Nuveen Select Tax-Free Income Portfolio 3

 

 

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 811-06693

Nuveen Select Tax-Free Income Portfolio 3

(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: December 31, 2018

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

 

 

NXR
Nuveen Select Tax-Free Income Portfolio 3
Portfolio of Investments    December 31, 2018
(Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    LONG-TERM INVESTMENTS – 98.8%        
    MUNICIPAL BONDS – 98.8%        
    Alabama – 0.6%        
$ 1,170   Birmingham, Alabama, General Obligation Convertible Capital Appreciation Bonds, Series 2013A, 5.000%, 3/01/32   No Opt. Call AA $ 1,277,617
    Alaska – 1.3%        
2,675   Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32   3/19 at 100.00 B3 2,626,208
    Arizona – 0.1%        
215   Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, Paradise Schools Projects, Series 2016, 2.875%, 7/01/21, 144A   No Opt. Call BB+ 213,286
    California – 22.5%        
12,500   Anaheim Public Financing Authority, California, Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/35 –  AGM Insured   No Opt. Call AA 6,611,000
1,000   California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 5.600%, 6/01/36   12/19 at 100.00 B2 1,000,550
1,125   California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 5.000%, 6/01/26   3/19 at 100.00 BBB+ 1,127,678
890   California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38 (Pre-refunded 8/01/19)   8/19 at 100.00 N/R (4) 916,397
160   California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29   3/19 at 100.00 Baa2 161,091
2,275   Folsom Cordova Unified School District, Sacramento County, California, General Obligation Bonds, School Facilities Improvement District 4, Series 2007A, 0.000%, 10/01/28 –  NPFG Insured   No Opt. Call AA- 1,689,005
3,370   Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/28 –  AMBAC Insured   No Opt. Call A+ 2,567,738
4,055   Kern Community College District, California, General Obligation Bonds, Series 2003A, 0.000%, 3/01/28 –  FGIC Insured   No Opt. Call Aa2 3,168,780
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 983,390
11,985   Norwalk La Mirada Unified School District, Los Angeles County, California, General Obligation Bonds, Election of 2002, Series 2007C, 0.000%, 8/01/32 –  AGM Insured   No Opt. Call AA 7,592,977
3,000   Palomar Pomerado Health, California, General Obligation Bonds, Capital Appreciation, Election of 2004, Series 2007A, 0.000%, 8/01/25 –  NPFG Insured   No Opt. Call A2 2,484,000
8,040   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) 5,101,702
1

NXR Nuveen Select Tax-Free Income Portfolio 3 (continued)
  Portfolio of Investments December 31, 2018
  (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    California (continued)        
$ 1,500   Placer Union High School District, Placer County, California, General Obligation Bonds, Series 2004C, 0.000%, 8/01/32 –  AGM Insured   No Opt. Call AA $968,250
8,000   Poway Unified School District, San Diego County, California, General Obligation Bonds, School Facilities Improvement District 2007-1, Election 2008 Series 2009A, 0.000%, 8/01/32   No Opt. Call AA- 5,088,640
3,940   Rancho Mirage Redevelopment Agency, California, Tax Allocation Bonds, Combined Whitewater and 1984 Project Areas, Series 2003A, 0.000%, 4/01/35 –  NPFG Insured   No Opt. Call A+ 2,127,403
765   San Diego Association of Governments, California, South Bay Expressway Toll Revenue Bonds, First Senior Lien Series 2017A, 5.000%, 7/01/42   7/27 at 100.00 A 860,051
2,525   San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Non-WSIP, Series 2017A, 5.000%, 11/01/42   11/24 at 100.00 AA- 2,818,809
66,290   Total California       45,267,461
    Colorado – 5.4%        
500   Centerra Metropolitan District 1, Loveland, Colorado, Special Revenue Bonds, Refunding & Improvement Series 2017, 5.000%, 12/01/22, 144A   No Opt. Call N/R 532,070
2,000   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- 2,050,800
790   Colorado School of Mines Board of Trustees, Golden, Colorado, Institutional Enterprise Revenue Bonds, Series 2017B, 5.000%, 12/01/47   12/27 at 100.00 A+ 881,300
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+ 2,116,290
1,295   E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/32 –  NPFG Insured   No Opt. Call A 761,991
5,520   E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/28 –  NPFG Insured   9/20 at 63.98 A 3,359,362
1,000   Park Creek Metropolitan District, Colorado, Senior Limited Property Tax Supported Revenue Bonds, Refunding Series 2015A, 5.000%, 12/01/33   12/25 at 100.00 A 1,104,260
13,040   Total Colorado       10,806,073
    Connecticut – 2.5%        
1,500   Connecticut State, General Obligation Bonds, Refunding Series 2010C, 5.000%, 12/01/20   12/19 at 100.00 A1 1,538,610
1,500   Connecticut State, General Obligation Bonds, Refunding Series 2018C, 5.000%, 6/15/26   No Opt. Call A1 1,708,590
1,615   Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes Series 2013A, 5.000%, 10/01/30   10/23 at 100.00 A+ 1,761,997
4,615   Total Connecticut       5,009,197
    Florida – 0.2%        
390   Greater Orlando Aviation Authority, Florida, Orlando Airport Facilities Revenue Bonds, Priority Subordinated Series 2017, 5.000%, 10/01/47 (Alternative Minimum Tax)   10/27 at 100.00 A+ 431,243
    Guam – 1.7%        
1,250   Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D, 5.000%, 11/15/39   11/25 at 100.00 BB 1,301,488
2,000   Government of Guam, Hotel Occupancy Tax Revenue Bonds, Series 2011A, 6.125%, 11/01/31   5/21 at 100.00 BB 2,134,760
3,250   Total Guam       3,436,248
2

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Idaho – 1.6%        
$ 3,000   Idaho Health Facilities Authority, Revenue Bonds, Saint Luke's Health System Project, Series 2014A, 5.000%, 3/01/44   3/24 at 100.00 A- $ 3,203,370
    Illinois – 9.9%        
575   Chicago Board of Education, Illinois, Dedicated Capital Improvement Tax Revenue Bonds, Series 2016, 6.000%, 4/01/46   4/27 at 100.00 A 654,614
295   Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, Refunding Series 2017C, 5.000%, 12/01/30   12/27 at 100.00 BB- 306,378
3,900   Chicago Board of Education, Illinois, General Obligation Bonds, Series 1999A, 0.000%, 12/01/28 –  FGIC Insured   No Opt. Call Baa2 2,598,258
535   Chicago, Illinois, General Airport Revenue Bonds, O'Hare International Airport, Senior Lien Refunding Series 2016C, 5.000%, 1/01/20   No Opt. Call A 551,366
870   Chicago, Illinois, General Obligation Bonds, Project & Refunding Series 2006A, 4.625%, 1/01/31 –  AGM Insured   3/19 at 100.00 AA 872,993
260   Illinois Finance Authority, Revenue Bonds, Rehabilitation Institute of Chicago, Series 2013A, 6.000%, 7/01/43   7/23 at 100.00 A- 285,568
1,235   Illinois Health Facilities Authority, Revenue Bonds, Evangelical Hospitals Corporation, Series 1992C, 6.250%, 4/15/22 (ETM)   No Opt. Call N/R (4) 1,321,104
1,015   Illinois State, General Obligation Bonds, October Series 2016, 5.000%, 2/01/19   No Opt. Call BBB 1,017,081
2,190   Illinois State, General Obligation Bonds, Refunding Series 2012, 5.000%, 8/01/23   No Opt. Call BBB 2,323,021
1,000   Kankakee & Will Counties Community Unit School District 5, Illinois, General Obligation Bonds, Series 2006, 0.000%, 5/01/23 –  AGM Insured   No Opt. Call Aa3 891,560
    Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A:        
2,500   0.000%, 12/15/30 –  NPFG Insured   No Opt. Call BBB 1,500,125
4,775   0.000%, 12/15/31 –  NPFG Insured   No Opt. Call BBB 2,721,129
5,000   0.000%, 12/15/36 –  NPFG Insured   No Opt. Call BBB 2,190,900
2,000   0.000%, 6/15/37 –  NPFG Insured   No Opt. Call BBB 848,760
1,400   Springfield, Illinois, Electric Revenue Bonds, Senior Lien Series 2015, 5.000%, 3/01/28   3/25 at 100.00 A 1,570,604
310   University of Illinois, Health Services Facilities System Revenue Bonds, Series 2013, 6.000%, 10/01/42   10/23 at 100.00 A- 347,330
27,860   Total Illinois       20,000,791
    Indiana – 1.6%        
2,295   Boone County Hospital Association, Indiana, Lease Revenue Bonds, Series 2010, 5.250%, 7/15/25 (Pre-refunded 1/15/20)   1/20 at 100.00 AA+ (4) 2,375,922
1,000   Zionsville Community Schools Building Corporation, Indiana, First Mortgage Bonds, Series 2005Z, 0.000%, 7/15/28 –  AGM Insured   No Opt. Call AA 761,400
3,295   Total Indiana       3,137,322
    Iowa – 1.1%        
570   Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer Company Project, Series 2016, 5.875%, 12/01/26, 144A   12/19 at 104.00 B 598,979
660   Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer Company Project, Series 2018B, 5.250%, 12/01/50 (Mandatory Put 12/01/22)   12/22 at 105.00 B 702,293
3

NXR Nuveen Select Tax-Free Income Portfolio 3 (continued)
  Portfolio of Investments December 31, 2018
  (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Iowa (continued)        
$ 950   Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34   3/19 at 100.00 BB- $ 950,313
2,180   Total Iowa       2,251,585
    Massachusetts – 6.3%        
2,230   Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2016BB-1, 5.000%, 10/01/46   10/26 at 100.00 Aa3 2,493,564
1,000   Massachusetts Development Finance Agency, Revenue Bonds, CareGroup Issue, Refunding Series 2016-I, 5.000%, 7/01/21   No Opt. Call A- 1,064,340
1,300   Massachusetts Development Finance Agency, Revenue Bonds, Olin College, Series 2013E, 5.000%, 11/01/43   11/23 at 100.00 A+ 1,414,166
2,250   Massachusetts Development Finance Agency, Revenue Bonds, Partners HealthCare System, Series 2014M-4, 5.000%, 7/01/44   7/23 at 100.00 AA- 2,413,417
400   Massachusetts Development Finance Agency, Revenue Bonds, UMass Memorial Health Care Obligated Group Issue, Series 2017L, 3.625%, 7/01/37   7/27 at 100.00 A- 390,240
2,180   Massachusetts Water Resources Authority, General Revenue Bonds, Refunding Green Series 2016C, 5.000%, 8/01/40   8/26 at 100.00 AA+ 2,457,776
1,000   Newburyport, Massachusetts, General Obligation Bonds, Municipal Purpose Loan, Refunding Series 2013, 4.000%, 1/15/30   1/23 at 100.00 AAA 1,054,450
1,165   University of Massachusetts Building Authority, Project Revenue Bonds, Senior Series 2014-1, 5.000%, 11/01/39   11/24 at 100.00 Aa2 1,299,231
11,525   Total Massachusetts       12,587,184
    Michigan – 1.3%        
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+ 381,188
2,000   Michigan State Building Authority, Revenue Bonds, Facilities Program, Refunding Series 2016-I, 5.000%, 4/15/35   10/26 at 100.00 Aa2 2,286,180
2,355   Total Michigan       2,667,368
    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   3/19 at 100.00 AA+ 270,432
    Montana – 0.7%        
1,440   Montana Facility Finance Authority, Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Camposite Deal Series 2010A, 4.750%, 1/01/40   1/20 at 100.00 AA- 1,468,915
    Nebraska – 2.0%        
250   Madison County Hospital Authority 1, Nebraska, Hospital Revenue Bonds, Faith Regional Health Services Project, Series 2018, 5.000%, 7/01/26   7/25 at 100.00 BBB 277,748
2,600   Nebraska Public Power District, General Revenue Bonds, Series 2015A-2, 5.000%, 1/01/40   1/22 at 100.00 A+ 2,774,772
500   Platte County School District 001, Columbus Public Schools, Nebraska, General Obligation Bonds, School Building Series 2014, 5.000%, 12/15/39   6/24 at 100.00 Aa2 559,795
4

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Nebraska (continued)        
$ 500   Southeast Community College Area, Nebraska, Certificates of Participation, Series 2018, 3.500%, 12/15/42   6/28 at 100.00 Aa1 $ 481,885
3,850   Total Nebraska       4,094,200
    Nevada – 0.8%        
445   Carson City, Nevada, Hospital Revenue Bonds, Carson Tahoe Regional Healthcare Project, Series 2017A, 5.000%, 9/01/37   9/27 at 100.00 BBB+ 479,305
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 1,026,440
1,445   Total Nevada       1,505,745
    New Hampshire – 0.5%        
1,000   New Hampshire Business Finance Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc. Project, Series 2003, 3.125%, 8/01/24 (Alternative Minimum Tax)   No Opt. Call A- 1,008,410
    New Jersey – 2.8%        
1,850   New Jersey Economic Development Authority, Sublease Revenue Bonds, New Jersey Transit Corporation Projects, Refunding Series 2017B, 5.000%, 11/01/23   No Opt. Call A- 2,027,267
305   New Jersey Health Care Facilities Financing Authority, Revenue Bonds, University Hospital Issue, Refunding Series 2015A, 5.000%, 7/01/28 –  AGM Insured   7/25 at 100.00 AA 346,532
4,900   New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding Series 2006C, 0.000%, 12/15/28 –  AMBAC Insured   No Opt. Call A- 3,323,474
7,055   Total New Jersey       5,697,273
    New Mexico – 0.5%        
1,000   New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series 2007A, 5.250%, 9/01/42 (Alternative Minimum Tax)   3/19 at 100.00 N/R 1,000,570
    New York – 1.5%        
1,250   Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding Series 2012F, 5.000%, 11/15/26   11/22 at 100.00 AA- 1,363,975
1,260   New York City Municipal Water Finance Authority, New York, Water and Sewer System Second General Resolution Revenue Bonds, Fiscal 2015 Series HH, 5.000%, 6/15/37   6/25 at 100.00 AA+ 1,414,615
265   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 281,941
2,775   Total New York       3,060,531
    North Carolina – 0.3%        
500   New Hanover County, North Carolina, General Obligation Bonds, School Series 2009, 4.000%, 6/01/21 (Pre-refunded 6/01/19)   6/19 at 100.00 AAA (4) 504,785
    Ohio – 5.6%        
2,250   American Municipal Power Ohio Inc., Prairie State Energy Campus Project Revenue Bonds, Series 2009A, 5.750%, 2/15/39  –  AGC Insured (Pre-refunded 2/15/19)   2/19 at 100.00 AA (4) 2,260,800
1,465   Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2, 6.000%, 6/01/42   3/19 at 100.00 B- 1,423,848
3,720   Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-3, 6.250%, 6/01/37   6/22 at 100.00 B- 3,701,251
5

NXR Nuveen Select Tax-Free Income Portfolio 3 (continued)
  Portfolio of Investments December 31, 2018
  (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Ohio (continued)        
$ 1,500   Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, Series 2011A, 5.750%, 11/15/21   11/20 at 100.00 A $1,591,425
1,475   Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Project, Junior Lien Series 2013A-1, 5.000%, 2/15/48   2/23 at 100.00 Aa3 1,581,894
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) (6)   No Opt. Call N/R 695,000
11,410   Total Ohio       11,254,218
    Oklahoma – 0.2%        
345   Oklahoma Development Finance Authority, Health System Revenue Bonds, OU Medicine Project, Series 2018B, 5.000%, 8/15/38   8/28 at 100.00 Baa3 370,309
    Oregon – 1.5%        
490   Clackamas County Hospital Facility Authority, Oregon, Senior Living Revenue Bonds, Willamette View Project, Series 2017A, 4.000%, 5/15/22   No Opt. Call N/R 507,317
545   Oregon Facilities Authority, Revenue Bonds, Reed College, Series 2017A, 4.000%, 7/01/41   7/27 at 100.00 Aa2 566,091
1,000   Oregon Facilities Authority, Revenue Bonds, Willamette University, Refunding Series 2016B, 5.000%, 10/01/40   10/26 at 100.00 A 1,125,480
750   Washington and Clackamas Counties School District 23J Tigard-Tualatin, Oregon, General Obligation Bonds, Series 2017, 5.000%, 6/15/30   6/27 at 100.00 AA+ 887,625
2,785   Total Oregon       3,086,513
    Pennsylvania – 8.1%        
1,015   Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2013, 5.000%, 1/01/37   1/24 at 100.00 A+ 1,111,466
1,685   Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Carnegie Mellon University, Series 2009, 5.000%, 8/01/21   2/19 at 100.00 AA 1,689,078
2,500   Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, State System of Higher Education, Refunding Series 2016AT-1, 5.000%, 6/15/31   6/26 at 100.00 Aa3 2,836,900
    Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special Revenue Bonds, Series 2010B-2:        
370   5.000%, 12/01/30 (Pre-refunded 12/01/20)   12/20 at 100.00 N/R (4) 391,923
200   5.000%, 12/01/30 (Pre-refunded 12/01/20)   12/20 at 100.00 N/R (4) 211,270
430   5.000%, 12/01/30 (Pre-refunded 12/01/20)   12/20 at 100.00 A2 (4) 455,477
2,075   Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Refunding Series 2009B, 5.000%, 12/01/22 (Pre-refunded 12/01/19)   12/19 at 100.00 A+ (4) 2,132,996
4,455   Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 2015A, 5.000%, 7/01/40   7/24 at 100.00 A+ 4,881,967
2,500   State Public School Building Authority, Pennsylvania, School Revenue Bonds, Harrisburg School District, Refunding Series 2009A, 4.750%, 11/15/29  –  AGC Insured (Pre-refunded 5/15/19)   5/19 at 100.00 AA (4) 2,528,250
15,230   Total Pennsylvania       16,239,327
6

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Puerto Rico – 0.5%        
$ 945   Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%, 7/01/31 –  AMBAC Insured   No Opt. Call C $ 1,021,101
    South Dakota – 0.2%        
400   South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sanford Health, Series 2015, 5.000%, 11/01/35   11/25 at 100.00 A+ 442,536
    Tennessee – 0.4%        
795   Chattanooga Health, Educational and Housing Facility Board, Tennessee, Revenue Bonds, Catholic Health Initiatives, Series 2013A, 5.250%, 1/01/45   1/23 at 100.00 BBB+ 847,661
    Texas – 9.3%        
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 A- (4) 269,557
85   Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien, Series 2015A, 5.000%, 1/01/34   7/25 at 100.00 A- 93,229
4,640   Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, First Tier Series 2013A, 5.500%, 4/01/53   10/23 at 100.00 A- 5,086,786
    Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H:        
1,405   0.000%, 11/15/32 –  NPFG Insured   11/31 at 94.05 Baa2 799,852
2,510   0.000%, 11/15/36 –  NPFG Insured   11/31 at 73.51 Baa2 1,089,064
2,235   Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004A-3, 0.000%, 11/15/32 –  NPFG Insured   11/24 at 62.70 Baa2 1,136,766
    Harris County-Houston Sports Authority, Texas, Special Revenue Bonds, Refunding Senior Lien Series 2001A:        
3,045   0.000%, 11/15/34 –  NPFG Insured   11/30 at 78.27 AA 1,575,270
4,095   0.000%, 11/15/38 –  NPFG Insured   11/30 at 61.17 AA 1,611,751
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 2,346,530
125   Mission Economic Development Corporation, Texas, Revenue Bonds, Natgasoline Project, Senior Lien Series 2018, 4.625%, 10/01/31 (Alternative Minimum Tax), 144A   10/21 at 105.00 BB- 127,396
290   North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier Capital Appreciation Series 2008I, 6.200%, 1/01/42 –  AGC Insured   1/25 at 100.00 AA 345,651
2,000   Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, Series 2012, 5.000%, 12/15/32   12/22 at 100.00 A3 2,152,560
2,410   Texas Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier Series 2002A, 0.000%, 8/15/25 –  AMBAC Insured   No Opt. Call A- 2,020,761
25,345   Total Texas       18,655,173
    Virginia – 2.5%        
3,500   Chesapeake, Virginia, Transportation System Senior Toll Road Revenue Bonds, Capital Appreciation Series 2012B, 0.000%, 7/15/32 (5)   7/28 at 100.00 BBB 3,066,560
7

NXR Nuveen Select Tax-Free Income Portfolio 3 (continued)
  Portfolio of Investments December 31, 2018
  (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Virginia (continued)        
    Virginia Small Business Financing Authority, Senior Lien Revenue Bonds, Elizabeth River Crossing, Opco LLC Project, Series 2012:        
$ 410   6.000%, 1/01/37 (Alternative Minimum Tax)   7/22 at 100.00 BBB $444,001
1,510   5.500%, 1/01/42 (Alternative Minimum Tax)   7/22 at 100.00 BBB 1,601,672
5,420   Total Virginia       5,112,233
    Washington – 4.5%        
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+ 1,041,916
4,000   Washington Health Care Facilities Authority, Revenue Bonds, Providence Health & Services, Refunding Series 2012A, 5.000%, 10/01/32   10/22 at 100.00 AA- 4,370,160
1,700   Washington State Health Care Facilities Authority, Revenue Bonds, PeaceHealth, Refunding Series 2009, 5.000%, 11/01/28 (Pre-refunded 11/01/19)   11/19 at 100.00 AA- (4) 1,742,602
1,725   Washington State, General Obligation Bonds, Various Purpose Series 2015B, 5.000%, 2/01/37   2/25 at 100.00 AA+ 1,926,514
8,415   Total Washington       9,081,192
    Wisconsin – 0.7%        
1,250   Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, Series 2012B, 5.000%, 2/15/32   2/22 at 100.00 A- 1,327,650
$ 233,535   Total Municipal Bonds (cost $177,084,967)       198,963,727
    
Principal Amount (000)   Description (1) Coupon Maturity Ratings (3) Value
    CORPORATE BONDS – 0.0%        
    Transportation – 0.0%        
$ 87   Las Vegas Monorail Company, Senior Interest Bonds (7), (8) 5.500% 7/15/19 N/R $57,648
25   Las Vegas Monorail Company, Senior Interest Bonds (7), (8) 5.500% 7/15/55 N/R 12,123
$ 112   Total Corporate Bonds (cost $5,474)       69,771
    Total Long-Term Investments (cost $177,090,441)       199,033,498
    Other Assets Less Liabilities – 1.2%       2,379,967
    Net Assets Applicable to Common Shares  –  100%       $ 201,413,465
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, credit spreads, etc.).
Level 3  –     Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
8

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 $ — $198,963,727 $  — $198,963,727
Corporate Bonds  —  — 69,771 69,771
Total $ — $198,963,727 $69,771 $199,033,498
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.
The table below presents the cost and unrealized appreciation (depreciation) of the Fund's investment portfolio, as determined on a federal income tax basis, as of December 31, 2018.
Tax cost of investments $175,068,421
Gross unrealized:  
Appreciation $ 24,459,771
Depreciation (494,694)
Net unrealized appreciation (depreciation) of investments $ 23,965,077
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.  
(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.  
(5) Step-up coupon bond, a bond with a coupon that increases ("steps up"), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period.  
(6) As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund’s records.  
(7) 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.  
(8) 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.  
144A Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.  
ETM Escrowed to maturity.  
9

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 3   
By (Signature and Title)    /s/ Gifford R. Zimmerman                                                       
   Gifford R. Zimmerman   
   Vice President and Secretary   

Date: March 1, 2019

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: March 1, 2019      
By (Signature and Title)    /s/ Stephen D. Foy                                                                    
   Stephen D. Foy   
   Vice President and Controller (principal financial officer)   
Date: March 1, 2019