Nuveen Select Tax-Free Income Portfolio 2

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-06622

Nuveen Select Tax-Free Income Portfolio 2

(Exact name of registrant as specified in charter)

Nuveen Investments

    333 West Wacker Drive, Chicago, Illinois 60606    

(Address of principal executive offices) (Zip code)

Gifford R. Zimmerman

Vice President and Secretary

    333 West Wacker Drive, Chicago, Illinois 60606    

(Name and address of agent for service)

Registrant’s telephone number, including area code:     312-917-7700    

Date of fiscal year end: March 31      

Date of reporting period: June 30, 2017

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

 

 

Item 1. Schedule of Investments

 

 

NXQ
Nuveen Select Tax-Free Income Portfolio 2
Portfolio of Investments June 30, 2017 (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    LONG-TERM INVESTMENTS – 97.4%        
    MUNICIPAL BONDS – 97.3%        
    Alaska – 0.4%        
$ 1,000   Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32   9/17 at 100.00 B3 $ 979,990
    Arizona – 3.6%        
2,500   Arizona Health Facilities Authority, Hospital Revenue Bonds, Catholic Healthcare West, Series 2011B-1&2, 5.250%, 3/01/39   3/21 at 100.00 A 2,706,625
1,590   Arizona Water Infrastructure Finance Authority, Water Quality Revenue Bonds, Series 2008A, 5.000%, 10/01/20   10/18 at 100.00 AAA 1,669,261
365   Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, Paradise Schools Projects, Series 2016, 2.875%, 7/01/21   No Opt. Call BB+ 357,700
1,000   Maricopa County Industrial Development Authority, Arizona, Revenue Bonds, Banner Health, Refunding Series 2016A, 5.000%, 1/01/38   1/27 at 100.00 AA- 1,158,920
600   Pima County Industrial Development Authority, Arizona, Revenue Bonds, Tucson Electric Power Company, Series 2010A, 5.250%, 10/01/40   10/20 at 100.00 A- 644,016
2,250   Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc. Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37   No Opt. Call BBB+ 2,688,120
215   Sedona Wastewater Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Series 1998, 0.000%, 7/01/20  –  NPFG Insured   No Opt. Call A 201,778
8,520   Total Arizona       9,426,420
    California – 16.2%        
1,000   Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Subordinate Lien Series 2004A, 5.450%, 10/01/25 (Pre-refunded 10/01/17)  –  AMBAC Insured   10/17 at 100.00 Aaa (4) 1,011,680
11,000   Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Capital Appreciation Series 2009B, 0.000%, 8/01/41  –  AGC Insured   No Opt. Call AA 4,277,680
1,500   California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 5.600%, 6/01/36   12/18 at 100.00 B3 1,536,165
60   California State, General Obligation Bonds, Series 1997, 5.000%, 10/01/18  –  AMBAC Insured   9/17 at 100.00 AA- 60,212
2,500   California Statewide Community Development Authority, Health Revenue Bonds, Enloe Medical Center, Refunding Series 2008A, 6.250%, 8/15/28 (Pre-refunded 8/15/18)   8/18 at 100.00 AA- (4) 2,650,725
2,440   Eureka Unified School District, Humboldt County, California, General Obligation Bonds, Series 2002, 0.000%, 8/01/27  –  AGM Insured   No Opt. Call AA 1,853,107
3,290   Folsom Cordova Unified School District, Sacramento County, California, General Obligation Bonds, School Facilities Improvement District 4, Series 2007A, 0.000%, 10/01/24  –  NPFG Insured   No Opt. Call AA- 2,801,172
1,000   Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47   9/17 at 100.00 B- 999,930
3,030   Grossmont Union High School District, San Diego County, California, General Obligation Bonds, Series 2006, 0.000%, 8/01/25  –  NPFG Insured   No Opt. Call Aa2 2,526,202

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    California (continued)        
$ 1,495   Huntington Beach Union High School District, Orange County, California, General Obligation Bonds, Series 2007, 0.000%, 8/01/33  –  FGIC Insured   No Opt. Call Aa2 $836,826
1,160   Mount San Antonio Community College District, Los Angeles County, California, General Obligation Bonds, Election of 2008, Series 2013A, 0.000%, 8/01/43 (5)   8/35 at 100.00 Aa1 902,608
450   M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009C, 6.500%, 11/01/39   No Opt. Call A 636,052
1,195   Palmdale School District, Los Angeles County, California, General Obligation Bonds, Series 2003, 0.000%, 8/01/28  –  AGM Insured   No Opt. Call AA 865,527
590   Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39 (Pre-refunded 11/01/19)   11/19 at 100.00 Ba1 (4) 668,128
4,620   Palomar Pomerado Health, California, General Obligation Bonds, Capital Appreciation, Election of 2004, Series 2007A, 0.000%, 8/01/24  –  NPFG Insured   No Opt. Call A+ 3,855,020
4,400   Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Series 1999, 0.000%, 8/01/29  –  AMBAC Insured   No Opt. Call AA- 2,880,592
2,500   Placentia-Yorba Linda Unified School District, Orange County, California, Certificates of Participation, Series 2006, 0.000%, 10/01/34  –  NPFG Insured (ETM)   No Opt. Call A+ (4) 1,565,925
2,535   Port of Oakland, California, Revenue Bonds, Refunding Inter Lien Series 2007B, 5.000%, 11/01/19 (Pre-refunded 11/01/17)  –  NPFG Insured   11/17 at 100.00 A (4) 2,570,439
2,755   Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2007, 0.000%, 7/01/25  –  AGM Insured   No Opt. Call Aa3 2,287,063
    San Joaquin Delta Community College District, California, General Obligation Bonds, Election 2004 Series 2008B:        
1,000   0.000%, 8/01/30  –  AGM Insured   8/18 at 50.12 AA 494,140
1,890   0.000%, 8/01/31  –  AGM Insured   8/18 at 47.14 AA 878,340
6,025   Simi Valley Unified School District, Ventura County, California, General Obligation Bonds, Series 2007C, 0.000%, 8/01/30   No Opt. Call AA 3,998,672
2,080   Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45   9/17 at 100.00 B- 2,067,270
58,515   Total California       42,223,475
    Colorado – 6.5%        
500   Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Series 2009A, 5.500%, 7/01/34   7/19 at 100.00 BBB+ 520,065
1,975   Colorado Health Facilities Authority, Colorado, Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40   1/20 at 100.00 AA- 2,113,941
1,935   Denver City and County, Colorado, Airport System Revenue Bonds, Subordinate Lien Series 2013B, 5.000%, 11/15/43   11/23 at 100.00 A 2,161,550
    E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B:        
5,140   0.000%, 9/01/24  –  NPFG Insured   No Opt. Call A 4,281,517
8,100   0.000%, 9/01/29  –  NPFG Insured   No Opt. Call A 5,431,131
4,475   0.000%, 9/01/33  –  NPFG Insured   No Opt. Call A 2,471,722
22,125   Total Colorado       16,979,926
    Connecticut – 1.1%        
2,490   Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes Series 2013A, 5.000%, 10/01/33   10/23 at 100.00 AA 2,811,260

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Florida – 0.6%        
$ 1,500   Lakeland, Florida, Hospital System Revenue Bonds, Lakeland Regional Health, Series 2015, 5.000%, 11/15/45   11/24 at 100.00 A2 $ 1,659,465
    Guam – 1.2%        
1,500   Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D, 5.000%, 11/15/39   11/25 at 100.00 A 1,617,975
1,460   Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2016, 5.000%, 1/01/46   7/26 at 100.00 A- 1,591,356
2,960   Total Guam       3,209,331
    Illinois – 12.3%        
1,615   Board of Trustees of Southern Illinois University, Housing and Auxiliary Facilities System Revenue Bonds, Series 1999A, 0.000%, 4/01/23  –  NPFG Insured   No Opt. Call A 1,367,727
750   Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Capital Improvement Revenues, Series 2016, 6.000%, 4/01/46   4/27 at 100.00 A 790,680
735   Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues Series 2011A, 5.000%, 12/01/41   12/21 at 100.00 B+ 579,209
365   Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, Series 2016B, 6.500%, 12/01/46   12/26 at 100.00 B+ 340,633
1,340   Chicago, Illinois, General Airport Revenue Bonds, O'Hare International Airport, Senior Lien Refunding Series 2016C, 5.000%, 1/01/20   No Opt. Call A 1,462,744
1,000   Chicago, Illinois, General Obligation Bonds, Project & Refunding Series 2006A, 4.625%, 1/01/31  –  AGM Insured   9/17 at 100.00 AA 1,003,400
1,515   Chicago, Illinois, General Obligation Bonds, Project & Refunding Series 2007C, 5.000%, 1/01/27  –  NPFG Insured   1/18 at 100.00 A 1,533,498
1,750   Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, Refunding Series 2008A, 5.500%, 8/15/30   8/18 at 100.00 BBB+ 1,800,558
1,035   Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., University Center Project, Series 2006B, 5.000%, 5/01/25 (Pre-refunded 8/21/17)   8/17 at 100.00 BBB+ (4) 1,036,356
1,315   Illinois State, General Obligation Bonds, October Series 2016, 5.000%, 2/01/19   No Opt. Call BBB 1,354,437
2,190   Illinois State, General Obligation Bonds, Refunding Series 2012, 5.000%, 8/01/23   No Opt. Call BBB 2,288,156
    Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A:        
6,350   0.000%, 12/15/31  –  NPFG Insured   No Opt. Call A 3,306,381
1,350   0.000%, 6/15/35  –  NPFG Insured   No Opt. Call A 576,464
5,000   0.000%, 12/15/36  –  NPFG Insured   No Opt. Call A 1,966,050
9,370   0.000%, 6/15/39  –  NPFG Insured   No Opt. Call A 3,219,345
5,045   Sauk Village, Illinois, General Obligation Alternate Revenue Source Bonds, Tax Increment, Series 2002A, 5.000%, 6/01/22  –  RAAI Insured   9/17 at 100.00 AA 5,047,623
    Sauk Village, Illinois, General Obligation Alternate Revenue Source Bonds, Tax Increment, Series 2002B:        
1,060   0.000%, 12/01/17  –  RAAI Insured   No Opt. Call AA 1,054,117
1,135   0.000%, 12/01/18  –  RAAI Insured   No Opt. Call AA 1,107,578
1,825   Springfield, Illinois, Electric Revenue Bonds, Senior Lien Series 2015, 5.000%, 3/01/28   3/25 at 100.00 A 2,107,145
44,745   Total Illinois       31,942,101

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Indiana – 2.4%        
$ 1,600   Indiana Bond Bank, Special Program Bonds, Carmel Junior Waterworks Project, Series 2008B, 0.000%, 6/01/30  –  AGM Insured   No Opt. Call AA $1,023,600
2,040   Indiana Finance Authority, Hospital Revenue Bonds, Indiana University Health Obligation Group, Refunding 2015A, 5.000%, 12/01/40   6/25 at 100.00 AA 2,316,420
170   Indiana Finance Authority, Tax-Exempt Private Activity Revenue Bonds, I-69 Section 5 Project, Series 2014, 5.250%, 9/01/40 (Alternative Minimum Tax)   9/24 at 100.00 CCC- 179,484
    Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project Series 2009A:        
355   5.500%, 1/01/38 (Pre-refunded 1/01/19)  –  AGC Insured   1/19 at 100.00 AA (4) 378,878
1,470   5.500%, 1/01/38  –  AGC Insured   1/19 at 100.00 AA 1,556,818
770   Whiting Redevelopment District, Indiana, Tax Increment Revenue Bonds, Lakefront Development Project, Series 2010, 6.000%, 1/15/19   No Opt. Call N/R 787,918
6,405   Total Indiana       6,243,118
    Iowa – 2.5%        
830   Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer Company Project, Series 2013, 5.000%, 12/01/19   No Opt. Call B 851,671
710   Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer Company Project, Series 2016, 5.875%, 12/01/26   6/18 at 105.00 B 730,377
2,000   Iowa Higher Education Loan Authority, Private College Facility Revenue Bonds, Upper Iowa University Project, Refunding Series 2010, 5.750%, 9/01/30 (Pre-refunded 9/01/20)   9/20 at 100.00 N/R (4) 2,284,600
1,645   Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 5.375%, 6/01/38   9/17 at 100.00 B+ 1,645,099
1,000   Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34   9/17 at 100.00 B+ 1,000,050
6,185   Total Iowa       6,511,797
    Kansas – 0.1%        
270   Overland Park Development Corporation, Kansas, Second Tier Revenue Bonds, Overland Park Convention Center, Series 2007B, 5.125%, 1/01/22  –  AMBAC Insured   9/17 at 100.00 BB+ 270,146
    Kentucky – 1.3%        
2,500   Kentucky Economic Development Finance Authority, Hospital Revenue Bonds, Baptist Healthcare System Obligated Group, Series 2011, 5.250%, 8/15/46   8/21 at 100.00 A 2,663,625
805   Kentucky Public Transportation Infrastructure Authority, First Tier Toll Revenue Bonds, Downtown Crossing Project, Convertible Capital Appreciation Series 2013C, 0.000%, 7/01/43 (5)   7/31 at 100.00 Baa3 689,136
3,305   Total Kentucky       3,352,761
    Louisiana – 0.8%        
1,870   Jefferson Sales Tax District, Jefferson Parish, Louisiana, Special Sales Tax Revenue Bonds, Series 2017B, 5.000%, 12/01/42  –  AGM Insured   12/27 at 100.00 AA 2,178,812
    Massachusetts – 0.9%        
1,675   Massachusetts Development Finance Agency, Revenue Bonds, Olin College, Series 2013E, 5.000%, 11/01/43   11/23 at 100.00 A+ 1,893,755
500   Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1 & 2, 5.000%, 7/01/28 (Pre-refunded 7/01/18)   7/18 at 100.00 A- (4) 520,470
2,175   Total Massachusetts       2,414,225

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Michigan – 3.6%        
$ 355   Detroit Water and Sewerage Department, Michigan, Sewage Disposal System Revenue Bonds, Refunding Senior Lien Series 2012A, 5.250%, 7/01/39   7/22 at 100.00 A $394,462
2,590   Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second Lien, Series 2001E, 5.750%, 7/01/31 (Pre-refunded 7/01/18)  –  BHAC Insured   7/18 at 100.00 AA+ (4) 2,713,517
385   Michigan State Building Authority, Revenue Bonds, Facilities Program, Refunding Series 2015-I, 5.000%, 4/15/38   10/25 at 100.00 Aa2 435,400
1,250   Portage Public Schools, Kalamazoo County, Michigan, General Obligation Bonds, School Building & Site Series 2008, 5.000%, 5/01/21 (Pre-refunded 5/01/18)  –  AGM Insured   5/18 at 100.00 AA (4) 1,292,800
4,250   Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 (Pre-refunded 9/01/18)   9/18 at 100.00 Aaa 4,609,508
8,830   Total Michigan       9,445,687
    Mississippi – 0.5%        
1,170   Warren County, Mississippi, Gulf Opportunity Zone Revenue Bonds, International Paper Company Project, Series 2008A, 6.500%, 9/01/32   9/18 at 100.00 BBB 1,236,900
    Missouri – 0.1%        
270   Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Mass Transit Sales Tax Appropriation Bonds, Refunding Combined Lien Series 2013A, 5.000%, 10/01/28   10/18 at 100.00 AA+ 283,252
    Nebraska – 0.2%        
545   Douglas County Hospital Authority 3, Nebraska, Health Facilities Revenue Bonds, Nebraska Methodist Health System, Refunding Series 2015, 4.125%, 11/01/36   11/25 at 100.00 A- 566,424
    Nevada – 3.9%        
1,325   Clark County Water Reclamation District, Nevada, General Obligation Water Bonds, Series 2009A, 5.250%, 7/01/38 (Pre-refunded 7/01/19)   7/19 at 100.00 AAA 1,435,280
1,250   Clark County, Nevada, Airport Revenue Bonds, Tender Option Bond Trust 2016-XG0028, 17.813%, 7/01/42 (IF)   1/20 at 100.00 A+ 1,806,650
1,000   Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/42   1/20 at 100.00 Aa3 1,080,990
3,000   Las Vegas Valley Water District, Nevada, General Obligation Bonds, Refunding Series 2015, 5.000%, 6/01/34   12/24 at 100.00 Aa1 3,452,340
2,500   North Las Vegas, Nevada, General Obligation Bonds, Series 2006, 5.000%, 5/01/36  –  NPFG Insured   9/17 at 100.00 A 2,500,625
9,075   Total Nevada       10,275,885
    New Jersey – 3.4%        
2,165   New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Refunding Series 2011GG, 5.000%, 9/01/22   3/21 at 100.00 A- 2,276,064
2,000   New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Refunding Series 2016BBB, 5.500%, 6/15/31   12/26 at 100.00 A- 2,175,140
1,250   New Jersey Economic Development Authority, School Facility Construction Bonds, Series 2005K, 5.500%, 12/15/19  –  AMBAC Insured   No Opt. Call A- 1,339,925
2,000   New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2015AA, 5.250%, 6/15/29   6/25 at 100.00 A- 2,145,500

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    New Jersey (continued)        
$ 1,000   Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/29   9/17 at 100.00 BBB- $ 1,002,520
8,415   Total New Jersey       8,939,149
    New Mexico – 1.1%        
800   New Mexico Hospital Equipment Loan Council, First Mortgage Revenue Bonds, Haverland Carter Lifestyle Group, Series 2013, 5.000%, 7/01/42   7/22 at 100.00 BBB 837,056
1,000   New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42 (Alternative Minimum Tax)   9/17 at 100.00 N/R 1,001,440
1,000   New Mexico Municipal Energy Acquisition Authority, Gas Supply Revenue Bonds, Refunding Sub-Series 2014A, 5.000%, 11/01/39 (Mandatory Put 8/01/19)   8/19 at 100.00 A1 1,069,430
2,800   Total New Mexico       2,907,926
    New York – 2.4%        
500   Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series 2011A, 5.250%, 2/15/47   2/21 at 100.00 AA- 557,075
1,250   Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding Series 2012F, 5.000%, 11/15/26   11/22 at 100.00 AA- 1,457,875
2,755   New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Fiscal Series 2009-S1, 5.500%, 7/15/31   7/18 at 100.00 AA 2,886,138
1,135   Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/42   12/20 at 100.00 Baa1 1,276,500
5,640   Total New York       6,177,588
    Ohio – 3.7%        
    Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:        
2,155   5.375%, 6/01/24   9/17 at 100.00 B- 2,092,311
2,475   5.875%, 6/01/30   9/17 at 100.00 B- 2,442,082
875   5.750%, 6/01/34   9/17 at 100.00 B- 850,999
2,680   5.875%, 6/01/47   9/17 at 100.00 B- 2,628,062
1,105   Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Project, Junior Lien Series 2013A-1, 5.000%, 2/15/48   2/23 at 100.00 A+ 1,236,738
1,000   Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy Nuclear Generating Corporation Project, Series 2005B, 4.000%, 1/01/34 (Mandatory Put 7/01/21)   No Opt. Call Caa1 425,000
10,290   Total Ohio       9,675,192
    Oregon – 0.7%        
915   Beaverton School District 48J, Washington and Multnomah Counties, Oregon, General Obligation Bonds, Convertible Deferred Interest Series 2017D, 0.000%, 6/15/36   6/27 at 100.00 AA+ 1,027,600
60   Clackamas Community College District, Oregon, General Obligation Bonds, Deferred Interest Series 2017A, 0.000%, 6/15/40 (5)   6/27 at 100.00 Aa1 60,779
600   Oregon Facilities Authority, Revenue Bonds, Legacy Health Project, Refunding Series 2016A, 5.000%, 6/01/46   6/26 at 100.00 AA- 679,728
1,575   Total Oregon       1,768,107
    Pennsylvania – 5.5%        
1,255   Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2013, 5.000%, 1/01/37   1/24 at 100.00 A 1,417,309

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Pennsylvania (continued)        
$ 2,250   Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Carnegie Mellon University, Series 2009, 5.000%, 8/01/21   2/19 at 100.00 AA $2,387,992
    Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special Revenue Bonds, Series 2010B-2:        
555   5.000%, 12/01/30 (Pre-refunded 12/01/20)   12/20 at 100.00 N/R (4) 626,673
945   5.000%, 12/01/30   12/20 at 100.00 AA- 1,029,965
2,540   Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Senior Lien Series 2012A, 5.000%, 12/01/42   12/22 at 100.00 A1 2,840,330
2,970   Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 2015A, 5.000%, 7/01/40   7/24 at 100.00 A+ 3,348,675
2,500   State Public School Building Authority, Pennsylvania, School Revenue Bonds, Harrisburg School District, Refunding Series 2009A, 4.750%, 11/15/29 (Pre-refunded 5/15/19)  –  AGC Insured   5/19 at 100.00 AA (4) 2,671,050
13,015   Total Pennsylvania       14,321,994
    Puerto Rico – 0.9%        
1,035   Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003, 5.000%, 12/01/20   9/17 at 100.00 AA- 1,058,660
10,000   Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/54  –  AMBAC Insured   No Opt. Call Caa3 1,227,400
11,035   Total Puerto Rico       2,286,060
    South Carolina – 1.4%        
3,400   South Carolina Public Service Authority, Revenue Obligation Bonds, Santee Cooper Electric System, Series 2008A, 5.500%, 1/01/38 (Pre-refunded 1/01/19)  –  BHAC Insured   1/19 at 100.00 AA+ (4) 3,628,174
    South Dakota – 0.3%        
600   South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sanford Health, Series 2015, 5.000%, 11/01/35   11/25 at 100.00 A+ 678,918
    Texas – 11.1%        
250   Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011, 6.000%, 1/01/41 (Pre-refunded 1/01/21)   1/21 at 100.00 BBB+ (4) 290,480
240   Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien, Series 2015A, 5.000%, 1/01/35   7/25 at 100.00 BBB+ 273,926
3,000   Dallas Area Rapid Transit, Texas, Sales Tax Revenue Bonds, Senior Lien Series 2008, 5.250%, 12/01/48 (Pre-refunded 12/01/18)   12/18 at 100.00 AA+ (4) 3,180,900
5,560   Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, First Tier Series 2013A, 5.500%, 4/01/53   10/23 at 100.00 BBB+ 6,346,851
1,160   Harris County Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, Houston Methodist Hospital System, Series 2015, 5.000%, 12/01/45   6/25 at 100.00 AA 1,287,032
    Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H:        
630   0.000%, 11/15/24  –  NPFG Insured   No Opt. Call A 489,271
12,480   0.000%, 11/15/41  –  NPFG Insured   11/31 at 53.78 A 3,731,894
975   Houston, Texas, Airport System Revenue Bonds, Refunding Subordinate Lien Series 2007B, 5.000%, 7/01/25  –  NPFG Insured   7/17 at 100.00 A+ 978,364
575   Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/24  –  AMBAC Insured   No Opt. Call A2 473,012

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Texas (continued)        
    Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2008:        
$ 4,800   0.000%, 8/15/41 (Pre-refunded 8/15/17)   8/17 at 24.20 N/R (4) $1,160,160
200   0.000%, 8/15/41   8/17 at 24.20 AAA 48,346
2,255   Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, Southwest Airlines Company, Series 2010, 5.250%, 11/01/40   11/20 at 100.00 A3 2,470,037
1,025   North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier, Series 2015B, 5.000%, 1/01/40   1/23 at 100.00 A1 1,144,802
200   Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Scott & White Healthcare Project, Series 2016A, 4.000%, 11/15/42   5/26 at 100.00 AA- 206,024
5,000   Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, Series 2012, 5.000%, 12/15/26   12/22 at 100.00 A3 5,628,600
2,000   Wylie Independent School District, Collin County, Texas, General Obligation Bonds, School Building Series 2010, 0.000%, 8/15/31   No Opt. Call AAA 1,068,640
40,350   Total Texas       28,778,339
    Virginia – 2.2%        
1,500   Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Second Senior Lien Revenue Bonds, Series 2009C, 6.500%, 10/01/41  –  AGC Insured   10/26 at 100.00 AA 1,945,305
    Virginia Small Business Financing Authority, Senior Lien Revenue Bonds, Elizabeth River Crossing, Opco LLC Project, Series 2012:        
1,000   5.250%, 1/01/32 (Alternative Minimum Tax)   7/22 at 100.00 BBB 1,087,570
410   6.000%, 1/01/37 (Alternative Minimum Tax)   7/22 at 100.00 BBB 462,984
1,010   5.500%, 1/01/42 (Alternative Minimum Tax)   7/22 at 100.00 BBB 1,109,798
1,000   Virginia Small Business Financing Authority, Wellmont Health System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37   9/17 at 100.00 BBB+ 1,004,520
4,920   Total Virginia       5,610,177
    Washington – 3.4%        
855   Port of Seattle, Washington, Revenue Bonds, Refunding First Lien Series 2016A, 5.000%, 10/01/19   No Opt. Call Aa2 927,974
4,000   Washington Health Care Facilities Authority, Revenue Bonds, Catholic Health Initiative, Series 2013A, 5.750%, 1/01/45   1/23 at 100.00 BBB+ 4,404,880
990   Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2011A, 5.625%, 1/01/35   1/21 at 100.00 A 1,079,932
2,185   Washington State Health Care Facilities Authority, Revenue Bonds, PeaceHealth, Refunding Series 2009, 5.000%, 11/01/28   11/19 at 100.00 A+ 2,328,489
8,030   Total Washington       8,741,275
    Wisconsin – 3.0%        
2,000   Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Gundersen Lutheran, Series 2011A, 5.250%, 10/15/39   10/21 at 100.00 A+ 2,195,920
2,355   Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Medical College of Wisconsin, Inc., Series 2016, 5.000%, 12/01/41   11/26 at 100.00 AA- 2,692,636
1,645   Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Mercy Alliance, Inc., Series 2012, 5.000%, 6/01/39   6/22 at 100.00 A3 1,763,259

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Wisconsin (continued)        
$ 1,000   Wisconsin State, General Fund Annual Appropriation Revenue Bonds, Refunding Series 2009A, 6.000%, 5/01/36 (Pre-refunded 5/01/19)   5/19 at 100.00 AA- (4) $ 1,090,350
7,000   Total Wisconsin       7,742,165
$ 299,025   Total Municipal Bonds (cost $230,442,399)       253,266,039
    
Principal Amount (000)   Description (1) Coupon Maturity Ratings (3) Value
    CORPORATE BONDS – 0.1%        
    Transportation – 0.1%        
$ 326   Las Vegas Monorail Company, Senior Interest Bonds (6), (7) 5.500% 7/15/19 N/R $204,130
87   Las Vegas Monorail Company, Senior Interest Bonds (6), (7) 5.500% 7/15/55 N/R 44,061
$ 413   Total Corporate Bonds (cost $34,714)       248,191
    Total Long-Term Investments (cost $230,477,113)       253,514,230
    Other Assets Less Liabilities – 2.6%       6,665,107
    Net Assets – 100%       $ 260,179,337
Fair Value Measurements
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1  – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2  – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3  – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
  Level 1 Level 2 Level 3 Total
Long-Term Investments:        
Municipal Bonds $ — $253,266,039 $  — $253,266,039
Corporate Bonds  —  — 248,191 248,191
Total $ — $253,266,039 $248,191 $253,514,230
Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
As of June 30, 2017, the cost of investments was $229,332,794.

Gross unrealized appreciation and gross unrealized depreciation of investments as of June 30, 2017, were as follows:
Gross unrealized:  
Appreciation $25,039,734
Depreciation (858,298)
Net unrealized appreciation (depreciation) of investments $24,181,436
(1) All percentages shown in the Portfolio of Investments are based on net assets.  
(2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.  
(3) For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.  
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.  
(5) Step-up coupon. The rate shown is the coupon as of the end of the reporting period.  
(6) During January 2010, Las Vegas Monorail Company (“Las Vegas Monorail”) filed for federal bankruptcy protection. During March 2012, Las Vegas Monorail emerged from federal bankruptcy with the acceptance of a reorganization plan assigned by the Federal Bankruptcy Court. Under the reorganization plan, the Fund surrendered its Las Vegas Monorail Project Revenue Bonds, First Tier, Series 2000 and in turn received two senior interest corporate bonds: the first with an annual coupon rate of 5.500% maturing on July 15, 2019 and the second with an annual coupon rate of 3.000% (5.500% after December 31, 2015) maturing on July 15, 2055. The Fund was not accruing income for either senior interest corporate bond. On January 18, 2017, the Fund's Adviser determined it was likely that this senior interest corporate bond would fulfill its obligation on the security maturing on July 15, 2019, and therefore began accruing income on the Fund's records.  
(7) Investment valued at fair value using methods determined in good faith by, or at the discretion of the Board. For fair value measurement disclosure purposes, investment classified as Level 3.  
(ETM) Escrowed to maturity.  
(IF) Inverse floating rate investment.  

Item 2. Controls and Procedures.

 

  a. The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  b. There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)    Nuveen Select Tax-Free Income Portfolio 2   
By (Signature and Title)    /s/ Gifford R. Zimmerman                                                       
   Gifford R. Zimmerman   
   Vice President and Secretary   

Date: August 29, 2017

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/ Cedric H. Antosiewicz                                                        
   Cedric H. Antosiewicz   
   Chief Administrative Officer (principal executive officer)   
Date: August 29, 2017      
By (Signature and Title)    /s/ Stephen D. Foy                                                                    
   Stephen D. Foy   
   Vice President and Controller (principal financial officer)   
Date: August 29, 2017