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: March 31, 2009
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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,
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burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
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under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT | Nuveen Investments
March 31, 2009 | MUNICIPAL CLOSED-END FUNDS
[PHOTO OF: SMALL CHILD]
NUVEEN SELECT
MATURITIES
MUNICIPAL FUND
NIM
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[LOGO:] NUVEEN Investments
Chairman's
LETTER TO SHAREHOLDERS
[PHOTO OF ROBERT P. BREMNER] | Robert P. Bremner | Chairman of the Board
Dear Shareholders,
The problems in the U.S. financial system and the slowdown in global economic
activity continue to create a very difficult environment for the U.S. economy.
The administration, the Federal Reserve System and Congress have initiated a
variety of programs directed at restoring liquidity to the financial markets,
providing financial support for critical financial institutions and stimulating
economic activity. There are encouraging signs that these initiatives are
beginning to have a constructive impact. It is not possible to predict whether
the actions taken to date will be sufficient to restore more normal conditions
in the financial markets or enable the economy to stabilize and set a course
toward recovery. However, the speed and scope of the government's actions are
very encouraging and more importantly, reflect a commitment to act decisively to
meet the economic challenges we face.
The performance information in the attached report reflects the impact of many
negative forces at work in the equity and fixed income markets. The comments by
the portfolio manager describe the strategies being used to pursue your Fund's
long term investment goals. The financial markets continue to experience serious
dislocations and thorough research and strong investment disciplines have never
been more important in identifying risks and opportunities. I hope you will read
this information carefully.
Your Board is particularly sensitive to our shareholders' concerns in these
uncertain times. We believe that frequent and thorough communication is
essential in this regard and encourage you to visit the Nuveen website:
www.nuveen.com, for recent developments in all Nuveen funds. We also encourage
you to communicate with your financial consultant for answers to your questions
and to seek advice on your long term investment strategy in the current market
environment.
On behalf of myself and the other members of your Fund's Board, 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 Nuveen Fund Board
May 22, 2009
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NIM
Portfolio manager Paul Brennan reviews U.S. economic and municipal market
conditions, key investment strategies, and the twelve-month performance of the
Nuveen Select Maturities Municipal Fund. With 18 years of investment experience,
including 12 years with Nuveen, Paul has managed NIM since 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
REPORTING PERIOD ENDED MARCH 31, 2009?
During this reporting period, downward pressure on the economy continued and
stress in the financial and credit markets led to increased price volatility for
most securities, reduced liquidity and a general flight to quality. In an effort
to improve overall economic conditions, the Federal Reserve (Fed) cut interest
rates, lowering the fed funds rate from 2.25% at the beginning of the period
(April 2008) to a target range of zero to 0.25%, its lowest level on record. In
March 2009, the Fed announced that, in addition to maintaining the fed funds
rate at its current level, it would buy $300 billion in Treasury securities in
an effort to improve conditions in private credit markets and up to an
additional $750 billion of agency mortgage-backed securities to bolster the
housing market.
The Fed's rate-cutting was in part a response to the decline in U.S. economic
growth, as measured by the U.S. gross domestic product (GDP), a closely watched
gauge of economic performance. Since posting growth of 2.8% in the second
quarter of 2008, GDP has contracted at annual rates of 0.5% in the third quarter
of 2008, 6.3% in the fourth quarter of 2008, and 6.1% in the first quarter of
2009, all of which adds up to the worst recession in 50 years (all GDP numbers
annualized). The deepening housing slump also continued to trouble the economy,
with the average home price falling 18.6% between February 2008 and February
2009. In the labor markets, March 2009 marked the fifteenth consecutive month of
job losses and the fourth straight month when employment losses topped 600,000,
bringing the total number of job losses since the economic recession began to
5.1 million. The national unemployment rate for March 2009 was 8.5%. Inflation
remained subdued, as the Consumer Price Index (CPI), reflecting large drops in
energy and transportation prices, fell 0.4% year-over-year as of March 2009. The
core CPI (which excludes food and energy) rose 1.8%. Both numbers were within
the Fed's unofficial objective of 2.0%.
Certain statements in this report are forward-looking statements. Discussions of
specific investments are for illustration only and are not intended as
recommendations of individual investments. The forward-looking statements and
other views expressed herein are those of the portfolio manager as of the date
of this report. Actual future results or occurrences may differ significantly
from those anticipated in any forward-looking statements and the views expressed
herein are subject to change at any time, due to numerous market and other
factors. The Fund disclaims any obligation to update publicly or revise any
forward-looking statements or views expressed herein.
4
During this period, the nation's financial institutions and markets--including
the municipal bond market--experienced significant turmoil. Reductions in demand
decreased relative valuations of municipal bonds across all credit ratings,
especially those with lower credit ratings and this generally reduced the Fund's
net asset values. As a result, some of these firms were unwilling to commit
their capital to purchase and to serve as a dealers for municipal bonds. The
reduction in dealer involvement in the market was accompanied by significant net
selling pressure by investors, particularly related 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 deleveraging was in part driven in some measure by
the overall reduction in the amount of financing available for such leverage,
the increased cost of such leverage financing and the need to reduce leverage
levels that had recently been increased due to the decline in municipal bond
prices.
Municipal bond prices were further negatively impacted by concerns that the need
for additional deleveraging and a supply overhang (i.e., a large amount of new
issues that were postponed) would cause selling pressure to persist. In addition
to falling prices, the following 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); greatly reduced liquidity (i.e.,
the ability to sell bonds at prices close to their carrying values),
particularly for lower quality bonds; and a lack of price transparency (i.e.,
the ability to accurately determine the price at which a bond would likely
trade).
In the municipal bond market, performance over this period was significantly
impacted by concerns about the credit markets, downgrades of municipal bond
insurers, and the freeze-up of the auction rate market. These events created
surges of selling pressure as many municipal bond owners tried to sell holdings
into a market already experiencing a lack of liquidity. Combined with the Fed
rate cuts, this produced a steepening of the municipal yield curve. In this
environment, bonds with shorter maturities generally outperformed longer
maturity bonds, and higher quality bonds tended to outperform lower quality
credits.
Over the twelve months ended March 31, 2009, municipal bond issuance nationwide
totaled $434.5 billion, a drop of 4% compared with the twelve-month period ended
March 31, 2008. While market conditions during this period impacted the demand
for municipal bonds, investors continued to be attracted by the higher interest
rates and yields of the municipal bond market relative to taxable bonds.
5
WHAT KEY STRATEGIES WERE USED TO MANAGE NIM DURING THIS REPORTING PERIOD?
During this twelve-month period, we continued to focus on finding bonds that
offered relative value, managing liquidity and investing for the long term. Much
of our investment activity was driven by value opportunities created by the
market conditions of the past twelve months. We sought to capitalize on this
environment by continuing to take a bottom-up approach to finding undervalued
sectors and individual credits with the potential to perform well over the long
term. Although we were able to find bonds at extremely discounted prices during
this period, our emphasis was always on carefully selecting what we believed to
be the best bonds available. In general, the bonds we purchased were ones where
we were already familiar with the credit being offered or where we were adding
to positions or sectors currently held in the portfolio. Our focus was generally
on bonds issued by essential service providers--including tollroads, utilities,
hospitals and general obligation (GO) bonds--with the view that these issuers
would continue to have the resources necessary to cover debt service in the
current economic environment. Overall, we kept the portfolio profile of NIM--in
terms of maturity, duration,(1) and sector allocations--relatively unchanged.
Liquidity for new purchases was generated mainly by a number of bond redemptions
and calls, which are a normal occurrence in Funds with an intermediate maturity
focus(2) such as NIM. As a result, selling was generally limited during this
period. In an exceptionally illiquid market, we positioned the Fund somewhat
more defensively by retaining slightly more cash than usual in order to have the
capital we needed to reinvest at opportune times.
HOW DID THE FUND PERFORM?
Results for NIM, as well as relevant index information, are presented in the
accompanying table.
Average Annual Total Returns on Common Share Net Asset Value
For periods ended 3/31/09
1-Year 5-Year 10-Year
NIM 0.52% 3.24% 2.98%
Barclays Capital
7-Year Municipal
Bond Index(3) 5.53% 3.90% 4.95%
For the twelve months ended March 31, 2009, the total return on net asset value
(NAV) for NIM underperformed the Barclays Capital 7-Year Municipal Bond Index.
Key management factors that influenced NIM's performance during this period
included
----------
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) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these changes
than bonds with shorter durations.
(2) In keeping with its investment parameters, NIM maintains an average
effective maturity of twelve years or less for portfolio holdings.
(3) The Barclays Capital (formerly 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 Barclays Capital index do not reflect any expenses.
6
duration and yield curve positioning, credit exposure, sector allocations, and
individual security selection.
Over the course of this reporting period, the yield curve remained steep. Bonds
in the Barclays Capital Municipal Bond Index with maturities of two to eight
years, especially those maturing in approximately five years, benefited the most
from the interest rate environment. Because they were less sensitive to interest
rate changes, these bonds generally outperformed credits with longer maturities,
with bonds having the longest maturities (22 years and longer). This market
environment was beneficial to NIM, which continued to offer an intermediate-term
orientation.
The positive contributions from NIM's duration and yield curve positioning were
offset to a substantial degree by the Fund's credit exposure during the past
twelve months. Because risk-averse investors generally sought higher quality
investments as disruptions in the financial markets deepened, bonds with higher
credit quality typically performed very well. At the same time, as credit
spreads widened, credits rated BBB or below and non-rated bonds generally posted
poor returns. NIM's allocation of approximately 22% of its portfolio to
lower-rated and non-rated bonds was higher than that of the Barclays Capital
7-Year Municipal Bond Index. In addition, the Fund had allocated another 27% to
bonds rated A. The negative impact of this exposure accounted for much of the
performance differential between NIM and the index.
During this period, pre-refunded(4) bonds, which are backed by U.S. Treasury
securities, were one of the top performing segments of the market, due primarily
to their shorter effective maturities, higher credit quality, and perceived
safety. Additional sectors of the market that generally contributed to NIM's
return included general obligation and other tax-backed bonds, water and sewer
and education credits. Although NIM held approximately 18% of its portfolio in
pre-refunded bonds, this was a smaller weighting than that of the municipal
market as a whole, which limited the positive contribution from this sector. NIM
was also underweighted relative to the market in other top-performing sectors,
especially general obligation bonds.
Holdings that generally detracted from NIM's performance included industrial
development revenue (IDR) bonds, which performed poorly during this period. The
health care revenue sector also underperformed the overall municipal market.
Alongside current coupon bonds in these sectors, zero coupon bonds were among
the worst performing categories in the municipal market, as were lower-rated
tobacco bonds backed by the 1998 master tobacco settlement agreement, which
comprised approximately 4.5% of NIM's portfolio as of March 31, 2009.
Individual security selection was also a factor in NIM's performance,
particularly in the insured category. During this period, insured holdings where
the insurers backing the bonds had been downgraded typically were trading to
their underlying (or issuer) credit characteristics. As a result, insured bonds
with weaker underlying credits rated BBB or
----------
(4) Pre-refundings, 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.
7
non-rated, originally purchased because of the higher yields they offered,
generally were more adversely impacted in terms of performance than insured
bonds with underlying credits rated AA. NIM had significant exposure to bonds
backed by municipal insurers SYNCORA (formerly XL Capital Assurance or XLCA) and
Financial Guaranty Insurance Company (FGIC), which have been downgraded from
AAA.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
As mentioned above, another factor that had an impact on the Fund's performance
was its positions in bonds backed by municipal bond insurers that experienced
downgrades in their credit ratings. During the period covered by this report,
ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA experienced one or more
rating reductions by at least one or more rating agencies. At the time this
report was prepared, there are no longer any bond insurers rated triple-A by all
three of the major rating agencies (Moody's Investor Service, S&P and Fitch) and
at least one rating agency has placed each of these insurers on "negative credit
watch," "credit watch evolving," "credit outlook developing" or "rating
withdrawn," 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. By the end of this period, most insured bonds were being valued
according to their fundamentals as if they were uninsured. On the whole, the
holdings of all of our Funds 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
Due to bond redemptions and calls affecting some of the older higher-coupon
credits in NIM's portfolio, NIM had one dividend reduction during the
twelve-month reporting period ended March 31, 2009. Although we believe we
reinvested the proceeds from these matured and called bonds as optimally as
possible in the current interest rate environment, some of the higher yields
could not be replaced in the market of the past twelve months.
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 March 31, 2009, NIM had a positive UNII balance for tax
purposes and a negative UNII balance for financial statement purposes.
SHARE REPURCHASES AND SHARE PRICE INFORMATION
On July 30, 2008, the Fund's Board of Trustees approved an open-market share
repurchase program under which the Fund may repurchase an aggregate of up to 10%
of its outstanding shares. Since the inception of this program, the Fund has not
repurchased any of its outstanding shares.
As of March 31, 2009, the share price of NIM was trading at a premium of 3.10%
to its NAV. The Fund's average discount over the entire twelve-month reporting
period was - 1.36%.
9
NIM Performance OVERVIEW | Nuveen Select Maturities Municipal Fund
as of March 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Share Price $ 9.98
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Net Asset Value $ 9.68
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Premium/(Discount) to NAV 3.10%
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Market Yield 4.21%
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Taxable-Equivalent Yield(2) 5.85%
--------------------------------------------------------------------------------
Net Assets ($000) $ 120,012
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 10.19
--------------------------------------------------------------------------------
Modified Duration 4.79
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AVERAGE ANNUAL TOTAL RETURN
(Inception 9/18/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 6.53% 0.52%
--------------------------------------------------------------------------------
5-Year 4.93% 3.24%
--------------------------------------------------------------------------------
10-Year 3.69% 2.98%
--------------------------------------------------------------------------------
STATES
(as a % of total municipal bonds)
--------------------------------------------------------------------------------
Illinois 15.3%
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Colorado 13.2%
--------------------------------------------------------------------------------
Pennsylvania 7.8%
--------------------------------------------------------------------------------
Texas 6.4%
--------------------------------------------------------------------------------
South Carolina 6.3%
--------------------------------------------------------------------------------
New York 6.1%
--------------------------------------------------------------------------------
Florida 5.9%
--------------------------------------------------------------------------------
Arkansas 4.4%
--------------------------------------------------------------------------------
Wisconsin 4.0%
--------------------------------------------------------------------------------
Kansas 3.1%
--------------------------------------------------------------------------------
Iowa 2.5%
--------------------------------------------------------------------------------
Alabama 2.3%
--------------------------------------------------------------------------------
Tennessee 2.2%
--------------------------------------------------------------------------------
Massachusetts 1.8%
--------------------------------------------------------------------------------
Michigan 1.7%
--------------------------------------------------------------------------------
Minnesota 1.7%
--------------------------------------------------------------------------------
North Carolina 1.7%
--------------------------------------------------------------------------------
Other 13.6%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 18.5%
--------------------------------------------------------------------------------
Utilities 17.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 12.6%
--------------------------------------------------------------------------------
Health Care 11.7%
--------------------------------------------------------------------------------
Tax Obligation/General 7.2%
--------------------------------------------------------------------------------
Transportation 5.9%
--------------------------------------------------------------------------------
Long-Term Care 5.4%
--------------------------------------------------------------------------------
Water and Sewer 5.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.8%
--------------------------------------------------------------------------------
Other 11.8%
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Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 33%
AA 18%
A 27%
BBB 15%
BB or Lower 1%
N/R or N/A 6%
2008-2009 Monthly Tax-Free Dividends Per Share
[BAR CHART]
Apr $ 0.0365
May 0.0365
Jun 0.0365
Jul 0.0365
Aug 0.0365
Sep 0.0365
Oct 0.0365
Nov 0.0365
Dec 0.0365
Jan 0.0365
Feb 0.0365
Mar 0.035
Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
4/01/08 $ 9.77
9.78
9.91
9.85
9.93
9.86
9.89
9.92
9.91
9.8
9.76
9.85
9.9
9.89
9.89
9.83
9.95
9.83
9.77
9.77
9.79
9.8
9.97
9.94
9.94
9.85
9.94
9.964
9.9401
9.93
9.89
9.95
9.94
9.95
9.97
9.96
9.98
10.02
9.97
9.99
9.97
9.99
10.06
10.06
10.06
10.13
10.17
10.02
10.09
10.097
10.09
10.03
10
10.02
9.91
9.87
9.84
9.95
9.61
9.6501
9.72
9.6
9.65
9.68
9.74
9.64
9.65
9.73
9.82
9.77
9.97
9.84
9.84
9.77
9.59
9.76
9.7
9.86
9.82
9.83
9.82
9.74
9.69
9.87
9.94
9.74
9.84
9.84
9.87
9.83
9.87
9.85
9.9
9.85
9.82
9.76
9.95
9.9
9.93
9.94
9.8
9.79
9.83
9.9
9.94
9.9
9.86
9.88
9.88
9.94
9.87
9.81
9.85
9.79
9.83
9.9
9.77
9.81
9.68
9.56
9.32
9.15
9.538
9.5
9.28
9.41
9.48
9.37
8.88
8.96
9.36
9.48
9.35
8.8
8.922
8.8
8.62
8.48
8.79
9.2
8.59
8.662
8.8
9.91
9.24
9.06
9.38
9.29
9.34
9.22
9.08
9.15
9.3
9.3434
9.34
9.23
9.28
9.25
9.26
9.26
9.27
9.26
9.3
9.2
9.06
9.15
9.14
9.11
9.21
9.24
9.3
9.16
9.16
9
9.02
9.05
8.95
9.04
9.03
9.01
9.16
8.95
9.1
9.04
9
9.29
9.24
9.3
9.33
9.4
9.13
9.12
9.12
9.23
9.4252
9.5
9.52
9.65
9.76
9.74
9.94
9.83
9.94
9.85
9.66
9.82
9.72
9.57
9.4225
9.41
9.5
9.6
9.86
9.88
10.13
10.13
10.05
9.79
9.79
9.784
9.82
9.9
9.88
10.01
9.97
9.88
9.66
9.82
9.7
9.56
9.81
9.85
9.85
9.88
9.89
9.89
10
9.78
9.95
9.79
9.87
9.93
10
9.85
9.88
9.98
9.99
9.95
9.84
10
9.88
9.99
10.04
9.98
10
9.9
9.74
3/31/09 9.98
(1) The percentages shown in the foregoing chart reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of March 31, 2009. 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
REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN SELECT MATURITIES MUNICIPAL FUND
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Nuveen Select Maturities Municipal Fund as of
March 31, 2009, and the related statement of operations for the year then ended,
the statement of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2009, by correspondence with the custodian and
brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Nuveen
Select Maturities Municipal Fund at March 31, 2009, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended in conformity with US generally accepted
accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
May 22, 2009
11
NIM | Nuveen Select Maturities Municipal Fund
| Portfolio of INVESTMENTS March 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 97.8%
ALABAMA - 2.3%
$ 2,000 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 1,821,800
Bonds, Series 2001, 5.750%, 12/01/17
500 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/10 at 100.00 AAA 441,720
Series 2003B, 5.250%, 2/01/12 - FSA Insured
500 Marshall County Healthcare Authority, Alabama, Revenue Bonds, 1/12 at 101.00 A- 499,290
Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Alabama 2,762,810
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8%
80 Phoenix Industrial Development Authority, Arizona, Statewide 4/09 at 100.50 AAA 80,466
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 A 176,721
Bonds, Series 2007, 5.000%, 12/01/37
750 Surprise Municipal Property Corporation, Arizona, Wastewater 4/11 at 100.00 N/R 640,125
System Revenue Bonds, Series 2007, 4.500%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
1,130 Total Arizona 897,312
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 4.3%
1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding and 10/11 at 100.00 AAA 1,104,020
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- 1,460,385
Entergy Arkansas Inc. Project, Series 2006, 4.600%, 10/01/17
1,000 Jonesboro, Arkansas, Industrial Development Revenue Bonds, No Opt. Call BBB+ 1,072,450
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- 1,537,292
Series 1992A, 6.500%, 7/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,880 Total Arkansas 5,174,147
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 0.9%
400 California Health Facilities Financing Authority, Revenue 7/15 at 100.00 A 393,252
Bonds, Catholic Healthcare West, Series 2008H, 5.125%,
7/01/22
25 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 18,507
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 4.500%, 6/01/27
2,000 Palomar Pomerado Health, California, General Obligation Bonds, No Opt. Call AAA 676,280
Election of 2004, Series 2009A, 0.000%, 8/01/25 - AGC
Insured
------------------------------------------------------------------------------------------------------------------------------------
2,425 Total California 1,088,039
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 12.9%
2,895 Centennial Downs Metropolitan District, Colorado, General 12/14 at 100.00 A 3,076,545
Obligation Bonds, Series 1999, 5.000%, 12/01/20 - AMBAC
Insured
1,230 Colorado Educational and Cultural Facilities Authority, 7/12 at 100.00 BBB 1,040,998
Charter 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, 12/13 at 100.00 A 1,039,523
Revenue Bonds, Classical Academy Charter School, Series
2003, 4.500%, 12/01/18 - SYNCORA GTY Insured
12
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 265 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 AA $ 280,579
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 N/R (4) 1,144,853
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+ 1,177,772
Obligation Refunding and Improvement Bonds, Series 2003,
4.500%, 12/01/18 - RAAI Insured
1,500 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AA 1,501,290
Bonds, Series 2007C-2, 5.000%, 9/01/39 (Mandatory put
9/01/13) - MBIA Insured
1,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AA- 101,690
Series 2004B, 0.000%, 3/01/36 - MBIA Insured
21 El Paso County, Colorado, FNMA Mortgage-Backed Single Family No Opt. Call Aaa 21,924
Revenue Refunding Bonds, Series 1992A-2, 8.750%, 6/01/11
1,050 Erie, Boulder and Weld Counties, Colorado, Water Enterprise 6/09 at 100.00 N/R 762,269
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 77,011
Bonds, Senior Series 2001A, 5.250%, 6/15/41 (Pre-refunded
6/15/11) - FSA Insured
5,875 Northwest Parkway Public Highway Authority, Colorado, Senior 6/11 at 38.04 A (4) 2,139,381
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 A3 (4) 3,155,133
Series 2001A, 5.600%, 11/15/21(Pre-refunded 11/15/11)
------------------------------------------------------------------------------------------------------------------------------------
20,416 Total Colorado 15,518,968
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.5%
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
395 5.500%, 1/01/14 (Alternative Minimum Tax) 7/09 at 100.00 BBB 372,497
1,570 5.500%, 1/01/15 (Alternative Minimum Tax) 7/09 at 100.00 BBB 1,458,138
------------------------------------------------------------------------------------------------------------------------------------
1,965 Total Connecticut 1,830,635
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.7%
2,400 Deltona, Florida, Utility Systems Water and Sewer Revenue 10/13 at 100.00 AA- 2,407,632
Bonds, Series 2003, 5.250%, 10/01/17 - MBIA Insured
1,000 Florida Citizens Property Insurance Corporation, High Risk No Opt. Call AA- 998,440
Account Revenue Bonds, Series 2007A, 5.000%, 3/01/15 - MBIA
Insured
600 Florida Department of Environmental Protection, Florida 7/17 at 101.00 AA- 621,762
Forever Revenue Bonds, Series 2007B, 5.000%, 7/01/19 - MBIA
Insured
60 JEA, Florida, Electric Revenue Certificates, Series 1973-2, No Opt. Call AAA 65,511
6.800%, 7/01/12 (ETM)
2,000 Orange County, Florida, Tourist Development Tax Revenue Bonds, 10/15 at 100.00 A+ 2,011,800
Series 2005, 5.000%, 10/01/22 - AMBAC Insured
295 Port Everglades Authority, Florida, Port Facilities Revenue No Opt. Call AAA 349,708
Bonds, Series 1986, 7.125%, 11/01/16 (ETM)
500 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 445,525
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/27
------------------------------------------------------------------------------------------------------------------------------------
6,855 Total Florida 6,900,378
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4%
425 Cherokee County Water and Sewerage Authority, Georgia, Revenue 8/22 at 100.00 AA- (4) 481,521
Bonds, Series 1995, 5.200%,8/01/25 (Pre-refunded 8/01/22) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13
NIM | Nuveen Select Maturities Municipal Fund (continued)
| Portfolio of INVESTMENTS March 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.0%
$ 635 Chicago, Illinois, Tax Increment Allocation Bonds, 7/09 at 100.00 N/R $ 633,260
Irving/Cicero 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 1,563,390
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 1,964,200
Series 2007, 5.100%, 3/01/28 - AGC Insured
4,820 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 5,460,240
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 1,818,100
Bonds, Olin Corporation, Series 1993D, 6.750%, 3/01/16
2,000 Illinois Educational Facilities Authority, Revenue Bonds, Art 3/14 at 100.00 N/R 2,100,800
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 1,169,190
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 4/17 at 100.00 Baa1 216,808
University, Series 2007, 5.250%, 4/01/22
25 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Aaa 26,763
Medical Center, Series 2000, 6.350%, 5/15/15 (Pre-refunded
5/15/10)
20 Illinois Health Facilities Authority, Revenue Bonds, Condell No Opt. Call Baa3 (4) 22,311
Medical Center, Series 2002, 5.250%, 5/15/12 (ETM)
70 Illinois Health Facilities Authority, Revenue Bonds, Lutheran No Opt. Call AAA 74,877
General Health System, Series 1993A, 6.125%, 4/01/12 - FSA
Insured (ETM)
695 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/09 at 101.00 A 679,661
Cross Hospital and Medical Centers, Series 1999, 5.500%,
8/15/19
515 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/09 at 101.00 A (4) 529,235
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 A3 876,129
District 301, General Obligation Bonds, Series 2006,
0.000%, 12/01/18 - MBIA Insured
700 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AA+ 876,092
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1994D, 7.750%, 6/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,585 Total Illinois 18,011,056
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 0.2%
250 Jasper County, Indiana, Pollution Control Revenue Refunding No Opt. Call AA 240,405
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 981,400
Medical Center, Series 2000, 6.250%, 7/01/25
1,800 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 1,938,258
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
2,800 Total Iowa 2,919,658
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.1%
3,500 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 3,489,044
Improvement Bonds, Via Christi Health System Inc., Series
2001-III, 5.500%, 11/15/21
250 Wyandotte County-Kansas City Unified Government, Kansas, Sales 12/15 at 100.00 N/R 212,423
Tax Special Obligation Bonds, Redevelopment Project Area B,
Series 2005, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
3,750 Total Kansas 3,701,467
------------------------------------------------------------------------------------------------------------------------------------
14
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
$ 325 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA $ 329,592
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 5.750%, 12/01/28 - AGC Insured
1,205 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/15 at 100.60 AAA 1,139,026
2005G, 5.000%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,530 Total Kentucky 1,468,618
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.9%
1,010 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AA- 1,015,898
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA
Insured
130 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 99,039
Settlement Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/30
------------------------------------------------------------------------------------------------------------------------------------
1,140 Total Louisiana 1,114,937
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.7%
1,100 Maryland Energy Financing Administration, Revenue Bonds, AES 9/09 at 100.00 N/R 827,310
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.8%
500 Massachusetts Development Finance Agency, Revenue Bonds, 10/17 at 100.00 N/R 363,080
Orchard Cove, Series 2007, 5.000%, 10/01/19
1,450 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/10 at 100.00 AA- 1,461,673
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 A 62,926
435 5.000%, 1/01/27 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A 231,446
------------------------------------------------------------------------------------------------------------------------------------
2,485 Total Massachusetts 2,119,125
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.7%
1,000 Cornell Township Economic Development Corporation, Michigan, 5/12 at 100.00 AAA 1,130,840
Environmental Improvement Revenue Refunding Bonds,
MeadWestvaco Corporation-Escanaba Project, Series 2002,
5.875%, 5/01/18 (Pre-refunded 5/01/12)
525 Michigan State Hospital Finance Authority, Hospital Revenue 7/09 at 100.00 BB 456,692
Refunding Bonds, Sinai Hospital, Series 1995, 6.625%,
1/01/16
470 Michigan State Hospital Finance Authority, Revenue Refunding 8/09 at 100.00 BB- 462,771
Bonds, Detroit Medical Center, Series 1988A, 8.125%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
1,995 Total Michigan 2,050,303
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.7%
1,000 Becker, Minnesota, Pollution Control Revenue Bonds, Northern 8/12 at 101.00 A 1,090,820
States Power Company, Series 1993A, 8.500%, 9/01/19
250 Northern Municipal Power Agency, Minnesota, Electric System No Opt. Call AAA 267,483
Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/15 -
AGC Insured
640 White Earth Band of Chippewa Indians, Minnesota, Revenue No Opt. Call N/R 663,155
Bonds, Series 2000A, 7.000%, 12/01/11 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,890 Total Minnesota 2,021,458
------------------------------------------------------------------------------------------------------------------------------------
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 499,225
300 5.000%, 9/01/24 9/14 at 100.00 AA 289,821
15
NIM | Nuveen Select Maturities Municipal Fund (continued)
| Portfolio of INVESTMENTS March 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI (continued)
$ 250 Warren County, Mississippi, Gulf Opportunity Zone Revenue 8/11 at 100.00 BBB $ 140,205
Bonds, International Paper Company, Series 2006A, 4.800%,
8/01/30
------------------------------------------------------------------------------------------------------------------------------------
1,035 Total Mississippi 929,251
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.1%
60 University of Montana, Revenue Bonds, Series 1996D, 5.375%, 5/09 at 100.00 AA (4) 68,795
5/15/19 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.9%
1,000 Dodge County School District 1, Nebraska, Fremont Public 12/14 at 100.00 Aa3 1,069,980
Schools, General Obligation Bonds, Series 2004, 5.000%,
12/15/19 - FSA Insured
30 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan No Opt. Call Aa2 30,974
Program, Series 1993A-5B, 6.250%, 6/01/18 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,030 Total Nebraska 1,100,954
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.5%
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 A 314,320
35 0.000%, 1/01/16 - AMBAC Insured No Opt. Call A 11,689
120 0.000%, 1/01/18 - AMBAC Insured No Opt. Call A 30,152
50 0.000%, 1/01/20 - AMBAC Insured No Opt. Call A 9,630
250 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 251,423
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
1,255 Total Nevada 617,214
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.6%
455 Bayonne Redevelopment Agency, New Jersey, Revenue Bonds, Royal No Opt. Call BB- 331,923
Caribbean Cruises Project, Series 2006A, 4.750%, 11/01/16
(Alternative Minimum Tax)
500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 366,475
Settlement Asset-Backed Bonds, Series 2007-1A, 4.500%,
6/01/23
------------------------------------------------------------------------------------------------------------------------------------
955 Total New Jersey 698,398
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.0%
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 A3 979,500
Brooklyn Law School, Series 2003A, 5.500%, 7/01/15 - RAAI
Insured
300 New York City Industrial Development Agency, New York, Civic No Opt. Call N/R 270,846
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, 4/09 at 100.00 A1 1,500,030
Facilities Revenue Bonds, Consolidated Edison Company Inc.,
Series 2001A, 4.700%, 6/01/36 (Mandatory put 10/01/12)
(Alternative Minimum Tax)
55 New York State Medical Care Facilities Finance Agency, 8/09 at 100.00 AA+ 55,171
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- 4,435,621
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,155 Total New York 7,241,168
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7%
1,880 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 AA- 1,986,634
Series 2003, 5.000%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.4%
$ 835 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB $ 598,286
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 Bonds, No Opt. Call A 1,030,430
Cargill Inc., Series 2004B, 4.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
1,835 Total Ohio 1,628,716
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 7.6%
400 Pennsylvania Economic Development Financing Authority, No Opt. Call A- 405,812
Pollution Control Revenue Bonds, PPL Electric Utilities
Corporation, Refunding Series 2008, 4.850%, 10/01/23
(Mandatory put 10/01/10)
1,010 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,179,589
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15 (ETM)
225 Pennsylvania Higher Educational Facilities Authority, Revenue 9/09 at 100.00 BBB+ (4) 233,568
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 A 4,048,517
Eighteenth Series 2004, 5.000%, 8/01/15 - AMBAC Insured
1,535 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call Aaa 1,911,213
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
250 Philadelphia Hospitals and Higher Education Facilities 5/09 at 100.00 BBB 208,138
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 A1 1,178,104
General Obligation Bonds, Series 2006B, 5.000%, 9/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,625 Total Pennsylvania 9,164,941
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.0%
20 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 14,454
Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.2%
750 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 778,793
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) 2,001,461
Revenue Bonds, Series 1991, 6.750%, 1/01/19 - FGIC Insured
(ETM)
2,835 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call Baa1 3,237,881
Revenue Bonds, Series 1991, 6.750%, 1/01/19 - FGIC Insured
5 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 5,731
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, Economic 11/12 at 100.00 A- 17,530
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
865 South Carolina JOBS Economic Development Authority, Hospital No Opt. Call Baa2 (4) 920,403
Revenue Bonds, Palmetto Health Alliance, Series 2000A,
7.000%, 12/15/10 (ETM)
445 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 467,392
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
6,460 Total South Carolina 7,429,191
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.8%
1,000 South Dakota Health and Educational Facilities Authority, 5/17 at 100.00 AA- 933,940
Revenue Bonds, Sanford Health, Series 2007, 5.000%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
17
NIM | Nuveen Select Maturities Municipal Fund (continued)
| Portfolio of INVESTMENTS March 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.2%
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 N/R (4) $ 853,515
1,250 6.000%, 9/01/17 (Pre-refunded 9/01/12) 9/12 at 100.00 N/R (4) 1,422,525
400 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call BBB+ 348,968
Bonds, Series 2006A, 5.000%, 9/01/13
------------------------------------------------------------------------------------------------------------------------------------
2,400 Total Tennessee 2,625,008
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.3%
1,055 Austin, Texas, General Obligation Bonds, Series 2004, 5.000%, 9/14 at 100.00 AAA 1,118,543
9/01/20 - MBIA Insured
565 Bexar County Housing Finance Corporation, Texas, FNMA No Opt. Call AAA 580,182
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 CCC 12,599
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+ 1,520,960
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 CCC 308,375
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 CCC 8,323
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 2,048,644
General Obligation Bonds, Series 2006, 5.000%, 8/15/20
20 Galveston Property Finance Authority Inc., Texas, Single 9/09 at 100.00 Caa1 19,698
Family Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11
300 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 242,256
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 287,684
Refunding Bonds, Series 2008, 5.750%, 1/01/38
25 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 15,337
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, Gas 7/09 at 100.00 A 965,625
Supply Revenue Bonds, Series 2006B, 1.887%, 12/15/17
270 Tri-County Mental Health and Retardation Center, Texas, 9/09 at 100.00 AAA 274,285
Revenue Bonds, Facilities Acquisition Program, Series
1995E, 6.500%, 3/01/15 - FSA Insured
175 Weslaco Health Facilities Development Corporation, Texas, 6/12 at 100.00 BBB+ (4) 190,496
Hospital Revenue Bonds, Knapp Medical Center, Series 2002,
6.000%, 6/01/17 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
8,650 Total Texas 7,593,007
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.7%
895 Bountiful, Davis County, Utah, Hospital Revenue Refunding No Opt. Call N/R 875,632
Bonds, South Davis Community Hospital Project, Series 1998,
6.000%, 12/15/10
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.2%
250 Virginia College Building Authority, Educational Facilities 7/09 at 100.50 BBB+ 226,818
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 367,641
Bonds, Nuclear Project 3, Series 1989B, 7.125%, 7/01/16 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0%
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
$ 730 6.125%, 6/01/27 6/12 at 100.00 BBB $ 789,612
1,480 6.375%, 6/01/32 6/12 at 100.00 BBB 1,659,021
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,007,090
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%,
7/01/21
1,150 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 100.00 BBB+ 995,210
Bonds, Aurora Health Care Inc., Series 1999A, 5.500%,
2/15/20 - ACA Insured
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Wheaton Franciscan Healthcare System, Series 2006:
200 5.250%, 8/15/18 8/16 at 100.00 BBB+ 164,134
180 5.250%, 8/15/34 8/16 at 100.00 BBB+ 118,879
------------------------------------------------------------------------------------------------------------------------------------
4,740 Total Wisconsin 4,733,946
------------------------------------------------------------------------------------------------------------------------------------
$ 124,161 Total Long-Term Municipal Bonds (cost $120,197,096) 117,363,855
==============----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7%
MUNICIPAL BONDS - 0.4%
WASHINGTON - 0.4%
497 King County, Washington, Sewer Revenue Bonds, Variable Rate 1/12 at 100.00 A-1 496,500
Demand Obligations, Series 2001, Trust 554, 0.540%, 1/01/19 -
FGIC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
EURO DOLLAR TIME DEPOSIT - 0.3%
326 State Street Bank Euro Dollar Time Deposit, 0.010%, 4/01/09 N/A N/A 325,906
------------------------------------------------------------------------------------------------------------------------------------
$ 823 Total Short-Term Investments (cost $822,406) 822,406
==============----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $121,019,502) - 98.5% 118,186,261
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 1,825,249
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 120,011,510
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): 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, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of March 31,
2009. 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 specified market index.
N/A Not applicable.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
19
| Statement of ASSETS & LIABILITIES March 31, 2009
--------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $121,019,502) $ 118,186,261
Receivables:
Interest 1,896,947
Investments sold 446,607
Other assets 7,389
--------------------------------------------------------------------------------
Total assets 120,537,204
--------------------------------------------------------------------------------
LIABILITIES
Payables:
Dividends 413,591
Investments purchased 7,533
Accrued expenses:
Management fees 50,809
Other 53,761
--------------------------------------------------------------------------------
Total liabilities 525,694
--------------------------------------------------------------------------------
Net assets $ 120,011,510
================================================================================
Shares outstanding 12,402,639
================================================================================
Net asset value per share outstanding $ 9.68
================================================================================
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
Shares, $.01 par value per share $ 124,026
Paid-in surplus 138,390,822
Undistributed (Over-distribution of) net investment income (131,044)
Accumulated net realized gain (loss) from investments (15,539,053)
Net unrealized appreciation (depreciation) of investments (2,833,241)
--------------------------------------------------------------------------------
Net assets $ 120,011,510
================================================================================
Authorized shares Unlimited
================================================================================
See accompanying notes to financial statements.
20
| Statement of OPERATIONS Year Ended March 31, 2009
--------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,106,582
--------------------------------------------------------------------------------
EXPENSES
Management fees 597,731
Shareholders' servicing agent fees and expenses 8,697
Custodian's fees and expenses 23,436
Trustees' fees and expenses 3,476
Professional fees 13,498
Shareholders' reports - printing and mailing expenses 49,828
Stock exchange listing fees 9,203
Investor relations expense 19,851
Other expenses 8,781
--------------------------------------------------------------------------------
Total expenses before custodian fee credit 734,501
Custodian fee credit (6,365)
--------------------------------------------------------------------------------
Net expenses 728,136
--------------------------------------------------------------------------------
Net investment income 5,378,446
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (169,721)
Change in net unrealized appreciation (depreciation)
of investments (4,677,263)
--------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (4,846,984)
--------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 531,462
================================================================================
See accompanying notes to financial statements.
21
| Statement of CHANGES in NET ASSETS
YEAR ENDED YEAR ENDED
3/31/09 3/31/08
-----------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,378,446 $ 5,509,561
Net realized gain (loss) from investments (169,721) (49,131)
Change in net unrealized appreciation (depreciation) of investments (4,677,263) (1,515,776)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 531,462 3,944,654
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (5,412,105) (5,429,625)
-----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (5,412,105) (5,429,625)
-----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued to shareholders due to reinvestment of
distributions 60,823 --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to shares from
capital transactions 60,823 --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (4,819,820) (1,484,971)
Net assets at the beginning of year 124,831,330 126,316,301
-----------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 120,011,510 $ 124,831,330
=======================================================================================================================
Undistributed (Over-distribution of) net investment income at the end
of year $ (131,044) $ (97,871)
=======================================================================================================================
See accompanying notes to financial statements.
22
| Notes to FINANCIAL STATEMENTS
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 US
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 or, in the absence of a pricing service for a
particular investment, the Board of Trustees of the Fund, or its designee, may
establish fair value using a wide variety of market data including yields or
prices of investments of comparable quality, type of issue, coupon, maturity and
rating, market quotes or indications of value from security dealers, evaluations
of anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. 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 March 31, 2009, 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.
23
| Notes to FINANCIAL STATEMENTS (continued)
For all open tax years and all major taxing jurisdictions, management of the
Fund has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. 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). Furthermore,
management of 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 US generally accepted
accounting principles.
Derivative Financial Instruments
The Fund is authorized to invest in certain derivative financial instruments
including forwards, futures, options and swap contracts. Although the Fund is
authorized to invest in such financial instruments, and may do so in the future,
it did not make any such investments during the fiscal year ended March 31,
2009.
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 US 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.
24
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 March 31,
2009:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments $ 325,906 $ 117,860,355 $ -- $ 118,186,261
================================================================================
3. FUND SHARES
Share Repurchases
On July 30, 2008 the Fund's Board of Trustees approved an open market share
repurchase 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 fiscal year ended March 31, 2009.
Transactions in shares were as follows:
YEAR YEAR
ENDED ENDED
3/31/09 3/31/08
--------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of distributions 6,233 --
================================================================================
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the fiscal year ended March 31, 2009, aggregated $11,048,145 and
$9,561,865, 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 March 31, 2009, the cost of investments was $120,948,311.
Gross unrealized appreciation and gross unrealized depreciation of investments
at March 31, 2009, were as follows:
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 3,488,899
Depreciation (6,250,949)
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (2,762,050)
================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at March 31, 2009, the Fund's tax year end, were
as follows:
--------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 216,604
Undistributed net ordinary income ** --
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, 2009, paid on April 1, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
25
| Notes to FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the Fund's tax years ended March
31, 2009 and March 31, 2008, was designated for purposes of the dividends paid
deduction as follows:
2009
--------------------------------------------------------------------------------
Distributions from net tax-exempt income *** $ 5,430,482
Distributions from net ordinary income ** --
Distributions from net long-term capital gains **** --
================================================================================
2008
--------------------------------------------------------------------------------
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.
*** The Fund hereby designates this amount paid during the fiscal year ended
March 31, 2009, as Exempt Interest Dividends.
**** The Fund designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Fund related to net capital gain to zero for
the tax year ended March 31, 2009.
At March 31, 2009, the Fund's 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
March 31, 2017 148,403
--------------------------------------------------------------------------------
Total $ 15,499,782
================================================================================
The Fund elected to defer net realized losses from investments incurred from
November 1, 2008 through March 31, 2009, the Fund's tax year end, ("post-October
losses") in accordance with federal income tax regulations. Post-October capital
losses of $24,024 are treated as having arisen on the first day of the following
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.
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
================================================================================
26
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 following table.
As of March 31, 2009, the complex-level fee rate was .2000%.
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 managed assets of all Nuveen
funds, with such daily managed assets defined separately for each fund in
its management agreement, but which generally includes assets attributable
to preferred stock issued by or borrowings (including the issuance of
commercial paper or notes) by such fund, but excludes assets attributable
to investments in other Nuveen 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.
7. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS 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 March 31, 2009,
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.
Financial Accounting Standards Board Staff Position No. 157-4 (FSP No. 157-4)
On April 9, 2009, the Financial Accounting Standards Board issued FSP No. 157-4,
"Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are Not
Orderly." FSP No. 157-4 provides additional guidance for estimating fair value
in accordance with SFAS No. 157, "Fair Value Measurements," when the volume and
level of activity for the asset or liability have significantly decreased. FSP
No. 157-4 also requires additional disaggregation of the current SFAS No. 157
required disclosures. FSP No. 157-4 is effective for interim and annual
reporting periods ending after June 15, 2009, and shall be applied
prospectively. At this time, management is evaluating the implications of FSP
No. 157-4 and the impact it will have on the financial statement disclosures.
8. SUBSEQUENT EVENTS
Distributions to Shareholders
The Fund declared a dividend distribution of $.0350 per share from its
tax-exempt net investment income which was paid on May 1, 2009, to shareholders
of record on April 15, 2009.
27
| Financial HIGHLIGHTS
Selected data for a share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------- -----------------------------------
Net
Beginning Net Realized/ Net Ending Ending
Net Asset Investment Unrealized Investment Capital Net Asset Market
Value Income Gain (Loss) Total Income Gains Total Value Value
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2009 $ 10.07 $ .43 $ (.38) $ .05 $ (.44) $ -- $ (.44) $ 9.68 $ 9.98
2008 10.19 .44 (.12) .32 (.44) -- (.44) 10.07 9.80
2007 10.15 .46 .05 .51 (.47) -- (.47) 10.19 9.94
2006 10.22 .48 (.07) .41 (.48) -- (.48) 10.15 9.95
2005 10.35 .49 (.14) .35 (.48) -- (.48) 10.22 9.30
===================================================================================================================================
28
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Ratios to Average Ratios to Average
Net Assets Net Assets
Total Returns Before Credit After Credit**
------------------------ ---------------------- ----------------------
Based on Based on Ending Net Net Portfolio
Market Net Asset Net Assets Investment Investment Turnover
Value* Value* (000) Expenses Income Expenses Income Rate
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2009 6.53% .52% $ 120,012 .61% 4.43% .60% 4.43% 8%
2008 3.18 3.18 124,831 .59 4.37 .57 4.38 11
2007 4.75 5.10 126,316 .62 4.44 .58 4.48 15
2006 12.21 4.02 125,857 .59 4.67 .57 4.68 7
2005 (1.52) 3.44 126,645 .61 4.81 .60 4.82 10
====================================================================================================================================
* 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.
See accompanying notes to financial statements.
29
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the board members and officers of the Funds, their principal
occupations and other affiliations during the past five years, the number of
portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management Consultant;
8/22/40 Chairman of Treasurer and Director, Humanities Council of
333 W. Wacker Drive the Board 1997 199 Washington D.C.
Chicago, IL 60606 and Board Member
o JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since 1996);
333 W. Wacker Drive Board Member 1999 199 Director and Vice Chairman, United Fire Group,
Chicago, IL 60606 a publicly held company; Member of the Board of
Regents for the State of Iowa University
System; Director, Gazette Companies; Life
Trustee of Coe College; Director, Iowa College
Foundation; Member of the Advisory Council of
the Department of Finance in the Tippie College
of Business, University of Iowa; formerly,
Director, Alliant Energy; formerly, Director,
Federal Reserve Bank of Chicago; formerly,
President and Chief Operating Officer, SCI
Financial Group, Inc., a regional financial
services firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business, University of
3/6/48 Iowa (since July 2006); Director (since 2004)
333 W. Wacker Drive Board Member 2004 199 of Xerox Corporation; Director (since 2005),
Chicago, IL 60606 Beta Gamma Sigma International Honor Society;
formerly, Dean and Distinguished Professor of
Finance, School of Business at the University
of Connecticut (2003-2006); previously, Senior
Vice President and Director of Research at the
Federal Reserve Bank of Chicago (1995-2003);
Director, SS&C Technologies, Inc. (May
2005-October 2005); formerly, Director
(1997-2007), Credit Research Center at
Georgetown University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth Management
10/28/42 Company; Retired (since 2004) as Chairman,
333 W. Wacker Drive Board Member 2005 199 JPMorgan Fleming Asset Management, President
Chicago, IL 60606 and CEO, Banc One Investment Advisors
Corporation, and President, One Group Mutual
Funds; prior thereto, Executive Vice President,
Banc One Corporation and Chairman and CEO, Banc
One Investment Management Group; Member, Board
of Regents, Luther College; member of the
Wisconsin Bar Association; member of Board of
Directors, Friends of Boerner Botanical
Gardens; member of Investment Committee,
Greater Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd., a
9/24/44 real estate investment company; formerly,
333 W. Wacker Drive Board Member 1997 199 Senior Partner and Chief Operating Officer
Chicago, IL 60606 (retired, 2004) of Miller-Valentine Group;
member, University of Dayton Business School
Advisory Council; member, Dayton Philharmonic
Orchestra Association; formerly, member,
Business Advisory Council, Cleveland Federal
Reserve Bank; formerly, Director, Dayton
Development Coalition.
30
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board Member 1997 199 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange (since
6/28/47 2006); Commissioner, New York State Commission
333 W. Wacker Drive Board Member 2007 199 on Public Authority Reform (since 2005);
Chicago, IL 60606 formerly, Chair New York Racing Association
Oversight Board (2005-2007).
o TERENCE J. TOTH Director, Legal & General Investment Management
9/29/59 America, Inc. (since 2008); Managing Partner,
333 W. Wacker Drive Board Member 2008 199 Musso Capital Management (since 2008); Private
Chicago, IL 60606 Investor (since 2007); CEO and President,
Northern Trust Investments (2004-2007);
Executive Vice President, Quantitative
Management & Securities Lending (2004-2007);
prior thereto, various positions with Northern
Trust Company (since 1994); Member: Goodman
Theatre Board (since 2004), Chicago Fellowship
Boards (since 2005), University of Illinois
Leadership Council Board (since 2007) and
Catalyst Schools of Chicago Board (since 2008);
formerly, Member: Northern Trust Mutual Funds
Board (2005-2007), Northern Trust Investments
Board (2004-2007), Northern Trust Japan Board
(2004-2007), Northern Trust Securities Inc.
Board (2003-2007) and Northern Trust Hong Kong
Board (1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007) and
6/14/61 Director (since 1999) of Nuveen Investments,
333 W. Wacker Drive Board Member 2008 199 Inc.; Chief Executive Officer (since 2007) of
Chicago, IL 60606 Nuveen Asset Management, Rittenhouse Asset
Management, Nuveen Investments Advisors, Inc.
formerly, President (1999-2004) of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.(3)
31
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel of
333 W. Wacker Drive Administrative 1988 199 Nuveen Investments, LLC; Managing Director,
Chicago, IL 60606 Officer Associate General Counsel and Assistant
Secretary, of Nuveen Asset Management and of
Symphony Asset Management LLC, (since 2003);
Vice President and Assistant Secretary of NWQ
Investment Management Company, LLC. (since
2002), Nuveen Investments Advisers Inc. (since
2002), Tradewinds Global Investors, LLC, and
Santa Barbara Asset Management, LLC (since
2006), Nuveen HydePark Group LLC and Nuveen
Investment Solutions, Inc. (since 2007);
Managing Director (since 2004) and Assistant
Secretary (since 1994) of Nuveen Investments,
Inc.; formerly, Managing Director (2002-2004),
General Counsel (1998-2004) and Assistant
Secretary of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Chartered
Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen Investments,
6/9/55 Inc.; Executive Vice President, U.S. Structured
333 W. Wacker Drive Vice President 2007 125 Products of Nuveen Investments, LLC, (since
Chicago, IL 60606 1999), prior thereto, Managing Director of
Structured Investments.
o MARK J.P. ANSON President and Executive Director of Nuveen
6/10/59 Investments, Inc. (since 2007); President of
333 W. Wacker Drive Vice President 2009 199 Nuveen Investments Institutional Services Group
Chicago, IL 60606 LLC (since 2007); previously, Chief Executive
Officer of the British Telecom Pension Scheme
(2006-2007) and Chief Investment Officer of
Calpers (1999-2006); PhD, Chartered Financial
Analyst, Chartered Alternative Investment
Analyst, Certified Public Accountant, Certified
Management Accountant and Certified Internal
Auditor.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously,
1/11/62 Vice President (1993-2004) of Nuveen
333 W. Wacker Drive Vice President 2007 125 Investments, LLC.
Chicago, IL 60606
o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen
6/1/68 Investments, LLC; previously, Portfolio
333 W. Wacker Drive Vice President 2009 199 Manager, Allstate Investments, LLC (1996-2006);
Chicago, IL 60606 Chartered Financial Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.; Vice President of Nuveen
333 W. Wacker Drive and Assistant 2000 199 Asset Management (since 2005).
Chicago, IL 60606 Secretary
o MARGO L. COOK Executive Vice President (since Oct 2008) of
4/11/64 Nuveen Investments, Inc.; previously, Head of
333 W. Wacker Drive Vice President 2009 199 Institutional Asset Management (2007-2008) of
Chicago, IL 60606 Bear Stearns Asset Management; Head of
Institutional Asset Mgt (1986-2007) of Bank of
NY Mellon; Chartered Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004), formerly, Vice
10/24/45 President of Nuveen Investments, LLC; Managing
333 W. Wacker Drive Vice President 1998 199 Director (since 2005) of Nuveen Asset
Chicago, IL 60606 Management; Managing Director (2004-2005),
formerly, Vice President (1998-2004) of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.(3)
32
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen Investments,
333 W. Wacker Drive and Controller 1998 199 LLC; Vice President (since 2005) of Nuveen
Chicago, IL 60606 Asset Management; Certified Public Accountant.
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed Income
5/7/69 (since 2008) of Nuveen Asset Management;
333 W. Wacker Drive Vice President 2009 199 previously, Chairman, President and Chief
Chicago, IL 60606 Executive Officer (2002 - 2007) of Northern
Trust Global Advisors, Inc. and Chief Executive
Officer (2007) of Northern Trust Global
Investments Limited; CPA.
o WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant Vice
333 W. Wacker Drive Officer and 2003 199 President and Assistant General Counsel
Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Vice
President (since 2006) and Assistant Secretary
(since 2008) of Nuveen Asset Management.
o DAVID J. LAMB Senior Vice President (since 2009), formerly,
3/22/63 Vice President (2000-2009) of Nuveen
333 W. Wacker Drive Vice President 2000 199 Investments, LLC; Vice President (since 2005)
Chicago, IL 60606 of Nuveen Asset Management; Certified Public
Accountant.
o TINA M. LAZAR Senior Vice President (since 2009), formerly,
8/27/61 Vice President of Nuveen Investments, LLC
333 W. Wacker Drive Vice President 2002 199 (1999-2009); Vice President of Nuveen Asset
Chicago, IL 60606 Management (since 2005).
o LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive and Assistant 1988 199 Investments, LLC; Vice President (since 2005)
Chicago, IL 60606 Secretary and Assistant Secretary of Nuveen Investments,
Inc.; Vice President (since 2005) and Assistant
Secretary (since 1997) of Nuveen Asset
Management; Vice President and Assistant
Secretary of Nuveen Investments Advisers Inc.
(since 2002); NWQ Investment Management
Company, LLC (since 2002), Symphony Asset
Management LLC (since 2003), Tradewinds Global
Investors, LLC, Santa Barbara Asset Management
LLC (since 2006) and of Nuveen HydePark Group,
LLC and Nuveen Investment Solutions, Inc.
(since 2007); formerly, Vice President and
Assistant Secretary of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3)
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice
3/26/66 Vice President President (2007-2008), Nuveen Investments, LLC;
333 W. Wacker Drive and Secretary 2007 199 Managing Director (since 2008), formerly, Vice
Chicago, IL 60606 President, and Assistant Secretary, Nuveen
Asset Management, and Nuveen Investments
Holdings, Inc.; Vice President (since 2007) and
Assistant Secretary, Nuveen Investment Advisers
Inc., Nuveen Investment Institutional Services
Group LLC, NWQ Investment Management Company,
LLC, Tradewinds Global Investors LLC, NWQ
Holdings, LLC, Symphony Asset Management LLC,
Santa Barbara Asset Management LLC, Nuveen
HydePark Group, LLC and Nuveen Investment
Solutions, Inc. (since 2007); prior thereto,
Partner, Bell, Boyd & Lloyd LLP (1997-2007).
33
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o JOHN V. MILLER Managing Director (since 2007), formerly, Vice
4/10/67 Vice President 2007 199 President (2002-2007) of Nuveen Asset
333 W. Wacker Drive Management and Nuveen Investments, LLC;
Chicago, IL 60606 Chartered Financial Analyst.
o GREGORY MINO Vice President of Nuveen Investments, LLC
1/4/71 Vice President 2009 199 (since 2008); previously, Director (2004-2007)
333 W. Wacker Drive and Executive Director (2007-2008) of UBS
Chicago, IL 60606 Global Asset Management; previously, Vice
President (2000-2003) and Director (2003-2004)
of Merrill Lynch Investment Managers; Chartered
Financial Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since
8/1/71 Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive and Assistant 2008 199 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 Secretary thereto, Associate, Skadden, Arps, Slate
Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since
7/3/62 Vice President 2007); prior thereto, Partner, Deloitte &
333 W. Wacker Drive and Assistant 2007 199 Touche USA LLP (2005-2007), formerly, senior
Chicago, IL 60606 Secretary tax manager (2002-2005); Certified Public
Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC (since
12/21/68 Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive and Assistant 2008 199 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 Secretary thereto, Counsel, Vedder Price P.C.
(1997-2007).
(1) Board Members serve three year terms. The Board of Trustees is divided
into three classes, Class I, Class II, and Class III, with each being
elected to serve until the third succeeding annual shareholders' meeting
subsequent to its election or thereafter in each case when its respective
successors are duly elected or appointed. The first year elected or
appointed represents the year in which the board member was first elected
or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
34
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.
35
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.
36
NOTES
37
Glossary of
TERMS USED in this REPORT
o 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.
o 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.
o 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.
o 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.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's 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.
o 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.
o 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 SEC the certification of its Chief Executive Officer
and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
SHARE INFORMATION
The Fund intends to repurchase shares of its own stock in the future at such
times and in such amounts as is deemed advisable. During the period covered by
this report, the Fund did not repurchase any of its shares.
Any future repurchases will be reported to shareholders in the next annual or
semi-annual report.
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
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, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $115 billion of
assets on March 31, 2009.
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/cef
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
EAN-A-0309D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Select Maturities Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
March 31, 2009 $ 11,418 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
March 31, 2008 $ 11,018 $ 0 $ 500 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees."
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services to
the Fund ("Affiliated Fund Service Provider"), for engagements directly related
to the Fund's operations and financial reporting, during the Fund's last two
full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------
March 31, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------
March 31, 2008 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
March 31, 2009 $ 0 $ 0 $ 0 $ 0
March 31, 2008 $ 500 $ 0 $ 0 $ 500
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Paul Brennan Nuveen Select Maturities Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Paul Brennan Registered Investment Company 13 $11.64 billion
Other Pooled Investment Vehicles 0 $ 0
Other Accounts 1 $.717 million
* Assets are as of March 31, 2009. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of April 30, 2009, the
S&P/Investortools Municipal Bond index was comprised of 52,532 securities with
an aggregate current market value of $1,047 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
NAM's investment team, the performance of the accounts for which he serves as
portfolio manager relative to any benchmarks established for those accounts, his
effectiveness in communicating investment performance to stockholders and their
representatives, and his contribution to NAM's investment process and to the
execution of investment strategies. The cash bonus component is also impacted by
the overall performance of Nuveen Investments, Inc. in achieving its business
objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors led by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
NAM has adopted several policies that address potential conflicts of interest,
including best execution and trade allocation policies that are designed to
ensure (1) that portfolio management is seeking the best price for portfolio
securities under the circumstances, (2) fair and equitable allocation of
investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of the March 31, 2009, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
BENEFICIALLY OWNED
DOLLAR RANGE IN THE REMAINDER OF
OF EQUITY NUVEEN FUNDS
SECURITIES MANAGED BY NAM'S
NAME OF PORTFOLIO BENEFICIALLY MUNICIPAL
MANAGER FUND OWNED IN FUND INVESTMENT TEAM
-----------------------------------------------------------------------------------------------------------
Nuveen Select Maturities Municipal Fund $0 $100,001-$500,000
Paul Brennan
PORTFOLIO MANAGER BIO:
Paul Brennan, CFA, CPA, became a portfolio manager of Flagship Financial Inc. in
1994, and subsequently became an Assistant Vice President of NAM upon the
acquisition of Flagship Resources Inc. by Nuveen in 1997. He became Vice
President of NAM in 2002. He currently manages investments for 14
Nuveen-sponsored investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, click on Fund Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Select Maturities Municipal Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: June 8, 2009
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: June 8, 2009
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: June 8, 2009
-------------------------------------------------------------------