% ------------------------------------ STATES (as a % of total investments) ------------------------------------ Illinois 14.1% ------------------------------------ Colorado 12.5% ------------------------------------ Washington 9.7% ------------------------------------ Texas 9.4% ------------------------------------ Indiana 8.3% ------------------------------------ South Carolina 7.7% ------------------------------------ Nevada 6.9% ------------------------------------ California 4.8% ------------------------------------ Florida 4.4% ------------------------------------ New Jersey 2.4% ------------------------------------ Oklahoma 2.2% ------------------------------------ Michigan 1.7% ------------------------------------ New Mexico 1.7% ------------------------------------ Wisconsin 1.7% ------------------------------------ Other 12.5% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 26.8% ------------------------------------ Health Care 20.4% ------------------------------------ Transportation 14.7% ------------------------------------ Tax Obligation/Limited 10.5% ------------------------------------ Tax Obligation/General 9.6% ------------------------------------ Utilities 8.3% ------------------------------------ Other 9.7% ------------------------------------ 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. 14 Nuveen Select Tax-Free Income Portfolio 2 NXQ Performance OVERVIEW As of March 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 66% AA 15% A 11% BBB 7% BB or Lower 1% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE ($) Apr 0.053 May 0.053 Jun 0.053 Jul 0.053 Aug 0.053 Sep 0.053 Oct 0.053 Nov 0.053 Dec 0.053 Jan 0.053 Feb 0.053 Mar 0.053 Line Chart: SHARE PRICE PERFORMANCE ($) Weekly Closing Price Past performance is not predictive of future results. 4/01/06 13.4 13.29 13.14 13.23 13.4 13.24 13.27 13.16 13.32 13.33 13.32 13.28 13.12 13.16 13.13 13.13 13.22 13.31 13.32 13.3 13.49 13.56 13.53 13.57 13.47 13.6 13.61 13.7 13.51 13.51 13.58 13.77 13.66 13.75 13.95 14.1299 14.02 13.9 13.89 13.9 13.9 13.99 14.01 13.92 14.03 14.12 14.158 14.3 14.35 14.33 14.26 14.06 14.05 14.04 14.08 14.07 3/31/07 14.07 FUND SNAPSHOT ------------------------------------ Share Price 14.07 ------------------------------------ Net Asset Value 14.60 ------------------------------------ Premium/(Discount) to NAV -3.63% ------------------------------------ Market Yield 4.52% ------------------------------------ Taxable-Equivalent Yield1 6.28% ------------------------------------ Net Assets ($000) $257,037 ------------------------------------ Average Effective Maturity on Securities (Years) 15.94 ------------------------------------ Modified Duration 4.81 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/21/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 10.21% 5.62% ------------------------------------ 5-Year 6.35% 5.44% ------------------------------------ 10-Year 5.88% 5.39% ------------------------------------ STATES (as a % of total investments) ------------------------------------ Illinois 13.0% ------------------------------------ Texas 12.7% ------------------------------------ Colorado 9.7% ------------------------------------ California 8.0% ------------------------------------ Nevada 7.6% ------------------------------------ New York 4.9% ------------------------------------ South Carolina 4.7% ------------------------------------ Washington 3.5% ------------------------------------ Massachusetts 3.2% ------------------------------------ Indiana 3.1% ------------------------------------ Vermont 2.6% ------------------------------------ Pennsylvania 2.6% ------------------------------------ New Mexico 2.5% ------------------------------------ Florida 2.3% ------------------------------------ Iowa 2.3% ------------------------------------ Rhode Island 2.2% ------------------------------------ Louisiana 2.1% ------------------------------------ Other 13.0% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Health Care 18.9% ------------------------------------ U.S. Guaranteed 18.8% ------------------------------------ Transportation 15.9% ------------------------------------ Tax Obligation/Limited 11.3% ------------------------------------ Utilities 7.6% ------------------------------------ Tax Obligation/General 7.3% ------------------------------------ Education and Civic Organizations 4.2% ------------------------------------ Water and Sewer 3.9% ------------------------------------ Other 12.1% ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 15 Nuveen Select Tax-Free Income Portfolio 3 NXR Performance OVERVIEW As of March 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 58% AA 21% A 16% BBB 4% BB or Lower 1% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE ($) Apr 0.0535 May 0.0535 Jun 0.0535 Jul 0.0535 Aug 0.0535 Sep 0.0535 Oct 0.0535 Nov 0.0535 Dec 0.0535 Jan 0.0535 Feb 0.0535 Mar 0.0535 Line Chart: SHARE PRICE PERFORMANCE ($) Weekly Closing Price Past performance is not predictive of future results. 4/01/06 13.46 13.41 13.2 13.29 13.15 13.19 13.15 13.14 13.12 13.32 13.35 13.11 13 13.18 13.08 13.14 13.19 13.38 13.43 13.41 13.51 13.63 13.73 13.55 13.53 13.57 13.59 13.61 13.52 13.68 13.63 13.83 13.62 13.68 13.77 14.05 13.97 13.88 13.7799 13.89 13.87 13.92 14.01 13.95 14.04 13.97 13.95 14.06 14.08 14.05 13.9 13.93 13.9 13.92 13.98 14.01 3/31/07 14.01 FUND SNAPSHOT ------------------------------------ Share Price 14.01 ------------------------------------ Net Asset Value 14.42 ------------------------------------ Premium/(Discount) to NAV -2.84% ------------------------------------ Market Yield 4.58% ------------------------------------ Taxable-Equivalent Yield1 6.36% ------------------------------------ Net Assets ($000) $186,969 ------------------------------------ Average Effective Maturity on Securities (Years) 14.75 ------------------------------------ Modified Duration 4.80 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 7/24/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 9.15% 5.51% ------------------------------------ 5-Year 6.43% 5.37% ------------------------------------ 10-Year 6.34% 5.48% ------------------------------------ STATES (as a % of total investments) ------------------------------------ Illinois 18.1% ------------------------------------ Texas 10.7% ------------------------------------ Colorado 7.0% ------------------------------------ California 7.0% ------------------------------------ Indiana 6.4% ------------------------------------ Florida 5.6% ------------------------------------ Iowa 5.4% ------------------------------------ South Carolina 5.0% ------------------------------------ Nevada 4.9% ------------------------------------ North Carolina 4.2% ------------------------------------ New York 3.8% ------------------------------------ Michigan 3.7% ------------------------------------ Pennsylvania 2.4% ------------------------------------ New Mexico 2.2% ------------------------------------ Other 13.6% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Health Care 21.5% ------------------------------------ U.S. Guaranteed 20.9% ------------------------------------ Utilities 17.5% ------------------------------------ Tax Obligation/Limited 11.8% ------------------------------------ Transportation 9.3% ------------------------------------ Tax Obligation/General 6.3% ------------------------------------ Education and Civic Organizations 5.0% ------------------------------------ Other 7.7% ------------------------------------ 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. 16 Nuveen California Select Tax-Free Income Portfolio NXC Performance OVERVIEW As of March 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 65% AA 3% A 17% BBB 12% N/R 3% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 ($) Apr 0.053 May 0.053 Jun 0.053 Jul 0.053 Aug 0.053 Sep 0.053 Oct 0.053 Nov 0.053 Dec 0.053 Jan 0.053 Feb 0.053 Mar 0.053 Line Chart: SHARE PRICE PERFORMANCE ($) Weekly Closing Price Past performance is not predictive of future results. 4/01/06 13.54 13.51 13.53 13.55 13.63 13.6 13.75 13.53 13.53 13.59 13.5 13.45 13.51 13.43 13.4 13.36 13.46 13.46 13.66 13.41 13.55 13.74 13.86 13.75 13.82 14.25 14.03 14.03 13.86 14.2084 14.33 14.18 14.18 13.93 13.99 14.44 14.49 14.08 14.05 14.29 14.17 14.3 14.46 14.44 14.47 14.48 14.42 14.4 14.4 14.33 14.1 14.2 14.3 14.31 14.32 14.22 3/31/07 14.22 FUND SNAPSHOT ------------------------------------ Share Price 14.22 ------------------------------------ Net Asset Value 14.73 ------------------------------------ Premium/(Discount) to NAV -3.46% ------------------------------------ Market Yield 4.47% ------------------------------------ Taxable-Equivalent Yield1 6.85% ------------------------------------ Net Assets ($000) $92,177 ------------------------------------ Average Effective Maturity on Securities (Years) 15.29 ------------------------------------ Modified Duration 5.98 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 9.89% 5.72% ------------------------------------ 5-Year 5.40% 5.58% ------------------------------------ 10-Year 5.78% 5.48% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/General 22.5% ------------------------------------ Tax Obligation/Limited 19.4% ------------------------------------ U.S. Guaranteed 14.3% ------------------------------------ Health Care 11.4% ------------------------------------ Education and Civic Organizations 9.3% ------------------------------------ Transportation 8.2% ------------------------------------ Consumer Staples 5.3% ------------------------------------ Other 9.6% ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. 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 2006 of $0.0224 per share. 17 Nuveen New York Select Tax-Free Income Portfolio NXN Performance OVERVIEW As of March 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 78% AA 14% A 2% BBB 5% BB or Lower 1% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 ($) Apr 0.051 May 0.051 Jun 0.051 Jul 0.051 Aug 0.051 Sep 0.051 Oct 0.051 Nov 0.051 Dec 0.051 Jan 0.051 Feb 0.051 Mar 0.051 Line Chart: SHARE PRICE PERFORMANCE ($) Weekly Closing Price Past performance is not predictive of future results. 4/01/06 13.2 13.27 13.14 13.24 13.3 13.19 12.9 12.98 13.05 13.28 13.24 13.05 13.03 13.1 13.05 13.18 13.09 13.31 13.35 13.59 13.49 13.56 13.57 13.26 13.28 13.8 13.6 13.62 13.48 13.6 13.6 13.8 13.81 13.63 13.8787 13.67 13.77 13.65 13.73 13.98 13.8 13.65 13.91 14.2 14.07 13.94 13.89 13.87 14.2 14.25 14.06 14.11 14.2 14.15 14.09 14.15 3/31/07 14.15 FUND SNAPSHOT ------------------------------------ Share Price 14.15 ------------------------------------ Net Asset Value 14.28 ------------------------------------ Premium/(Discount) to NAV -0.91% ------------------------------------ Market Yield 4.33% ------------------------------------ Taxable-Equivalent Yield1 6.45% ------------------------------------ Net Assets ($000) $55,828 ------------------------------------ Average Effective Maturity on Securities (Years) 15.95 ------------------------------------ Modified Duration 5.07 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 11.15% 5.30% ------------------------------------ 5-Year 6.01% 5.31% ------------------------------------ 10-Year 6.10% 5.28% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 17.0% ------------------------------------ Health Care 12.9% ------------------------------------ Water and Sewer 12.2% ------------------------------------ Long-Term Care 11.5% ------------------------------------ U.S. Guaranteed 10.3% ------------------------------------ Education and Civic Organizations 9.3% ------------------------------------ Housing/Single Family 8.1% ------------------------------------ Tax Obligation/General 6.9% ------------------------------------ Other 11.8% ------------------------------------ 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 32.9%. 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 2006 of $0.0364 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, 2007, 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, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen California Select Tax-Free Income Portfolio, and Nuveen New York Select Tax-Free Income Portfolio at March 31, 2007, 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 21, 2007 19 Nuveen Select Tax-Free Income Portfolio (NXP) Portfolio of INVESTMENTS March 31, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.1% $ 2,475 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA $ 2,670,921 Bonds, Series 2003E, 5.250%, 12/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.4% 5,915 Arkansas Development Finance Authority, Tobacco Settlement No Opt. Call Aaa 933,979 Revenue Bonds, Arkansas Cancer Research Center Project, Series 2006, 0.000%, 7/01/46 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 4.7% 2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,649,120 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 A1 3,695,904 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 200 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 205,810 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) 3,498,060 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) 1,130 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 1,168,996 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 378,209 Series 1999A, 5.250%, 5/01/29 - AMBAC Insured 750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 771,345 Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45 ------------------------------------------------------------------------------------------------------------------------------------ 10,770 Total California 11,367,444 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 12.3% 1,700 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 1,833,246 Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM) 1,300 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 1,401,595 Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (Pre-refunded 3/01/12) 610 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 Aaa 654,005 Small Water Resources Revenue Bonds, Series 2000A, 5.800%, 11/01/20 (Pre-refunded 11/01/10) - FGIC Insured 390 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 AAA 416,918 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+ 11,938,948 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 5,319,100 Refunding Bonds, Series 2001A, 5.625%, 11/15/17 - FGIC Insured (Alternative Minimum Tax) 3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,220,230 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/23 (Pre-refunded 12/01/13) - XLCA Insured 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,383,550 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 3,422,786 Revenue Bonds, Senior Series 2001A, 5.500%, 6/15/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 30,910 Total Colorado 29,590,378 ------------------------------------------------------------------------------------------------------------------------------------ 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, 5/07 at 102.00 AAA $ 1,021,600 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 278,271 America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,265 Total District of Columbia 1,299,871 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 4.3% 10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 10,450,199 Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.6% 1,330 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,369,315 Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 13.9% 1,965 Board of Trustees of Southern Illinois University, Housing and No Opt. Call AAA 1,128,657 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 3,939,948 2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 AAA 2,682,472 195 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 210,684 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 877,072 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 1,022,630 Midwestern University, Series 1998B, 5.500%, 5/15/18 - ACA Insured 600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Aaa 669,144 Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22 (Pre-refunded 5/01/12) 4,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 4,358,400 Memorial Hospital, Series 2004A, 5.500%, 8/15/43 1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,390,950 Memorial Hospital, Series 2001, 5.600%, 10/01/16 2,700 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- 2,931,390 Lake Forest Hospital, Series 2002A, 6.000%, 7/01/17 2,275 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,515,263 Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17 595 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R (3) 604,752 Evangelical Hospitals Corporation, Series 1992B, 6.500%, 4/15/09 (ETM) 3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,061,906 Bonds, McCormick Place Expansion Project, Series 1992A, 0.000%, 6/15/17 - FGIC Insured 810 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 292,653 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 5,269,350 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 1,395,238 5.250%, 12/01/34 - FGIC Insured Yorkville, Illinois, General Obligation Debt Certificates, Series 2003: 1,000 5.000%, 12/15/19 (Pre-refunded 12/15/11) - RAAI Insured 12/11 at 100.00 AA (3) 1,057,200 1,000 5.000%, 12/15/20 (Pre-refunded 12/15/11) - RAAI Insured 12/11 at 100.00 AA (3) 1,057,200 ------------------------------------------------------------------------------------------------------------------------------------ 34,110 Total Illinois 33,464,909 ------------------------------------------------------------------------------------------------------------------------------------ 21 Nuveen Select Tax-Free Income Portfolio (NXP) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 8.2% $ 5,000 Duneland School Building Corporation, Indiana, First Mortgage 2/09 at 101.00 AAA $ 5,166,900 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 1,053,270 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 2,292,780 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 10,526,519 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 792,285 Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,605 Total Indiana 19,831,754 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.5% 500 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence 7/16 at 100.00 A3 509,475 Memorial Hospital, Series 2006, 4.875%, 7/01/36 750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 802,733 Gas and Electric Company, Series 2004, 5.300%, 6/01/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,250 Total Kansas 1,312,208 ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.5% 1,100 Jefferson County, Kentucky, Health System Revenue Bonds, 10/08 at 101.00 AAA 1,132,714 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 AAA 1,068,380 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.8% 500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 544,680 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 6.000%, 7/01/17 1,055 Massachusetts Turnpike Authority, Metropolitan Highway 7/07 at 102.00 AAA 1,072,439 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured 410 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 419,594 System Revenue Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,965 Total Massachusetts 2,036,713 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.7% 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 1,009,730 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 Aa2 3,070,897 Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 ------------------------------------------------------------------------------------------------------------------------------------ 3,900 Total Michigan 4,080,627 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.2% 310 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 310,846 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 3,753,468 Bonds, Weyerhauser Company Project, Series 1992, 6.875%, 4/01/16 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.8% 5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 1,817,700 Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 6.8% $ 2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA $ 2,641,200 Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 2,360 0.000%, 1/01/21 - AMBAC Insured No Opt. Call AAA 1,293,917 3,500 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,832,145 6,025 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 6,230,573 1,515 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 1,629,610 Series 2002, 5.500%, 6/01/21 - FGIC Insured 2,555 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 2,772,584 Series 2002, 5.500%, 6/01/21 (Pre-refunded 6/01/12) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,455 Total Nevada 16,400,029 ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.2% 425 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 430,568 Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.3% 2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba1 2,605,025 Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 1,780 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,905,615 1,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 BBB (3) 1,108,000 ------------------------------------------------------------------------------------------------------------------------------------ 5,280 Total New Jersey 5,618,640 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.7% 4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 4,063,800 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 1,048,850 Mortgage Revenue Bonds, Kaleida Health, Series 2004, 5.050%, 2/15/25 1,215 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 BBB 1,303,331 Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%, 7/01/17 385 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 BBB (3) 422,199 Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%, 7/01/17 (Pre-refunded 7/01/10) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 145 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 148,919 305 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 313,244 ------------------------------------------------------------------------------------------------------------------------------------ 3,050 Total New York 3,236,543 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.4% 500 Appalachian State University, North Carolina, Utilities System 5/08 at 102.00 AAA 515,495 Revenue Refunding Bonds, Series 1998, 5.000%, 5/15/24 - MBIA Insured 2,195 North Carolina Eastern Municipal Power Agency, Power System 1/21 at 100.00 BBB 2,224,654 Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/21 500 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 530,495 Revenue Bonds, Series 2001A, 5.250%, 11/01/17 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,195 Total North Carolina 3,270,644 ------------------------------------------------------------------------------------------------------------------------------------ 23 Nuveen Select Tax-Free Income Portfolio (NXP) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.4% $ 300 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA $ 321,993 Series 2001, 5.500%, 12/01/17 (Pre-refunded 12/01/10) - AMBAC Insured 705 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 722,569 Securities Program Residential Mortgage Remarketed Revenue Bonds, Series 1997A-1, 6.050%, 9/01/17 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,005 Total Ohio 1,044,562 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.2% 1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 1,050,470 Revenue Bonds, Series 2005, 5.375%, 9/01/36 4,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 4,169,760 St. John Health System, Series 2004, 5.000%, 2/15/24 ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Oklahoma 5,220,230 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.8% 500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 525,910 Bonds, Widener University, Series 2003, 5.250%, 7/15/24 700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 772,611 Series 2004A, 5.500%, 12/01/31 - AMBAC Insured 520 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AAA 552,729 5.000%, 9/15/20 (Pre-refunded 9/15/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,720 Total Pennsylvania 1,851,250 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 7.6% 1,000 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 1,068,180 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) 11,175,699 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 1,644,855 Hospital Revenue Refunding and Improvement Bonds, Series 2003, 6.000%, 11/01/18 2,500 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 2,659,325 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 1,829,960 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 ------------------------------------------------------------------------------------------------------------------------------------ 16,720 Total South Carolina 18,378,019 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 9.2% 5,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 5,440,800 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) 1,000 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 1,055,890 Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) - AMBAC Insured 6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,541,755 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 370,451 Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001, 5.500%, 1/15/20 - FSA Insured 2,300 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 2,384,456 Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - MBIA Insured 1,620 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 61.17 AAA 332,181 Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/38 - MBIA Insured 45 Irving Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 46,102 General Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31 3,455 Irving Independent School District, Dallas County, Texas, 2/12 at 100.00 Aaa 3,652,730 General Obligation Refunding Bonds, Series 2002A, 5.000%, 2/15/31 (Pre-refunded 2/15/12) 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) 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 $ 95,269 465 6.000%, 5/15/16 (Pre-refunded 5/15/12) - MBIA Insured 5/12 at 100.00 AAA 514,374 1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,800,278 Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 22,240 Total Texas 22,234,286 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.3% 775 Utah State Building Ownership Authority, Lease Revenue Bonds, 11/11 at 100.00 AA+ 820,198 State Facilities Master Lease Program, Series 2001B, 5.250%, 5/15/24 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.6% 250 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 269,803 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 6,122,769 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 3,058,080 Bonds, Catholic Health Initiatives, Series 1997A, 5.125%, 12/01/17 (Pre-refunded 12/01/07) - MBIA Insured 9,750 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 10,177,439 Bonds, Sisters of Providence Health System, Series 2001A, 5.125%, 10/01/17 - MBIA Insured 2,415 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,645,826 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 2,115 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AAA 849,870 Bonds, Series 2003F, 0.000%, 12/01/27 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,230 Total Washington 23,123,787 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.6% 1,365 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 1,434,738 Bonds, Series 1992, 6.500%, 5/15/10 (ETM) ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.6% 230 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 246,077 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 1,066,120 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- 2,617,600 Series 2003-3, 5.000%, 11/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 3,730 Total Wisconsin 3,929,797 ------------------------------------------------------------------------------------------------------------------------------------ $ 243,695 Total Investments (cost $223,158,351) - 98.5% 237,548,517 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 3,525,703 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 241,074,220 ====================================================================================================================
(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. 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, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.7% $ 1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA $ 1,049,870 and Construction Bonds, Series 2002A, 5.000%, 10/01/19 - FSA Insured 1,205 Sebastian County Health Facilities Board, Arkansas, Hospital 11/11 at 101.00 Baa2 1,230,944 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 2,099,420 Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,205 Total Arkansas 4,380,234 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 7.9% 1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 824,560 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured 3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 A1 3,695,904 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 500 California State Public Works Board, Lease Revenue Refunding 12/08 at 101.00 A 515,195 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 2,165,060 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 193,099 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 2,140,490 205 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 208,456 2,500 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A+ 2,629,375 500 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 514,525 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 503,430 Refunding Bonds, Series 1997H, 5.000%, 10/01/17 1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 993,010 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 3,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB (3) 3,731,264 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) 1,195 Palmdale Elementary School District, Los Angeles County, No Opt. Call AAA 463,361 California, General Obligation Bonds, Series 2003, 0.000%, 8/01/28 - FSA Insured 1,750 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,799,805 Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45 ------------------------------------------------------------------------------------------------------------------------------------ 19,970 Total California 20,377,534 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 9.6% 1,700 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 1,833,246 Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM) 1,300 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 1,401,595 Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (Pre-refunded 3/01/12) 3,185 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 3,537,261 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 5,319,100 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 1,655,966 Refunding Bonds, Series 2001, 5.500%, 11/15/16 - FGIC Insured 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) $ 3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA $ 3,220,230 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/23 (Pre-refunded 12/01/13) - XLCA Insured 2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 AAA 2,045,560 Revenue Bonds, Convention Center Hotel, Series 2006, 4.750%, 12/01/35 - XLCA Insured 515 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA 522,220 Bonds, Series 1997A, 5.000%, 9/01/26 - MBIA Insured 5,100 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 2,397,663 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 1,383,550 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 266,210 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 (3) 1,181,994 Series 2001A, 5.600%, 11/15/31 (Pre-refunded 11/15/11) ------------------------------------------------------------------------------------------------------------------------------------ 29,705 Total Colorado 24,764,595 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.4% 500 District of Columbia, Hospital Revenue Refunding Bonds, 5/07 at 102.00 AAA 510,800 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 514,780 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%, 10/01/21 (Pre-refunded 10/01/08) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,000 Total District of Columbia 1,025,580 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.3% 1,000 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 1,056,280 Hospital Revenue Bonds, Tampa General Hospital, Series 2006, 5.250%, 10/01/41 1,500 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 1,589,775 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 2,609,875 5.000%, 10/01/41 - FSA Insured 625 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 Aaa 658,619 Revenue Refunding Bonds, Series 2001, 5.125%, 7/01/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,625 Total Florida 5,914,549 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.4% 1,100 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,132,516 Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 12.9% 820 Chicago Metropolitan Housing Development Corporation, 7/07 at 100.00 AA 821,328 Illinois, FHA-Insured Section 8 Assisted Housing Development Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17 590 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 613,871 5.000%, 1/01/33 - AMBAC Insured 1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,747,301 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) 254,653 Revenue Bonds, Latin School of Chicago, Series 1998, 5.200%, 8/01/11 (Pre-refunded 8/01/08) 600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Aaa 669,144 Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22 (Pre-refunded 5/01/12) 2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,264,665 Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured 2,255 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 2,466,812 Hospital, Series 2002A, 6.250%, 7/01/22 27 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa2 (3) $ 1,149,328 University Health System, Series 2001A, 6.125%, 7/01/31 (Pre-refunded 7/01/11) 1,000 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 AAA 1,016,470 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 6,007,059 5.000%, 6/15/22 45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/07 at 100.00 A1 45,092 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 7,377,090 Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.000%, 6/15/21 - MBIA Insured 5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA 5,201,496 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 655,970 1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 668,424 1,100 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,180,586 5.250%, 12/01/34 - FGIC Insured 1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA (3) 1,057,200 Series 2003, 5.000%, 12/15/21 (Pre-refunded 12/15/11) - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 32,505 Total Illinois 33,196,489 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.1% 1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,053,270 Marion County, Indiana, First Mortgage Revenue Bonds, Series 2004, 5.000%, 7/15/22 - FGIC Insured 1,005 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 1,021,673 Revenue Bonds, Series 2002C-2, 5.250%, 7/01/23 (Alternative Minimum Tax) 4,380 Indiana Municipal Power Agency, Power Supply System Revenue 1/12 at 100.00 AAA 4,628,959 Bonds, Series 2002A, 5.125%, 1/01/21 - AMBAC Insured 355 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/08 at 101.00 AAA 355,646 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 792,285 Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/22 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,490 Total Indiana 7,851,833 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 2.3% 1,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 1,017,620 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 1,061,260 3,500 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,776,850 ------------------------------------------------------------------------------------------------------------------------------------ 5,500 Total Iowa 5,855,730 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.7% 795 Lawrence, Kansas, Hospital Revenue Bonds, Lawrence 7/16 at 100.00 A3 810,065 Memorial Hospital, Series 2006, 4.875%, 7/01/36 1,000 Salina, Kansas, Hospital Revenue Bonds, Salina Regional 4/13 at 100.00 A1 989,750 Medical Center, Series 2006, 4.500%, 10/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 1,795 Total Kansas 1,799,815 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.1% 2,125 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 2,262,445 Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA (continued) $ 3,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA $ 3,123,210 University, Series 2002A, 5.125%, 7/01/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,125 Total Louisiana 5,385,655 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.2% 3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,224,340 Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31 2,565 Massachusetts Turnpike Authority, Metropolitan Highway 7/07 at 102.00 AAA 2,607,399 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 2,267,399 Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,655 Total Massachusetts 8,099,138 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.0% 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 Aa2 3,070,897 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 2,034,280 Washtenaw Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 4.750%, 5/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 4,900 Total Michigan 5,105,177 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 7.5% 1,500 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 1,593,945 Southern Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19 (Pre-refunded 6/01/11) - FGIC Insured 500 Clark County, Nevada, Limited Tax General Obligation 7/07 at 100.00 AAA 502,215 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 2,405,345 13,250 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,702,090 1,100 Nevada, General Obligation Refunding Bonds, Municipal Bond 5/08 at 100.00 AAA 1,113,024 Bank Projects 65 and R-6, Series 1998, 5.000%, 5/15/22 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 20,945 Total Nevada 19,316,619 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.9% 2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba1 2,605,025 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 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,139,480 1,010 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,149,350 ------------------------------------------------------------------------------------------------------------------------------------ 4,510 Total New Jersey 4,893,855 ------------------------------------------------------------------------------------------------------------------------------------ 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 563,852 660 4.625%, 7/01/25 - FSA Insured 7/14 at 100.00 AAA 670,527 2,000 4.750%, 7/01/27 - FSA Insured 7/14 at 100.00 AAA 2,049,800 3,000 4.750%, 1/01/28 - FSA Insured 7/14 at 100.00 AAA 3,072,840 ------------------------------------------------------------------------------------------------------------------------------------ 6,215 Total New Mexico 6,357,019 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 4.9% 2,045 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 BBB 2,193,672 Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%, 7/01/17 655 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 BBB (3) 718,286 Mount Sinai NYU Health Obligated Group, Series 2000A, 6.500%, 7/01/17 (Pre-refunded 7/01/10) 29 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA $ 2,103,640 Water and Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/36 - FSA Insured 1,700 New York Dormitory Authority, New York, FHA Insured 8/16 at 100.00 AAA 1,717,782 Mortgage Hospital Revenue Bonds, Kaleida Health, Series 2006, 4.700%, 2/15/35 (UB) 3,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 3,189,420 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16 2,440 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 2,575,176 Center Bonds, Series 1990E, 7.250%, 1/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 11,840 Total New York 12,497,976 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.6% 1,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,541,340 Healthcare System Revenue Bonds, Carolinas Healthcare System, Series 2001A, 5.000%, 1/15/31 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.4% 1,000 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 1,050,470 Revenue Bonds, Series 2005, 5.375%, 9/01/36 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.6% 1,020 Carlisle Area School District, Cumberland County, Pennsylvania, 9/09 at 100.00 Aaa 1,050,508 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 562,702 Revenue Bonds, Pinnacle Health System Project, Series 1999, 5.125%, 8/15/17 - MBIA Insured 455 Dauphin County General Authority, Pennsylvania, Health System 2/09 at 101.00 AAA 471,330 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 1,065,500 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 3,504,475 Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,270 Total Pennsylvania 6,654,515 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 1.2% 3,000 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA 3,158,670 Revenue Bonds, Series 2003, 5.000%, 12/01/20 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.2% 5,145 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,556,754 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 4.6% 700 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 747,726 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 659,971 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) 4,470,280 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 2,741,425 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 2,609,151 FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/21 - MBIA Insured 170 Piedmont Municipal Power Agency, South Carolina, Electric 1/08 at 101.00 AAA 171,714 Revenue Refunding Bonds, Series 1998A, 4.750%, 1/01/25 - MBIA Insured 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA (continued) $ 475 The College of Charleston, Charleston South Carolina, 4/14 at 100.00 Aaa $ 500,180 Academic and Administrative Revenue Bonds, Series 2004B, 5.125%, 4/01/30 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,900 Total South Carolina 11,900,447 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 0.4% 1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,053,620 Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.250%, 11/01/34 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 12.6% 4,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 A- 4,352,640 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 1,551,015 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 1,210 Cleveland Housing Corporation, Texas, FHA-Insured Section 8 7/07 at 100.00 AAA 1,212,178 Assisted Mortgage Revenue Refunding Bonds, Series 1992C, 7.375%, 7/01/24 - MBIA Insured 1,000 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 1,055,890 Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) - AMBAC Insured 2,500 Harris County Health Facilities Development Corporation, Texas, No Opt. Call AAA 2,765,300 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, Texas, 11/13 at 100.00 AAA 3,110,160 Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - MBIA Insured 6,610 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 AAA 1,126,410 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 2,143,180 Bonds, Series 2002A, 5.625%, 7/01/20 - FSA Insured (Alternative Minimum Tax) 3,125 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 3,223,594 Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%, 2/15/32 (Pre-refunded 2/15/12) 1,400 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 1,463,826 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 222,374 General Obligation Bonds, Series 1998, 5.000%, 2/15/14 780 Killeen Independent School District, Bell County, Texas, 2/08 at 100.00 AAA 789,391 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 1,042,990 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 5,097,605 System Revenue Refunding Bonds, Series 2002A, 5.500%, 10/01/17 - RAAI Insured 1,000 San Antonio, Texas, Water System Revenue Bonds, Series 2005, 5/15 at 100.00 AAA 1,019,880 4.750%, 5/15/37 - MBIA Insured 500 Texas Water Development Board, Senior Lien State Revolving 7/10 at 100.00 AAA 528,270 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 1,604,819 Program, Series 2003A, 5.125%, 8/01/42 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 36,155 Total Texas 32,309,522 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.6% 1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,517,541 Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 31 Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 2.6% $ 3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA $ 3,074,340 Series 1999C, 5.800%, 8/15/16 - FSA Insured 3,600 Vermont Industrial Development Authority, Revenue Refunding 9/07 at 100.00 A 3,608,028 Bonds, Stanley Works Inc., Series 1992, 6.750%, 9/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 6,600 Total Vermont 6,682,368 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.5% 250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/07 at 100.00 AAA 252,903 5.750%, 11/01/13 - MBIA Insured 1,000 Virginia Transportation Board, Transportation Revenue Refunding 5/07 at 101.00 AA+ (3) 1,011,740 Bonds, U.S. Route 58 Corridor Development Program, Series 1997C, 5.125%, 5/15/19 (Pre-refunded 5/15/07) ------------------------------------------------------------------------------------------------------------------------------------ 1,250 Total Virginia 1,264,643 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 3.5% 2,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 2,038,720 Bonds, Catholic Health Initiatives, Series 1997A, 5.125%, 12/01/17 (Pre-refunded 12/01/07) - MBIA Insured 6,715 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 7,009,386 Bonds, Sisters of Providence Health System, Series 2001A, 5.125%, 10/01/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,715 Total Washington 9,048,106 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.7% 1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 1,063,370 Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.500%, 8/15/18 3,335 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 3,436,017 Home Ownership Revenue Bonds, Series 2002G, 4.850%, 9/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 4,335 Total Wisconsin 4,499,387 ------------------------------------------------------------------------------------------------------------------------------------ $ 257,390 Total Long-Term Investments (cost $241,630,665) - 98.9% 254,191,697 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.3% 700 Lancaster County Hospital Authority 1, Nebraska, Hospital VMIG-1 700,000 Revenue Bonds, Byran Memorial Hospital, Variable Rate Demand Obligations, Series 2002, 3.790%, 6/01/18 - AMBAC Insured (4) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $700,000) 700,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $242,330,665) - 99.2% 254,891,697 -------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (0.4)% (1,135,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 3,280,797 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 257,037,494 ====================================================================================================================
(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. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 32 Nuveen Select Tax-Free Income Portfolio 3 (NXR) Portfolio of INVESTMENTS March 31, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.3% $ 500 Marshall County Healthcare Authority, Alabama, Revenue 1/12 at 101.00 A- $ 544,205 Bonds, Series 2002A, 6.250%, 1/01/22 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.9% 2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,274,410 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 A1 3,723,693 Revenue Bonds, Series 2002A, 6.000%, 5/01/14 2,595 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 2,671,786 Kaiser Permanante System, Series 2006, 5.000%, 4/01/37 500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 487,540 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 4.500%, 6/01/27 3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB (3) 3,498,060 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) 250 Santa Ana Unified School District, Orange County, California, 8/10 at 101.00 AAA 266,990 General Obligation Bonds, Series 2000, 5.700%, 8/01/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,800 Total California 12,922,479 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 6.9% 1,540 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 AAA 1,655,007 Bonds, Series 2006, 5.250%, 10/01/40 - XLCA Insured 400 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 417,296 Participation, Series 2004, 5.000%, 6/15/34 - MBIA Insured 2,265 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) 2,442,531 Catholic Health Initiatives, Series 2002A, 5.500%, 3/01/22 (ETM) 1,735 Colorado Health Facilities Authority, Revenue Bonds, Catholic 3/12 at 100.00 AA (3) 1,870,590 Health Initiatives, Series 2002A, 5.500%, 3/01/22 (Pre-refunded 3/01/12) 2,700 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 2,998,620 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 3,220,230 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/24 (Pre-refunded 12/01/13) - XLCA Insured 325 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA 329,557 Bonds, Series 1997A, 5.000%, 9/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,965 Total Colorado 12,933,831 ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.1% 250 Connecticut Health and Educational Facilities Authority, 7/07 at 100.00 AAA 250,565 Revenue Bonds, Bridgeport Hospital Issue, Series 1992A, 6.625%, 7/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.1% 15 District of Columbia, General Obligation Bonds, Series 1993E, 5/07 at 100.00 AAA 15,027 6.000%, 6/01/13 - MBIA Insured (ETM) 235 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 254,531 Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 250 Total District of Columbia 269,558 ------------------------------------------------------------------------------------------------------------------------------------ 33 Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.5% $ 1,000 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 $ 1,056,280 Hospital Revenue Bonds, Tampa General Hospital, Series 2006, 5.250%, 10/01/41 5,020 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 5,257,647 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 4,005,120 Series 2002D, 4.625%, 10/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 10,020 Total Florida 10,319,047 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.4% 850 Atlanta, Georgia, Airport Facilities Revenue Bonds, Series 1990, No Opt. Call AAA 737,630 0.000%, 1/01/10 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 17.9% 190 Chicago Metropolitan Housing Development Corporation, 7/07 at 100.00 AA 194,834 Illinois, 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- (3) 2,096,192 Midwestern University, Series 2001B, 5.750%, 5/15/16 (Pre-refunded 5/15/11) 2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,264,665 Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured 4,455 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 4,816,924 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) 1,833,495 Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 (ETM) 2,225 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,459,982 Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17 2,500 Illinois Housing Development Authority, Homeowner Mortgage 2/16 at 100.00 AA 2,557,975 Revenue Bonds, Series 2006C2, 5.050%, 8/01/27 (Alternative Minimum Tax) 5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 6,007,059 5.000%, 6/15/22 2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 5.600%, 6/15/17 6/07 at 101.00 AAA 2,027,360 1,000 Kankakee & Will Counties Community Unit School District 5, No Opt. Call Aaa 498,880 Illinois, General Obligation Bonds, Series 2006, 0.000%, 5/01/23 - FSA Insured 6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,323,218 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 1,395,238 5.250%, 12/01/34 - FGIC Insured 1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA (3) 1,057,200 Series 2003, 5.000%, 12/15/22 (Pre-refunded 12/15/11) - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 31,985 Total Illinois 33,533,022 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 6.4% 1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,053,270 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- 3,539,270 Bonds, Methodist Hospitals Inc., Series 2001, 5.375%, 9/15/22 2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,865,975 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 2,148,120 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 2,272,073 Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,295 Total Indiana 11,878,708 ------------------------------------------------------------------------------------------------------------------------------------ 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 5.3% $ 2,745 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BBB- $ 2,780,301 Care Initiatives Project, Series 2006A, 5.000%, 7/01/20 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 4,085,851 2,850 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 3,075,435 ------------------------------------------------------------------------------------------------------------------------------------ 9,445 Total Iowa 9,941,587 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.2% Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial Hospital, Series 2006: 1,425 5.125%, 7/01/26 7/16 at 100.00 A3 1,498,302 700 4.875%, 7/01/36 7/16 at 100.00 A3 713,265 ------------------------------------------------------------------------------------------------------------------------------------ 2,125 Total Kansas 2,211,567 ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.7% 1,200 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 1,267,296 Revenue Bonds, Series 1999B, 6.000%, 7/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.8% 1,000 Massachusetts Development Finance Agency, Resource 12/08 at 102.00 BBB 1,029,330 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 544,680 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 6.000%, 7/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 1,500 Total Massachusetts 1,574,010 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.7% 1,500 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 AAA 1,507,755 Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured 400 East Lansing School District, Ingham County, Michigan, 5/10 at 100.00 AA (3) 423,024 General Obligation Bonds, Series 2000, 5.625%, 5/01/30 (Pre-refunded 5/01/10) 2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 Aa2 3,070,897 Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 235 Michigan State Hospital Finance Authority, Revenue Refunding 8/07 at 100.00 BB- 235,174 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 1,627,424 Washtenaw Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 4.750%, 5/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 6,635 Total Michigan 6,864,274 ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.4% 725 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 N/R 745,322 Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.0% 3,500 Nebraska Public Power District, General Revenue Bonds, 1/13 at 100.00 AAA 3,674,405 Series 2002B, 5.000%, 1/01/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.9% 4,095 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 4,234,721 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 1,808,722 Series 2002, 5.500%, 6/01/22 - FGIC Insured 2,830 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 3,071,003 Series 2002, 5.500%, 6/01/22 (Pre-refunded 6/01/12) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,605 Total Nevada 9,114,446 ------------------------------------------------------------------------------------------------------------------------------------ 35 Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.3% $ 530 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 $ 536,943 Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.4% Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 1,000 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 BBB (3) 1,165,300 1,355 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 BBB (3) 1,541,949 ------------------------------------------------------------------------------------------------------------------------------------ 2,355 Total New Jersey 2,707,249 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.2% 4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 4,063,800 Revenue Bonds, Series 2004, 4.625%, 1/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 3.8% 1,520 Dormitory Authority of the State of New York, Second General No Opt. Call A1 1,611,686 Resolution Consolidated Revenue Bonds, City University System, Series 1990C, 7.500%, 7/01/10 2,335 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- (3) 2,503,377 Revenue Bonds, Series 2001A, 5.375%, 9/01/21 (Pre-refunded 9/01/11) 35 New York City, New York, General Obligation Bonds, 5/07 at 100.00 AA- 35,089 Series 1991B, 7.000%, 2/01/18 1,000 New York Dormitory Authority, New York, FHA Insured 8/16 at 100.00 AAA 1,010,460 Mortgage Hospital Revenue Bonds, Kaleida Health, Series 2006, 4.700%, 2/15/35 (UB) 1,850 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 1,939,873 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15 ------------------------------------------------------------------------------------------------------------------------------------ 6,740 Total New York 7,100,485 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.2% 5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,361,850 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 2,483,918 Revenue Bonds, Series 2001A, 5.250%, 7/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,345 Total North Carolina 7,845,768 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.7% 3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 3,127,320 St. John Health System, Series 2004, 5.000%, 2/15/24 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.4% 2,435 Dauphin County Industrial Development Authority, Pennsylvania, No Opt. Call A- 2,927,966 Water Development Revenue Refunding Bonds, Dauphin Consolidated Water Supply Company, Series 1992B, 6.700%, 6/01/17 500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 525,910 Bonds, Widener University, Series 2003, 5.250%, 7/15/24 1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,065,500 Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,935 Total Pennsylvania 4,519,376 ------------------------------------------------------------------------------------------------------------------------------------ 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 4.9% $ 1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A $ 1,644,855 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 1,609,245 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- 2,659,325 Economic Development Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 3,010 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 3,253,690 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 ------------------------------------------------------------------------------------------------------------------------------------ 8,510 Total South Carolina 9,167,115 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.1% 1,010 South Dakota Health and Educational Facilities Authority, 7/12 at 101.00 AAA 1,057,541 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+ 1,053,620 Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.250%, 11/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 2,010 Total South Dakota 2,111,161 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.1% 2,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Ba2 2,102,480 Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 10.6% 1,500 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 AAA 1,551,015 Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 2,500 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 2,591,800 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 3,228,030 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 3,223,594 Counties, Texas, General Obligation Bonds, Series 2002A, 5.000%, 2/15/32 (Pre-refunded 2/15/12) 400 Killeen Independent School District, Bell County, Texas, General 2/08 at 100.00 AAA 404,316 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 1,442,157 Obligation Bonds, Series 1998, 5.000%, 2/15/14 (Pre-refunded 2/15/08) 4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,097,605 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 1,800,278 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 521,495 5.000%, 8/15/23 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,950 Total Texas 19,860,290 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 0.3% 510 Port of Seattle, Washington, Revenue Bonds, Series 2001A, 10/11 at 100.00 AAA 526,687 5.000%, 4/01/31 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 37 Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.5% $ 2,500 Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 11/13 at 100.00 AA- $ 2,617,600 5.000%, 11/01/26 ------------------------------------------------------------------------------------------------------------------------------------ $ 175,035 Total Investments (cost $176,314,379) - 99.0% 185,068,226 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (0.4)% (665,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.4% 2,565,721 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 186,968,947 ====================================================================================================================
(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. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 38 Nuveen California Select Tax-Free Income Portfolio (NXC) Portfolio of INVESTMENTS March 31, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.3% $ 235 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 228,784 Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21 1,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB 1,638,306 Settlement Asset-Backed Revenue Bonds, Fresno County Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23 4,045 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 3,053,894 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 5,900 Total Consumer Staples 4,920,984 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.3% 1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,037,890 Stanford University, Series 1999P, 5.000%, 12/01/23 45 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 46,866 University of Redlands, Series 2005A, 5.000%, 10/01/35 1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,068,750 University of San Diego, Series 2002A, 5.500%, 10/01/32 California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006: 35 5.000%, 11/01/21 11/15 at 100.00 A2 37,064 45 5.000%, 11/01/25 11/15 at 100.00 A2 47,355 3,000 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,190,980 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 2,090,380 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 1,055,690 Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,125 Total Education and Civic Organizations 8,574,975 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 11.3% 335 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 347,452 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+ 2,116,440 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 1,608,390 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 1,567,950 Insured Mortgage Hospital Revenue Bonds, Mission Community Hospital, Series 2001, 5.375%, 11/01/26 1,515 California Statewide Community Development Authority, 3/16 at 100.00 A+ 1,556,087 Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41 545 California Statewide Community Development Authority, 8/16 at 100.00 A+ 577,340 Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31 1,880 California Statewide Community Development Authority, 6/07 at 101.00 AAA 1,904,064 Revenue Bonds, Los Angeles Orthopaedic Hospital Foundation, Series 2000, 5.500%, 6/01/17 - AMBAC Insured 775 Central California Joint Powers Health Finance Authority, 8/07 at 100.00 Baa2 775,155 Certificates of Participation, Community Hospitals of Central California, Series 1993, 5.000%, 2/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 10,050 Total Health Care 10,452,878 ------------------------------------------------------------------------------------------------------------------------------------ 39 Nuveen California Select Tax-Free Income Portfolio (NXC) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 0.9% $ 750 California Statewide Community Development Authority, 8/12 at 100.00 A $ 793,193 Student Housing Revenue Bonds, EAH - Irvine East Campus Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 - ACA Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.2% 145 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 155,236 Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.0% 1,250 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 1,327,575 Disposal Revenue Bonds, Republic Services Inc., Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17) (Alternative Minimum Tax) 500 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 514,000 Disposal Revenue Bonds, Waste Management Inc., Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,750 Total Industrials 1,841,575 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.7% 1,500 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,566,660 California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.4% 500 California, General Obligation Bonds, Series 2003, 11/13 at 100.00 AA 539,460 5.250%, 11/01/19 - RAAI Insured California, General Obligation Bonds, Series 2004: 750 5.000%, 2/01/23 2/14 at 100.00 A+ 791,445 800 5.125%, 4/01/25 4/14 at 100.00 A+ 851,728 1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 1,068,900 General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 - FGIC Insured Golden West Schools Financing Authority, California, General Obligation Revenue Refunding Bonds, School District Program, Series 1999A: 4,650 0.000%, 8/01/16 - MBIA Insured No Opt. Call AAA 3,196,271 1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 1,172,745 2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,558,736 2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,500,823 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 673,178 1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 683,986 100 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 106,041 California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 - FGIC Insured 3,220 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aaa 3,412,878 California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 - MBIA Insured 1,500 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 1,639,245 General Obligation Bonds, Series 2003E, 5.250%, 7/01/24 - FSA Insured 768 San Diego Unified School District, San Diego County, California, 7/16 at 101.00 AAA 773,698 General Obligation Bonds, Series 2006F-1, 4.500%, 7/01/29 - FSA Insured (UB) 2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,723,184 General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,418 Total Tax Obligation/General 20,692,318 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 19.3% 1,000 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 1,081,240 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 4,114,005 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 1,101,470 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+ 713,671 5.000%, 7/01/15 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 120 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA $ 127,400 Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 - FGIC Insured 360 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AAA 382,997 Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 - AMBAC Insured (UB) 1,000 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 1,052,910 Revenue Bonds, North Fontana Redevelopment Project, Series 2005A, 5.000%, 10/01/32 - AMBAC Insured 1,050 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 1,210,335 Enhanced Asset Backed Settlement Revenue Bonds, Series 2005A, Residual Series 1503, 7.117%, 6/01/38 - FGIC Insured (IF) Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A: 60 5.000%, 9/01/26 9/16 at 100.00 N/R 60,740 135 5.125%, 9/01/36 9/16 at 100.00 N/R 137,519 215 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 225,763 Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 - AMBAC Insured 1,300 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,361,490 Facilities District 03-1 of Ladera Ranch, Series 2004A, 5.625%, 8/15/34 105 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 110,104 Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 130 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 135,910 Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured 605 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 684,461 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 3,205,440 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 1,054,530 of Participation, Series 2002, 5.000%, 4/01/25 - MBIA Insured 1,000 Travis Unified School District, Solano County, California, 9/16 at 100.00 Aaa 1,060,480 Certificates of Participation, Series 2006, 5.000%, 9/01/26 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 16,240 Total Tax Obligation/Limited 17,820,465 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.2% 1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,160,649 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 5,290,447 Bonds, Series 2001B, 5.500%, 8/01/17 - AMBAC Insured (Alternative Minimum Tax) 1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,076,240 5.250%, 11/01/20 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,150 Total Transportation 7,527,336 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 14.3% (3) 400 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA (3) 427,648 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 2,218,280 2,000 5.125%, 5/01/19 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,160,620 750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1 (3) 782,678 Pepperdine University, Series 2002A, 5.500%, 8/01/32 (Pre-refunded 8/01/09) 2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 (3) 2,778,100 University of the Pacific, Series 2002, 5.250%, 11/01/21 (Pre-refunded 11/01/11) 1,000 California, General Obligation Bonds, Series 2004, 2/14 at 100.00 A+ (3) 1,088,790 5.125%, 2/01/27 (Pre-refunded 2/01/14) 1,400 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,536,738 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B, 5.500%, 6/01/33 (Pre-refunded 6/01/13) 41 Nuveen California Select Tax-Free Income Portfolio (NXC) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (3) (continued) $ 2,000 North Orange County Community College District, 8/12 at 101.00 AAA $ 2,150,760 California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/22 (Pre-refunded 8/01/12) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,150 Total U.S. Guaranteed 13,143,614 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.9% 200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 213,750 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 228,113 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured 1,225 Turlock Irrigation District, California, Revenue Refunding No Opt. Call Aaa 1,307,994 Bonds, Series 1992A, 6.250%, 1/01/12 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,640 Total Utilities 1,749,857 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.6% 150 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 158,516 Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured 250 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 266,153 California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 - FGIC Insured 825 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 868,362 Revenue Certificates of Participation, Solar Photovoltaic Project, Series 2003, 5.375%, 4/01/24 1,000 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ 1,055,630 of Participation, Water Systems Project, Series 2003, 5.625%, 7/01/43 ------------------------------------------------------------------------------------------------------------------------------------ 2,225 Total Water and Sewer 2,348,661 ------------------------------------------------------------------------------------------------------------------------------------ $ 92,043 Total Long-Term Investments (cost $86,590,871) - 99.4% 91,587,752 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.5% 500 California Department of Water Resources, Power Supply A-1+ 500,000 Revenue Bonds, Variable Rate Demand Obligations, Series 2002C-7, 3.550%, 5/01/22 - FSA Insured (4) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $500,000) 500,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $87,090,871) - 99.9% 92,087,752 -------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (0.8)% (758,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.9% 847,281 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 92,177,033 ====================================================================================================================
(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. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 42 Nuveen New York Select Tax-Free Income Portfolio (NXN) Portfolio of INVESTMENTS March 31, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.2% $ 100 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 103,511 Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005, 5.000%, 9/01/35 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.9% TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006: 495 4.750%, 6/01/22 6/16 at 100.00 BBB 496,980 540 5.000%, 6/01/26 6/16 at 100.00 BBB 548,338 ------------------------------------------------------------------------------------------------------------------------------------ 1,035 Total Consumer Staples 1,045,318 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.4% 50 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 50,609 Bonds, Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/37 1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,800,776 Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 - AMBAC Insured 30 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 31,210 Revenue Bonds, St. Bonaventure University, Series 2006, 5.000%, 5/01/23 430 Dormitory Authority of the State of New York, General Revenue 7/17 at 100.00 AA 450,171 Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/41 - RAAI Insured 785 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 815,968 Bonds, Iona College, Series 2002, 5.000%, 7/01/22 - XLCA Insured 405 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 430,535 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- 104,543 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- 103,851 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- 517,410 Facility Revenue Bonds, YMCA of Greater New York, Series 2002, 5.250%, 8/01/21 250 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 265,340 PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006, 5.000%, 1/01/36 - AMBAC Insured 450 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 476,856 PILOT Revenue Bonds, Yankee Stadium Project, Series 2006, 5.000%, 3/01/36 - MBIA Insured 200 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 205,608 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Education and Civic Organizations 5,252,877 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.1% 450 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 473,954 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 114,789 100 5.500%, 7/01/30 7/11 at 101.00 Ba2 104,434 500 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 528,215 Memorial Sloan Kettering Cancer Center, Series 2006-1, 5.000%, 7/01/35 43 Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 670 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA $ 715,681 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 410 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 445,789 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 265,553 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 1,785,638 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 1,270,142 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/17 - AMBAC Insured 500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 528,485 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 803,078 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 - AMBAC Insured 250 New York City Industrial Development Agency, New York, Civic 7/12 at 101.00 B2 268,230 Facility Revenue Bonds, Staten Island University Hospital, Series 2002C, 6.450%, 7/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 6,865 Total Health Care 7,303,988 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.7% 1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA 1,063,450 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 263,040 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 162,531 Multifamily Housing Revenue Bonds, Series 2005F-1, 4.750%, 11/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 1,410 Total Housing/Multifamily 1,489,021 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.2% 2,000 New York State Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,039,780 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 2,552,049 Thirty-First Series A, 5.300%, 10/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,500 Total Housing/Single Family 4,591,829 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 11.6% 2,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 2,116,979 Nursing Home Mortgage Revenue Bonds, Norwegian Christian Home and Health Center, Series 2001, 5.200%, 8/01/36 - MBIA Insured 100 Dormitory Authority of the State of New York, Non-State 11/16 at 100.00 Aa3 104,624 Supported Debt, Ozanam Hall of Queens Nursing Home Revenue Bonds, Series 2006, 5.000%, 11/01/31 50 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 A 51,635 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 2,079,340 Mortgage Revenue Refunding Bonds, Jewish Home of Rochester, Series 2002, 4.625%, 2/15/17 1,000 East Rochester Housing Authority, New York, Revenue Bonds, 12/12 at 103.00 AAA 1,079,860 GNMA/FHA-Secured Revenue Bonds, St. Mary's Residence Project, Series 2002A, 5.375%, 12/20/22 1,000 New York City Industrial Development Agency, New York, 11/12 at 101.00 AA+ 1,036,440 GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor House Inc., Series 2002A, 4.950%, 11/20/32 ------------------------------------------------------------------------------------------------------------------------------------ 6,150 Total Long-Term Care 6,468,878 ------------------------------------------------------------------------------------------------------------------------------------ 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 7.0% Clarkstown, Rickland County, New York, Various Purposes Serial Bonds, Series 1992: $ 505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA $ 535,426 525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 565,147 525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 575,894 405 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 400,460 Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB) 195 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 206,509 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 300 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA- 324,927 Series 2004C, 5.250%, 8/15/16 500 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 534,785 Series 2004E, 5.000%, 11/01/19 - FSA Insured 200 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 214,002 Series 2005J, 5.000%, 3/01/19 - FGIC Insured 500 West Islip Union Free School District, Suffolk County, New York, 10/15 at 100.00 Aaa 542,490 General Obligation Bonds, Series 2005, 5.000%, 10/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,655 Total Tax Obligation/General 3,899,640 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 17.2% 600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 636,918 Series 2003A, 5.000%, 11/01/23 300 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 324,354 Mental Health Services Facilities Improvements, Series 2005D-1, 5.000%, 2/15/15 - FGIC Insured Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Series 2006C: 105 5.000%, 12/15/31 (UB) 12/16 at 100.00 AAA 112,023 1,650 5.000%, 12/15/35 (UB) 12/16 at 100.00 AAA 1,757,646 210 5.000%, 12/15/35 (UB) 12/16 at 100.00 AAA 223,700 500 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 559,395 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 541,955 Contract Refunding Bonds, Series 2002A, 5.500%, 1/01/20 - MBIA Insured 95 Nassau County Interim Finance Authority, New York, Sales 11/07 at 100.00 AAA 95,924 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 265,380 200 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 212,172 1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,297,104 670 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 707,031 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 266,238 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 656,971 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 1,074,760 250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 268,263 500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 541,610 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 45 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 47,493 Center Bonds, Series 1990E, 7.250%, 1/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 8,920 Total Tax Obligation/Limited 9,588,937 ------------------------------------------------------------------------------------------------------------------------------------ 45 Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued) Portfolio of INVESTMENTS March 31, 2007 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.8% $ 400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ $ 425,084 Series 2001A, 5.625%, 7/15/25 500 Metropolitan Transportation Authority, New York, Transportation No Opt. Call AAA 544,825 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 52,739 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 105,918 600 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 634,650 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 269,615 105 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 111,387 ------------------------------------------------------------------------------------------------------------------------------------ 2,005 Total Transportation 2,144,218 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 10.4% (3) 1,000 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 101.00 AAA 1,013,840 Bonds, Rochester Institute of Technology, Series 1997, 5.250%, 7/01/22 (Pre-refunded 7/01/07) - MBIA Insured 1,240 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,464,378 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 (ETM) 320 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 328,650 Revenue Bonds, Series 1998A, 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 750 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 814,373 Fund Bonds, Second Generation, Series 2003A, 5.250%, 4/01/23 (Pre-refunded 4/01/13) - MBIA Insured 500 New York State Urban Development Corporation, State 3/13 at 100.00 AAA 549,265 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 524,004 Bonds, Series 1986V, 6.750%, 6/01/12 (ETM) 1,040 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,118,031 Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12) ------------------------------------------------------------------------------------------------------------------------------------ 5,335 Total U.S. Guaranteed 5,812,541 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.4% Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: 570 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 607,728 430 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 457,782 500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 505,290 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 261,420 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 60,773 Westchester County, New York, Resource Recovery Revenue Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,810 Total Utilities 1,892,993 ------------------------------------------------------------------------------------------------------------------------------------ 46 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 12.2% $ 2,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ $ 2,631,424 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 2,146,979 2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,083,059 ------------------------------------------------------------------------------------------------------------------------------------ 6,500 Total Water and Sewer 6,861,462 ------------------------------------------------------------------------------------------------------------------------------------ $ 53,285 Total Investments (cost $54,259,312) - 101.1% 56,455,213 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.1)% (1,710,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 1,082,663 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 55,827,876 ====================================================================================================================
(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. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 47 Statement of ASSETS AND LIABILITIES March 31, 2007
SELECT SELECT SELECT CALIFORNIA NEW YORK TAX-FREE TAX-FREE 2 TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $223,158,351, $242,330,665, $176,314,379, $87,090,871 and $54,259,312, respectively) $237,548,517 $254,891,697 $185,068,226 $92,087,752 $56,455,213 Cash -- -- -- -- 315,024 Receivables: Interest 3,717,846 3,739,771 2,741,301 1,149,895 790,204 Investments sold 750,000 -- -- -- -- Other assets 71,175 75,100 56,300 31,722 22,568 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 242,087,538 258,706,568 187,865,827 93,269,369 57,583,009 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 854,200 355,187 102,291 266,632 -- Floating rate obligations -- 1,135,000 665,000 758,000 1,710,000 Accrued expenses: Management fees 46,747 60,646 44,531 22,298 13,504 Other 112,371 118,241 85,058 45,406 31,629 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,013,318 1,669,074 896,880 1,092,336 1,755,133 ------------------------------------------------------------------------------------------------------------------------------------ Net assets $241,074,220 $257,037,494 $186,968,947 $92,177,033 $55,827,876 ==================================================================================================================================== Shares outstanding 16,382,202 17,607,068 12,964,124 6,257,070 3,908,223 ==================================================================================================================================== Net asset value per share outstanding $ 14.72 $ 14.60 $ 14.42 $ 14.73 $ 14.28 ==================================================================================================================================== NET ASSETS CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Shares, $.01 par value per share $ 163,822 $ 176,071 $ 129,641 $ 62,571 $ 39,082 Paid-in surplus 227,694,687 245,689,700 178,371,732 87,121,715 53,622,239 Undistributed (Over-distribution of) net investment income 318,396 (7,095) (252,182) (70,984) (76,409) Accumulated net realized gain (loss) from investments (1,492,851) (1,382,214) (34,091) 66,850 47,063 Net unrealized appreciation (depreciation) of investments 14,390,166 12,561,032 8,753,847 4,996,881 2,195,901 ------------------------------------------------------------------------------------------------------------------------------------ Net assets $241,074,220 $257,037,494 $186,968,947 $92,177,033 $55,827,876 ==================================================================================================================================== Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 48 Statement of OPERATIONS Year Ended March 31, 2007
SELECT SELECT SELECT CALIFORNIA NEW YORK TAX-FREE TAX-FREE 2 TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $12,206,838 $12,442,584 $ 8,950,610 $4,380,272 $2,642,425 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 552,849 714,491 525,211 262,540 159,415 Shareholders' servicing agent fees and expenses 31,347 29,020 23,925 8,205 6,540 Floating rate obligations interest expense and fees -- 22,658 13,275 10,653 22,871 Custodian's fees and expenses 52,367 56,581 47,087 36,679 23,862 Trustees' fees and expenses 5,194 5,427 4,112 1,900 1,138 Professional fees 15,734 15,596 12,849 9,217 8,289 Shareholders' reports - printing and mailing expenses 44,585 45,184 31,808 15,027 11,031 Stock exchange listing fees 9,776 9,776 9,776 9,776 9,777 Investor relations expense 32,235 33,806 24,494 11,388 7,353 Other expenses 9,605 9,704 7,453 5,268 4,652 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit 753,692 942,243 699,990 370,653 254,928 Custodian fee credit (21,570) (33,912) (37,239) (11,526) (6,316) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 732,122 908,331 662,751 359,127 248,612 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 11,474,716 11,534,253 8,287,859 4,021,145 2,393,813 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 101,116 50,177 406,807 166,092 50,741 Change in net unrealized appreciation (depreciation) of investments 1,235,561 2,445,717 1,364,381 957,522 444,355 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 1,336,677 2,495,894 1,771,188 1,123,614 495,096 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations $12,811,393 $14,030,147 $10,059,047 $5,144,759 $2,888,909 ====================================================================================================================================
See accompanying notes to financial statements. 49 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 3/31/07 3/31/06 3/31/07 3/31/06 3/31/07 3/31/06 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 11,474,716 $ 11,425,438 $ 11,534,253 $ 11,568,224 $ 8,287,859 $ 8,431,298 Net realized gain (loss) from investments 101,116 (1,593,512) 50,177 (1,292,123) 406,807 (459,059) Change in net unrealized appreciation (depreciation) of investments 1,235,561 1,325,784 2,445,717 2,512,224 1,364,381 1,267,741 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 12,811,393 11,157,710 14,030,147 12,788,325 10,059,047 9,239,980 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS From net investment income (11,203,086) (11,202,617) (11,198,098) (11,479,810) (8,322,970) (8,348,899) From accumulated net realized gains -- (9,827) -- (260,585) -- (37,596) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (11,203,086) (11,212,444) (11,198,098) (11,740,395) (8,322,970) (8,386,495) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from shares issued to shareholders due to reinvestment of distributions 60,273 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from capital share transactions 60,273 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets 1,668,580 (54,734) 2,832,049 1,047,930 1,736,077 853,485 Net assets at the beginning of year 239,405,640 239,460,374 254,205,445 253,157,515 185,232,870 184,379,385 ------------------------------------------------------------------------------------------------------------------------------------ Net assets at the end of year $241,074,220 $239,405,640 $257,037,494 $254,205,445 $186,968,947 $185,232,870 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 318,396 $ 46,969 $ (7,095) $ (343,250) $ (252,182) $ (190,008) ====================================================================================================================================
See accompanying notes to financial statements. 50
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN) -------------------------------- ------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/07 3/31/06 3/31/07 3/31/06 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,021,145 $ 4,082,963 $ 2,393,813 $ 2,410,475 Net realized gain (loss) from investments 166,092 371,058 50,741 222,568 Change in net unrealized appreciation (depreciation) of investments 957,522 208,194 444,355 (309,880) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 5,144,759 4,662,215 2,888,909 2,323,163 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS From net investment income (3,979,498) (4,079,612) (2,391,832) (2,411,373) From accumulated net realized gains (140,158) (379,804) (142,259) (255,989) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (4,119,656) (4,459,416) (2,534,091) (2,667,362) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from capital share transactions -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets 1,025,103 202,799 354,818 (344,199) Net assets at the beginning of year 91,151,930 90,949,131 55,473,058 55,817,257 ------------------------------------------------------------------------------------------------------------------------------------ Net assets at the end of year $92,177,033 $91,151,930 $55,827,876 $55,473,058 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ (70,984) $ (112,468) $ (76,409) $ (78,390) ====================================================================================================================================
See accompanying notes to financial statements. 51 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 may establish fair value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. If the pricing service is unable to supply a price for a municipal bond, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment is unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At March 31, 2007, there were no such outstanding purchase commitments in any of the Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and applicable state income taxes, if any, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. 52 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 authorized to invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such instruments, and may do so in the future, they did not invest in any such instruments during the fiscal year ended March 31, 2007. Inverse Floating Rate Securities Each Fund may invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as an "Inverse floating rate investment". An investment in a self-deposited inverse floater is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as an "Underlying bond of an inverse floating rate trust", with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in Investment Income the entire earnings of the underlying bond and accounts for the related interest paid to the holders of the short-term floating rate certificates as "Floating rate obligations interest expense and fees" in the Statement of Operations. During the fiscal year ended March 31, 2007, Select Tax-Free 2 (NXQ), Select Tax-Free 3 (NXR), California Select Tax-Free (NXC) and New York Select Tax-Free (NXN) invested in externally deposited inverse floaters and/or self-deposited inverse floaters. Select Tax-Free (NXP) did not invest in any such instruments during the fiscal year ended March 31, 2007. The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended March 31, 2007, were as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXQ) (NXR) (NXC) (NXN) -------------------------------------------------------------------------------------------------------------------- Average floating rate obligations $597,041 $349,808 $278,488 $598,795 Average annual interest rate and fees 3.80% 3.79% 3.83% 3.82% ====================================================================================================================
53 Notes to FINANCIAL STATEMENTS (continued) 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. 2. FUND SHARES Transactions in shares were as follows:
SELECT SELECT SELECT TAX-FREE (NXP) TAX-FREE 2 (NXQ) TAX-FREE 3 (NXR) ------------------------ ------------------------ ------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/07 3/31/06 3/31/07 3/31/06 3/31/07 3/31/06 --------------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions 4,106 -- -- -- -- -- =============================================================================================================== CALIFORNIA SELECT NEW YORK SELECT TAX-FREE (NXC) TAX-FREE (NXN) ------------------------ ------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/07 3/31/06 3/31/07 3/31/06 --------------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- -- -- -- ===============================================================================================================
54 3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the fiscal year ended March 31, 2007, 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 $5,847,574 $11,595,015 $20,660,550 $15,108,321 $5,341,362 Sales and maturities 4,582,448 6,662,264 15,836,487 14,536,750 3,312,777 ===============================================================================================================
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, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At March 31, 2007, the cost of investments was as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) --------------------------------------------------------------------------------------------------------------- Cost of investments $222,735,929 $241,083,250 $175,604,187 $86,331,176 $52,543,731 ===============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2007, were as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) --------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $14,868,071 $12,814,623 $8,900,733 $4,999,519 $2,223,284 Depreciation (55,483) (141,228) (101,642) (1,078) (21,804) --------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $14,812,588 $12,673,395 $8,799,091 $4,998,441 $2,201,480 ===============================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at March 31, 2007, the Funds' tax year end, were as follows:
CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE (NXP) (NXQ) (NXR) (NXC) (NXN) --------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income* $829,762 $813,717 $396,156 $259,079 $117,334 Undistributed net ordinary income** -- -- -- -- -- Undistributed net long-term capital gains -- -- -- 66,849 47,064 ===============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on March 1, 2007, paid on April 2, 2007. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 55 Notes to FINANCIAL STATEMENTS (continued) The tax character of distributions paid during the tax years ended March 31, 2007 and March 31, 2006, 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 2007 (NXP) (NXQ) (NXR) (NXC) (NXN) --------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income*** $11,202,851 $11,198,098 $8,322,970 $3,979,498 $2,391,832 Distributions from net ordinary income** -- -- -- -- -- Distributions from net long-term capital gains**** -- -- -- 140,158 142,259 ===============================================================================================================
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 ===============================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds hereby designate these amounts paid during the fiscal year ended March 31, 2007, as Exempt Interest Dividends. **** The Funds hereby designate these amounts paid during the fiscal year ended March 31, 2007, as long-term capital gain dividends pursuant to Internal Revenue Code Section 852(b)(3). At March 31, 2007, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 2007 (NXP) (NXQ) (NXR) -------------------------------------------------------------------------------- Expiration Year 2015 $1,492,851 $1,369,835 $18,217 ================================================================================ The following Funds elected to defer net realized losses from investments incurred from November 1, 2006 through March 31, 2007 ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the following fiscal year: SELECT SELECT TAX-FREE 2 TAX-FREE 3 (NXQ) (NXR) -------------------------------------------------------------------------------- $12,379 $15,873 ================================================================================ 56 5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets of each Fund as follows:
SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR) CALIFORNIA SELECT TAX-FREE (NXC) SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN) AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE FUND-LEVEL FEE RATE -------------------------------------------------------------------------------------- For the first $125 million .0500% .1000% For the next $125 million .0375 .0875 For the next $250 million .0250 .0750 For the next $500 million .0125 .0625 ======================================================================================
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of March 31, 2007, the complex-level fee rate was .1834%. 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 preferred stock issued by or borrowings 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 its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. 57 Notes to FINANCIAL STATEMENTS (continued) 6. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Interpretation No. 48 On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. Recent SEC guidance allows funds to delay implementing FIN 48 into NAV calculations until the fund's last NAV calculation in the first required financial statement reporting period. As a result, the Funds must begin to incorporate FIN 48 into their NAV calculations by September 28, 2007. At this time, management is continuing to evaluate the implications of FIN 48 and does not expect the adoption of FIN 48 will have a significant impact on the net assets or results of operations of the Funds. Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of March 31, 2007, the Funds do not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. 7. SUBSEQUENT EVENTS Distributions to Shareholders The Funds declared dividend distributions from their tax-exempt net investment income which were paid on May 1, 2007, to shareholders of record on April 15, 2007, 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 ================================================================================ 58 Financial HIGHLIGHTS 59 Financial HIGHLIGHTS Selected data for a share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ----------------------------------- ----------------------------- NET BEGINNING NET REALIZED/ NET NET ASSET INVESTMENT UNREALIZED INVESTMENT CAPITAL VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL ======================================================================================================= SELECT TAX-FREE (NXP) ------------------------------------------------------------------------------------------------------- Year Ended 3/31: 2007 $14.62 $.70 $ .08 $ .78 $(.68) $ -- $(.68) 2006 14.62 .70 (.02) .68 (.68) -- (.68) 2005 14.85 .70 (.12) .58 (.71) (.10) (.81) 2004 14.82 .73 .15 .88 (.76) (.09) (.85) 2003 14.67 .77 .37 1.14 (.82) (.17) (.99) SELECT TAX-FREE 2 (NXQ) ------------------------------------------------------------------------------------------------------- Year Ended 3/31: 2007 14.44 .66 .14 .80 (.64) -- (.64) 2006 14.38 .66 .06 .72 (.65) (.01) (.66) 2005 14.56 .67 (.13) .54 (.68) (.04) (.72) 2004 14.45 .70 .19 .89 (.72) (.06) (.78) 2003 14.53 .76 .14 .90 (.80) (.18) (.98) SELECT TAX-FREE 3 (NXR) ------------------------------------------------------------------------------------------------------- Year Ended 3/31: 2007 14.29 .64 .13 .77 (.64) -- (.64) 2006 14.22 .65 .06 .71 (.64) -- (.64) 2005 14.37 .66 (.11) .55 (.67) (.03) (.70) 2004 14.28 .69 .16 .85 (.69) (.07) (.76) 2003 14.26 .73 .12 .85 (.76) (.07) (.83) ======================================================================================================= TOTAL RETURNS ------------------------- ENDING BASED ON NET ENDING BASED ON NET ASSET MARKET MARKET ASSET VALUE VALUE VALUE* VALUE* ====================================================================================== SELECT TAX-FREE (NXP) -------------------------------------------------------------------------------------- Year Ended 3/31: 2007 $14.72 $14.85 9.59% 5.48% 2006 14.62 14.21 10.41 4.74 2005 14.62 13.50 .17 4.00 2004 14.85 14.30 7.34 6.13 2003 14.82 14.15 9.51 7.84 SELECT TAX-FREE 2 (NXQ) -------------------------------------------------------------------------------------- Year Ended 3/31: 2007 14.60 14.07 10.21 5.62 2006 14.44 13.37 7.39 5.12 2005 14.38 13.08 .11 3.82 2004 14.56 13.80 8.35 6.31 2003 14.45 13.49 6.01 6.33 SELECT TAX-FREE 3 (NXR) -------------------------------------------------------------------------------------- Year Ended 3/31: 2007 14.42 14.01 9.15 5.51 2006 14.29 13.45 10.12 5.10 2005 14.22 12.82 (.17) 4.01 2004 14.37 13.56 9.96 6.13 2003 14.28 13.06 3.51 6.09 ====================================================================================== RATIOS/SUPPLEMENTAL DATA ----------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS BEFORE CREDIT AFTER CREDIT** ---------------------------------------- ---------------------------------------- ENDING NET EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO ASSETS INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER (000) INTEREST(a) INTEREST(a) INCOME INTEREST(a) INTEREST(a) INCOME RATE ==================================================================================================================================== SELECT TAX-FREE (NXP) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2007 $241,074 .31% .31% 4.77% .30% .30% 4.78% 2% 2006 239,406 .32 .32 4.72 .31 .31 4.73 4 2005 239,460 .33 .33 4.76 .32 .32 4.77 11 2004 243,165 .34 .34 4.90 .33 .33 4.91 16 2003 242,669 .37 .37 5.20 .36 .36 5.21 35 SELECT TAX-FREE 2 (NXQ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2007 257,037 .37 .36 4.50 .36 .35 4.51 3 2006 254,205 .36 .36 4.51 .35 .35 4.52 11 2005 253,158 .37 .37 4.68 .36 .36 4.69 13 2004 256,373 .39 .39 4.86 .38 .38 4.86 10 2003 254,355 .42 .42 5.20 .41 .41 5.21 46 SELECT TAX-FREE 3 (NXR) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 3/31: 2007 186,969 .38 .37 4.43 .36 .35 4.45 9 2006 185,233 .37 .37 4.51 .35 .35 4.52 6 2005 184,379 .38 .38 4.66 .37 .37 4.67 16 2004 186,358 .38 .38 4.84 .38 .38 4.85 6 2003 185,137 .42 .42 5.09 .41 .41 5.10 51 ====================================================================================================================================
FLOATING RATE OBLIGATIONS AT END OF PERIOD -------------------------- AGGREGATE AMOUNT ASSET OUTSTANDING COVERAGE (000) PER $1,000 ================================================= SELECT TAX-FREE (NXP) ------------------------------------------------- Year Ended 3/31: 2007 $ -- $ -- 2006 -- -- 2005 -- -- 2004 -- -- 2003 -- -- SELECT TAX-FREE 2 (NXQ) ------------------------------------------------- Year Ended 3/31: 2007 1,135 227,465 2006 -- -- 2005 -- -- 2004 -- -- 2003 -- -- SELECT TAX-FREE 3 (NXR) ------------------------------------------------- Year Ended 3/31: 2007 665 282,156 2006 -- -- 2005 -- -- 2004 -- -- 2003 -- -- ================================================= * 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. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Funds as more fully described in Footnote 1 - Inverse Floating Rate Securities. See accompanying notes to financial statements. 60-61 spread Financial HIGHLIGHTS (continued) Selected data for a share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ----------------------------------- ----------------------------- NET BEGINNING NET REALIZED/ NET NET ASSET INVESTMENT UNREALIZED INVESTMENT CAPITAL VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL ======================================================================================================= CALIFORNIA SELECT TAX-FREE (NXC) ------------------------------------------------------------------------------------------------------- Year Ended 3/31: 2007 $14.57 $ .64 $ .18 $ .82 $(.64) $(.02) $(.66) 2006 14.54 .65 .09 .74 (.65) (.06) (.71) 2005 14.68 .66 (.09) .57 (.66) (.05) (.71) 2004 14.54 .68 .19 .87 (.68) (.05) (.73) 2003 14.44 .71 .26 .97 (.73) (.14) (.87) NEW YORK SELECT TAX-FREE (NXN) ------------------------------------------------------------------------------------------------------- Year Ended 3/31: 2007 14.19 .61 .13 .74 (.61) (.04) (.65) 2006 14.28 .62 (.02) .60 (.62) (.07) (.69) 2005 14.57 .64 (.21) .43 (.66) (.06) (.72) 2004 14.51 .68 .14 .82 (.68) (.08) (.76) 2003 14.17 .70 .43 1.13 (.70) (.09) (.79) ======================================================================================================= TOTAL RETURNS ------------------------- ENDING BASED ON NET ENDING BASED ON NET ASSET MARKET MARKET ASSET VALUE VALUE VALUE* VALUE* ============================================================================ CALIFORNIA SELECT TAX-FREE (NXC) ---------------------------------------------------------------------------- Year Ended 3/31: 2007 $14.73 $14.22 9.89% 5.72% 2006 14.57 13.56 6.52 5.17 2005 14.54 13.40 .50 3.99 2004 14.68 14.06 9.14 6.16 2003 14.54 13.59 1.34 6.86 NEW YORK SELECT TAX-FREE (NXN) ---------------------------------------------------------------------------- Year Ended 3/31: 2007 14.28 14.15 11.15 5.30 2006 14.19 13.35 2.84 4.19 2005 14.28 13.65 .05 3.10 2004 14.57 14.40 11.81 5.84 2003 14.51 13.60 4.73 8.17 ============================================================================ RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS BEFORE CREDIT AFTER CREDIT** --------------------------------------- ---------------------------------------- ENDING NET EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO ASSETS INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER (000) INTEREST(a) INTEREST(a) INCOME INTEREST(a) INTEREST(a) INCOME RATE ================================================================================================================================ CALIFORNIA SELECT TAX-FREE (NXC) -------------------------------------------------------------------------------------------------------------------------------- Year Ended 3/31: 2007 $92,177 .40% .39% 4.37% .39% .38% 4.38% 16% 2006 91,152 .38 .38 4.42 .37 .37 4.43 8 2005 90,949 .39 .39 4.55 .39 .39 4.56 13 2004 91,864 .40 .40 4.64 .39 .39 4.65 30 2003 90,975 .43 .43 4.84 .42 .42 4.85 42 NEW YORK SELECT TAX-FREE (NXN) -------------------------------------------------------------------------------------------------------------------------------- Year Ended 3/31: 2007 55,828 .46 .42 4.29 .45 .41 4.30 6 2006 55,473 .41 .41 4.28 .40 .40 4.29 13 2005 55,817 .41 .41 4.48 .41 .41 4.48 13 2004 56,958 .43 .43 4.65 .42 .42 4.65 16 2003 56,683 .46 .46 4.85 .45 .45 4.86 35 ================================================================================================================================
FLOATING RATE OBLIGATIONS AT END OF PERIOD -------------------------- AGGREGATE AMOUNT ASSET OUTSTANDING COVERAGE (000) PER $1,000 ================================================= CALIFORNIA SELECT TAX-FREE (NXC) ------------------------------------------------- Year Ended 3/31: 2007 $ 758 $122,606 2006 -- -- 2005 -- -- 2004 -- -- 2003 -- -- NEW YORK SELECT TAX-FREE (NXN) ------------------------------------------------- Year Ended 3/31: 2007 1,710 33,648 2006 -- -- 2005 -- -- 2004 -- -- 2003 -- -- ================================================= * 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. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Funds as more fully described in Footnote 1 - Inverse Floating Rate Securities. See accompanying notes to financial statements. 62-63 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 ten. 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 POSITION(S) YEAR FIRST PORTFOLIOS IN HELD ELECTED FUND COMPLEX NAME, BIRTHDATE WITH THE OR APPOINTED PRINCIPAL OCCUPATION(S) INCLUDING OVERSEEN BY AND ADDRESS FUNDS AND CLASS(2) OTHER DIRECTORSHIPS 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, 174 3/28/49 the Board Class I Inc., Nuveen Investments, LLC; Chairman and Director (since 333 W. Wacker Drive and Board 1997) of Nuveen Asset Management; Chairman and Director Chicago, IL 60606 Member of Rittenhouse Asset Management, Inc. (since 1999); Chairman of Nuveen Investments Advisers Inc. (since 2002); formerly, Chairman and Director (1996-2004) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); formerly, Director (1996-2006) of Institutional Capital Corporation. BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner Lead Independent 1997 Private Investor and Management Consultant. 174 8/22/40 Board member Class III 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The Northern 174 7/29/34 Class I Trust Company; Director (since 2002) Community Advisory 333 W. Wacker Drive Board for Highland Park and Highwood, United Way of the Chicago, IL 60606 North Shore; Director (since 2006) of the Michael Rolfe Pancreatic Cancer Foundation. ------------------------------------------------------------------------------------------------------------------------------------ Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private 174 10/22/48 Class III philanthropic corporation (since 1996); Director and Vice 333 W. Wacker Drive Chairman, United Fire Group, a publicly held company; Chicago, IL 60606 Adjunct Faculty Member, 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, Tippie College of Business, University of Iowa (since 174 3/6/48 Class II July 2006); formerly, Dean and Distinguished Professor of 333 W. Wacker Drive Finance, School of Business at the University of Connecticut Chicago, IL 60606 (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995- 2003); Director (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation; Director, SS&C Technologies, Inc. (May 2005- October 2005). ------------------------------------------------------------------------------------------------------------------------------------ David J. Kundert Board member 2005 Director, Northwestern Mutual Wealth Management 172 10/28/42 Class II Company; Retired (since 2004) as Chairman, JPMorgan 333 W. Wacker Drive Fleming Asset Management, President and CEO, Banc One Chicago, IL 60606 Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors, Milwaukee Repertory Theater. 64 NUMBER OF POSITION(S) YEAR FIRST PORTFOLIOS IN HELD ELECTED FUND COMPLEX NAME, BIRTHDATE WITH THE OR APPOINTED PRINCIPAL OCCUPATION(S) INCLUDING OVERSEEN BY AND ADDRESS FUNDS AND CLASS(2) OTHER DIRECTORSHIPS 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 174 9/24/44 Class III investment company; formerly, Senior Partner and Chief 333 W. Wacker Drive Operating Officer (retired, 2004) of Miller-Valentine Group; Chicago, IL 60606 formerly, Vice President, Miller-Valentine Realty; Board Member, 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 174 12/29/47 Class I Foundation (since 1994); prior thereto, Executive Director, 333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994). Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Carole E. Stone Board member 2007 Director, Chicago Board Options Exchange (since 2006); Chair 174 6/28/47 Class I New York Racing Association Oversight Board (since 2005); 333 West Wacker Drive Commissioner, New York State Commission on Public Chicago, IL 60606 Authority Reform (since 2005); formerly Director, New York State Division of the Budget (2000-2004), Chair, Public Authorities Control Board (2000-2004) and Director, Local Government Assistance Corporation (2000-2004). ------------------------------------------------------------------------------------------------------------------------------------ Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 174 1/22/50 Class II Northwestern University (since 1997); Director (since 2003), 333 W. Wacker Drive Chicago Board Options Exchange; Chairman (since 1997), Chicago, IL 60606 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; Director (since 2006), Pathways, a provider of therapy and related information for physically disabled infants and young children; formerly, Director (2003-2006), National Mentor Holdings, a privately-held, national provider of home and community-based services. 65 Board Members AND OFFICERS (CONTINUED) NUMBER OF POSITION(S) YEAR FIRST PORTFOLIOS IN HELD ELECTED FUND COMPLEX NAME, BIRTHDATE WITH THE OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUND: ------------------------------------------------------------------------------------------------------------------------------------ Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 174 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., Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC and Santa Barbara Asset Management, LLC; (since 2006); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 174 9/22/63 (since 2002) of Nuveen Investments, LLC; Chartered 333 W. Wacker Drive Financial Analyst. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Michael T. Atkinson Vice President 2000 Vice President (since 2002) of Nuveen Investments, LLC. 174 2/3/66 and Assistant 333 W. Wacker Drive Secretary Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen Investments, LLC and 174 11/28/67 of Nuveen Investments, Inc. (since 1999); Vice President and 333 W. Wacker Drive Treasurer of Nuveen Asset Management (since 2002) and of Chicago, IL 60606 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); Treasurer of Symphony Asset Management LLC (since 2003) and Santa Barbara Asset Management, LLC (since 2006); Assistant Treasurer, Tradewinds Global Investors, LLC (since 2006); formerly, Vice President and Treasurer (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 174 8/24/61 Investments, LLC (since January 2005); formerly, Director, 333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003- Chicago, IL 60606 2004), 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). 66 NUMBER OF POSITION(S) YEAR FIRST PORTFOLIOS IN HELD ELECTED FUND COMPLEX NAME, BIRTHDATE WITH THE OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 174 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 174 3/2/64 Nuveen Investments, LLC; 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. ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 174 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. ------------------------------------------------------------------------------------------------------------------------------------ Walter M. Kelly Chief Compliance 2003 Assistant Vice President and Assistant Secretary of the Nuveen 174 2/24/70 Officer and Funds (2003-2006); Assistant Vice President and Assistant 333 West Wacker Drive Vice President General Counsel (since 2003) of Nuveen Investments, LLC; Chicago, IL 60606 previously, Associate (2001-2003) at the law firm of Vedder, Price, Kaufman & Kammholz. ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 174 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). 174 8/27/61 333 W. Wacker Drive Chicago, IL 60606 67 Board Members AND OFFICERS (CONTINUED) NUMBER OF POSITION(S) YEAR FIRST PORTFOLIOS IN HELD ELECTED FUND COMPLEX NAME, BIRTHDATE WITH THE OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 174 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 Chicago, IL 60606 Nuveen 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), Symphony Asset Management LLC (since 2003) and Tradewinds Global Investors, LLC and Santa Barbara Asset Management, LLC (since 2006). ------------------------------------------------------------------------------------------------------------------------------------ Kevin J. McCarthy Vice President 2007 Vice President and Assistant General Counsel, Nuveen 174 3/26/66 and Secretary Investments, LLC (since 2007); prior thereto, Partner, Bell, 333 W. Wacker Drive Boyd & Lloyd LLP (1997-2007) Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ John V. Miller Vice President 2007 Managing Director (since 2007), formerly, Vice President 174 4/10/67 (2002-2007) of Nuveen Investments, LLC; Chartered 333 W. Wacker Drive Financial Analyst. Chicago, IL 60606
(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 three year terms. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each class being elected to serve until the third succeeding annual shareholders meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The 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. 68 Notes 69 Notes 70 Notes 71 Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. 72 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. 73 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 the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. INVERSE FLOATERS: Inverse floating rate securities are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. LEVERAGE-ADJUSTED 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. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. 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. 74 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, 2006, 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 For Funds listed on the New York Stock Exchange, each Fund's Chief Executive Officer has submitted to the 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. INVESTMENT POLICY CHANGE In February 2007, the Board of Trustees for Nuveen California Select Tax-Free (NXC) and Nuveen New York Select Tax-Free (NXN) voted to remove investment policy restrictions that limited the territorial bond holdings of these Funds to a maximum of 10 percent of net assets. This change will give the Funds' portfolio managers greater flexibility to achieve its investment objectives. 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 Carol E. Stone 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. 75 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 approximately $166 billion in assets, as of March 31, 2007, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under six distinct brands: NWQ, specializing in value-style equities; Nuveen, managing fixed-income investments; Santa Barbara, committed to growth equities; Tradewinds, specializing in global value equities; Rittenhouse, focused on "blue-chip" growth equities; and Symphony, with expertise in alternative investments as well as equity and income portfolios. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices Learn more o Fund details about Nuveen Funds at o Daily financial news WWW.NUVEEN.COM/CEF o Investor education o Interactive planning tools Logo: NUVEEN Investments EAN-B-0307D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/etf. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, Chairman of the Audit Committee, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen California Select Tax-Free Income Portfolio The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) ------------------------------------------------------------------------------------------------------------------------------------ March 31, 2007 $ 8,778 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------ March 31, 2006 $ 8,327 $ 0 $ 404 $ 0 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees". (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services other than "Audit Fees", "Audit Related Fees", and "Tax Fees". 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 (1) SERVICE PROVIDERS ---------------------------------------------------------------------------------------------------------------------------------- March 31, 2007 $ 0 $ 0 $ 0 ---------------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ---------------------------------------------------------------------------------------------------------------------------------- March 31, 2006 $ 0 $ 2,400 $ 0 ---------------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees" represents amounts billed to the Adviser exclusively for the preparation for the Fund's tax return, the cost of which is borne by the Adviser. In the aggregate, for all Nuveen funds for which Ernst & Young LLP serves as independent registered public accounting firm, these fees amounted to $161,400 in 2006. Beginning with fund fiscal years ending August 31, 2006, Ernst & Young LLP will no longer prepare the fund tax returns. NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL --------------------------------------------------------------------------------------------------------------------------------- March 31, 2007 $ 0 $ 0 $ 0 $ 0 March 31, 2006 $ 404 $ 2,400 $ 0 $ 2,804
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax Fees" billed to Adviser in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board of Directors or Trustees has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B. Evans, William J. Schneider, Eugene S. Sunshine and effective January 1, 2007, David J. Kundert. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board of Trustees on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board of Trustees or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board of Trustees and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND Scott R. Romans Nuveen California Select Tax-Free Income Portfolio Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: TYPE OF ACCOUNT NUMBER OF PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS -------------------------------------------------------------------------------- Scott R. Romans Registered Investment Company 28 $6,182 million Other Pooled Investment Vehicles -0- $0 Other Accounts 4 $.409 million * Assets are as of March 31, 2007. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation, 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 each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of April 30, 2007, the S&P/Investortools Municipal Bond index was comprised of 50,300 securities with an aggregate current market value of $ 985,620 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to 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. Each 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. Each portfolio manager's simultaneous management of the Registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager. In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of the March 31, 2007, 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 DOLLAR RANGE OF SECURITIES BENEFICIALLY OWNED EQUITY SECURITIES IN THE REMAINDER OF NUVEEN BENEFICIALLY OWNED FUNDS MANAGED BY NAM'S NAME OF PORTFOLIO MANAGER FUND IN FUND MUNICIPAL INVESTMENT TEAM ---------------------------------------------------------------------------------------------------------------------------------- Scott R. Romans Nuveen California Select Tax-Free Income Portfolio $0 $10,001-$50,000 ----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO: Scott R. Romans, PhD joined Nuveen Investments in 2000 as a senior analyst in the education sector. In 2003, he was assigned management responsibility for several closed- and open-ended municipal bond funds most of which are state funds covering California and other western states. Currently, he manages investments for 29 Nuveen-sponsored investment companies. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrants Board implemented after the registrant last provided disclosure in response to this item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/etf and there were no amendments during the period covered by this report. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen California Select Tax-Free Income Portfolio ----------------------------------------------------------- By (Signature and Title)* /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: June 8, 2007 ------------------------------------------------------------------- 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, 2007 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: June 8, 2007 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.