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
---------------------
Nuveen Select Maturities Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: March 31
------------------
Date of reporting period: September 30, 2006
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT September 30, 2006
Nuveen Investments
Municipal Closed-End Funds
NUVEEN SELECT
MATURITIES
MUNICIPAL FUND
NIM
Photo of: Woman and man at the beach.
Photo of: A child.
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
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Logo: NUVEEN Investments
Photo: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six-month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
For some time, I've used these letters to remind you that municipal bonds can be
an important building block in a well balanced investment portfolio. In addition
to providing attractive tax-free monthly income, a municipal bond investment
like your Fund may help you achieve and benefit from greater portfolio
diversification. Portfolio diversification is a recognized way to try to reduce
some of the risk that comes with investing. For more information about this
important investment strategy, I encourage you to contact your personal
financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you receive
your shareholder reports and other Fund information. As an alternative to mailed
copies, you can sign up to receive future Fund reports and other Fund
information by e-mail and the Internet. The inside front cover of this report
contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 16, 2006
Nuveen Select Maturities Municipal Fund
NIM
Portfolio Manager's COMMENTS
Portfolio manager Paul Brennan reviews key investment strategies and the
six-month performance of the Nuveen Select Maturities Municipal Fund. With 15
years of investment experience, including 9 years with Nuveen, Paul has managed
NIM since July 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE NIM DURING THE SIX-MONTH REPORTING
PERIOD ENDED SEPTEMBER 30, 2006?
During this reporting period, we saw interest rates at the short end of the
yield curve continue to rise, while rates across the rest of the curve generally
declined. At its May and June 2006 meetings, the Federal Reserve's Open Market
Committee announced the two additional quarter-point increases in the fed funds
rate, raising this short-term target from 4.75% to 5.25%, its highest level
since March 2001. At the subsequent August and September sessions, the committee
left the rate target unchanged, marking the first pause in rate increases in
more than two years. In contrast, during this same six-month period, the yield
on the benchmark 10-year U.S. Treasury note fell 22 basis points to end
September 2006 at 4.63%. In the municipal market, the yield on the Bond Buyer 25
Revenue Bond Index, a widely followed measure of longer-term municipal market
rates, stood at 4.77% at the end of September 2006, a decline of 37 basis points
from the end of March 2006. As short-term rates approached and exceeded the
levels of long-term rates, the yield curve continued to flatten and, in fact,
actually inverted, and bonds with longer durations1 generally outperformed those
with shorter durations.
As the yield curve became increasingly flat, our focus remained on a disciplined
approach to duration management and yield curve positioning. Overall, bonds in
the Lehman Brothers Municipal Bond Index with maturities of less than eight
years, especially those maturing in one to two years, were the least positively
impacted by changes in the interest rate environment over this period. As a
result, these bonds generally underperformed bonds with longer durations, with
issues having the longest maturities (22 years and longer) achieving the best
returns for the period. This environment presented some challenges for NIM,
which--in keeping with its investment parameters--maintains an average effective
maturity of 12 years or less for portfolio holdings.
During this period, we modified our purchase activity in keeping with the
flatter yield curve, which made it less compelling to assume the additional risk
typically associated
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
4
with longer maturities. This included shortening our maturity focus slightly to
emphasize bonds maturing in 5 to 15 years. Overall, we believed that bonds in
this part of the yield curve offered strong performance potential, better value,
and attractive reward opportunities without excessive risk. Much of our activity
was driven by an increased number of redemptions (called and matured bonds)
during this period, the proceeds of which were also reinvested in the 5-year to
15-year part of the curve.
In looking for potential additions to NIM's portfolio, we kept an opportunistic
eye toward all types of issuance that we believed could add value. Over the six
months ended September 2006, new municipal bond supply nationwide totaled $199.9
billion, down from that of April-September 2005. This was part of a larger trend
toward declining issuance in 2006, as record levels of new paper in calendar
year 2005 were followed by a 16% drop-off in supply during the first nine months
of 2006 compared with the first nine months of 2005. The major factor in 2006's
decline was a sharp reduction in pre-refunding volume, which was off more than
54% from last year's levels. At the same time, however, we saw increased supply
in the secondary market, especially in the short and intermediate parts of the
yield curve. Overall, the decline in primary market supply did not have a major
impact on the implementation of strategies we had planned for NIM.
During this period, we found a number of interesting purchase opportunities in
the A rated category, adding essential services issues such as water bonds and
credits issued for an energy cogeneration plant. These purchases, together with
a Fund holding that was upgraded to A from BBB during this period, increased
NIM's allocation to the A rated category from 15% as of March 31, 2006 to 18% as
of September 30, 2006. We also took advantage of opportunities to purchase
higher-quality securities, specifically those rated AAA, which enabled us to
replace most of the higher-rated bonds that were called during this period.
While we continued to maintain NIM's' weightings of lower-quality bonds, tighter
municipal supply and narrowing credit spreads generally meant that we found
fewer relatively attractively priced lower-rated credit opportunities. As a
result, we added very little in the way of new positions in the BBB and nonrated
categories. In our opinion, NIM continued to have a healthy exposure to the
lower-rated credit categories. The Fund also remained well diversified
geographically and from a sector perspective.
5
HOW DID THE FUND PERFORM?
Results for NIM, as well as relevant index and peer group information, are
presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 9/30/06
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NIM 3.05% 4.25% 3.14% 4.05%
--------------------------------------------------------------------------------
Lehman Brothers
7-Year Municipal
Bond Index2 3.40% 3.81% 4.55% 5.40%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the Performance Overview page for NIM in this
report.
For the six months ended September 30, 2006, the cumulative return on net asset
value (NAV) for NIM lagged the return for the Lehman Brothers 7-Year Municipal
Bond Index. NIM's return was influenced by both market factors, especially the
decline in interest rates across most of the yield curve, and fund-specific
factors, including yield curve and duration positioning, allocations to
lower-rated credits, and security-specific issues such as advance refundings.3
As longer rates declined and the yield curve flattened over the course of this
period, yield curve and duration positioning played a key role in NIM's
performance. As noted earlier, bonds with short-term maturities were the least
positively impacted by the recent changes in the yield curve and generally
underperformed longer bonds. While NIM continued to have an intermediate-term
orientation on average, the Fund maintained a slight "barbell" bias in its
maturity structure, i.e., a focus on securities at the longer and shorter ends
of the maturity range at the expense of securities in the intermediate range.
This overall positioning benefited the Fund's performance.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, NIM also benefited from its
allocation of lower-quality credits. The performance of this sector was largely
the result of investor demand for the higher yields typically associated with
lower-quality bonds, which drove up their value and caused credit spreads to
tighten. As of September 30, 2006, bonds rated BBB or lower and non-rated bonds
accounted for 17% of NIM's portfolio. Among the lower-rated
2 The Lehman Brothers 7-Year Municipal Bond Index is an unleveraged,
unmanaged national index comprising a broad range of investment-grade
municipal bonds with maturities ranging from six to eight years. Results
for the Lehman Brothers index do not reflect any expenses.
3 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
6
holdings making contributions to NIM's return for this period were healthcare
(including hospital) bonds, charter schools, and tobacco credits. At period end,
NIM held approximately 4% of its portfolio in tobacco settlement-backed bonds.
In addition, NIM's performance was helped by its holdings of AAA rated bonds,
especially insured bonds which outperformed the municipal market as a whole
during this period. The longer maturities of NIM's insured holdings contributed
to their strong performance over this six months. We also continued to see a
modest impact from advance refunding activity during this period, which
benefited NIM through price appreciation and enhanced credit quality.
While advance refundings generally enhanced performance for this six-month
period, NIM's holdings of older, previously pre-refunded bonds tended to
underperform the general municipal market, due primarily to their shorter
effective maturities. NIM's modest allocation of housing bonds also did not
perform well as longer-term interest rates fell, increasing the incidence or
potential incidence and impact of prepayments and bond calls.
HOW WAS NIM POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF SEPTEMBER
30, 2006?
Maintaining strong credit quality remained an important requirement for the
Fund. As of September 30, 2006, NIM continued to offer excellent credit quality,
with 65% of its portfolio allocated to bonds rated AAA/U.S. guaranteed and AA
and another 18% in bonds rated A.
As of September 30, 2006, 8% of NIM's portfolio was subject to potential bond
calls during the period October 2006 through the end of 2008. The number of
actual bond calls will depend largely on future market interest rates.
7
Dividend and Share Price
INFORMATION
During this period, proceeds from older, higher-yielding bonds that matured or
were called were reinvested into bonds currently available in the market, which
generally offered lower yields. This impacted NIM's income stream, resulting in
one monthly dividend reduction during the six-month period ended September 30,
2006.
NIM seeks to pay stable dividends at rates that reflect the Fund's past results
and projected future performance. During certain periods, NIM may pay dividends
at a rate that may be more or less than the amount of net investment income
actually earned by the Fund during the period. If a Fund has cumulatively earned
more than it has paid in dividends, it holds the excess in reserve as
undistributed net investment income (UNII) as part of the Fund's NAV.
Conversely, if a Fund has cumulatively paid dividends in excess of its earnings,
the excess constitutes negative UNII that is likewise reflected in the Fund's
NAV. NIM will, over time, pay all of its net investment income as dividends to
shareholders. As of September 30, 2006, NIM had a positive UNII balance, based
on our best estimate, for tax purposes and a negative UNII balance for financial
statement purposes.
As of September 30, 2006, NIM was trading at a discount of -4.40% to its NAV.
The Fund's average discount over the entire six-month reporting period was
-4.26%.
8
Nuveen Select Maturities Municipal Fund
NIM
Performance
OVERVIEW As of September 30, 2006
NIM
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 5%
A 18%
BBB 12%
BB or Lower 1%
N/R 4%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0395
Nov 0.0395
Dec 0.0395
Jan 0.0395
Feb 0.0395
Mar 0.0395
Apr 0.0395
May 0.0395
Jun 0.0395
Jul 0.0395
Aug 0.0395
Sep 0.038
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/01/05 10.34
10.15
10.04
9.851
9.88
9.76
9.7
9.65
9.6
9.71
9.94
10.04
9.8
9.97
10.02
9.95
9.74
9.72
9.95
9.76
9.98
10
9.67
9.61
9.72
9.72
9.81
9.75
9.72
9.63
9.75
9.63
9.61
9.61
9.66
9.67
9.67
9.72
9.63
9.63
9.59
9.5501
9.68
9.79
9.56
9.62
9.47
9.45
9.47
9.46
9.46
9.5
9.42
9.42
9.4
9.5
9.45
9.49
9.53
9.53
9.51
9.66
9.6
9.6
9.53
9.55
9.71
9.9
9.96
9.8
9.85
10
10.05
10.12
9.81
10.14
10.08
10.15
9.95
9.95
10.04
9.99
10.01
10.01
10
10.01
9.83
9.91
9.76
9.7601
9.86
9.85
9.85
9.8
9.96
10.09
9.9
9.78
10.01
9.9
9.99
9.89
9.81
9.83
9.78
9.79
9.72
9.75
9.72
9.83
9.83
9.76
9.89
9.91
10
9.96
9.9
9.9
9.99
9.97
9.99
9.94
10
9.98
9.84
9.95
9.96
9.9
9.94
9.85
9.75
9.83
9.68
9.6
9.55
9.47
9.61
9.59
9.58
9.71
9.72
9.76
9.84
9.92
9.88
9.88
10.01
9.93
9.99
9.73
9.79
9.73
9.63
9.67
9.59
9.58
9.73
9.72
9.6
9.71
9.75
9.76
9.78
9.8404
9.85
9.85
9.88
9.88
10.03
9.97
9.94
9.78
9.76
9.67
9.76
9.67
9.59
9.56
9.58
9.58
9.6
9.58
9.57
9.5
9.53
9.5
9.54
9.46
9.5
9.5
9.52
9.54
9.55
9.58
9.56
9.6
9.51
9.51
9.53
9.5
9.55
9.55
9.59
9.63
9.59
9.65
9.59
9.6644
9.64
9.67
9.75
9.69
9.7
9.7
9.71
9.74
9.69
9.7
9.71
9.62
9.73
9.72
9.78
9.73
9.76
9.74
9.77
9.77
9.78
9.82
9.83
9.77
9.81
9.79
9.68
9.57
9.64
9.67
9.7
9.76
9.69
9.68
9.67
9.62
9.68
9.68
9.7
9.71
9.66
9.66
9.77
9.7599
9.77
9/30/06 9.77
FUND SNAPSHOT
------------------------------------
Share Price $9.77
------------------------------------
Net Asset Value $10.22
------------------------------------
Premium/(Discount) to NAV -4.40%
------------------------------------
Market Yield 4.67%
------------------------------------
Taxable-Equivalent Yield1 6.49%
------------------------------------
Net Assets ($000) $126,675
------------------------------------
Average Effective
Maturity on Securities
(Years) 11.38
------------------------------------
Modified Duration 4.24
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/18/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 0.58% 3.05%
------------------------------------
1-Year -0.48% 4.25%
------------------------------------
5-Year 2.69% 3.14%
------------------------------------
10-Year 4.12% 4.05%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Colorado 13.5%
------------------------------------
Illinois 12.5%
------------------------------------
New York 9.3%
------------------------------------
Texas 6.7%
------------------------------------
South Carolina 6.5%
------------------------------------
Pennsylvania 5.5%
------------------------------------
Florida 5.0%
------------------------------------
Arkansas 4.2%
------------------------------------
Washington 4.0%
------------------------------------
Wisconsin 3.8%
------------------------------------
Kansas 2.9%
------------------------------------
Iowa 2.4%
------------------------------------
Alabama 2.1%
------------------------------------
Michigan 2.0%
------------------------------------
Tennessee 1.8%
------------------------------------
California 1.7%
------------------------------------
Connecticut 1.7%
------------------------------------
Other 14.4%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Utilities 19.8%
------------------------------------
Health Care 15.9%
------------------------------------
U.S. Guaranteed 15.1%
------------------------------------
Tax Obligation/Limited 10.3%
------------------------------------
Tax Obligation/General 6.0%
------------------------------------
Transportation 5.5%
------------------------------------
Water and Sewer 5.2%
------------------------------------
Consumer Staples 5.0%
------------------------------------
Long-Term Care 4.8%
------------------------------------
Other 12.4%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. When comparing
this Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a net ordinary income distribution in December
2005 of $0.0014 per share.
9
Shareholder
MEETING REPORT
The shareholder meeting was held on August 1, 2006, at The Northern Trust
Company, 50 South LaSalle Street, Chicago, Illinois 60675.
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
====================================================================================================================================
CLASS I
Lawrence H. Brown
For 11,607,672
Withhold 29,162
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
Timothy R. Schwertfeger
For 11,607,472
Withhold 29,362
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
Judith M. Stockdale
For 11,606,983
Withhold 29,851
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
CLASS II
William C. Hunter
For 11,603,280
Withhold 33,554
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
David J. Kundert
For 11,603,476
Withhold 33,358
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
Eugene S. Sunshine
For 11,603,263
Withhold 33,571
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
CLASS III
Robert P. Bremner
For 11,603,476
Withhold 33,358
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
Jack B. Evans
For 11,603,476
Withhold 33,358
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
William J. Schneider
For 11,607,472
Withhold 29,362
------------------------------------------------------------------------------------------------------------------------------------
Total 11,636,834
====================================================================================================================================
10
Nuveen Select Maturities Municipal Fund (NIM)
Portfolio of
INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.1%
$ 2,000 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 2,127,580
Bonds, Series 2001, 5.750%, 12/01/17
500 Marshall County Healthcare Authority, Alabama, Revenue 1/12 at 101.00 A- 548,770
Bonds, Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Alabama 2,676,350
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.9%
565 Phoenix Industrial Development Authority, Arizona, Statewide 4/08 at 101.50 AAA 581,408
Single Family Mortgage Revenue Bonds, Series 1998C,
6.650%, 10/01/29 (Alternative Minimum Tax)
515 Winslow Industrial Development Authority, Arizona, Hospital No Opt. Call N/R 518,703
Revenue Bonds, Winslow Memorial Hospital, Series 1998,
5.750%, 6/01/08
------------------------------------------------------------------------------------------------------------------------------------
1,080 Total Arizona 1,100,111
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 4.1%
1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA 1,067,170
and 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- 1,521,645
Entergy Arkansas Inc. Project, Series 2006, 4.600%, 10/01/17
1,000 Jonesboro, Arkansas, Industrial Development Revenue Bonds, No Opt. Call A+ 1,047,670
Anheuser Busch Inc. Project, Series 2002, 4.600%, 11/15/12
1,380 North Little Rock, Arkansas, Electric Revenue Refunding Bonds, No Opt. Call AAA 1,590,643
Series 1992A, 6.500%, 7/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,880 Total Arkansas 5,227,128
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 1.7%
2,115 Vernon, California, Electric System Revenue Bonds, Malburg 4/08 at 100.00 Aaa 2,172,105
Generating Station Project, Series 2003C, 5.250%, 4/01/17
(Pre-refunded 4/01/08)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 13.4%
2,895 Centennial Downs Metropolitan District, Colorado, General 12/14 at 100.00 AAA 3,106,451
Obligation Bonds, Series 1999, 5.000%, 12/01/20 -
AMBAC Insured
1,175 Colorado Educational and Cultural Facilities Authority, 12/13 at 100.00 AAA 1,210,227
Charter School Revenue Bonds, Classical Academy,
Series 2003, 4.500%, 12/01/18 - XLCA Insured
1,380 Colorado Educational and Cultural Facilities Authority, 7/12 at 100.00 BBB 1,445,384
Charter School Revenue Bonds, Douglas County School
District RE-1 - DCS Montessori School, Series 2002A,
6.000%, 7/15/22
405 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 AA 410,338
Senior Bonds, Series 2000D-2, 6.900%, 4/01/29 (Alternative
Minimum Tax)
1,025 Denver Health and Hospitals Authority, Colorado, Healthcare 12/11 at 100.00 BBB 1,100,297
Revenue Bonds, Series 2001A, 6.000%, 12/01/23
1,465 Denver West Metropolitan District, Colorado, General Obligation 12/13 at 100.00 AA 1,490,623
Refunding and Improvement Bonds, Series 2003,
4.500%, 12/01/18 - RAAI Insured
1,340 Eagle Bend Metropolitan District 2, Colorado, General 12/14 at 101.00 AA 1,419,261
Obligation Bonds, Series 2004, 5.000%, 12/01/20 -
RAAI Insured
93 El Paso County, Colorado, FNMA Mortgage-Backed Single No Opt. Call Aaa 97,589
Family Revenue Refunding Bonds, Series 1992A-2,
8.750%, 6/01/11
1,750 Erie, Boulder and Weld Counties, Colorado, Water Enterprise 12/08 at 100.00 A 1,768,882
Revenue Bonds, Series 1998, 5.000%, 12/01/23 - ACA Insured
70 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 74,740
Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 -
FSA Insured
11
Nuveen Select Maturities Municipal Fund (NIM) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 5,875 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 38.04 AAA $ 1,831,649
Senior Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/27 -
AMBAC Insured
2,845 University of Colorado Hospital Authority, Revenue Bonds, 11/11 at 100.00 Baa1 3,011,546
Series 2001A, 5.600%, 11/15/21
------------------------------------------------------------------------------------------------------------------------------------
20,318 Total Colorado 16,966,987
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.6%
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
500 5.500%, 1/01/14 (Alternative Minimum Tax) 1/07 at 100.00 BBB 502,400
1,570 5.500%, 1/01/15 (Alternative Minimum Tax) 11/06 at 100.00 BBB 1,587,505
------------------------------------------------------------------------------------------------------------------------------------
2,070 Total Connecticut 2,089,905
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.6%
685 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 695,117
Series 1993A, 6.000%, 6/01/07 - MBIA Insured
85 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 86,409
Series 1993A, 6.000%, 6/01/07 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
770 Total District of Columbia 781,526
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.8%
2,400 Deltona, Florida, Utility Systems Water and Sewer Revenue 10/13 at 100.00 AAA 2,613,048
Bonds, Series 2003, 5.250%, 10/01/17 - MBIA Insured
2,000 Orange County, Florida, Tourist Development Tax Revenue 10/15 at 100.00 AAA 2,144,520
Bonds, Series 2005, 5.000%, 10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,400 Total Florida 4,757,568
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.4%
845 Chicago, Illinois, Tax Increment Allocation Bonds, Irving/Cicero 1/09 at 100.00 N/R 887,808
Redevelopment Project, Series 1998, 7.000%, 1/01/14
1,500 Cook County Township High School District 208, Illinois, 12/15 at 100.00 Aaa 1,607,595
General Obligation Bonds, Series 2006, 5.000%, 12/01/21 -
MBIA Insured
4,905 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 4,979,409
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 BBB- 2,141,840
Bonds, Olin Corporation, Series 1993D, 6.750%, 3/01/16
2,000 Illinois Educational Facilities Authority, Revenue Bonds, Art 3/14 at 102.00 A1 2,035,380
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 Baa3 (3) 1,150,580
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.625%, 5/01/17
(Pre-refunded 5/01/12)
695 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/09 at 101.00 A 721,646
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 (3) 546,075
Cross Hospital and Medical Centers, Series 1999,
5.500%, 8/15/19 (Pre-refunded 8/15/09)
1,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/06 at 100.00 A+ 1,017,660
Edward Hospital, Series 1993A, 6.000%, 2/15/19
585 Illinois Housing Development Authority, Section 8 Elderly 11/06 at 100.00 A 585,608
Housing Revenue Bonds, Skyline Towers Apartments,
Series 1992B, 6.625%, 11/01/07
------------------------------------------------------------------------------------------------------------------------------------
15,045 Total Illinois 15,673,601
------------------------------------------------------------------------------------------------------------------------------------
12
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 0.8%
$ 1,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AA $ 1,010,060
Series 1992D, 6.600%, 2/01/07
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.4%
1,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 1,065,630
Medical Center, Series 2000, 6.250%, 7/01/25
1,800 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 1,927,584
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
2,800 Total Iowa 2,993,214
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.9%
3,500 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 3,700,340
Improvement Bonds, Via Christi Health System Inc.,
Series 2001-III, 5.500%, 11/15/21
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.6%
1,965 Kentucky Housing Corporation, Housing Revenue Bonds, 1/15 at 100.60 AAA 2,035,406
Series 2005G, 5.000%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.9%
1,100 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,112,111
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.2%
1,475 Massachusetts Housing Finance Agency, Rental Housing 7/10 at 100.00 AAA 1,577,277
Mortgage Revenue Bonds, Series 2000H, 6.650%, 7/01/41 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0%
1,000 Cornell Township Economic Development Corporation, 5/12 at 100.00 AAA 1,115,120
Michigan, Environmental Improvement Revenue Refunding
Bonds, MeadWestvaco Corporation-Escanaba Project,
Series 2002, 5.875%, 5/01/18 (Pre-refunded 5/01/12)
353 Michigan State Hospital Finance Authority, Collateralized No Opt. Call N/R 353,788
Loan, Detroit Medical Center, Series 2001, 7.360%, 3/01/07
600 Michigan State Hospital Finance Authority, Hospital Revenue 1/07 at 101.00 Ba3 609,756
Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16
470 Michigan State Hospital Finance Authority, Revenue 11/06 at 100.00 BB- 470,790
Refunding Bonds, Detroit Medical Center, Series 1988A,
8.125%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
2,423 Total Michigan 2,549,454
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.9%
1,000 White Earth Band of Chippewa Indians, Minnesota, Revenue No Opt. Call A 1,084,010
Bonds, Series 2000A, 7.000%, 12/01/11 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.8%
1,000 Dodge County School District 1, Nebraska, Fremont Public 12/14 at 100.00 Aaa 1,069,710
Schools, General Obligation Bonds, Series 2004,
5.000%, 12/15/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.3%
1,000 Dormitory Authority of the State of New York, Revenue 7/13 at 100.00 AA 1,094,470
Bonds, Brooklyn Law School, Series 2003A, 5.500%, 7/01/15 -
RAAI Insured
1,500 New York State Energy Research and Development Authority, 11/06 at 100.00 A1 1,500,675
Facilities Revenue Bonds, Consolidated Edison Company Inc.,
Series 2001A, 4.700%, 6/01/36 (Mandatory put 10/01/12)
(Alternative Minimum Tax)
645 New York State Medical Care Facilities Finance Agency, 2/07 at 101.00 AA+ 659,003
FHA-Insured Mortgage Hospital and Nursing Home Revenue
Bonds, Series 1995C, 6.100%, 8/15/15
2,130 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,239,248
Water Treatment Plant Bonds, Series 1994, 8.500%, 11/01/07 -
MBIA Insured (Alternative Minimum Tax) (ETM)
13
Nuveen Select Maturities Municipal Fund (NIM) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 4,300 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA $ 5,027,988
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,575 Total New York 10,521,384
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6%
1,880 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 AAA 2,020,060
Series 2003, 5.000%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.8%
1,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, No Opt. Call A+ 1,026,960
Cargill Inc., Series 2004B, 4.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.9%
1,150 Oklahoma State Industries Authority, Health System Revenue 2/07 at 102.00 AAA 1,173,057
Refunding Bonds, Baptist Medical Center, Series 1995D,
5.000%, 8/15/14 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.4%
1,205 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,390,775
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15 (ETM)
4,120 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/14 at 100.00 AAA 4,435,757
Eighteenth Series 2004, 5.000%, 8/01/15 - AMBAC Insured
1,000 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,059,670
Series 2005A, 5.000%, 9/01/11 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,325 Total Pennsylvania 6,886,202
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.5%
750 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 791,393
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 AAA 1,954,737
Revenue Bonds, Series 1991, 6.750%, 1/01/19 -
FGIC Insured (ETM)
2,835 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 3,551,291
Revenue Bonds, Series 1991, 6.750%, 1/01/19 - FGIC Insured
1,260 South Carolina JOBS Economic Development Authority, Hospital No Opt. Call Baa2 (3) 1,373,350
Revenue Bonds, Palmetto Health Alliance, Series 2000A,
7.000%, 12/15/10 (ETM)
500 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 531,180
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
6,885 Total South Carolina 8,201,951
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.8%
Shelby County Health, Educational and Housing Facilities Board,
Tennessee, Hospital Revenue Bonds, Methodist Healthcare, Series
2002:
750 6.000%, 9/01/17 (Pre-refunded 9/01/12) 9/12 at 100.00 A- (3) 845,423
1,250 6.000%, 9/01/17 (Pre-refunded 9/01/12) 9/12 at 100.00 A- (3) 1,409,038
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Tennessee 2,254,461
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.6%
1,055 Austin, Texas, General Obligation Bonds, Series 2004, 9/14 at 100.00 AAA 1,122,678
5.000%, 9/01/20 - MBIA Insured
2,000 Brazos River Authority, Texas, Collateralized Revenue Refunding 6/14 at 100.00 AAA 2,032,260
Bonds, CenterPoint Energy Inc., Series 2004B,
4.250%, 12/01/17 - FGIC Insured
1,875 Denton Independent School District, Denton County, Texas, 8/16 at 100.00 AAA 2,019,544
General Obligation Bonds, Series 2006, 5.000%, 8/15/20
115 Galveston Property Finance Authority Inc., Texas, Single Family 3/07 at 100.00 A3 117,206
Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11
14
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 2,500 Matagorda County Navigation District 1, Texas, Pollution No Opt. Call BBB $ 2,501,250
Control Revenue Refunding Bonds, Central Power and Light
Company, Series 2001A, 4.550%, 11/01/29 (Mandatory
put 11/01/06)
200 Travis County Health Facilities Development Corporation, 11/06 at 100.00 Aaa 200,528
Texas, Hospital Revenue Bonds, Daughters of Charity
National Health System, Series 1993B, 5.900%, 11/15/07 (ETM)
415 Tri-County Mental Health and Retardation Center, Texas, 3/07 at 100.00 AAA 419,362
Revenue Bonds, Facilities Acquisition Program, Series 1995E,
6.500%, 3/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,160 Total Texas 8,412,828
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.5%
1,875 Bountiful, Davis County, Utah, Hospital Revenue Refunding No Opt. Call N/R 1,939,125
Bonds, South Davis Community Hospital Project, Series 1998,
6.000%, 12/15/10
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.0%
Washington Public Power Supply System, Revenue Refunding
Bonds, Nuclear Project 1, Series 1993A:
1,340 7.000%, 7/01/07 (ETM) No Opt. Call Aaa 1,374,920
1,130 7.000%, 7/01/08 (ETM) No Opt. Call Aaa 1,195,992
Washington Public Power Supply System, Revenue Refunding
Bonds, Nuclear Project 1, Series 1993A:
160 7.000%, 7/01/07 No Opt. Call Aaa 164,026
1,870 7.000%, 7/01/08 No Opt. Call AAA 1,976,272
295 Washington Public Power Supply System, Revenue Refunding No Opt. Call AAA 369,243
Bonds, Nuclear Project 3, Series 1989B, 7.125%, 7/01/16 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,795 Total Washington 5,080,453
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.6%
2,000 Harrison County Commission, West Virginia, Solid Waste 11/06 at 100.00 AAA 2,005,080
Disposal Revenue Bonds, West Penn Power Company,
Series 1994C, 6.750%, 8/01/24 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.8%
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
845 6.125%, 6/01/27 6/12 at 100.00 BBB 906,237
1,480 6.375%, 6/01/32 6/12 at 100.00 BBB 1,601,301
1,000 Wisconsin Health and Educational Facilities Authority, 7/11 at 100.00 A- 1,068,570
Revenue Bonds, Agnesian Healthcare Inc., Series 2001,
6.000%, 7/01/21
1,150 Wisconsin Health and Educational Facilities Authority, 2/09 at 101.00 A 1,185,236
Revenue Bonds, Aurora Health Care Inc., Series 1999A,
5.500%, 2/15/20 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,475 Total Wisconsin 4,761,344
------------------------------------------------------------------------------------------------------------------------------------
$ 119,561 Total Long-Term Investments (cost $119,211,743) - 96.9% 122,859,768
=============-----------------------------------------------------------------------------------------------------------------------
15
Nuveen Select Maturities Municipal Fund (NIM) (continued)
Portfolio of INVESTMENTS September 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.1%
$ 1,500 Jacksonville Health Facilities Authority, Florida, Revenue A-1+ $ 1,500,000
Bonds, Baptist Medical Center, Variable Rate Demand
Obligations, Series 2003A, 3.840%, 8/15/33 (4)
1,100 New York City Municipal Water Finance Authority, A-1+ 1,100,000
New York, Water and Sewerage System Revenue Bonds,
Variable Rate Demand Obligations, Fiscal Series 1994C,
3.780%, 6/15/23 - FGIC Insured (4)
------------------------------------------------------------------------------------------------------------------------------------
$ 2,600 Total Short-Term Investments (cost $2,600,000) 2,600,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $121,811,743) - 99.0% 125,459,768
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 1,215,161
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 126,674,929
====================================================================================================================
(1) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(2) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
16
Statement of
ASSETS AND LIABILITIES September 30, 2006 (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $121,811,743) $125,459,768
Cash 102,104
Receivables:
Interest 2,043,778
Investments sold 215,438
Other assets 2,477
------------------------------------------------------------------------------------------------------------------------------------
Total assets 127,823,565
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 1,064,253
Accrued expenses:
Management fees 50,473
Other 33,910
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,148,636
------------------------------------------------------------------------------------------------------------------------------------
Net assets $126,674,929
====================================================================================================================================
Shares outstanding 12,396,406
====================================================================================================================================
Net asset value per share outstanding (net assets divided by shares outstanding) $ 10.22
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 123,964
Paid-in surplus 138,329,233
Undistributed (Over-distribution of) net investment income (105,869)
Accumulated net realized gain (loss) from investments (15,320,424)
Net unrealized appreciation (depreciation) of investments 3,648,025
------------------------------------------------------------------------------------------------------------------------------------
Net assets $126,674,929
====================================================================================================================================
Authorized shares Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
17
Statement of
OPERATIONS Six Months Ended September 30, 2006 (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $3,215,243
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 307,033
Shareholders' servicing agent fees and expenses 6,000
Custodian's fees and expenses 22,605
Trustees' fees and expenses 1,216
Professional fees 5,505
Shareholders' reports - printing and mailing expenses 17,942
Stock exchange listing fees 4,927
Investor relations expense 9,901
Other expenses 3,458
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 378,587
Custodian fee credit (11,692)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 366,895
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,848,348
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (21,682)
Change in net unrealized appreciation (depreciation) of investments 910,822
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 889,140
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $3,737,488
====================================================================================================================================
See accompanying notes to financial statements.
18
Statement of
CHANGES IN NET ASSETS (Unaudited)
SIX MONTHS ENDED YEAR ENDED
9/30/06 3/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,848,348 $ 5,950,169
Net realized gain (loss) from investments (21,682) (21,565)
Change in net unrealized appreciation (depreciation) of investments 910,822 (838,865)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 3,737,488 5,089,739
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (2,919,353) (5,892,915)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (2,919,353) (5,892,915)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued to shareholders due to reinvestment of distributions -- 14,771
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions -- 14,771
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 818,135 (788,405)
Net assets at the beginning of period 125,856,794 126,645,199
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $126,674,929 $125,856,794
====================================================================================================================================
Undistributed (Over-distribution of) net investment income at the end of period $ (105,869) $ (34,864)
====================================================================================================================================
See accompanying notes to financial statements.
19
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The fund covered in this report and its corresponding New York Stock Exchange
symbol is Nuveen Select Maturities Municipal Fund (NIM) (the "Fund"). The Fund
is registered under the Investment Company Act of 1940, as amended, as a
closed-end, diversified management investment company.
The Fund seeks to provide current income exempt from regular federal income tax,
consistent with the preservation of capital by investing in a diversified,
investment-grade quality portfolio of municipal obligations with intermediate
characteristics. In managing its portfolio, the Fund has purchased municipal
obligations having remaining effective maturities of no more than fifteen years
with respect to 80% of its total assets that, in the opinion of the Adviser,
represent the best value in terms of the balance between yield and capital
preservation currently available from the intermediate sector of the municipal
market. The Adviser will actively monitor the effective maturities of the Fund's
investments in response to prevailing market conditions, and will adjust its
portfolio consistent with its investment policy of maintaining an average
effective remaining maturity of twelve years or less.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in the Fund's investment portfolio are provided by
a pricing service approved by the Fund's Board of Trustees. When market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair value based on yields or
prices of municipal bonds of comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities dealers, evaluations of
anticipated cash flows or collateral and general market conditions. If the
pricing service is unable to supply a price for a municipal bond, the Fund may
use a market price or fair market value quote provided by a major broker/dealer
in such investments. If it is determined that the market price or fair market
value for an investment is unavailable or inappropriate, the Board of Trustees
of the Fund, or its designee, may establish a fair value for the investment.
Temporary investments in securities that have variable rate and demand features
qualifying them as short-term investments are valued at amortized cost, which
approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Fund has instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At September 30, 2006, 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 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 income tax, 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.
20
Dividends and Distributions to Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, if any, are recorded on the ex-dividend
date. The amount and timing of distributions are determined in accordance with
federal income tax regulations, which may differ from U.S. generally accepted
accounting principles.
Derivative Financial Instruments
The Fund is authorized to invest in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Fund is authorized to
invest in such financial instruments, and may do so in the future, it did not
make any such investments during the six months ended September 30, 2006.
Custodian Fee Credit
The Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on the Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Fund's organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, in the normal course of business, the Fund
enters into contracts that provide general indemnifications to other parties.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. FUND SHARES
The Fund did not engage in transactions in its own shares during the six months
ended September 30, 2006. During the fiscal year ended March 31, 2006, 1,429
shares were issued to shareholders due to reinvestment of distributions.
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended September 30, 2006, aggregated $12,237,946 and
$14,272,987, respectively.
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their Federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Fund.
At September 30, 2006, the cost of investments was $121,767,613.
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2006, were as follows:
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $4,116,084
Depreciation (423,929)
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $3,692,155
================================================================================
21
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at March 31, 2006, the Fund's last tax year end,
were as follows:
--------------------------------------------------------------------------------
Undistributed net tax-exempt income * $353,483
Undistributed net ordinary income ** 63,950
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 1, 2006, paid on April 3, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Fund's last tax year ended
March 31, 2006, was designated for purposes of the dividends paid deduction as
follows:
--------------------------------------------------------------------------------
Distributions from net tax-exempt income $5,875,503
Distributions from net ordinary income ** 17,355
Distributions from net long-term capital gains --
================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At March 31, 2006, the Fund's last tax year end, the Fund had unused capital
loss carryforwards of $15,295,532 available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, $14,922 of the
carryforward will expire in the year 2010, $6,523,386 will expire in 2011,
$8,737,799 will expire in 2012, $4,977 will expire in 2013 and $14,448 will
expire in 2014.
The Fund elected to defer $5,016 of net realized losses from investments
incurred from November 1, 2005 through March 31, 2006 ("post-October losses") in
accordance with Federal income tax regulations. The post-October losses are
treated as having arisen on the first day of the current fiscal year.
5. MANAGEMENT FEE 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 Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., ("Nuveen") and a specific fund-level component, based only on
the amount of assets within the Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within the 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
================================================================================
22
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of September 30, 2006, the complex-level fee rate was .1857%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The 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.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
Financial Accounting Standards Board Statement on Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of September 30, 2006, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENT
Distributions to Shareholders
The Fund declared a dividend distribution of $.0380 per share from its
tax-exempt net investment income which was paid on November 1, 2006, to
shareholders of record on October 15, 2006.
23
Financial
HIGHLIGHTS (Unaudited)
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:
2007(b) $10.15 $.23 $ .08 $.31 $(.24) $ -- $(.24) $10.22 $9.77
2006 10.22 .48 (.07) .41 (.48) -- (.48) 10.15 9.95
2005 10.35 .49 (.14) .35 (.48) -- (.48) 10.22 9.30
2004 10.34 .51 -- .51 (.50) -- (.50) 10.35 9.93
2003(a) 10.57 .43 (.22) .21 (.44) -- (.44) 10.34 9.85
Year Ended 5/31:
2002 11.21 .57 (.57) -- (.61) (.03) (.64) 10.57 10.45
2001 11.16 .62 .06 .68 (.63) -- (.63) 11.21 10.87
====================================================================================================================================
TOTAL RETURNS RATIOS/SUPPLEMENTAL DATA
------------------------ ------------------------------------------------------------------------------------
BEFORE CREDIT AFTER CREDIT**
---------------------------- ----------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
BASED ON BASED ON ENDING EXPENSES TO INCOME TO EXPENSES TO INCOME TO PORTFOLIO
MARKET NET ASSET NET ASSETS AVERAGE AVERAGE AVERAGE AVERAGE TURNOVER
VALUE+ VALUE+ (000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2007(b) .58% 3.05% $126,675 .60%* 4.51%* .58%* 4.53%* 10%
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
2004 6.03 5.09 128,335 .63 4.92 .62 4.93 13
2003(a) (1.48) 2.03 128,106 .65* 4.95* .65* 4.96* 6
Year Ended 5/31:
2002 1.87 (.06) 130,959 .69 5.23 .68 5.23 48
2001 13.15 6.19 138,804 .64 5.50 .61 5.53 35
====================================================================================================================================
* Annualized.
** After custodian fee credit.
+ Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Net Asset Value is the
combination of changes in net asset value, reinvested dividend income at
net asset value and reinvested capital gains distributions at net asset
value, if any. Total returns are not annualized.
(a) For the period June 1, 2002 through March 31, 2003.
(b) For the six months ended September 30, 2006.
See accompanying notes to financial statements.
24-25 SPREAD
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
The Board of Trustees is responsible for overseeing the performance of the
investment adviser to the Fund and determining whether to continue the advisory
arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the
Board of Trustees of the Fund, including the independent Trustees, unanimously
approved the continuance of the Investment Management Agreement between the Fund
and NAM (the "Fund Adviser").
THE APPROVAL PROCESS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Adviser and the performance of the
Fund. To assist the Board in its evaluation of the advisory contract with the
Fund Adviser at the May Meeting, the independent Trustees received extensive
materials in advance of their meeting which outlined, among other things:
o the nature, extent and quality of services provided by the Fund
Adviser;
o the organization and business operations of the Fund Adviser,
including the responsibilities of various departments and key
personnel;
o the Fund's past performance, the Fund's performance compared to funds
of similar investment objectives compiled by an independent third
party and to customized benchmarks;
o the profitability of the Fund Adviser and certain industry
profitability analyses for unaffiliated advisers;
o the expenses of the Fund Adviser in providing the various services;
o the advisory fees (gross and net management fees) and total expense
ratios of the Fund, including comparisons of such fees and expenses
with those of comparable, unaffiliated funds based on information and
data provided by Lipper (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") to the
Fund (as applicable);
o the advisory fees the Fund Adviser assesses to other types of
investment products or clients;
o the soft dollar practices of the Fund Adviser, if any; and
o from independent legal counsel, a legal memorandum describing, among
other things, the duties of the Trustees under the Investment Company
Act of 1940 (the "1940 Act") as well as the general principles of
relevant state law in reviewing and approving advisory contracts; the
requirements of the 1940 Act in such matters; an adviser's fiduciary
duty with respect to advisory agreements and compensation; the
standards used by courts in determining whether investment company
boards of directors have fulfilled their duties; and factors to be
considered by the Board in voting on advisory agreements.
At the May Meeting, the Fund Adviser made a presentation to and responded to
questions from the Board. After the presentations and after reviewing the
written materials, the independent Trustees met privately with their legal
counsel to review the Board's duties in reviewing advisory contracts and
consider the renewal of the advisory contracts. It is with this background that
the Trustees considered the advisory contract with the Fund Adviser. The
independent Trustees, in consultation with independent counsel, reviewed the
factors set out in judicial decisions and SEC directives relating to the renewal
of advisory contracts. As outlined in more detail below, the Trustees considered
all factors they believed relevant with respect to the Fund, including the
following: (a) the nature, extent and quality of the services to be provided by
the Fund Adviser; (b) the investment performance of the Fund and the Fund
Adviser; (c) the costs of the services to be provided and profitability of the
Fund Adviser and its affiliates; (d) the extent to which economies of scale
would be realized as the Fund grows; and (e) whether fee levels reflect these
economies of scale for the benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the Fund Adviser, the Trustees considered the nature, extent and
quality of the Fund Adviser's services. The Trustees reviewed materials
outlining, among other things, the Fund Adviser's organization and business; the
types of services that the Fund Adviser or its affiliates provide and are
expected to provide to the Fund; the performance record of the Fund (as
described in further detail below); and any initiatives and enhancements Nuveen
has taken for its municipal fund product line. In connection with their
continued service as Trustees, the Trustees also have a good understanding of
the Fund Adviser's organization, operations and personnel. In this regard, the
Trustees are familiar with and have evaluated the professional experience,
qualifications and credentials of the Fund Adviser's personnel. The Trustees
further reviewed materials describing, among other things, the teams and
personnel involved in the investment, research, risk-management and operational
processes involved in managing municipal funds and their
26
respective functions. Given the Trustees' experience with the Fund and Fund
Adviser, the Trustees recognized the demonstrated history of care and depth of
experience of the respective personnel in managing this Fund. In this regard,
the Trustees considered the continued quality of the Fund Adviser's investment
process in making portfolio management decisions as well as additional
refinements and improvements adopted to the portfolio management processes noted
below. With respect to the services provided to municipal funds, including the
Fund, the Trustees noted that the Fund Adviser continues to make refinements to
its portfolio management process including, among other things, the increased
use of derivatives to enhance management of risk, additional analytical software
for research staff and improved municipal pricing processes.
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. The Fund
Adviser provides the Fund with such administrative and other services (exclusive
of, and in addition to, any such services provided by others for the Fund) and
officers and other personnel as are necessary for the operations of the Fund. In
connection with the review of the Investment Management Agreement, the Trustees
considered the extent and quality of these other services which include, among
other things, providing: product management (e.g., product positioning,
performance benchmarking, risk management); fund administration (e.g., daily net
asset value pricing and reconciliation, tax reporting, fulfilling regulatory
filing requirements); oversight of third party service providers; administration
of board relations (e.g., organizing board meetings and preparing related
materials); compliance (e.g., monitoring compliance with investment policies and
guidelines and regulatory requirements); and legal support (e.g., helping
prepare and file registration statements, amendments thereto, proxy statements
and responding to regulatory requests and/or inquiries). As the Fund operates in
a highly regulated industry and given the importance of compliance, the Trustees
considered, in particular, the additions of experienced personnel to the
compliance teams and the enhancements to technology and related systems to
support the compliance activities for the Fund (including a new reporting system
for quarterly portfolio holdings).
In addition to the foregoing, the Trustees also noted the additional services
that the Fund Adviser or its affiliates provide to closed-end funds, including,
in particular, secondary market support activities. The Trustees recognized
Nuveen's continued commitment to supporting the secondary market for the common
shares of its closed-end funds through a variety of initiatives designed to
raise investor and analyst awareness and understanding of closed-end funds.
These efforts include providing advertising and other media relations programs,
continued contact with analysts, maintaining and enhancing its website for
closed-end funds, and targeted advisor communication programs. With respect to
funds that utilize leverage through the issuance of preferred shares, the
Trustees noted Nuveen's continued support for the preferred shares by
maintaining, among other things, an in-house preferred trading desk; designating
a product manager whose responsibilities include creating and disseminating
product information and managing relations in connection with the preferred
share auction; and maintaining systems necessary to test compliance with rating
agency requirements.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the Fund under the
Investment Management Agreement were of a high level and were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISER
The Board considered the investment performance for the Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"Performance Peer Group") and portfolio level performance against customized
benchmarks, as described below. In evaluating the performance information, in
certain instances, the Trustees noted that the closest Performance Peer Group
for a fund still may not adequately reflect such fund's investment objectives,
strategies and portfolio duration, thereby limiting the usefulness of the
comparisons of such fund's performance with that of the Performance Peer Group.
With respect to state specific municipal funds, the Trustees recognized that
certain state municipal funds do not have a corresponding state specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. The closed-end state
municipal funds that do not have corresponding state-specific Performance Peer
Groups are from Arizona, Connecticut, Georgia, Maryland, Massachusetts,
Missouri, North Carolina, Ohio, Texas, and Virginia. Further, due to a lack of
state-specific unleveraged categories, certain unleveraged state municipal funds
are included in their leveraged state category (such as, the Nuveen California
Select Tax-Free Income Fund, Nuveen California Municipal Value Fund, Nuveen New
York Select Tax-Free Income Fund and Nuveen New York Municipal Value Fund).
In reviewing performance, the Trustees reviewed performance information
including, among other things, total return information compared with the Fund's
Performance Peer Group for the one-, three- and five-year periods (as
applicable) ending December 31, 2005. The Trustees also reviewed the Fund's
portfolio level performance (which does not reflect fund level fees and
expenses) compared to customized portfolio-level benchmarks for the one- and
three-year periods ending December 31, 2005 (as applicable). This analysis is
designed to assess the efficacy of investment decisions against appropriate
measures of risk and total return, within specific market segments. This
information supplements the Fund performance information provided to the Board
at each of their quarterly meetings. Based on their review, the Trustees
determined that the Fund's absolute and relative investment performance over
time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses of the Fund, the Board
reviewed, among other things, the Fund's advisory fees (net and gross
management fees) and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as comparisons to
the gross management fees (before waivers), net management fees (after
waivers) and total expense ratios (before and after waivers) of comparable
funds in the Peer Universe and the Peer Group. The Trustees reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance analysis.
In certain cases, due to the small number of peers in the Peer Universe,
the Peer Universe and Peer Group may be the same. Further, the Trustees
recognized that in certain cases the closest Peer Universe and/or Peer
Group did not adequately
27
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
reflect the Fund's investment objectives and strategies limiting the
usefulness of comparisons. In reviewing comparisons, the Trustees also
considered the size of the Peer Universe and/or Peer Group, the composition
of the Peer Group (including differences in the use of leverage and
insurance) as well as differing levels of fee waivers and/or expense
reimbursements. In this regard, the Trustees considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain funds launched since 1999). Based on their review
of the fee and expense information provided, the Trustees determined that
the Fund's net total expense ratio was within an acceptable range compared
to peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further reviewed data comparing the advisory fees of the Fund
Adviser with fees the Fund Adviser charges to other clients, including
municipal managed accounts. In general, the fees charged for separate
accounts are somewhat lower than the fees assessed to the Fund. The
Trustees recognized that the differences in fees are attributable to a
variety of factors, including the differences in services provided, product
distribution, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Trustees noted, in particular, that
the range of services provided to the Fund is more extensive than that
provided to managed separate accounts. As described in further detail
above, such additional services include, but are not limited to, providing:
product management, fund administration, oversight of third party service
providers, administration of board relations, and legal support. Funds
further operate in a highly regulated industry requiring extensive
compliance functions compared to the other investment products. In addition
to the costs of the additional services, administrative costs may also be
greater for funds as the average account size for separate accounts is
notably larger than the retail accounts of funds. Given the differences in
the product structures, particularly the extensive services provided to
closed-end municipal funds, the Trustees believe such facts justify the
different levels of fees.
3. PROFITABILITY OF FUND ADVISER
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees
reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profits margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen. The Trustees further reviewed the 2005
Annual Report for Nuveen Investments. In considering profitability, the
Trustees recognized the inherent limitations in determining profitability
as well as the difficulties in comparing the profitability of other
unaffiliated advisers. Profitability may be affected by numerous factors,
including the methodology for allocating expenses, the adviser's business
mix, the types of funds managed, the adviser's capital structure and cost
of capital. Further, individual fund or product line profitability of other
sponsors is generally not publicly available. Accordingly, the
profitability information that is publicly available from various
investment advisory or management firms may not be representative of the
industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In this regard, the methods of allocation used
appeared reasonable. The Trustees also, to the extent available, compared
Nuveen's profitability margins (including pre- and post-marketing profit
margins) with the profitability of various unaffiliated management firms. The
Trustees noted that Nuveen's profitability is enhanced due to its efficient
internal business model. The Trustees also recognized that while a number of
factors affect profitability, Nuveen's profitability may change as fee waivers
and/or expense reimbursement commitments of Nuveen to various funds in the
Nuveen complex expire. To keep apprised of profitability and developments that
may affect profitability, the Trustees have requested profitability analysis be
provided periodically during the year. Based on their review, the Trustees were
satisfied that the Fund Adviser's level of profitability was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to the Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser and its
affiliates are expected to receive that are directly attributable to their
management of the Fund, if any. See Section E below for additional information.
Based on their review of the overall fee arrangements of the Fund, the Trustees
determined that the advisory fees and expenses of the Fund were reasonable.
28
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Trustees have reviewed and considered the breakpoints in the advisory fee
schedules that reduce advisory fees as the Fund's assets grow. In addition to
advisory fee breakpoints as assets in the Fund rise, after lengthy discussions
with management, the Board also approved a complex-wide fee arrangement that was
introduced on August 1, 2004. Pursuant to the complex-wide fee arrangement, the
fees of the funds in the Nuveen complex, including the Fund, are reduced as the
assets in the fund complex reach certain levels. In evaluating the complex-wide
fee arrangement, the Trustees considered, among other things, the historic and
expected fee savings to shareholders as assets grow, the amount of fee
reductions at various asset levels, and that the arrangement would extend to all
funds in the Nuveen complex. The Trustees noted that 2005 was the first full
year to reflect the fee reductions from the complex wide fee arrangement. The
Trustees also considered the impact, if any, the complex-wide fee arrangement
may have on the level of services provided. Based on their review, the Trustees
concluded that the breakpoint schedule and complex-wide fee arrangement
currently was acceptable and desirable in providing benefits from economies of
scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits the Fund Adviser or its affiliates may receive as a result of its
relationship with the Fund. In this regard, the Trustees considered revenues
received by affiliates of the Fund Adviser for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Trustees noted that NAM does not currently have any soft dollar arrangements and
does not pay excess brokerage commissions (or spreads on principal transactions)
in order to receive research services; however, the Fund Adviser may from time
to time receive and have access to research generally provided to institutional
clients.
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the Fund Adviser's fees are reasonable in light of the
services provided to the Fund, and that the renewal of the Investment Management
Agreement should be approved.
29
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
30
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the "Plan") as further described below effective with the
close of business on January 2, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, 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. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
31
Notes
32
Notes
33
Notes
34
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
MODIFIED DURATION: Duration is a measure of the expected period over which a
bond's principal and interest will be paid and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market interest
rates change. Generally, the longer a bond's or Fund's duration, the more the
price of the bond or Fund will change as interest rates change.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
The Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. No shares were
repurchased during the period covered by this report. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
35
Photo of: 2 women looking at a photo album.
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.
Managing more than $149 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-A-0906D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: 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/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: December 6, 2006
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: December 6, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 6, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.