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 811-7056
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Nuveen Select Maturities Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: March 31
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Date of reporting period: September 30, 2008
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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.
SEMI-ANNUAL REPORT
September 30, 2008
Nuveen Investments
MUNICIPAL CLOSED-END FUNDS
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NUVEEN SELECT
MATURITIES
MUNICIPAL FUND
NIM
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
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Chairman's
LETTER TO SHAREHOLDERS
Photo of: Robert P. Bremner
Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I'd like to use my initial letter to you to accomplish several things. I want to
report that after fourteen years of service on your Fund's Board, including the
last twelve as chairman, Tim Schwertfeger retired from the Board in June. We
will miss his wise counsel. The Board has elected me to replace him as the
chairman, the first time this role has been filled by someone who is not an
employee of Nuveen Investments. Electing an independent chairman marks a
significant milestone in the management of your Fund, and it aligns us with what
is now considered a "best practice" in the fund industry. Further, it
demonstrates the independence with which your Board has always acted on your
behalf.
First and most important, on behalf of the entire Board, I would like you to
know that we are closely monitoring the unprecedented market developments and
their distressing impact on the Funds. We believe that these Funds continue to
be actively and constructively managed for the long term and at the same time we
are very aware that these are trying times for our investors. We appreciate the
patience you have shown with the Board and with Nuveen Investments as they
manage your investment through this extremely difficult period.
Second, I also want to report that we are very fortunate to be welcoming two new
Board members to our team. John Amboian, the current chairman and CEO of Nuveen
Investments, has agreed to replace Tim as Nuveen's representative on the Board.
John's presence will allow the independent Board members to benefit not only
from his leadership role at Nuveen but also his broad understanding of the fund
industry and Nuveen's role within it. We also are adding Terry Toth as an
independent director. A former CEO of the Northern Trust Company's asset
management group, Terry will bring extensive experience in the fund industry to
our deliberations.
Finally, I urge you to take the time to review the Portfolio Manager's Comments,
the Dividend and Share Price Information and the Performance Overview sections
of this report. All of us are grateful that you have chosen Nuveen Investments
as a partner as you pursue your financial goals, and, on behalf of myself and
the other members of your Fund's Board, let me say we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman OF THE BOARD
November 21, 2008
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NIM
Portfolio manager Paul Brennan discusses key investment strategies and the
six-month performance of the Nuveen Select Maturities Municipal Fund. With
eighteen years of investment experience, including eleven years with Nuveen,
Paul has managed NIM since 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE NIM DURING THE SIX-MONTH REPORTING
PERIOD ENDED SEPTEMBER 30, 2008?
During this period, events in the financial and credit markets led to increased
price volatility for most securities, thinning liquidity and a general flight to
quality. We sought to capitalize on this turbulent environment by continuing to
focus on finding relative value by using a fundamental approach to identify
sectors and individual credits with the potential to perform well over the long
term.
As events in the general financial markets unfolded, we found attractive
opportunities in various sectors of the municipal bond market. For example, when
hedge funds and high-yield funds began to sell holdings into an illiquid market
in order to meet margin requirements and redemption needs, we took advantage of
this situation and found unusual value investment opportunities in the health
care, industrial development, utility, transportation and tobacco sectors. Some
of these opportunities were in the new issue market as many issuers were driven
to convert their floating-rate borrowings to fixed-rate borrowings given the
difficulties in the short-term funding markets.
Despite the market environment during this six-month reporting period, liquidity
generally was not a problem for NIM. Most of our investment activity was
supported by proceeds from bond redemptions and cash and cash equivalents on
hand.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Fund disclaims any obligation to advise shareholders of
such changes.
4
HOW DID THE FUND PERFORM?
Results for NIM, as well as relevant index information, are presented in the
accompanying table.
Total Returns on Net Asset Value*
For periods ended 9/30/08
Six-Month 1-Year 5-Year 10-Year
NIM -1.74% -0.39% 3.38% 2.91%
Lehman Brothers
7-Year Municipal
Bond Index(1) -0.72% 2.59% 3.11% 4.47%
For the six months ended September 30, 2008, NIM's cumulative return on net
asset value (NAV) underperformed the return for the Lehman Brothers 7-Year
Municipal Bond Index.
Key management factors that influenced NIM's return during this period included
yield curve and duration(2) positioning, credit exposure and sector allocations,
and individual security selection.
Over the course of this reporting period, we saw the yield curve steepen, as
interest rates at the short end of the curve declined and longer-term rates
generally rose. Given these changes in the interest rate environment, bonds in
the Lehman Brothers Municipal Bond Index with maturities of ten years or less
generally outperformed the market as a whole, while bonds maturing in one to
four years benefited the most. In general, these shorter bonds outperformed
credits with longer maturities, with bonds having the longest maturities
(twenty-two years and longer) posting the worst returns. This environment was
generally beneficial for NIM, which, as an intermediate-term strategy Fund,(3)
has more conservative duration and maturity mandates than longer-term funds.
Although the Fund's duration was slightly longer than our strategic target,
*Six-month returns are cumulative; returns for one-year, five-year, and ten-year
are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the Performance Overview page for NIM in this
report.
(1) The Lehman Brothers 7-Year Municipal Bond Index is an unleveraged,
unmanaged national index comprising a broad range of investment-grade
municipal bonds with maturities ranging from six to eight years. Results
for the Lehman index do not reflect any expenses.
(2) 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.
(3) In keeping with its investment parameters, NIM maintains an average
effective maturity of twelve years or less for portfolio holdings.
5
we believed NIM was generally well positioned along the yield curve. In
particular, the Fund was underexposed to the longer part of the curve, which was
beneficial during this period.
While duration played an important role in the Fund's performance, credit
exposure was the dominant factor in NIM's under-performance over the six month
reporting period. Because risk-averse investors generally sought higher quality
investments as disruptions in the financial and housing markets deepened, bonds
with higher credit quality ratings typically performed relatively very well. At
the same time, bonds rated BBB or below and non-rated bonds generally posted the
poorest returns. As of September 30, 2008, NIM had allocated approximately 16%
of its port folio to bonds rated BBB and 7% to bonds rated BB or lower and
non-rated bonds. This credit exposure had a negative impact on NIM's performance
for the period.
Sectors of the market that were among the top performing segments and generally
made positive contributions to NIM's performance included tax-supported
obligations, especially those that were higher-rated and pre-refunded bonds(4),
which are often backed by U.S. Treasury bonds. As of September 30, 2008, NIM
held approximately 18% of its portfolio in pre-refunded bonds.
In general, bonds that carried any credit risk, regardless of sector, continued
to post weak performance. Revenue bonds as a whole, and the industrial
development sector in particular, underperformed the general municipal market.
The health care sector also performed poorly.
Individual security selection was also a factor in NIM's performance,
particularly in the insured category. Insured holdings with particularly weaker
underlying credits originally purchased because of the higher yields they
offered, were disproportionately impacted (compared with bonds stronger with
underlying credits) if the insurer backing
(4) Pre-refunded bonds, also known as advance refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
6
the bond was downgraded from AAA. The valuations of these bonds then reverted to
resting solely on the fundamentals of the underlying credit.
RECENT DEVELOPMENTS IN THE CURRENT MARKET ENVIRONMENT
As this reporting period drew to a close, the nation's financial institutions
and financial markets--including the municipal bond market--experienced
significant turmoil. Reductions in demand decreased valuations of municipal
bonds across all credit ratings, especially those with lower credit ratings, and
this generally reduced the Fund's net asset values. The municipal market is one
in which dealer firms make markets in bonds on a principal basis using their
proprietary capital, and during the recent market turmoil these firms' capital
was severely constrained. As a result, some firms were unwilling to commit their
capital to purchase and to serve as a dealer for municipal bonds. This reduction
in dealer involvement in the market was accompanied by significant net selling
pressure by investors, particularly with respect to lower-rated municipal bonds,
as institutional investors generally removed money from the municipal bond
market, at least in part because of their need to reduce the leveraging of their
municipal investments. This de-leveraging was in part driven by the overall
reduction in the amount of financing available for such leverage, the increased
costs of such leverage financing, and the need to reduce leverage levels that
had recently increased due to the decline in municipal bond prices.
Municipal bond prices were further negatively impacted by concerns that the need
for further de-leveraging and a supply overhang as a large amount of new issues
were postponed in recent weeks would cause selling pressure to persist for a
period of time. In addition to falling prices, these market conditions resulted
in greater price volatility of municipal bonds; wider credit spreads (i.e.,
lower quality bonds fell in price more than higher quality bonds); significantly
reduced liquidity (i.e., the ability to sell bonds at a price close to their
carrying value), particularly for lower quality bonds; and a lack of price
transparency (i.e., the ability to accurately determine the
7
price at which a bond would likely trade). Reduced liquidity was most pronounced
in mid-October (after the end of the reporting period for this shareholder
report), and although liquidity improved considerably over ensuing weeks, it may
reoccur if financial turmoil persists or worsens.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
As discussed above, insured bonds had an important impact on the performance of
the Fund as bonds backed by municipal bond insurers that experienced
downgrades in their credit ratings. During the period covered by this report,
ACA, AMBAC, FGIC, MBIA, RAAI, and SYNCORA (formerly XLCA) experienced one or
more rating reductions by at least one or more rating agencies. Subsequent to
the reporting period, AMBAC, MBIA and SYNCORA experienced further rating
reductions by at least one rating agency. At the time this report was prepared,
at least one rating agency has placed each of these insurers on "negative
outlook" or "negative credit watch," which may presage one or more rating
reductions for such insurer or insurers in the future. As concern increased
about the balance sheets of these insurers, prices on bonds insured by these
companies - especially those bonds with weaker underlying credits - declined,
detracting from the Fund's performance. However, on the whole, the holdings of
the Fund continued to be well diversified not only between insured and uninsured
bonds, but also within the insured bond category. It is important to note that
municipal bonds historically have had a very low rate of default.
8
Dividend and Share Price
INFORMATION
The dividend of NIM remained stable throughout the six-month reporting period
ended September 30, 2008.
NIM seeks to pay stable dividends at rates that reflect the Fund's past results
and projected future performance. During certain periods, NIM may pay dividends
at a rate that may be more or less than the amount of net investment income
actually earned by the Fund during the period. If a Fund 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 Fund's NAV.
Conversely, if a Fund has cumulatively paid dividends in excess of its earnings,
the excess constitutes negative UNII that is likewise reflected in the Fund's
NAV. NIM will, over time, pay all of its net investment income as dividends to
shareholders. As of September 30, 2008, NIM had a positive UNII balance, based
upon our best estimate, for tax purposes and a negative UNII balance for
financial statement purposes.
On July 30, 2008, the Board of Directors/Trustees for each of Nuveen's 120
closed-end Funds approved a program under which each Fund may repurchase up to
10% of its common shares. No common shares were repurchased by NIM during the
six-month reporting period ended September 30, 2008.
As of September 30, 2008, the share price of NIM was trading at a discount of
-7.44% to its NAV. The Fund's average discount over the entire six-month
reporting period was -1.97%.
9
NIM
Performance
OVERVIEW
Nuveen Select
Maturities
Municipal Fund
as of September 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 32%
AA 25%
A 20%
BBB 16%
BB or Lower 2%
N/R 5%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share
Oct 0.0365
Nov 0.0365
Dec 0.0365
Jan 0.0365
Feb 0.0365
Mar 0.0365
Apr 0.0365
May 0.0365
Jun 0.0365
Jul 0.0365
Aug 0.0365
Sep 0.0365
Line Chart:
Share Price Performance -- Weekly Closing Price
10/01/07 9.49
9.49
9.48
9.73
9.33
9.31
9.27
9.09
9.15
9.16
9.22
9.06
9.25
9.25
9.53
9.58
9.41
9.46
9.69
9.54
9.2501
9.6
9.68
9.62
9.71
9.69
9.75
9.85
9.91
9.89
9.77
9.94
9.9401
9.95
9.97
10.06
10.09
10.02
9.61
9.68
9.73
9.84
9.86
9.69
9.84
9.9
9.9
9.83
9.88
9.85
9.81
9.538
9.37
9/30/08 8.96
FUND SNAPSHOT
------------------------------------
Share Price $8.96
------------------------------------
Net Asset Value $9.68
------------------------------------
Premium/(Discount) to NAV -7.44%
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Market Yield 4.89%
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Taxable-Equivalent Yield(2) 6.79%
------------------------------------
Net Assets ($000) $120,040
------------------------------------
Average Effective Maturity
on Securities (Years) 10.49
------------------------------------
Modified Duration 5.08
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/18/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-month
(cumulative) -6.50% -1.74%
------------------------------------
1-Year -0.69% -0.39%
------------------------------------
5-Year 2.60% 3.38%
------------------------------------
10-Year 2.70% 2.91%
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STATES
(as a % of total investments)
------------------------------------
Illinois 15.2%
------------------------------------
Colorado 14.7%
------------------------------------
Pennsylvania 7.4%
------------------------------------
Texas 6.8%
------------------------------------
New York 6.5%
------------------------------------
South Carolina 6.4%
------------------------------------
Florida 4.9%
------------------------------------
Arkansas 4.2%
------------------------------------
Wisconsin 3.8%
------------------------------------
Kansas 2.9%
------------------------------------
Alabama 2.5%
------------------------------------
Iowa 2.4%
------------------------------------
Tennessee 2.2%
------------------------------------
Massachusetts 1.9%
------------------------------------
Michigan 1.8%
------------------------------------
Minnesota 1.7%
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Other 14.7%
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INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 18.3%
------------------------------------
Utilities 17.5%
------------------------------------
Tax Obligation/Limited 12.5%
------------------------------------
Health Care 11.6%
------------------------------------
Transportation 6.4%
------------------------------------
Tax Obligation/General 6.3%
------------------------------------
Long-Term Care 5.5%
------------------------------------
Education and Civic
Organizations 5.0%
------------------------------------
Water and Sewer 4.7%
------------------------------------
Other 12.2%
------------------------------------
(1) The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by ACA, AMBAC, FGIC, MBIA, RAAI and SYNCORA as of September
30, 2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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.
10
NIM
Shareholder MEETING REPORT
The annual meeting of shareholders was held on July 29, 2008, at The Northern
Trust Company, 50 South La Salle Street, Chicago, IL 60675; at this meeting the
shareholders were asked to vote on the election of Board Members, the
elimination of Fundamental Investment Policies and the approval of new
Fundamental Investment Policies. The meeting was subsequently adjourned to
August 29, 2008.
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES.
For 5,933,161
Against 433,750
Abstain 171,753
Broker Non-Votes 1,927,656
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Total 8,466,320
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 5,937,611
Against 416,518
Abstain 184,535
Broker Non-Votes 1,927,656
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Total 8,466,320
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTING IN
OTHER INVESTMENT COMPANIES.
For 5,900,055
Against 433,833
Abstain 204,776
Broker Non-Votes 1,927,656
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Total 8,466,320
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND
SHORT SALES.
For 5,877,803
Against 455,769
Abstain 205,092
Broker Non-Votes 1,927,656
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Total 8,466,320
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES.
For 5,896,960
Against 439,461
Abstain 202,243
Broker Non-Votes 1,927,656
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Total 8,466,320
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES.
For 5,915,817
Against 422,622
Abstain 200,225
Broker Non-Votes 1,927,656
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Total 8,466,320
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For 8,183,832
Withhold 282,488
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Total 8,466,320
====================================================================================================================================
William C. Hunter
For 8,175,629
Withhold 290,691
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Total 8,466,320
====================================================================================================================================
David J. Kundert
For 8,177,632
Withhold 288,688
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Total 8,466,320
====================================================================================================================================
Terence J. Toth
For 8,161,227
Withhold 305,093
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Total 8,466,320
====================================================================================================================================
11
NIM
Nuveen Select Maturities Municipal Fund
Portfolio of INVESTMENTS
September 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.4%
$ 2,000 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 1,926,760
Bonds, Series 2001, 5.750%, 12/01/17
500 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/10 at 100.00 AAA 472,870
Series 2003B, 5.250%, 2/01/12 - FSA Insured
500 Marshall County Healthcare Authority, Alabama, Revenue Bonds, 1/12 at 101.00 A- 507,005
Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Alabama 2,906,635
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ARIZONA - 0.9%
125 Phoenix Industrial Development Authority, Arizona, Statewide 10/08 at 101.00 AAA 126,594
Single Family Mortgage Revenue Bonds, Series 1998C,
6.650%, 10/01/29 (Alternative Minimum Tax)
300 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 210,843
Bonds, Series 2007, 5.000%, 12/01/37
750 Surprise Municipal Property Corporation, Arizona, Wastewater 4/11 at 100.00 N/R 690,255
System Revenue Bonds, Series 2007, 4.500%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
1,175 Total Arizona 1,027,692
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 4.2%
1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding and 10/11 at 100.00 AAA 1,062,230
Construction Bonds, Series 2002A, 5.250%, 10/01/17 -
FSA Insured
1,500 Jefferson County, Arkansas, Pollution Control Revenue Bonds, 6/11 at 100.00 A- 1,376,325
Entergy Arkansas Inc. Project, Series 2006, 4.600%, 10/01/17
1,000 Jonesboro, Arkansas, Industrial Development Revenue Bonds, No Opt. Call BBB+ 1,036,150
Anheuser Busch Inc. Project, Series 2002, 4.600%, 11/15/12
1,380 North Little Rock, Arkansas, Electric Revenue Refunding Bonds, No Opt. Call AA 1,523,354
Series 1992A, 6.500%, 7/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,880 Total Arkansas 4,998,059
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 0.3%
400 California Health Facilities Financing Authority, Revenue 7/15 at 100.00 A 371,748
Bonds, Catholic Healthcare West, Series 2008H,
5.125%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 14.5%
2,895 Centennial Downs Metropolitan District, Colorado, General 12/14 at 100.00 AA 2,930,030
Obligation Bonds, Series 1999, 5.000%, 12/01/20 -
AMBAC Insured
1,260 Colorado Educational and Cultural Facilities Authority, Charter 7/12 at 100.00 BBB 1,219,730
School Revenue Bonds, Douglas County School District RE-1 -
DCS Montessori School, Series 2002A, 6.000%, 7/15/22
1,175 Colorado Educational and Cultural Facilities Authority, Revenue 12/13 at 100.00 A 1,128,987
Bonds, Classical Academy Charter School, Series 2003,
4.500%, 12/01/18 - SYNCORA GTY Insured
275 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 AA 282,785
Senior Bonds, Series 2000D-2, 6.900%, 4/01/29
(Alternative Minimum Tax)
1,025 Denver Health and Hospitals Authority, Colorado, Healthcare 12/11 at 100.00 BBB (4) 1,114,739
Revenue Bonds, Series 2001A, 6.000%, 12/01/23
(Pre-refunded 12/01/11)
1,465 Denver West Metropolitan District, Colorado, General 12/13 at 100.00 BBB+ 1,276,572
Obligation Refunding and Improvement Bonds, Series 2003,
4.500%, 12/01/18 - RAAI Insured
12
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,500 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AA $ 1,488,990
Series 2007C-2, 5.000%, 9/01/39 (Mandatory put 9/01/13) -
MBIA Insured
1,340 Eagle Bend Metropolitan District 2, Colorado, General Obligation 12/14 at 101.00 A3 1,229,664
Bonds, Series 2004, 5.000%, 12/01/20 - RAAI Insured
34 El Paso County, Colorado, FNMA Mortgage-Backed Single Family No Opt. Call Aaa 35,506
Revenue Refunding Bonds, Series 1992A-2, 8.750%, 6/01/11
700 Erie, Boulder and Weld Counties, Colorado, Water Enterprise 12/08 at 100.00 N/R (4) 702,401
Revenue Bonds, Series 1998, 5.000%, 12/01/23
(Pre-refunded 12/01/08) - ACA Insured
1,050 Erie, Boulder and Weld Counties, Colorado, Water Enterprise 12/08 at 100.00 N/R 878,882
Revenue Bonds, Series 1998, 5.000%, 12/01/23 - ACA Insured
70 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 74,630
Bonds, Senior Series 2001A, 5.250%, 6/15/41
(Pre-refunded 6/15/11) - FSA Insured
5,875 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 38.04 AA (4) 2,017,240
Senior Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/27
(Pre-refunded 6/15/11) - AMBAC Insured
2,845 University of Colorado Hospital Authority, Revenue Bonds, 11/11 at 100.00 Baa1 (4) 3,046,853
Series 2001A, 5.600%, 11/15/21 (Pre-refunded 11/15/11)
------------------------------------------------------------------------------------------------------------------------------------
21,509 Total Colorado 17,427,009
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.6%
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
450 5.500%, 1/01/14 (Alternative Minimum Tax) 1/09 at 100.00 BBB 439,551
1,570 5.500%, 1/01/15 (Alternative Minimum Tax) 11/08 at 100.00 BBB 1,512,789
------------------------------------------------------------------------------------------------------------------------------------
2,020 Total Connecticut 1,952,340
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.8%
2,400 Deltona, Florida, Utility Systems Water and Sewer Revenue 10/13 at 100.00 AA 2,473,104
Bonds, Series 2003, 5.250%, 10/01/17 - MBIA Insured
1,000 Florida Citizens Property Insurance Corporation, High Risk No Opt. Call AA 992,870
Account Revenue Bonds, Series 2007A, 5.000%, 3/01/15 -
MBIA Insured
60 JEA, Florida, Electric Revenue Certificates, Series 1973-2, No Opt. Call AAA 64,676
6.800%, 7/01/12 (ETM)
2,000 Orange County, Florida, Tourist Development Tax Revenue Bonds, 10/15 at 100.00 AA 1,914,520
Series 2005, 5.000%, 10/01/22 - AMBAC Insured
295 Port Everglades Authority, Florida, Port Facilities Revenue Bonds, No Opt. Call AAA 333,828
Series 1986, 7.125%, 11/01/16 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
5,755 Total Florida 5,778,998
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4%
425 Cherokee County Water and Sewerage Authority, Georgia, 8/22 at 100.00 AA (4) 436,467
Revenue Bonds, Series 1995, 5.200%, 8/01/25
(Pre-refunded 8/01/22) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.9%
715 Chicago, Illinois, Tax Increment Allocation Bonds, Irving/Cicero 1/09 at 100.00 N/R 716,144
Redevelopment Project, Series 1998, 7.000%, 1/01/14
1,500 Cook County Township High School District 208, Illinois, 12/15 at 100.00 A1 1,487,910
General Obligation Bonds, Series 2006, 5.000%, 12/01/21 -
MBIA Insured
2,000 Huntley, Illinois, Special Service Area 9, Special Tax Bonds, 3/17 at 100.00 AAA 1,897,860
Series 2007, 5.100%, 3/01/28 - AGC Insured
4,840 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 5,398,822
Mortgage Revenue Bonds, Greek American Nursing Home
Committee, Series 2000A, 7.600%, 4/20/40
2,000 Illinois Development Finance Authority, Revenue Refunding 4/10 at 102.00 Baa3 2,000,320
Bonds, Olin Corporation, Series 1993D, 6.750%, 3/01/16
13
NIM
Nuveen Select Maturities Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 2,000 Illinois Educational Facilities Authority, Revenue Bonds, 3/14 at 102.00 A1 $ 2,005,920
Art Institute of Chicago, Series 2000, 4.450%, 3/01/34
(Mandatory put 3/01/15)
1,000 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Aaa 1,120,980
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.625%, 5/01/17
(Pre-refunded 5/01/12)
250 Illinois Finance Authority, Revenue Bonds, Roosevelt University, 4/17 at 100.00 Baa1 228,275
Series 2007, 5.250%, 4/01/22
25 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Baa3 25,490
Medical Center, Series 2000, 6.350%, 5/15/15
Illinois Health Facilities Authority, Revenue Bonds, Condell Medical
Center, Series 2002:
100 5.250%, 5/15/11 No Opt. Call Baa3 101,785
20 5.250%, 5/15/12 No Opt. Call Baa3 20,199
85 Illinois Health Facilities Authority, Revenue Bonds, Lutheran No Opt. Call AAA 89,548
General Health System, Series 1993A, 6.125%, 4/01/12 -
FSA Insured (ETM)
695 Illinois Health Facilities Authority, Revenue Bonds, 8/09 at 101.00 A 680,766
Silver Cross Hospital and Medical Centers, Series 1999,
5.500%, 8/15/19
515 Illinois Health Facilities Authority, Revenue Bonds, 8/09 at 101.00 A (4) 533,499
Silver Cross Hospital and Medical Centers, Series 1999,
5.500%, 8/15/19 (Pre-refunded 8/15/09)
1,355 Kane & DeKalb Counties, Illinois, Community United School No Opt. Call A2 804,884
District 301, General Obligation Bonds, Series 2006,
0.000%, 12/01/18 - MBIA Insured
700 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AA+ 840,987
Lake, McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1994D, 7.750%, 6/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,800 Total Illinois 17,953,389
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 0.2%
250 Jasper County, Indiana, Pollution Control Revenue Refunding No Opt. Call AA 241,395
Bonds, Northern Indiana Public Service Company Project,
Series 1994A Remarketed, 5.850%, 4/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.4%
1,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 1,005,300
Medical Center, Series 2000, 6.250%, 7/01/25
1,800 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 1,896,318
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
2,800 Total Iowa 2,901,618
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.9%
3,500 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 3,432,520
Improvement Bonds, Via Christi Health System Inc.,
Series 2001-III, 5.500%, 11/15/21
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.4%
325 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 307,905
Arena Project Revenue Bonds, Louisville Arena Authority, Inc.,
Series 2008A-1, 5.750%, 12/01/28 - AGC Insured
1,365 Kentucky Housing Corporation, Housing Revenue Bonds, 1/15 at 100.60 AAA 1,321,457
Series 2005G, 5.000%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,690 Total Kentucky 1,629,362
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.9%
1,145 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 1,100,998
Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.9%
1,100 Maryland Energy Financing Administration, Revenue Bonds, 11/08 at 100.00 N/R 1,030,139
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.9%
$ 500 Massachusetts Development Finance Agency, Revenue Bonds, 10/17 at 100.00 BB- $ 417,710
Orchard Cove, Series 2007, 5.000%, 10/01/19
1,455 Massachusetts Housing Finance Agency, Rental Housing 7/10 at 100.00 AA 1,473,158
Mortgage Revenue Bonds, Series 2000H, 6.650%, 7/01/41 -
MBIA Insured (Alternative Minimum Tax)
Massachusetts Port Authority, Special Facilities Revenue Bonds,
Delta Air Lines Inc., Series 2001A:
100 5.200%, 1/01/20 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AA 78,999
435 5.000%, 1/01/27 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AA 321,717
------------------------------------------------------------------------------------------------------------------------------------
2,490 Total Massachusetts 2,291,584
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.8%
1,000 Cornell Township Economic Development Corporation, 5/12 at 100.00 AAA 1,086,910
Michigan, Environmental Improvement Revenue Refunding
Bonds, MeadWestvaco Corporation-Escanaba Project,
Series 2002, 5.875%, 5/01/18 (Pre-refunded 5/01/12)
600 Michigan State Hospital Finance Authority, Hospital Revenue 1/09 at 100.00 BB 580,320
Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16
470 Michigan State Hospital Finance Authority, Revenue Refunding 11/08 at 100.00 BB- 470,357
Bonds, Detroit Medical Center, Series 1988A, 8.125%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
2,070 Total Michigan 2,137,587
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6%
1,000 Becker, Minnesota, Pollution Control Revenue Bonds, Northern 8/12 at 101.00 A 1,123,470
States Power Company, Series 1993A, 8.500%, 9/01/19
825 White Earth Band of Chippewa Indians, Minnesota, Revenue No Opt. Call N/R 840,601
Bonds, Series 2000A, 7.000%, 12/01/11 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,825 Total Minnesota 1,964,071
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8%
Mississippi Hospital Equipment and Facilities Authority, Revenue
Bonds, Baptist Memorial Healthcare, Series 2004B-1:
485 5.000%, 9/01/16 No Opt. Call AA 479,553
300 5.000%, 9/01/24 9/14 at 100.00 AA 269,778
250 Warren County, Mississippi, Gulf Opportunity Zone Revenue 8/11 at 100.00 BBB 180,963
Bonds, International Paper Company, Series 2006A,
4.800%, 8/01/30
------------------------------------------------------------------------------------------------------------------------------------
1,035 Total Mississippi 930,294
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.1%
60 University of Montana, Revenue Bonds, Series 1996D, 11/08 at 101.00 AA (4) 63,035
5.375%, 5/15/19 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.9%
1,000 Dodge County School District 1, Nebraska, Fremont Public 12/14 at 100.00 Aaa 1,020,240
Schools, General Obligation Bonds, Series 2004,
5.000%, 12/15/19 - FSA Insured
30 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call A2 29,990
Loan Program, Series 1993A-5B, 6.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,030 Total Nebraska 1,050,230
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.4%
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
800 0.000%, 1/01/15 - AMBAC Insured No Opt. Call AA 458,736
35 0.000%, 1/01/16 - AMBAC Insured No Opt. Call AA 18,235
120 0.000%, 1/01/18 - AMBAC Insured No Opt. Call AA 51,316
25 0.000%, 1/01/20 - AMBAC Insured No Opt. Call AA 8,898
------------------------------------------------------------------------------------------------------------------------------------
980 Total Nevada 537,185
------------------------------------------------------------------------------------------------------------------------------------
15
NIM
Nuveen Select Maturities Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.7%
$ 455 Bayonne Redevelopment Agency, New Jersey, Revenue Bonds, No Opt. Call BB+ $ 427,281
Royal Caribbean Cruises Project, Series 2006A,
4.750%, 11/01/16 (Alternative Minimum Tax)
500 Tobacco Settlement Financing Corporation, New Jersey, 6/17 at 100.00 BBB 423,565
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A,
4.500%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
955 Total New Jersey 850,846
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.0%
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 A3 1,014,920
Brooklyn Law School, Series 2003A, 5.500%, 7/01/15 -
RAAI Insured
300 New York City Industrial Development Agency, New York, No Opt. Call N/R 288,501
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2008A-1, 5.700%, 7/01/13
1,500 New York State Energy Research and Development Authority, 11/08 at 100.00 A1 1,493,790
Facilities Revenue Bonds, Consolidated Edison Company Inc.,
Series 2001A, 4.700%, 6/01/36 (Mandatory put 10/01/12)
(Alternative Minimum Tax)
60 New York State Medical Care Facilities Finance Agency, 2/09 at 100.00 AA+ 60,127
FHA-Insured Mortgage Hospital and Nursing Home Revenue
Bonds, Series 1995C, 6.100%, 8/15/15
4,300 Port Authority of New York and New Jersey, Special Project No Opt. Call AA 4,346,182
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,160 Total New York 7,203,520
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6%
1,880 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 AA 1,916,171
Series 2003, 5.000%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.4%
845 Buckeye Tobacco Settlement Financing Authority, Ohio, 6/17 at 100.00 BBB 705,474
Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2, 5.125%, 6/01/24
1,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue No Opt. Call A 1,001,950
Bonds, Cargill Inc., Series 2004B, 4.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
1,845 Total Ohio 1,707,424
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 7.3%
1,010 Pennsylvania Higher Educational Facilities Authority, No Opt. Call Aaa 1,131,331
College Revenue Bonds, Ninth Series 1976,
7.625%, 7/01/15 (ETM)
225 Pennsylvania Higher Educational Facilities Authority, Revenue 3/09 at 100.00 BBB+ (4) 230,459
Bonds, University of the Arts, Series 1999, 5.150%, 3/15/20 -
RAAI Insured (ETM)
4,120 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/14 at 100.00 AA 4,207,262
Eighteenth Series 2004, 5.000%, 8/01/15 - AMBAC Insured
1,605 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call Aaa 1,854,096
Twelfth Series 1990B, 7.000%, 5/15/20 -MBIA Insured (ETM)
250 Philadelphia Hospitals and Higher Education Facilities 11/08 at 100.00 BBB 220,858
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
1,085 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AA 1,138,653
General Obligation Bonds, Series 2006B, 5.000%, 9/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,295 Total Pennsylvania 8,782,659
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.3%
750 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 729,083
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/19
1,540 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call Baa1 (4) 1,828,226
Revenue Bonds, Series 1991, 6.750%, 1/01/19 -
FGIC Insured (ETM)
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 2,835 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call Baa1 $ 3,204,599
Revenue Bonds, Series 1991, 6.750%, 1/01/19 - FGIC Insured
5 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- (4) 5,442
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
20 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 18,199
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002B, 5.625%, 11/15/30
1,260 South Carolina JOBS Economic Development Authority, Hospital No Opt. Call Baa2 (4) 1,316,738
Revenue Bonds, Palmetto Health Alliance, Series 2000A,
7.000%, 12/15/10 (ETM)
445 Tobacco Settlement Revenue Management Authority, 5/12 at 100.00 BBB (4) 465,070
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
6,855 Total South Carolina 7,567,357
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.7%
1,000 South Dakota Health and Educational Facilities Authority, 5/17 at 100.00 AA- 878,950
Revenue Bonds, Sanford Health, Series 2007, 5.000%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.1%
Shelby County Health, Educational and Housing Facilities Board,
Tennessee, Hospital Revenue Bonds, Methodist Healthcare, Series
2002:
750 6.000%, 9/01/17 (Pre-refunded 9/01/12) 9/12 at 100.00 A- (4) 824,003
1,250 6.000%, 9/01/17 (Pre-refunded 9/01/12) 9/12 at 100.00 A- (4) 1,373,338
400 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call AA- 371,244
Bonds, Series 2006A, 5.000%, 9/01/13
------------------------------------------------------------------------------------------------------------------------------------
2,400 Total Tennessee 2,568,585
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.7%
1,055 Austin, Texas, General Obligation Bonds, Series 2004, 9/14 at 100.00 AAA 1,067,344
5.000%, 9/01/20 - MBIA Insured
565 Bexar County Housing Finance Corporation, Texas, FNMA No Opt. Call AAA 567,678
Guaranteed Multifamily Housing Revenue Bonds, Villas
Sonterra Apartments Project, Series 2007A,
4.700%, 10/01/15 (Alternative Minimum Tax)
25 Brazos River Authority, Texas, Collateralized Pollution No Opt. Call Caa1 21,309
Control Revenue Bonds, Texas Utilities Electric Company,
Series 2003D, 5.400%, 10/01/29 (Mandatory put 10/01/14)
2,000 Brazos River Authority, Texas, Collateralized Revenue 6/14 at 100.00 BBB+ 1,895,700
Refunding Bonds, CenterPoint Energy Inc., Series 2004B,
4.250%, 12/01/17 - FGIC Insured
500 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 462,040
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11)
(Alternative Minimum Tax)
15 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 14,029
Refunding Bonds, TXU Energy Company LLC, Series 2003A,
6.750%, 4/01/38 (Mandatory put 4/01/13) (Alternative Minimum Tax)
1,875 Denton Independent School District, Denton County, Texas, 8/16 at 100.00 AAA 1,889,588
General Obligation Bonds, Series 2006, 5.000%, 8/15/20
35 Galveston Property Finance Authority Inc., Texas, Single Family 3/09 at 100.00 Caa1 34,050
Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11
300 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 254,772
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005, 5.125%, 8/15/26
325 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 294,411
Refunding Bonds, Series 2008, 5.750%, 1/01/38
25 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 22,925
Bonds, TXU Energy Company LLC Project, Series 2001B,
5.750%, 5/01/30 (Mandatory put 11/01/11)
(Alternative Minimum Tax)
1,500 Texas Municipal Gas Acquisition and Supply Corporation I, 11/08 at 100.00 A 1,188,750
Gas Supply Revenue Bonds, Series 2006B, 2.439%, 12/15/17
320 Tri-County Mental Health and Retardation Center, Texas, 3/09 at 100.00 AAA 324,387
Revenue Bonds, Facilities Acquisition Program, Series 1995E,
6.500%, 3/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,540 Total Texas 8,036,983
------------------------------------------------------------------------------------------------------------------------------------
17
NIM
Nuveen Select Maturities Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
$ 1,105 Bountiful, Davis County, Utah, Hospital Revenue Refunding No Opt. Call N/R $ 1,087,464
Bonds, South Davis Community Hospital Project, Series 1998,
6.000%, 12/15/10
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.2%
250 Virginia College Building Authority, Educational Facilities 1/09 at 101.00 BBB+ 234,160
Revenue Refunding Bonds, Marymount University,
Series 1998, 5.100%, 7/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 0.3%
295 Washington Public Power Supply System, Revenue Refunding No Opt. Call Aaa 349,209
Bonds, Nuclear Project 3, Series 1989B, 7.125%, 7/01/16 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.8%
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
735 6.125%, 6/01/27 6/12 at 100.00 BBB 739,542
1,480 6.375%, 6/01/32 6/12 at 100.00 BBB 1,496,532
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,004,160
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%, 7/01/21
1,150 Wisconsin Health and Educational Facilities Authority, Revenue 2/09 at 101.00 BBB+ 1,092,638
Bonds, Aurora Health Care Inc., Series 1999A, 5.500%, 2/15/20 -
ACA Insured
200 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 A- 182,354
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006, 5.250%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
4,565 Total Wisconsin 4,515,226
------------------------------------------------------------------------------------------------------------------------------------
$ 122,084 Total Long-Term Investments (cost $120,786,057) - 98.2% 117,860,909
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4%
$ 500 Metropolitan Transportation Authority, New York, Transportation VMIG-1 500,000
Revenue Bonds, Variable Rate Demand Obligations, Trust 862,
6.000%, 11/15/32 - FGIC Insured (5)
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $500,000) 500,000
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $121,286,057) - 98.6% 118,360,909
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 1,678,813
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $120,039,722
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by ACA, AMBAC, FGIC, MBIA, RAAI and SYNCORA as
of September 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the
Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period
end.
(4) 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.
(5) 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.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
18
Statement of
ASSETS & LIABILITIES
September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $121,286,057) $118,360,909
Cash 179,043
Receivables:
Interest 1,927,881
Investments sold 312,063
Other assets 3,257
--------------------------------------------------------------------------------
Total assets 120,783,153
--------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 226,379
Accrued expenses:
Management fees 49,634
Other 38,167
Dividends payable 429,251
--------------------------------------------------------------------------------
Total liabilities 743,431
--------------------------------------------------------------------------------
Net assets $120,039,722
================================================================================
Shares outstanding 12,398,856
================================================================================
Net asset value per share outstanding $ 9.68
================================================================================
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
Shares, $.01 par value per share $ 123,989
Paid-in surplus 138,354,563
Undistributed (Over-distribution of) net investment income (100,181)
Accumulated net realized gain (loss) from investments (15,413,501)
Net unrealized appreciation (depreciation) of investments (2,925,148)
--------------------------------------------------------------------------------
Net assets $120,039,722
================================================================================
Authorized shares Unlimited
================================================================================
See accompanying notes to financial statements.
19
Statement of
OPERATIONS
Six Months Ended September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME $ 3,072,193
--------------------------------------------------------------------------------
EXPENSES
Management fees 302,924
Shareholders' servicing agent fees and expenses 4,988
Custodian's fees and expenses 9,669
Trustees' fees and expenses 1,634
Professional fees 6,848
Shareholders' reports - printing and mailing expenses 19,261
Stock exchange listing fees 4,610
Investor relations expense 9,814
Other expenses 4,622
--------------------------------------------------------------------------------
Total expenses before custodian fee credit 364,370
Custodian fee credit (4,947)
--------------------------------------------------------------------------------
Net expenses 359,423
--------------------------------------------------------------------------------
Net investment income 2,712,770
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (44,665)
Change in net unrealized appreciation (depreciation) of investments (4,769,170)
--------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (4,813,835)
--------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $(2,101,065)
================================================================================
See accompanying notes to financial statements.
20
Statement of
CHANGES in NET ASSETS (Unaudited)
SIX MONTHS
ENDED YEAR ENDED
9/30/08 3/31/08
---------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,712,770 $ 5,509,561
Net realized gain (loss) from investments (44,665) (49,131)
Change in net unrealized appreciation (depreciation) of investments (4,769,170) (1,515,776)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (2,101,065) 3,944,654
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (2,715,080) (5,429,625)
---------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (2,715,080) (5,429,625)
---------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued to shareholders due to reinvestment of distributions 24,537 --
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to shares from capital transactions 24,537 --
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (4,791,608) (1,484,971)
Net assets at the beginning of period 124,831,330 126,316,301
---------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 120,039,722 $124,831,330
===========================================================================================================================
Undistributed (Over-distribution of) net investment income at the end of period $ (100,181) $ (97,871)
===========================================================================================================================
See accompanying notes to financial statements.
21
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The fund covered in this report and its corresponding New York Stock Exchange
symbol is Nuveen Select Maturities Municipal Fund (NIM) (the "Fund"). The Fund
is registered under the Investment Company Act of 1940, as amended, as a
closed-end, diversified management investment company.
The Fund seeks to provide current income exempt from regular federal income tax,
consistent with the preservation of capital by investing in a diversified,
investment-grade quality portfolio of municipal obligations with intermediate
characteristics. In managing its portfolio, the Fund has purchased municipal
obligations having remaining effective maturities of no more than fifteen years
with respect to 80% of its total assets that, in the opinion of Nuveen Asset
Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments,
Inc. ("Nuveen"), represent the best value in terms of the balance between yield
and capital preservation currently available from the intermediate sector of the
municipal market. The Adviser will actively monitor the effective maturities of
the Fund's investments in response to prevailing market conditions, and will
adjust its portfolio consistent with its investment policy of maintaining an
average effective remaining maturity of twelve years or less.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in the 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 an investment, the Fund may use
market quotes provided by major broker/dealers in such investments. If it is
determined that the market price for an investment is unavailable or
inappropriate, the Board of Trustees of the Fund, or its designee, may establish
a fair value in accordance with procedures established in good faith by the
Board of Trustees. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates 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 Fund has 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 September 30, 2008, the
Fund had no such outstanding purchase commitments.
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
The Fund intends to distribute substantially all of its 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, the Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax-exempt status when distributed
to shareholders of the Fund. Net realized capital gains and ordinary income
distributions paid by the Fund are subject to federal taxation.
22
Effective September 30, 2007, the Fund adopted Financial Accounting Standards
Board (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 affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax expense in the current year.
Implementation of FIN 48 required management of the Fund to analyze all open tax
years, as defined by the statute of limitations, for all major jurisdictions,
which includes federal and certain states. Open tax years are those that are
open for examination by taxing authorities (i.e., generally the last four tax
year ends and the interim tax period since then). The Fund has no examinations
in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Fund has reviewed all tax positions taken or
expected to be taken in the preparation of the Fund's tax returns and concluded
the adoption of FIN 48 resulted in no impact to the Fund's net assets or results
of operations as of and during the six months ended September 30, 2008.
The Fund is also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
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 at least 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 Fund is authorized to invest in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Fund is authorized to
invest in such financial instruments, and may do so in the future, it did not
invest in any such instruments during the six months ended September 30, 2008.
Zero Coupon Securities
The Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolio of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
The Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on the Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which the Fund overdraws its account at the custodian bank.
Indemnifications
Under the Fund's organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, in the normal course of business, the Fund
enters into contracts that provide general indemnifications to other parties.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with 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.
23
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Fund adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of the Fund's
investments various inputs are used. These inputs are summarized in the three
broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
The following is a summary of the Fund's fair value measurements as of September
30, 2008:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments $ -- $118,360,909 $ -- $118,360,90
================================================================================
3. FUND SHARES
Share Repurchases
On July 30, 2008 the Fund's Board of Trustees approved a program under which the
Fund may repurchase an aggregate of up to approximately 10% of its outstanding
shares.The Fund did not repurchase any of its shares during the six months ended
September 30, 2008.
Transactions in shares were as follows:
SIX MONTHS YEAR
ENDED ENDED
9/30/08 3/31/08
--------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of distributions 2,450 --
================================================================================
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended September 30, 2008, aggregated $7,632,634 and
$5,845,236, respectively.
5. 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 timing differences in recognizing taxable market discount
and timing differences in recognizing certain gains and losses on investment
transactions. 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 value of the
Fund.
At September 30, 2008, the cost of investments was $121,218,406.
24
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2008, were as follows:
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 1,793,371
Depreciation (4,650,868)
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $(2,857,497)
================================================================================
The tax components of undistributed net tax-exempt income, net
ordinary income and net long-term capital gains at March 31,
2008, the Fund's last tax year end, were as follows:
--------------------------------------------------------------------------------
Undistributed net tax-exempt income * $290,617
Undistributed net ordinary income ** 10
Undistributed net long-term capital gains --
================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on March 3, 2008, paid on April 1, 2008.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Fund's last tax year ended
March 31, 2008, was designated for purposes of the dividends paid deduction as
follows:
--------------------------------------------------------------------------------
Distributions from net tax-exempt income $5,429,625
Distributions from net ordinary income ** --
Distributions from net long-term capital gains --
================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At March 31, 2008, the Fund's last tax year end, the Fund 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:
--------------------------------------------------------------------------------
Expiration:
March 31, 2010 $ 14,922
March 31, 2011 6,523,386
March 31, 2012 8,737,799
March 31, 2013 4,977
March 31, 2014 14,448
March 31, 2015 11,084
March 31, 2016 44,763
--------------------------------------------------------------------------------
Total $15,351,379
================================================================================
The Fund elected to defer net realized losses from investments incurred from
November 1, 2007 through March 31, 2008, the Fund's last tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses of $12,331 were treated as having arisen on the first day of
the current fiscal year.
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within the 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.
25
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
The annual fund-level fee, payable monthly, is based upon the average daily net
assets of the Fund as follows:
AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .3000%
For the next $125 million .2875
For the next $250 million .2750
For the next $500 million .2625
For the next $1 billion .2500
For net assets over $2 billion .2375
================================================================================
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 September 30, 2008, the complex-level fee rate was .1947%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily net assets of all
Nuveen-sponsored funds in the United States, with such daily net assets to
include assets attributable to preferred stock issued by or borrowings by
such funds but to exclude assets attributable to investments in other
Nuveen-sponsored funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Fund pays 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 Fund 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.
26
7. NEW ACCOUNTING PRONOUNCEMENT
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 161
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of September 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
8. SUBSEQUENT EVENTS
Distributions to Shareholders
The Fund declared a dividend distribution of $.0365 per share from its
tax-exempt net investment income which was paid on November 3, 2008, to
shareholders of record on October 15, 2008.
27
Financial
HIGHLIGHTS (Unaudited)
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
------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2009(a) $10.07 $.22 $(.39) $(.17) $(.22) $ -- $(.22)
2008 10.19 .44 (.12) .32 (.44) -- (.44)
2007 10.15 .46 .05 .51 (.47) -- (.47)
2006 10.22 .48 (.07) .41 (.48) -- (.48)
2005 10.35 .49 (.14) .35 (.48) -- (.48)
2004 10.34 .51 -- .51 (.50) -- (.50)
==================================================================================================================
Total Returns
---------------------
Ending Ending Based on Based on
Net Asset Market Market Net Asset
Value Value Value* Value*
------------------------------------------------------------------------
Year Ended 3/31:
2009(a) $ 9.68 $8.96 (6.50)% (1.74)%
2008 10.07 9.80 3.18 3.18
2007 10.19 9.94 4.75 5.10
2006 10.15 9.95 12.21 4.02
2005 10.22 9.30 (1.52) 3.44
2004 10.35 9.93 6.03 5.09
========================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------
Ratios to Average Ratios to Average
Net Assets Net Assets
Before Credit After Credit**
----------------------- -----------------------
Ending Net Net Portfolio
Net Assets Investment Investment Turnover
(000) Expenses Income Expenses Income Rate
-------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2009(a) $120,040 .59% 4.35% .58% 4.36% 5%
2008 124,831 .59 4.37 .57 4.38 11
2007 126,316 .62 4.44 .58 4.48 15
2006 125,857 .59 4.67 .57 4.68 7
2005 126,645 .61 4.81 .60 4.82 10
2004 128,335 .63 4.92 .62 4.93 13
=============================================================================================================
* Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend
declared in the period, which is typically paid on the first business day
of the following month, is assumed to be reinvested at the ending net asset
value. The actual reinvest price for the last dividend declared in the
period may often be based on the Fund's market price (and not its net asset
value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
** After custodian fee credit.
(a) For the six months ended September 30, 2008.
28-29 spread
Annual Investment
Management Agreement
APPROVAL PROCESS
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 28-29, 2008 (the "May
Meeting"), the Board of Trustees (the "Board" and each Trustee, a "Board
Member") of the Fund, including a majority of the Independent Board Members,
considered and approved the continuation of the advisory agreement (the
"Advisory Agreement") between the Fund and Nuveen Asset Management ("NAM") for
an additional one-year period. In preparation for their considerations at the
May Meeting, the Board also held a separate meeting on April 23, 2008 (the
"April Meeting"). Accordingly, the factors considered and determinations made
regarding the renewals by the Independent Board Members include those made at
the April Meeting.
In addition, in evaluating the Advisory Agreement, as described in further
detail below, the Independent Board Members reviewed a broad range of
information relating to the Fund and NAM, including absolute performance, fee
and expense information for the Fund as well as comparative performance, fee and
expense information for a comparable peer group of funds, the performance
information of recognized benchmarks (as applicable), the profitability of
Nuveen for its advisory activities (which includes its wholly owned
subsidiaries), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreement, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Fund resulting from their meetings and other interactions throughout the
year and their own business judgment in determining the factors to be considered
in evaluating the Advisory Agreement. Each Board Member may have accorded
different weight to the various factors in reaching his or her conclusions with
respect to the Fund's Advisory Agreement. The Independent Board Members did not
identify any single factor as all-important or controlling. The Independent
Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreement, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Fund;
30
the performance record of the Fund (as described in further detail below); and
any initiatives Nuveen had taken for the applicable fund product line. With
respect to personnel, the Independent Board Members evaluated the background,
experience and track record of NAM's investment personnel. In this regard, the
Independent Board Members considered the additional investment in personnel to
support Nuveen fund advisory activities, including in operations, product
management and marketing as well as related fund support functions, including
sales, executive, finance, human resources and information technology. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel.
In evaluating the services of NAM, the Independent Board Members also considered
NAM's ability to supervise the Fund's other service providers and given the
importance of compliance, NAM's compliance program. Among other things, the
Independent Board Members considered the report of the chief compliance officer
regarding the Fund's compliance policies and procedures.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support.
In addition to the foregoing services, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, its secondary market support activities and the costs
of such activities. The Independent Board Members recognized Nuveen's continued
commitment to supporting the secondary market for the common shares of its
closed-end funds through a variety of programs designed to raise investor and
analyst awareness and understanding of closed-end funds. These efforts include
maintaining an investor relations program to timely provide information and
education to financial advisers and investors; providing advertising and
marketing for the closed-end funds; maintaining its closed-end fund website; and
providing educational seminars. With respect to closed-end funds that utilize
leverage through the issuance of auction rate preferred securities ("ARPS"), the
Board has recognized the unprecedented market conditions in the auction rate
market industry with the failure of the auction process. The Independent Board
Members noted Nuveen's efforts and the resources and personnel employed to
analyze the situation, explore potential alternatives and develop and implement
solutions that serve the interests of the affected funds and all of their
respective shareholders. The Independent Board Members further noted Nuveen's
commitment and efforts to keep investors and financial advisers informed as to
its progress in addressing the ARPS situation through, among other things,
conference calls, press releases, and information posted on its website as well
as its refinancing activities. The Independent Board Members also noted Nuveen's
continued support for holders of preferred shares of its closed-end funds by,
among other things, seeking distribution for preferred shares with new market
participants, managing relations with remarketing agents and the broker
community, maintaining the leverage and risk management of leverage and
maintaining systems necessary to test compliance with rating agency criteria.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the Fund under the Advisory Agreement were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND NAM
The Board considered the investment performance of the Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent third party (as described below). The Independent
Board Members also reviewed portfolio level performance (which does not reflect
fund level fees, expenses and leverage), as described in further detail below.
31
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
In evaluating the performance information, the Board considered whether the Fund
has operated within its investment objectives and parameters and the impact that
the investment mandates may have had on performance. In addition, in comparing a
fund's performance with that of its Performance Peer Group, the Independent
Board Members took into account that the closest Performance Peer Group in
certain instances may not adequately reflect the respective fund's investment
objectives and strategies thereby hindering a meaningful comparison of the
fund's performance with that of the Performance Peer Group.
The Independent Board Members reviewed performance information including, among
other things, total return information compared with the Fund's Performance Peer
Group and recognized benchmarks for the one-, three- and five-year periods (as
applicable) ending December 31, 2007 and with the Performance Peer Group for the
quarter and same yearly periods ending March 31, 2008 (as applicable). The
Independent Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses (and leverage for
closed-end funds)) compared to recognized benchmarks for the one- three, and
five-year periods ending December 31, 2007 (as applicable). The analysis was
used to assess the efficacy of investment decisions against appropriate measures
of risk and total return, within specific market segments. This information
supplemented the Fund performance information provided to the Board at each of
its quarterly meetings. Based on their review, the Independent Board Members
determined that the Fund's investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of the Fund reviewing,
among other things, the Fund's gross management fees (which take into
account breakpoints), net management fees (which take into account fee
waivers or reimbursements) and total expense ratios (before and after
expense reimbursements and/or waivers) in absolute terms as well as
compared to the gross management fees, net management fees (after waivers
and/or reimbursements) and total expense ratios (before and after waivers)
of a comparable universe of unaffiliated funds based on data provided by an
independent data provider (the "Peer Universe") and/or a more focused
subset of funds therein (the "Peer Group"). The Independent Board Members
further reviewed data regarding the construction of Peer Groups as well as
the methods of measurement for the fee and expense analysis and the
performance analysis. In reviewing the comparisons of fee and expense
information, the Independent Board Members took into account that in
certain instances various factors such as the size of a fund relative to
peers, the size and particular composition of the Peer Group, the
investment objectives of the peers, expense anomalies, and the timing of
information used may impact the comparative data, thereby limiting the
ability to make a meaningful comparison. The Independent Board Members also
considered, among other things, in each case, as applicable, the
differences in the use of leverage (if any) and the differences in the use
of insurance (if any). In reviewing the fee schedule for the Fund, the
Independent Board Members also considered the fund-level and complex-wide
breakpoint schedules (described in further detail below) and any fee
waivers and reimbursements provided by Nuveen (applicable, in particular,
for certain closed-end funds launched since 1999). Based on their review of
the fee and expense information provided, the Independent Board Members
determined that the Fund's management fees and net total expense ratio were
reasonable in light of the nature, extent and quality of services provided
to the Fund.
32
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Fund and other clients vary, among other
things, because of the different services involved and the additional
regulatory and compliance requirements associated with registered
investment companies, such as the Fund. Accordingly, the Independent Board
Members considered the differences in the product types, including, but not
limited to, the services provided, the structure and operations, product
distribution and costs thereof, portfolio investment policies, investor
profiles, account sizes and regulatory requirements. The Independent Board
Members noted, in particular, that the range of services provided to the
Fund (as discussed above) is much more extensive than that provided to
separately managed accounts. Given the inherent differences in the
products, particularly the extensive services provided to the Fund, the
Independent Board Members believe such facts justify the different levels
of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers) and its
financial condition. The Independent Board Members reviewed the revenues
and expenses of Nuveen's advisory activities for the last two years and the
allocation methodology used in preparing the profitability data. The
Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as changes
in fee waivers and expense reimbursement commitments). In this regard, the
Independent Board Members noted that they had also appointed an Independent
Board Member as a point person to review and keep them apprised of changes
to the profitability analysis and/or methodologies during the year. The
Independent Board Members considered Nuveen's profitability compared with
other fund sponsors prepared by two independent third party service
providers as well as comparisons of the revenues, expenses and profit
margins of various unaffiliated management firms with similar amounts of
assets under management prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making comparisons
as the profitability of other advisers generally is not publicly available
and the profitability information that is available for certain advisers or
management firms may not be representative of the industry and may be
affected by, among other things, the adviser's particular business mix,
capital costs, types of funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's
methodology and assumptions for allocating expenses across product lines to
determine profitability. In reviewing profitability, the Independent Board
Members recognized Nuveen's investment in its fund business.
Based on its review, the Independent Board Members concluded that Nuveen's level
of profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Fund as well as any
indirect benefits (such as soft dollar arrangements, if any) NAM and its
affiliates receive, or are expected to receive, that are directly attributable
to the management of the Fund, if any. See Section E below for additional
information on indirect benefits NAM may receive as a
33
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
result of its relationship with the Fund. Based on their review of the overall
fee arrangements of the Fund, the Independent Board Members determined that the
advisory fees and expenses of the Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members recognized the
potential benefits resulting from the costs of a fund being spread over a larger
asset base. The Independent Board Members therefore considered whether the Fund
has appropriately benefited from any economies of scale and whether there is
potential realization of any further economies of scale. In considering
economies of scale, the Independent Board Members have recognized that economies
of scale are difficult to measure and predict with precision, particularly on a
fund-by-fund basis. Notwithstanding the foregoing, one method to help ensure the
shareholders share in these benefits is to include breakpoints in the advisory
fee schedule. Accordingly, the Independent Board Members reviewed and considered
the fund-level breakpoints in the advisory fee schedules that reduce advisory
fees. In this regard, given that the Fund is a closed-end fund, the Independent
Board Members recognized that although the Fund may from time to time make
additional share offerings, the growth in its assets will occur primarily
through appreciation of the Fund's investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Fund's complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex, including the Fund,
are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Independent Board Members
recognized that the complex-wide fee schedule was recently revised in 2007 to
provide for additional fee savings to shareholders and considered the amended
schedule. The Independent Board Members further considered that the complex-wide
fee arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Based on their review, the Independent Board
Members concluded that the breakpoint schedule and complex-wide fee arrangement
were acceptable and desirable in providing benefits from economies of scale to
shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with the Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's preferred trading desk and for serving
as a co-manager in the initial public offering of new closed-end exchange traded
funds.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by the Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Fund and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Fund were
reasonable and within acceptable parameters.
34
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreement are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to the Fund and that the Advisory Agreement be renewed.
35
Reinvest Automatically
EASILY and CONVENIENTLY
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.
36
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.
37
Glossary of
TERMS USED in this REPORT
[] AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
[] 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.
[] DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change.
[] MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
[] NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund 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.
[] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
38
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) the Fund's quarterly portfolio of investments, (ii)
information regarding how the Fund voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Fund used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
The Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
The 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.
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
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
The 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 common shares were
repurchased during the period covered by this report. Any future repurchases
will be reported to shareholders in the next annual or semi-annual report.
39
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara,
Symphony and Tradewinds. In total, the Company managed $134 billion of assets on
September 30, 2008.
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.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
ESA-A-0908D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(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 to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
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: See 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 Select Maturities Municipal Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: December 8, 2008
-------------------------------------------------------------------
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: December 8, 2008
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 8, 2008
-------------------------------------------------------------------