Unassociated Document



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
Investment Company Act file number 811-6622
 
Nuveen Select Tax-Free Income Portfolio 2
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            3/31          
 
Date of reporting period:         12/31/09         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 
Item 1. Schedule of Investments
 

  Portfolio of Investments (Unaudited)      
  Nuveen Select Tax-Free Income Portfolio 2 (NXQ)      
     December 31, 2009      
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Municipal Bonds – 98.8%      
  Alabama – 0.1%      
$      150  Alabama Water Pollution Control Authority, Revolving Fund Loan Bonds, Series 1999, 5.750%,  3/10 at 100.00  AA  $     150,107 
  8/15/23 – AMBAC Insured       
  Arizona – 0.7%      
2,000  Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Series 2007,  No Opt. Call  A  1,711,380 
  5.000%, 12/01/37       
  Arkansas – 1.3%      
1,000  Fort Smith, Arkansas, Water and Sewer Revenue Refunding and Construction Bonds, Series 2002A,  10/11 at 100.00  AAA  1,076,930 
  5.000%, 10/01/19 (Pre-refunded 10/01/11) – FSA Insured       
2,000  University of Arkansas, Fayetteville, Various Facilities Revenue Bonds, Series 2002, 5.000%,  12/12 at 100.00  Aa3  2,032,440 
  12/01/32 – FGIC Insured       
3,000  Total Arkansas      3,109,370 
  California – 7.2%      
1,000  Alameda Corridor Transportation Authority, California, Subordinate Lien Revenue Bonds, Series  10/17 at 100.00  A–  784,870 
  2004A, 0.000%, 10/01/25 – AMBAC Insured       
3,325  California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A,  5/12 at 101.00  AA–  3,701,889 
  6.000%, 5/01/14       
500  California State Public Works Board, Lease Revenue Refunding Bonds, Community Colleges  6/10 at 100.50  A–  502,835 
  Projects, Series 1998A, 5.250%, 12/01/16       
2,000  California State Public Works Board, Lease Revenue Refunding Bonds, Various University of  No Opt. Call  Aa2  2,179,220 
  California Projects, Series 1993A, 5.500%, 6/01/14       
60  California, General Obligation Bonds, Series 1997, 5.000%, 10/01/18 – AMBAC Insured  3/10 at 100.00  A–  60,059 
2,500  California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31  3/16 at 100.00  A  2,323,950 
1,000  Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement  6/17 at 100.00  BBB  671,410 
  Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47       
3,200  Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed  6/13 at 100.00  AAA  3,758,400 
  Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13)       
450  M-S-R Energy Authority, Gas Revenue Bonds, California, Citigroup Prepay Contracts, Series 2009C,  No Opt. Call  A  481,680 
  6.500%,11/01/39       
1,195  Palmdale Elementary School District, Los Angeles County, California, General Obligation Bonds,  No Opt. Call  AAA  391,924 
  Series 2003, 0.000%, 8/01/28 – FSA Insured       
590  Palomar Pomerado Health, Calfornia, Certificates of Participation, Series 2009, 6.750%, 11/01/39  11/19 at 100.00  Baa2  584,838 
1,890  San Joaquin Delta Community College District, California, General Obligation Bonds, Election  8/18 at 47.14  AAA  466,339 
  2004 Series 2008B, 0.000%, 8/01/31 – FSA Insured       
1,750  Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed  6/15 at 100.00  BBB  1,258,688 
  Bonds, Series 2005A-1, 5.500%, 6/01/45       
19,460  Total California      17,166,102 
  Colorado – 10.8%      
500  Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives,  7/19 at 100.00  AA  518,340 
  Series 2009A, 5.500%, 7/01/34       
1,700  Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series  3/12 at 100.00  AA (4)  1,851,215 
  2002A, 5.500%, 3/01/22 (ETM)       
1,300  Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series  3/12 at 100.00  AA (4)  1,429,168 
  2002A, 5.500%, 3/01/22 (Pre-refunded 3/01/12)       
2,020  Denver City and County, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13  No Opt. Call  A+  2,239,938 
  (Alternative Minimum Tax)       
5,000  Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A,  11/11 at 100.00  A+  5,154,399 
  5.625%, 11/15/17 – FGIC Insured (Alternative Minimum Tax)       
1,555  Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001, 5.500%,  11/11 at 100.00  A+  1,613,188 
  11/15/16 – FGIC Insured       
3,000  Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds, Convention Center  12/13 at 100.00  N/R (4)  3,392,790 
  Hotel, Series 2003A, 5.000%, 12/01/23 (Pre-refunded 12/01/13) – SYNCORA GTY Insured       
2,000  Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds, Convention Center  11/16 at 100.00  BBB–  1,551,640 
  Hotel, Series 2006, 4.750%, 12/01/35 – SYNCORA GTY Insured       
  E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B:       
5,100  0.000%, 9/01/24 – NPFG Insured  No Opt. Call  A  2,033,931 
7,500  0.000%, 9/01/29 – NPFG Insured  No Opt. Call  A  2,075,625 
4,000  0.000%, 9/01/33 – NPFG Insured  No Opt. Call  A  821,760 
5,000  E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/28  9/10 at 31.42  Aaa  1,565,050 
  (Pre-refunded 9/01/10) – NPFG Insured       
250  Northwest Parkway Public Highway Authority, Colorado, Revenue Bonds, Senior Series 2001A,  6/11 at 102.00  AAA  271,513 
  5.250%, 6/15/41 (Pre-refunded 6/15/11) – FSA Insured       
1,100  University of Colorado Hospital Authority, Revenue Bonds, Series 2001A, 5.600%, 11/15/31  11/11 at 100.00  A3 (4)  1,196,294 
  (Pre-refunded 11/15/11)       
40,025  Total Colorado      25,714,851 
  Florida – 2.4%      
1,000  Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa  10/16 at 100.00  A3  931,450 
  General Hospital, Series 2006, 5.250%, 10/01/41       
1,500  Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and Improvement Bonds, Series  10/12 at 100.00  A+  1,537,740 
  2002, 5.000%, 10/01/21 – FGIC Insured       
2,500  JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 5.000%, 10/01/41 – FSA Insured  4/15 at 100.00  AAA  2,520,925 
625  Miami-Dade County Expressway Authority, Florida, Toll System Revenue Refunding Bonds, Series  7/11 at 101.00  A3  631,931 
  2001, 5.125%, 7/01/29 – FGIC Insured       
5,625  Total Florida      5,622,046 
  Illinois – 14.6%      
630  Chicago Metropolitan Housing Development Corporation, Illinois, FHA-Insured Section 8 Assisted  1/10 at 100.00  AA  631,399 
  Housing Development Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17       
590  Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 5.000%, 1/01/33 – AMBAC Insured  7/13 at 100.00  AA+  595,086 
1,665  Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport,  1/16 at 100.00  A1  1,680,451 
  Series 2005A, 5.000%, 1/01/33 – FGIC Insured       
600  Illinois Educational Facilities Authority, Student Housing Revenue Bonds, Educational  5/12 at 101.00  Aaa  675,498 
  Advancement Foundation Fund, University Center Project, Series 2002, 6.000%, 5/01/22       
  (Pre-refunded 5/01/12)       
1,050  Illinois Finance Authority, Revenue Bonds, Loyola University of Chicago, Tender Option Bond  7/17 at 100.00  AA  1,082,277 
  Trust 1137, 9.082%, 7/01/46 (IF)       
2,185  Illinois Finance Authority, Revenue Bonds, YMCA of Southwest Illinois, Series 2005, 5.000%,  9/15 at 100.00  Aa3  1,833,412 
  9/01/31 – RAAI Insured       
1,600  Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross Hospital and Medical  8/18 at 100.00  BBB  1,441,312 
  Centers, Series 2008A, 5.500%, 8/15/30       
2,255  Illinois Health Facilities Authority, Revenue Bonds, Lake Forest Hospital, Series 2002A,  7/12 at 100.00  A–  2,311,443 
  6.250%, 7/01/22       
1,055  Illinois Health Facilities Authority, Revenue Bonds, Loyola University Health System, Series  7/11 at 100.00  Baa3 (4)  1,138,851 
  2001A, 6.125%, 7/01/31 (Pre-refunded 7/01/11)       
290  Illinois Health Facilities Authority, Revenue Refunding Bonds, Rockford Health System, Series  3/10 at 100.00  N/R  260,568 
  1997, 5.000%, 8/15/21 – AMBAC Insured       
1,000  Illinois Housing Development Authority, Housing Finance Bonds, Series 2005E, 4.750%, 7/01/30 –  1/15 at 100.00  A+  968,170 
  FGIC Insured       
5,700  Illinois, Sales Tax Revenue Bonds, First Series 2002, 5.000%, 6/15/22  6/13 at 100.00  AAA  6,075,914 
45  Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion  6/10 at 100.00  A3  45,153 
  Project, Series 1992A, 6.500%, 6/15/22       
7,000  Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place  6/12 at 101.00  AAA  7,266,908 
  Expansion Project, Series 2002B, 5.000%, 6/15/21 – NPFG Insured       
5,045  Sauk Village, Illinois, General Obligation Alternate Revenue Source Bonds, Tax Increment,  12/12 at 100.00  A  4,944,302 
  Series 2002A, 5.000%, 6/01/22 – RAAI Insured       
  Sauk Village, Illinois, General Obligation Alternate Revenue Source Bonds, Tax Increment,       
  Series 2002B:       
1,060  0.000%, 12/01/17 – RAAI Insured  No Opt. Call  A  720,037 
1,135  0.000%, 12/01/18 – RAAI Insured  No Opt. Call  A  715,822 
1,100  Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.250%, 12/01/34 – FGIC Insured  12/14 at 100.00  AA+  1,138,775 
1,000  Yorkville, Illinois, General Obligation Debt Certificates, Series 2003, 5.000%, 12/15/21  12/11 at 100.00  N/R (4)  1,085,410 
  (Pre-refunded 12/15/11) – RAAI Insured       
35,005  Total Illinois      34,610,788 
  Indiana – 3.9%      
1,000  Franklin Community Multi-School Building Corporation, Marion County, Indiana, First Mortgage  7/14 at 100.00  A (4)  1,153,200 
  Revenue Bonds, Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) – FGIC Insured       
750  Indiana Health and Educational Facilities Financing Authority, Revenue Bonds, Ascension  No Opt. Call  Aa1  753,855 
  Health, Series 2006B-5, 5.000%, 11/15/36       
1,000  Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest  3/17 at 100.00  BBB  959,130 
  Indiana, Series 2007, 5.500%, 3/01/37       
785  Indiana Housing Finance Authority, Single Family Mortgage Revenue Bonds, Series 2002C-2,  7/11 at 100.00  Aaa  785,243 
  5.250%, 7/01/23 (Alternative Minimum Tax)       
4,380  Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series 2002A, 5.125%,  1/12 at 100.00  A+  4,460,329 
  1/01/21 – AMBAC Insured       
290  St. Joseph County Hospital Authority, Indiana, Revenue Bonds, Memorial Health System, Series  2/10 at 100.00  AA–  288,733 
  1998A, 4.625%, 8/15/28 – NPFG Insured       
750  West Clark 2000 School Building Corporation, Clark County, Indiana, First Mortgage Bonds,  1/15 at 100.00  AA+  782,100 
  Series 2005, 5.000%, 7/15/22 – NPFG Insured       
8,955  Total Indiana      9,182,590 
  Iowa – 3.4%      
1,560  Iowa Finance Authority, Single Family Mortgage Revenue Bonds, Series 2007B, 4.800%, 1/01/37  7/16 at 100.00  AAA  1,465,698 
  (Alternative Minimum Tax)       
1,200  Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C,  6/15 at 100.00  BBB  879,912 
  5.375%, 6/01/38       
1,000  Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B,  6/17 at 100.00  BBB  875,090 
  5.600%, 6/01/34       
  Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B:       
960  5.300%, 6/01/25 (Pre-refunded 6/01/11)  6/11 at 101.00  AAA  1,020,883 
3,500  5.600%, 6/01/35 (Pre-refunded 6/01/11)  6/11 at 101.00  AAA  3,773,105 
8,220  Total Iowa      8,014,688 
  Kansas – 0.7%      
795  Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial Hospital, Series 2006,  7/16 at 100.00  A3  725,080 
  4.875%, 7/01/36       
1,000  Salina, Kansas, Hospital Revenue Bonds, Salina Regional Medical Center, Series 2006,  4/13 at 100.00  A1  959,000 
  4.500%, 10/01/26       
1,795  Total Kansas      1,684,080 
  Louisiana – 2.3%      
2,180  Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series  7/14 at 100.00  A  2,227,241 
  2004, 5.250%, 7/01/24 – NPFG Insured       
3,000  Louisiana Public Facilities Authority, Revenue Bonds, Tulane University, Series 2002A, 5.125%,  7/12 at 100.00  A2 (4)  3,312,240 
  7/01/27 (Pre-refunded 7/01/12) – AMBAC Insured       
5,180  Total Louisiana      5,539,481 
  Massachusetts – 3.5%      
3,000  Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Berkshire Health  10/11 at 101.00  BBB+  3,033,510 
  System, Series 2001E, 6.250%, 10/01/31       
500  Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc.,  7/18 at 100.00  A3  481,310 
  Series 2008E-1, 5.000%, 7/01/28       
2,565  Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, Senior Series  1/10 at 100.00  A  2,505,569 
  1997A, 5.000%, 1/01/37 – NPFG Insured       
1,270  Massachusetts Water Resources Authority, General Revenue Bonds, Series 1993C, 5.250%,  No Opt. Call  Aa2 (4)  1,440,993 
  12/01/15 – MBIA Insured (ETM)       
820  Massachusetts Water Resources Authority, General Revenue Bonds, Series 1993C, 5.250%,  No Opt. Call  Aa2  931,889 
  12/01/15 – MBIA Insured       
8,155  Total Massachusetts      8,393,271 
  Michigan – 1.5%      
545  Detroit, Michigan, General Obligation Bonds, Series 2003A, 5.250%, 4/01/19 – SYNCORA  4/13 at 100.00  BB  461,266 
  GTY Insured       
2,900  Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health  12/12 at 100.00  AA  2,914,210 
  Credit Group, Series 2002C, 5.375%, 12/01/30       
250  Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont  9/18 at 100.00  A1  291,045 
  Hospital, Refunding Series 2009V, 8.250%, 9/01/39       
3,695  Total Michigan      3,666,521 
  Minnesota – 0.6%      
1,500  Minnesota Housing Finance Agency, Residential Housing Finance Bonds, Series 2007-I, 4.850%,  7/16 at 100.00  AA+  1,393,005 
  7/01/38 (Alternative Minimum Tax)       
  Mississippi – 0.2%      
500  Mississippi Development Bank, Revenue Bonds, Mississippi Municipal Energy Agency, Mississippi  3/16 at 100.00  Baa2  487,445 
  Power, Series 2006A, 5.000%, 3/01/21 – SYNCORA GTY Insured       
  Nevada – 2.4%      
1,500  Clark County, Nevada, General Obligation Bank Bonds, Southern Nevada Water Authority Loan,  6/11 at 100.00  AA+ (4)  1,601,835 
  Series 2001, 5.300%, 6/01/19 (Pre-refunded 6/01/11) – FGIC Insured       
  Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas       
  Monorail Project, First Tier, Series 2000:       
4,595  0.000%, 1/01/22 – AMBAC Insured  No Opt. Call  Caa2  667,975 
13,250  5.375%, 1/01/40 – AMBAC Insured  1/10 at 100.00  Caa2  3,388,953 
19,345  Total Nevada      5,658,763 
  New Jersey – 1.9%      
2,500  New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center,  7/13 at 100.00  Ba2  2,106,325 
  Series 2003, 5.500%, 7/01/23       
  Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,       
  Series 2003:       
1,000  6.375%, 6/01/32 (Pre-refunded 6/01/13)  6/13 at 100.00  AAA  1,141,100 
1,010  6.250%, 6/01/43 (Pre-refunded 6/01/13)  6/13 at 100.00  AAA  1,180,781 
4,510  Total New Jersey      4,428,206 
  New Mexico – 3.1%      
1,000  New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series  9/17 at 100.00  AAA  980,020 
  2007A, 5.250%, 9/01/42 (Alternative Minimum Tax)       
  University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds, Series 2004:       
555  4.625%, 1/01/25 – FSA Insured  7/14 at 100.00  AAA  562,992 
660  4.625%, 7/01/25 – FSA Insured  7/14 at 100.00  AAA  669,504 
2,000  4.750%, 7/01/27 – FSA Insured  7/14 at 100.00  AAA  2,032,380 
3,000  4.750%, 1/01/28 – FSA Insured  7/14 at 100.00  AAA  3,037,560 
7,215  Total New Mexico      7,282,456 
  New York – 4.4%      
2,045  Dormitory Authority of the State of New York, Revenue Bonds, Mount Sinai NYU Health Obligated  7/10 at 101.00  A2  2,092,464 
  Group, Series 2000A, 6.500%, 7/01/17       
655  Dormitory Authority of the State of New York, Revenue Bonds, Mount Sinai NYU Health Obligated  7/10 at 101.00  A2 (4)  679,320 
  Group, Series 2000A, 6.500%, 7/01/17 (Pre-refunded 7/01/10)       
2,000  New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue  12/14 at 100.00  AAA  2,041,260 
  Bonds, Series 2004B, 5.000%, 6/15/36 – FSA Insured (UB)       
1,700  New York Dorm Authority, FHA Insured Mortgage Hospital Revenue Bonds, Kaleida Health, Series  8/16 at 100.00  BB+  1,595,042 
  2006, 4.700%, 2/15/35       
3,000  New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and  6/11 at 100.00  AA–  3,127,080 
  State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16       
870  Triborough Bridge and Tunnel Authority, New York, Convention Center Bonds, Series 1990E,  No Opt. Call  AA–  870,000 
  7.250%, 1/01/10       
10,270  Total New York      10,405,166 
  North Carolina – 0.5%      
1,155  Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds,  1/11 at 101.00  AA–  1,158,084 
  Carolinas Healthcare System, Series 2001A, 5.000%, 1/15/31       
  Ohio – 2.0%      
  Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue       
  Bonds, Senior Lien, Series 2007A-2:       
1,865  5.375%, 6/01/24  6/17 at 100.00  BBB  1,726,337 
50  5.125%, 6/01/24  6/17 at 100.00  BBB  45,100 
680  5.875%, 6/01/30  6/17 at 100.00  BBB  580,475 
775  5.750%, 6/01/34  6/17 at 100.00  BBB  638,213 
2,180  5.875%, 6/01/47  6/17 at 100.00  BBB  1,651,808 
5,550  Total Ohio      4,641,933 
  Oklahoma – 1.5%      
1,000  Norman Regional Hospital Authority, Oklahoma, Hospital Revenue Bonds, Series 2005,  9/16 at 100.00  BB+  779,990 
  5.375%, 9/01/36       
3,000  Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007,  2/17 at 100.00  A  2,753,730 
  5.000%, 2/15/42       
4,000  Total Oklahoma      3,533,720 
  Pennsylvania – 1.9%      
1,000  Philadelphia Authority for Industrial Development, Pennsylvania, Airport Revenue Bonds,  7/11 at 101.00  A+  1,024,670 
  Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 – FGIC Insured (Alternative       
  Minimum Tax)       
3,250  Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002A, 5.500%,  2/12 at 100.00  AAA  3,565,738 
  2/01/31 (Pre-refunded 2/01/12) – FSA Insured       
4,250  Total Pennsylvania      4,590,408 
  Puerto Rico – 1.4%      
1,035  Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003,  12/13 at 100.00  AA+  1,054,282 
  5.000%, 12/01/20       
1,965  Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003,  12/12 at 100.00  AAA  2,236,720 
  5.000%, 12/01/20 (Pre-refunded 12/01/12)       
3,000  Total Puerto Rico      3,291,002 
  Rhode Island – 2.3%      
5,835  Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds,  6/12 at 100.00  BBB  5,445,396 
  Series 2002A, 6.250%, 6/01/42       
  South Carolina – 5.4%      
700  Dorchester County School District 2, South Carolina, Installment Purchase Revenue Bonds,  12/14 at 100.00  AA–  736,603 
  GROWTH, Series 2004, 5.250%, 12/01/20       
620  Florence, South Carolina, Water and Sewerage Revenue Bonds, Series 2000, 5.750%, 3/01/20 –  3/10 at 101.00  A+  630,534 
  AMBAC Insured       
4,000  Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series  12/12 at 101.00  AA (4)  4,610,280 
  2002, 5.875%, 12/01/19 (Pre-refunded 12/01/12)       
2,500  Lexington County Health Service District, South Carolina, Hospital Revenue Refunding and  11/13 at 100.00  A+ (4)  2,953,475 
  Improvement Bonds, Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13)       
  Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds,       
  Series 2004A:       
500  5.250%, 8/15/20 – NPFG Insured  8/14 at 100.00  A  514,310 
2,435  5.250%, 2/15/21 – NPFG Insured  8/14 at 100.00  A  2,503,764 
525  Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds, Series  1/10 at 100.00  A  524,444 
  1998A, 4.750%, 1/01/25 – NPFG Insured       
475  The College of Charleston, Charleston South Carolina, Academic and Administrative Revenue  4/14 at 100.00  A2  482,842 
  Bonds, Series 2004B, 5.125%, 4/01/30 – SYNCORA GTY Insured       
11,755  Total South Carolina      12,956,252 
  South Dakota – 0.4%      
1,000  South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sioux Valley  11/14 at 100.00  AA–  999,920 
  Hospitals, Series 2004A, 5.250%, 11/01/34       
  Texas – 12.3%      
4,000  Brazos River Harbor Navigation District, Brazoria County, Texas, Environmental Facilities  5/12 at 101.00  BBB–  4,025,760 
  Revenue Bonds, Dow Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33 (Mandatory       
  put 5/15/17) (Alternative Minimum Tax)       
1,500  Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue  1/15 at 100.00  A  1,299,105 
  Bonds, Series 2005, 5.000%, 1/01/45 – FGIC Insured       
1,000  Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue Bonds, Series 2001, 5.000%,  12/11 at 100.00  AAA  1,083,220 
  12/01/31 (Pre-refunded 12/01/11) – AMBAC Insured       
2,500  Harris County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Texas  No Opt. Call  A (4)  2,898,075 
  Children’s Hospital, Series 1995, 5.500%, 10/01/16 – MBIA Insured (ETM)       
3,000  Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds,  11/13 at 100.00  AA  3,039,840 
  TECO Project, Series 2003, 5.000%, 11/15/30 – NPFG Insured       
6,610  Harris County-Houston Sports Authority, Texas, Junior Lien Revenue Bonds, Series 2001H,  11/31 at 53.78  A  596,619 
  0.000%, 11/15/41 – NPFG Insured       
575  Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment  No Opt. Call  A–  246,928 
  Project, Series 2001B, 0.000%, 9/01/24 – AMBAC Insured       
2,000  Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2002A, 5.625%, 7/01/20 –  7/12 at 100.00  AAA  2,053,840 
  FSA Insured (Alternative Minimum Tax)       
3,125  Katy Independent School District, Harris, Fort Bend and Waller Counties, Texas, General  2/12 at 100.00  AAA  3,408,938 
  Obligation Bonds, Series 2002A, 5.000%, 2/15/32 (Pre-refunded 2/15/12)       
1,400  Kerrville Health Facilities Development Corporation, Texas, Revenue Bonds, Sid Peterson  No Opt. Call  BBB–  1,246,014 
  Memorial Hospital Project, Series 2005, 5.375%, 8/15/35       
90  Lewisville Independent School District, Denton County, Texas, General Obligation Bonds, Series  8/11 at 100.00  AAA  94,671 
  2004, 5.000%, 8/15/23       
910  Lewisville Independent School District, Denton County, Texas, General Obligation Bonds, Series  8/11 at 100.00  AAA  975,393 
  2004, 5.000%, 8/15/23 (Pre-refunded 8/15/11)       
335  Live Oak, Texas, General Obligation Bonds, Series 2004, 5.250%, 8/01/20 – NPFG Insured  8/14 at 100.00  Baa1  350,011 
4,850  Sam Rayburn Municipal Power Agency, Texas, Power Supply System Revenue Refunding Bonds,  10/12 at 100.00  BBB  4,990,214 
  Series 2002A, 5.500%, 10/01/17 – RAAI Insured       
1,000  San Antonio, Texas, Water System Revenue Bonds, Series 2005, 4.750%, 5/15/37 – NPFG Insured  5/15 at 100.00  AA  999,950 
500  Texas Water Development Board, Senior Lien State Revolving Fund Revenue Bonds, Series 2000A,  7/10 at 100.00  AAA  513,165 
  5.625%, 7/15/13       
1,560  Texas, General Obligation Bonds, Water Financial Assistance Program, Series 2003A, 5.125%,  8/13 at 100.00  AA+  1,477,351 
  8/01/42 (Alternative Minimum Tax)       
34,955  Total Texas      29,299,094 
  Utah – 0.6%      
1,435  Salt Lake City and Sandy Metropolitan Water District, Utah, Water Revenue Bonds, Series 2004,  7/14 at 100.00  Aa3  1,531,231 
  5.000%, 7/01/21 – AMBAC Insured       
  Vermont – 0.4%      
915  Vermont Housing Finance Agency, Multifamily Housing Bonds, Series 1999C, 5.800%, 8/15/16 –  2/10 at 100.00  AAA  916,437 
  FSA Insured       
  Virginia – 1.1%      
1,340  Metropolitan District of Columbia Airprots Authority, Virginia, Airport System Revenue Bonds,  10/10 at 100.00  AA–  1,340,683 
  Series 1998B, 5.000%, 10/01/28 – NPFG Insured (Alternative Minimum Tax)       
1,500  Metropolitan Washington DC Airports Authority, Virginia, Dulles Toll Raod Revenue Bonds,  10/26 at 100.00  AAA  1,049,730 
  Series 2009C., 0.000%, 10/01/41 – AGC Insured       
250  Norfolk, Virginia, Water Revenue Bonds, Series 1995, 5.750%, 11/01/13 – NPFG Insured  3/10 at 100.00  A1  251,023 
3,090  Total Virginia      2,641,436 
  Washington – 2.9%      
6,715  Washington State Healthcare Facilities Authority, Revenue Bonds, Sisters of Providence Health  10/11 at 100.00  AA  6,954,590 
  System, Series 2001A, 5.125%, 10/01/17 – NPFG Insured       
  Wisconsin – 1.1%      
1,000  Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan  8/13 at 100.00  BBB+  1,003,510 
  Services Inc., Series 2003A, 5.500%, 8/15/18       
1,695  Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Bonds, Series  3/12 at 100.00  AA  1,732,171 
  2002G, 4.850%, 9/01/17       
2,695  Total Wisconsin      2,735,681 
$     270,955  Total Municipal Bonds (cost $242,701,186)      234,915,500 
 
Shares Description (1)     Value
  Common Stocks – 0.0%      
  Airlines – 0.0%      
757  UAL Corporation, (5)      $            9,773 
  Total Common Stocks (cost $0)      9,773 
  Total Investments (cost $242,701,186) – 98.8%      234,925,273 
  Floating Rate Obligations – (0.4)%      (1,000,000)
  Other Assets Less Liabilities – 1.6%      3,882,573 
  Net Assets – 100%      $ 237,807,846 



 


 


 


 


 


 

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 December 31, 2009:
 
  Level 1 Level 2 Level 3 Total
Investments:         
Municipal Bonds  $     —  $234,915,500  $ —  $234,915,500 
Common Stocks  9,773  —  —  9,773 
Total  $9,773  $234,915,500  $ —  $234,925,273 

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 timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. 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 December 31, 2009, the cost of investments was $241,509,460.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at December 31, 2009, were as follows:
 
Gross unrealized:   
  Appreciation  $   9,631,720 
  Depreciation  (17,215,897)
Net unrealized appreciation (depreciation) of investments  $ (7,584,177)

(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. 
(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)  On December 9, 2002, UAL Corporation (“UAL”), the holding company of United Air Lines, Inc. (“United”) 
  filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not 
  remain current on their interest payment obligations with respect to the bonds previously held and thus 
  the Fund had stopped accruing interest on its UAL bonds. On February 1, 2006, UAL emerged from federal 
  bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement 
  agreement established to meet UAL’s unsecured bond obligations, the bondholders, including the Fund, 
  received three distributions of UAL common stock over the subsequent months, and the bankruptcy court 
  dismissed all unsecured claims of bondholders, including those of the Fund. On May 5, 2006, the Fund 
  liquidated such UAL common stock holdings. On September 29, 2006 and May 30, 2007, the Fund received 
  additional distributions of 1,825 and 592 shares, respectively, of UAL common stock as a result of its 
  earlier ownership of the UAL bonds. The Fund liquidated the 1,825 shares of such UAL common stock 
  holdings on November 15, 2006. The Fund received an additional distribution of 165 UAL common stock 
  shares on November 14, 2007. The remaining 757 shares of UAL common stock were still held by the Fund 
  at December 31, 2009. 
N/R  Not rated. 
(ETM)  Escrowed to maturity. 
(IF)  Inverse floating rate investment. 
(UB)  Underlying bond of an inverse floating rate trust reflected as a financing transaction. 

 

 
 
Item 2. 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 Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (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 registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.

File as exhibits as part of this Form 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)), exactly as set forth below: See EX-99 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 Tax-Free Income Portfolio 2 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         March 1, 2010        
 
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         March 1, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date        March 1, 2010